Issue of Equity

British SmallerTechCompaniesVCT2PLC
4 December 2001

British Smaller Technology Companies VCT 2 PLC (the 'Company')

4 December 2001

Issue of Shares

The Company announces that at a Board meeting held on 3 December 2001, the
Board issued and allotted 43,505 ordinary shares of 10p each (with warrants
attached on a 1:5 basis), representing approximately 0.63 per cent. of the
enlarged issued ordinary share capital of the Company which now consists of
6,876,133 ordinary shares. The new shares were issued for cash at a price of
100p per share.

As part of this subscription, Mr R Pettigrew, a non-executive director of the
Company, subscribed for 15,225 ordinary shares of 10p each (with warrants
attached on a 1:5 basis), representing approximately 0.22 per cent. of the
enlarged issued share capital. Mr Pettigrew has a total shareholding of 27,225
ordinary shares of 10p each (with warrants attached on a 1:5 basis)
representing approximately 0.40 per cent. of the enlarged issued share
capital.

Application will be made for admission of the new ordinary shares and new
warrants to trading on the London Stock Exchange as set out in the prospectus
dated 23 November 2001, with dealings expected to commence on 14 January 2002.

END