Baronsmead 2vt Regulatory News (BMD)

12 May 2010 11:14

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 SummaryCapital 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 Mar2010 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 0.7Fundraising

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 michael.probin@isisep.com