Interim Management Statement

Baronsmead VCT 3 plc Interim management statement For the three month period from 1 July 2009 to 30 September 2009 Financial Headlines * 0.7% (0.7p per share) increase in underlying Net Asset Value (NAV) per share * 3.0p interim dividend paid on 7 September 2009 * 11.0% increase in the valuation of the AIM-traded portfolio Investment Objective and Dividend Policy Baronsmead VCT 3 plc is a tax efficient listed company which aims to achieve long-term investment returns for private investors. The Board wishes to maintain a minimum annual dividend of around 4.5p per share if possible, but this depends primarily on the level of realisations achieved and cannot be guaranteed. There will be variations in the amount of dividends paid year on year. Performance Summary Capital return As at As at Movement 30 September 30 June % 2009 2009 Ordinary shares Total net assets £54.36m £55.59m Net asset value per share 100.23p 99.51p* 0.7% Share price 89.50p 91.30p (2.0%) Premium/(Discount) to NAV (10.7%) (10.9%) *Adjusted for 3.0p interim dividend for comparative purposes. Actual NAV was 102.51 Total return 3 months to 1 year 5 years to Since launch to in January 30 Sept 30 Sept 30 Sept 2001 2009 2009 2009 Ordinary shares Net asset value 1 0.7% 1.1% 31.5% 57.1% Share price2 (0.5)% (0.7%) 36.4% 39.6% FTSE All-share3 22.4% 10.8% 38.4% 16.7% 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 Investment Performance The underlying NAV per share of the Company increased by 0.7% over the quarter with the unquoted portion of the portfolio falling marginally in value and the AIM portion increasing by 11.0%. Upward revaluations of the unquoted investments in Cablecom, Nexus and Scriptswitch were balanced out by further provisions taken on the investments in Occam and downward revaluations in Credit Solutions and ILS. The main downward movement on the unquoted portfolio related to Xention where a larger provision has been taken. Within the AIM portfolio the quarter saw welcome positive movement as equity markets continued to rally. The AIM portfolio now represents 23% of the total NAV. Investment Activity Five AIM traded investments totalling £0.51m were completed in four existing portfolio companies and one new company, Clarity Commerce Solutions plc. During the period Baronsmead VCT 3's investment in Concateno was realised after that company was acquired by Inverness Medical Inc. The return on the Company's investment in Concateno, in the form of Inverness Medical shares and cash, is approximately 1.32 times the initial cost. Two further trade sales of Claimar Care Group plc and MBL Group plc were made in the period realising £0.63m. The overall portfolio consisted of 68 companies at the period end. Investment Company Date Cost (£'000) VCT status Clarity Commerce Sep 09 50 Qualifying Solutions Electric Word Sep 09 200 Qualifying Ffastfill July 09 34 Non Qualifying Inverness Medical Inc* Aug 09 180 Part Qualifying Kiotech Sep 09 75 Qualifying Win July 09 150 Non Qualifying Total investment 689 *NYSE traded Top ten investment holdings Position as at Position as Company Percentage of at net assets as at 30 September 30 September 30 June 2009 2009 2009 1 1 Reed and Mackay 5.49% 2 2 Scriptswitch 5.44% 3 4 Nexus Vehicle 4.65% 4 3 Carnell Contractors 4.54% 5 6 Cablecom 3.40% 6 7 Quantix 3.31% 7 5 ILS 2.88% 8 8 Fisher Outdoor 2.64% 9 10 Vectura 2.50% 10 9 Kafévend 2.48% Total 37.33% Sector breakdown (excluding cash and interest bearing securities) Percentage of total Percentage of total investments at investments at 30 September 2009 30 June 2009 Business Services 32 32 Consumer Markets 14 14 IT & Media 28 27 Healthcare & Education 20 21 Financial Services 6 6 Total 100 100 Fundraising The Board's current intention is that there will be a significant fundraising in the current tax year in conjunction with Baronsmead VCT 4 plc. The documentation associated with this fundraising is currently being prepared and at this stage it is anticipated that this fundraising will commence in January 2010. Shareholders will automatically receive a copy of the fundraising documentation when it is published and further announcements will be made in due course. ISIS portfolio company award We are pleased to report that Mike Washburn, CEO of ScriptSwitch, has been awarded the "Venture Capital backed CEO of the Year" by the British Venture Capital Association and Private Equity News. ScriptSwitch has already delivered results for more than 115 NHS Primary care organisations with significant cost savings to the NHS. Events since 30 September 2009 Other than disclosed in this statement, the Board is not aware of any significant events or transactions which have occurred between 30 September 2009 and the date of publication of this statement which would have a material impact on the financial position of the Company. Sale of ScriptSwitch ScriptSwitch, an investment made in May 2007, was subject to a bid that completed shortly after the quarter end resulting in a return, including expected future payments, approaching four times the initial cost. Net Asset Value as at 31 October 2009 The NAV per share at 31 October 2009 was 100.39p. Further information Information regarding the Company, including latest financial statements or quarterly factsheets, can be found at the Company's website www.baronsmeadvct3.co.uk For further information please contact: Michael Probin, VCT Investor Relations, ISIS EP LLP on 020 7506 5796 or michael.probin@isisep.com Paul Forster, Company Secretary, on 020 7506 5652 or paul.forster@isisep.com

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