BRITISH SMALLER COMPANIES VCT PLC

ALLOTMENT OF SHARES

British Smaller Companies VCT plc ("the Company") announces that on 7 January 2011 it allotted 106,086 ordinary shares of 10 pence each ("Ordinary Shares") to shareholders of the Company at a price of 91.96 pence per share pursuant to its dividend reinvestment scheme ("Dividend Reinvestment Scheme"). 

Those shareholders of the Company participating in the Dividend Reinvestment Scheme hold 15% of issued Ordinary Share capital of the Company.

Following such allotment the Company's issued share capital consists of 32,574,642 Ordinary Shares with voting rights ("Voting Capital") and 1,861,285 shares held in Treasury.

The above statement of Voting Capital 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 Private Equity Limited               Tel: 0161 832 7603

Jeff Keating                 Singer Capital Markets                      Tel: 0203 205 7500