Payment of Dividend and Allotment of Share

British Smaller Companies VCT2 plc

Payment of Interim Dividend and Allotment of Shares

British Smaller Companies VCT2 plc (the "Company") announces that on 7 October 2014 it paid an interim dividend of 2.0 pence per ordinary share to shareholders on the register of members of the Company as at the record date of 5 September 2014 ("Interim Dividend").

The Company further announces that on 7 October 2014 it allotted 356,143 ordinary shares of 10 pence each pursuant to its dividend re-investment scheme ("DRIS") at a price of 58.14 pence per share to shareholders of the Company who elected to receive shares instead of the Interim Dividend. As a result 16.6% of the Interim Dividend paid by the Company was re-invested in shares in the Company via the DRIS.

Under this allotment the employees of the fund manager, YFM Private Equity Limited, have been allotted 482 ordinary shares of 10 pence each in the Company bringing their aggregate total holding to 119,446 ordinary shares.

Application is now being made for the ordinary shares allotted as set out above 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 21 October 2014.

Following such allotment the Company's issued share capital consists of 62,625,980 ordinary shares of 10 pence each with voting rights ("Voting Capital") and 1,840,918 ordinary shares of 10 pence each 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 FCA's Disclosure and Transparency Rules.

7 October 2014

For further information, please contact:

David Hall YFM Private Equity Limited Tel: 0161 832 7603

Gillian Martin Nplus1 Singer Advisory LLP Tel: 020 7496 3000