Issue of Equity/Offer Closed

British SmallerTechCompaniesVCT2PLC
1 June 2001



                BRITISH SMALLER TECHNOLOGY COMPANIES 2 VCT PLC


                     ISSUE OF EQUITY and CLOSING OF OFFER


The Company announces that on 31 May 2001 it issued and allotted 332,220
Ordinary Shares (with warrants attached on a 1:5 basis) under the 2001/02
Offer for subscription representing in total approximately 4.9 per cent. of
the enlarged issued share capital of the Company. The new shares were issued
at a price of 100p per share. This was pursuant to the Offer Document dated 28
November 2000.

Application will be made at the earliest practicable opportunity for admission
of the new shares to the Official List of the London Stock Exchange.

The Offer has now closed with 6,727,878 ordinary shares issued with a total
subscription of £6,727,878. However in view of the continuing high level of
enquiries to fund venture capital opportunities the Directors intend to take
advantage of the authority previously given to them to allot equity securities
up to an aggregate nominal amount of ten per cent of the issued ordinary share
capital immediately following the Offers. Accordingly the Directors are able
to allot up to a further 672,787 ordinary shares (with Warrants attached) and
will do so against applications received from investors.