Issue of Equity

British Smaller Companies VCT plc

Allotment of Shares

British Smaller Companies VCT plc ("the Company") announces that on 22 August 2011 it allotted the following ordinary shares of 10 pence each to shareholders of the Company pursuant to its dividend reinvestment scheme ("Dividend Reinvestment Scheme"):

a) 210,533 ordinary shares at a price of 94.05 pence per share in place of the final dividend of 3 pence per ordinary share to be paid for the year ended 31 March 2011.

b) 1,067,408 ordinary shares at a price of 94.05 pence per share in place of the special interim dividend of 18 pence per ordinary share declared by the Board on 4 July 2011.

Application is now being made for the ordinary shares which were allotted on 22 August 2011 to be admitted to the premium segment of the Official List of the UK Listing Authority and to trading on the London Stock Exchange's main market for listed securities, and dealings are expected to commence on or around 30 August 2011.

Following such allotment the Company's issued share capital consists of 36,999,750 Ordinary Shares with voting rights ("Voting Capital") and 2,161,285 shares held in Treasury.

The above statement of Voting Capital may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in the Company under the FSA's Disclosure and Transparency Rules.

For further information, please contact:

David Hall YFM Private Equity Limited Tel: 0113 294 5039

Jeff Keating Singer Capital Markets Tel: 0203 205 7500