Issue of Equity

Baronsmead VCT 2 PLC
17 December 2004


To:            RNS

Date:          17 December 2004

From:          Baronsmead VCT 2 plc


Issue of Equity

The Company announces that on 17 November 2004 it allotted and issued 154,809
new ordinary shares of 10p each under the Dividend Reinvestment Scheme at a
price of 103.95p.

The new shares increase the issued share capital to 42,038,426 ordinary shares.

An application for admission to listing has been made today in respect of the
154,809 new ordinary shares.


For further information please contact:

Robert Coulter, F&C Asset Management plc :          0131 465 1000


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