Completion of New Investment

British Smaller Companies VCT2 plc ("the Company")

Completion of a new investment

The Company announces it completed an investment on 15 December 2014 of £0.72 million to support the management buy-out of Wakefield Acoustics Limited ("Wakefield Acoustics"), a leader in the design, manufacture and installation of a wide range of bespoke industrial and environmental noise control solutions throughout the world. Wakefield Acoustics has recorded consistent growth over recent years establishing a strong market position with leading blue chip engineering companies supplying globally into sectors such as power, oil & gas, water, waste and general manufacturing. The funding will support Wakefield Acoustics' ambitious growth plans which include consolidation of its existing manufacturing facilities into one facility in 2015. The new company created to acquire Wakefield Acoustics is called Malvar Engineering Limited. For more information on the business please see www.wakefieldacoustics.co.uk.

This brings the aggregate investment during the first twelve months of the current financial year into both new and existing companies to £13.57 million.

18 December 2014

For further information please contact:

David Hall YFM Private Equity Limited Tel: 0113 244 1000

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