Merger Update

British SmallerTechCompaniesVCT2PLC
04 October 2005



BRITISH SMALLER TECHNOLOGY COMPANIES VCT PLC
BRITISH SMALLER TECHNOLOGY COMPANIES VCT 2 PLC
4 October 2005

The Boards of British Smaller Technology Companies VCT Plc and British Smaller
Technology Companies VCT 2 Plc (the 'Boards') announced earlier today that they
are in discussion regarding the possible merger of their respective companies.
The Boards intention is that any such merger will be effected by a section 110
scheme of reconstruction pursuant to the Insolvency Act 1986.

END

For further information please contact
British Smaller Technology Companies VCT plc
British Smaller Technology Companies VCT 2 plc
Phillip Cammerman Director 0113 294 5050

YFM Private Equity Limited

David Hall Managing Director 0161 8327603
David Gee Investment Director 0113 2945050



                      This information is provided by RNS
            The company news service from the London Stock Exchange