Transaction in Own Shares

British Smaller Companies VCT2 plc ("the Company")

Purchase of Own Securities and Total Voting Rights

The Company announces that on 27 September 2018 it purchased 684,652 ordinary shares of 10 pence each at a price of 54.94 pence per ordinary share. The shares purchased represent 0.64 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 June 2018 was 58.8 pence per ordinary share. The Company will pay an interim dividend of 1.5 pence per ordinary share on 28 September 2018 to shareholders on the register on 31 August 2018. The ex-dividend date for this dividend was 30 August 2018.

If these shares had been purchased prior to the quarter ended 30 June 2018 the unaudited net asset value per ordinary share of the Company at that date would have been unaltered at 58.8 pence per ordinary share.

The Company's issued share capital now consists of 106,853,792 ordinary shares of 10 pence each with voting rights and 5,665,503 ordinary shares of 10 pence each held in treasury.

The above figure of 106,853,792 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

Jonathan Becher Panmure Gordon (UK) Limited Tel: 0207 886 2715