AGM Statement

British SmallerTechCompaniesVCT2PLC
07 May 2004


         BRITISH SMALLER TECHNOLOGY COMPANIES VCT 2 PLC ("the Company")

                                   7 May 2004

                        ANNUAL GENERAL MEETING STATEMENT

The Company announces that, at the Annual General Meeting held on 6 May 2004,
each of the Ordinary and Special resolutions, which had been proposed, were duly
passed.

Commenting on progress in the first quarter of the new financial year, the
Chairman, Sir Andrew Hugh Smith, reported that the Company's net asset value had
increased to 87.6 pence per share at 31 March 2004 (84.6 pence per share at 31
December 2003).

Sir Andrew said he was pleased to announce that one of the portfolio companies
is in advanced stages of negotiation that could lead to a realisation for the
Company in the near future. This company intends to list on the AIM market in
June.

As the marketing of the Flotation has not started, there can be no assurance
that this realisation event will occur. However, since the transaction is at an
advanced stage, the Company has reflected substantially all of the impact on the
reported net asset value at 31 March 2004.

Sir Andrew reported that the general economic climate had continued to improve
and there was some optimism that the board may be able to report on other
realisations in the foreseeable future, which could further increase the net
asset value of the Company.

The board continues to review initiatives to improve shareholder value,
including its share buy-back policy, and any decisions will be announced at the
appropriate time.

END




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