Issue of Equity

Baronsmead VCT 3 PLC
17 September 2001



BARONSMEAD VCT 3 PLC

Dividend Reinvestment Scheme

The Company announces that on 17 September 2001 it issued 106,154 new ordinary
shares of 10p each under the Dividend Reinvestment Scheme at a price of
94.16p.

The new shares increase the issued share capital to 33,106,153 ordinary
shares.  Trading in these additional shares is expected to commence on 18
September 2001 at 8.00 am.


For further information please contact:

David Thorp, Friends Ivory & Sime Private Equity plc :      0207 560 1100
Rhonda Nicoll, Friends Ivory & Sime plc :                   0131 465 1000