Circ re. Offer for Subscription

16 April 2010

British Smaller Technology Companies VCT 2 plc (the "Company")

Circular to Shareholders

The Company announces that a circular (the "Circular") was issued to shareholders on or around 26 February 2010 relating to an offer for subscription for up to 1,664,125 New Shares as defined in the Circular (subject to a maximum of £1.29 million of funds raised). To view the Circular, please paste the URL below into the address bar of your browser. http://www.yfmprivateequity.co.uk/venture-capital-trusts/fundraising-offers/ Copies of the Circular will shortly be available for inspection at the FSA's Document Viewing Facility, which is situated at: Financial Services Authority 25 The North Colonnade Canary Wharf London E14 5HS Tel no: 020 7066 1000 Name of contact and telephone number for enquiries:

David Hall, YFM Private Equity Limited 0161 832 7603

Robin Smeaton, The City Partnership (UK) Limited 0131 243 7210

Jim Gervasio, Secretary to the Company 0113 290 2000