Transaction in Own Shares

Baronsmead VCT 3 PLC
16 February 2004


To:      RNS

From:    Baronsmead VCT 3 plc

Date:    16 February 2003

Subject: Purchase of Own Securities



The Board of Baronsmead VCT 3 plc announces that on 16 February 2004 the Company
purchased for cancellation 50,000 ordinary shares of 10p at a price of 88.50p.

Following this purchase there are now 33,912,410 ordinary shares of 10p in
issue.


For further information please contact:


                         David Thorp, ISIS Equity Partners plc: 0207 506 1100

                         Rhonda Nicoll, ISIS Asset Management plc: 0131 465 1000



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