Transaction in Own Shares

British Smaller Companies VCT2 plc ("the Company")

Purchase of Own Securities and Total Voting Rights

The Company announces that on 10 December 2010 it purchased 266,100 Ordinary Shares of 10 pence each at a price of 56.25 pence per share. These shares will be held in Treasury.

If these shares had been purchased prior to the quarter ended 30 September 2010, 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 increased from 66.2 pence to 66.4 pence per Ordinary Share.

The Company's issued share capital now consists of 17,271,419 Ordinary Shares with voting rights. In addition, the Company holds 566,100 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.

13 December 2010

For further information, please contact:

David Hall YFM Private Equity Limited Tel: 0161 832 7603

Jeff Keating Singer Capital Markets Tel: 0203 205 7500