Transaction in Own Shares

British Smaller Companies VCT2 plc ("the Company")

Purchase of Own Securities and Total Voting Rights

The Company announces that on 14 June 2012 it purchased 80,916 Ordinary shares of 10 pence each at a price of 57.25 pence per share. These shares will be held in Treasury.

If these shares had been purchased prior to the quarter ended 31 March 2012, and on the assumption that there were no other alterations, the Net Asset Value per Ordinary share of the Company at that date would have would remained at 69.2 pence per Ordinary share.

The Company's issued share capital now consists of 38,243,718 Ordinary shares with voting rights. In addition, the Company holds 1,178,356 shares in Treasury.

The above figure 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 Equity Partners Limited Tel: 0113 294 5039

Claes Spang Singer Capital Markets Tel: 0203 205 7500