Issue of Equity

Baronsmead VCT 2 PLC
29 October 2004


TO: LONDON STOCK EXCHANGE, COMPANY ANNOUNCEMENTS

FROM:         Baronsmead VCT 2 plc

AVS NO:

DATE:         29 October 2004

SUBJECT:      Offer for Subscription


C Share Issue

The Board of Baronsmead VCT 2 plc is pleased to announce that applications have
been received in respect of 395,942 C shares at 100p per C share which have been
issued on 29 October 2004.  Trading in these C shares is expected to commence on
1 November 2004 at 8.00am.

This brings the total number of C shares in issue to 7,130,470.

David Thorp, ISIS Equity Partners plc:               0207 506 1100
Rhonda Nicoll, F&C Asset Management plc:             0131 465 1000


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