Completion of new investment

British Smaller Companies VCT2 plc ("the Company")

Completion of new investment

The Company announces that on 30 June 2016 it completed an investment of £0.95 million to acquire 11% of Hosted Network Services Limited, trading as Sipsynergy.

Sipsynergy, based in Hertfordshire, is a market leading cloud collaboration solutions provider to SMEs. Sipsynergy has worked closely with technology firm Cisco to create a solution which is sold on a white label basis through IT and telecoms resellers and managed service providers.

The funding will support the company's growth strategy through the expansion of its sales and support teams.

For further information please contact:

David Hall YFM Private Equity Limited Tel: 0113 244 1000

Gillian Maxwell Nplus 1 Singer Advisory LLP Tel: 020 7496 3000