Issue of Equity

British SmallerTechCompaniesVCT2PLC
18 May 2004


BRITISH SMALLER TECHNOLOGY COMPANIES VCT 2 PLC

18 MAY 2004

ISSUE OF EQUITY

The Company announces that at a Board meeting held on 14 May 2004, the Board
issued and allotted 7,073 ordinary shares of 10p each, in respect of valid
applications received from Warrantholders applying in respect of the 2004/2005
tax year. The new shares were issued for cash at price of 100p per share.

The Company also announces that at a Board meeting held on 14 May 2004, the
Board issued and allotted 3,000 ordinary shares of 10p each, in respect of valid
applications received from New Warrantholders applying in respect of the 2004/
2005 tax year. The new shares were issued for cash at price of 100p per share.

The issued share capital of the Company is now 7,833,466 ordinary shares.

Application will be made for admission of the new ordinary shares to trading on
the London Stock Exchange as soon as practicable.




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