Issue of Equity

Baronsmead VCT 2 PLC
06 September 2004

To:           RNS


Date:         6 September 2004


Company:      Baronsmead VCT 2 plc


Subject:      Offer for Subscription




Baronsmead VCT 2 plc ('the Company') announces that it has published a
Prospectus to raise up to £20m.



Baronsmead VCT 2 Chairman, Clive Parritt, said: 'We are a very established
generalist VCT nearing full investment with 84% of the portfolio in qualifying
holdings.  The additional capital will increase diversity and also provide
economies of scale taking net assets to over £60 million once fully subscribed
and making us one of the largest VCTs.'



The Offer opens today and will close at 12 noon on 28th January 2005 (or any
earlier date on which it is fully subscribed).  The Offer for Subscription is
for of up to 20,000,000 C Ordinary Shares ('the C Shares') for the current tax
year.   The C Shares will be issued at a price of £1 and there is an incentive
mechanism in place for early applications in the form of free additional shares.




To obtain a copy of the prospectus private investors should call 0845 850 1515
and Financial Advisers should call 0845 799 2299. Downloadable versions of the
prospectus are also available from www.isisam.com



A copy of the Prospectus has been submitted to the UKLA, and will shortly be
available for inspection at the UKLA's Document Viewing Facility, which is
situated at:



Financial Services Authority
The North Colonnade
Canary Wharf
LONDON
E14 5NS



For further information contact:
David Thorp                ISIS Equity Partners plc, tel. [phone]
Gary Fraser                ISIS Asset Management plc, tel. [phone]


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