Interim Management Statement

Baronsmead VCT 3 plc                              

                         Interim Management Statement                          

For the three month period from 1st January 2010 to 31st March 2010.

Headlines-

  * 1.2% increase in Net Asset Value (NAV) per ordinary share
   
  * Sale of Active Assistance at 2.8 times cost
   
  * We welcome 209 new shareholders and thank the 696 existing shareholders of
    Baronsmead VCT 3 and Baronsmead VCT 4 who subscribed £8m gross proceeds in
    the recent Joint Offer.
   
 

Performance Summary

Capital return                As at         As at       Movement           
                                                                           
                              31stMar       31stDec                        
                                                                           
                              2010          2009                           
                                                                           
Total net assets              £60.7m        £52.9m                         
                                                                           
Net asset value per share     98.68         97.50       1.2%               
                                                                           
Share price                   88.25         86.25       2.3%               
                                                                           
Discount to NAV               10.6%         11.5%                          
                                                                           
Total return                  3 month (%)   3year (%)   Since launch (%)   
                                                                           
Net asset value(1)            1.2           (6.1)       61.8               
                                                                           
Share price(2)                2.3           (3.9)       44.0               
                                                                           
FTSE All-share(3)             6.4           (0.7)       31.0               
                                                                           

Key:

(1) NAV total return = NAV + reinvested dividends; Source: ISIS EP LLP

(2) Share price total return = Mid to mid share price + reinvested dividends;
Source: AIC

(3) FTSE All-share = FTSE All-share Index + reinvested dividends; Source: AIC

These total returns are stated before the inclusion of VCT tax
reliefs which are designed to mitigate the higher risks and costs associated
with investing in smaller companies and the constraints of the VCT legislation.
The tax reliefs given at the time of subscription have been 20%, 40%
and later 30%, so any adjusted performance measure including this relief will
vary depending on the date of subscription. There is the additional benefit of
receiving VCT dividends tax free.   

Investment Performance 

The NAV per Ordinary share at 31st March 2010 was 98.68p giving a
positive total return of 1.2% for the quarter. This compares to the FTSE
All-Share Total Return Index increase of 6.4% over the same period.  Since
launch NAV Total Return is 61.8% which compares with a rise of 31.0% for the
FTSE All Share.  

Despite the difficult economic outlook the Board and the Manager believe that
the portfolio represents sound value at current prices and that the company is
well financed to take advantage selectively of further investment
opportunities.  Unquoted valuations have increased by 4% in the period
bringing an uplift to NAV per share. 

  

Top ten Investments 

Position    Position at                                      Percentage    
at                                                           of NAV        
            31 December   Company                                          
31 March20  2009                                             as at 31 Mar20
10                                                           10            
                                                                           
1           1            Reed & Mackay                       5.5           
                                                                           
2           3            Nexus Vehicle Holdings              4.4           
                                                                           
3           2            Carnell Contractors                 3.3           
                                                                           
4           5            Cablecom Networking Holdings        3.1           
                                                                           
5           4            Quantix                             3.0           
                                                                           
6           6            Fisher Outdoor Leisure Holdings     2.9           
                                                                           
7           10           CSC (World)                         2.7           
                                                                           
8           7            Independent Living Services         2.7           
                                                                           
9           8            Kafevend Holdings                   2.6           
                                                                           
10          9            Crew Clothing Company               2.2           
                                                                           
Total                                                        32.4          

Analysis of Total Assets

                          Percentage of total assets  Percentage of total  
                                                      assets               
                          31 March 2010                                    
                                                       31 December 2009    
                                                                           
AIM, Listed & Collective  22                          23                   
Investments                                                                
                          41                          48                   
Unquoted investments                                                       
                                                                           
Interest Bearing          29                          25                   
Securities                                                                 
                                                                           
Cash                      8                           4                    
                                                                           
Total cash portfolio      37                          29                   
                                                                           
Total Assets              100                         100                  

Analysis of Investment Portfolio by Sector

(excluding cash and interest bearing securities)

                   Percentage of total         Percentage of total         
                   investments at              investments at              
                                                                           
                   31 March 2010               31 December 2009            
                                                                           
Business Services  36                          36                          
                                                                           
Healthcare &       9                           13                          
Education                                                                  
                                                                           
IT & Media         35                          31                          
                                                                           
Financial Services 6                           6                           
                                                                           
Consumer Markets   14                          14                          
                                                                           
Total              100                         100                         

Investment Activity

During the period Active Assistance, an unquoted investment made in March 2008,
was realised resulting in a 2.8x return.

Three AIM traded investments totalling £0.4m were completed in three existing
portfolio companies.

Following the period end an investment of £4.4m (across the four Baronsmead
generalist VCTs) was completed in Surgi-C, the UK's leading independent
distributor of spinal implants.

Investments made                                    Date         Cost (£'000)
                                                                             
Electric Word plc                                   Jan 10                  4
                                                                             
Proactis Holdings plc                               Feb 10                219
                                                                             
Jelf Group plc                                      Feb 10                210
                                                                             
Total Investments                                                         433

In total two AIM investments were realised in full.

Realisations                                                                 
                                                                             
Company                   Date               Cost    Proceeds (£     Multiple
                                                           '000)             
                                          (£'000)                            
                                                                             
Character Group plc       Feb 10              144            132          0.9
                                                                             
INVU plc                  Mar 10               35              1          0.0
                                                                             
Total realisations                            179            133          0.7

Fundraising

The Joint Offer by Baronsmead VCT 3 and Baronsmead VCT 4 raised £8m gross
proceeds for each VCT. The Offer closed fully subscribed within 8 weeks with
approximately 70 per cent being subscribed by existing shareholders from across
the five Baronsmead VCTs.

Net Asset Value

The NAV per share at 30 April 2010 was 99.53p representing an increase
of 0.9% since the quarter end driven largely by an increase in the value of the
AIM portfolio. 

Events after the period end

Other than as discussed in this statement the Board is not aware of any
significant events or transactions which have occurred between 31 March 2010
and the date of publication of this statement which would have a material
impact on the financial position of the Company.

Investment objective

Baronsmead VCT 3 plc is a tax efficient listed company which aims to achieve
long-term investment returns for private investors.

Further information 

Further information regarding the Company, including net asset values published
since the end of the period and quarterly factsheets, can be found at the
Company's website www.baronsmeadvct3.co.uk

Contact

For further information please contact:

Michael Probin     Investor Relations Manager     020 7506
5600   [e-mail]