Special Dividend Declaration

British Smaller Companies VCT plc ("the Company")

Special Interim Dividend

On 13 April 2011 the Company announced the partial realisation of its investment in GO Outdoors Limited for proceeds of £6.54 million.

As a consequence of this realisation, the directors are pleased to announce the payment of a special interim dividend of 18.0 pence per ordinary share ("Special Dividend"), equivalent to £6.43 million. The dividend will be paid on 22 August 2011 to Shareholders on the register on 22 July 2011.

The Company operates a dividend re-investment scheme which allows Shareholders the opportunity to build further capital value by electing to receive ordinary shares in the Company, credited as fully paid, instead of receiving dividends in cash ("the Scheme").

Participating Shareholders are today being notified of their ability to dis-apply their Scheme mandates for the purpose of the Special Dividend only and instead receive the Special Dividend in cash ("Opt-Out").

A circular containing the Scheme rules together with a mandate form (and Opt-Out form) has today been sent to Shareholders who are not currently participating in the Scheme for completion and return if they wish to take part in the Scheme.

A copy of the circular containing the Scheme rules together with the mandate form and the Opt-Out form have been submitted to the National Storage Mechanism and will shortly be available to the public for viewing online at www.hemscott.com/msn/do. They are also available on the website of the Company's Fund Manager at www.yfmep.com. 

Helen Sinclair the Company's Chairman added "I am delighted to be able to announce the payment of this dividend. This takes total dividends paid and proposed to 77.2 pence per share averaging over 5 pence per year for each of the fifteen years of the Company's life".

4 July 2011

For further information, please contact:

David Hall YFM Private Equity Limited Tel: 0113 294 5039

Jeff Keating Singer Capital Markets Tel: 0203 205 7500