Transaction in Own Shares

British Smaller Companies VCT2 plc ("the Company")

Purchase of Own Securities and Net Asset Value

The Company announces that on 18 December 2019 it purchased 1,100,000 ordinary shares of 10 pence each at a price of 51.52 pence per ordinary share. The shares purchased represent 0.83 per cent of the total number of voting rights in the Company before the transaction. These shares will be held in treasury.

The last reported net asset value as at 30 September 2019 was 53.7 pence per ordinary share.

The Company's issued share capital now consists of 131,100,546 ordinary shares of 10 pence each with voting rights. In addition, the Company holds 9,309,092 ordinary shares of 10 pence each in treasury.

The above figure of 131,100,546 ordinary shares 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.

For further information, please contact:

David Hall YFM Private Equity Limited Tel: 0113 244 1000

Robert Naylor Panmure Gordon (UK) Limited Tel: 0207 886 2768