Interim Management Statement

Baronsmead VCT 3 plc Interim Management Statement

For the three month period from 1 January 2013 to 31 March 2013.

Headlines

• +4.4 per cent. increase in Net Asset Value per share • £1.91 million invested in two unquoted and five quoted investments • £3.59 million realised from the sale of one unquoted and two quoted investments Performance Summary Capital return As at As at Movement 31 March 2013 31 Dec 2012 Total net assets £74.47m £71.56m* Net asset value per share 111.85p 107.12p* 4.4% Share price 104.75p 105.38p (0.6%) Discount to NAV 6.3% 1.6% Total Return 3 month (%) 1 year (%) 5 years (%) 10 years (%)

Net asset valuetotal return (1) 4.32 13.48 39.60 114.39

* Adjusted for 4.5p (£3m) final dividend for comparative purposes paid on 15April 2013. NAV at 31 December 2012 excluding effect of final dividend was111.62p per share.

Key: (1) NAV total return = NAV + reinvested dividends; Source: ISIS EP LLP These total returns are stated before the inclusion of VCT tax reliefs whichare designed to mitigate the higher risks and costs associated with investingin smaller companies and the constraints of the VCT legislation. The front endincome tax reliefs available at the time of subscription were 20 per cent.prior to the end of the 2003/04 tax year, 40 per cent. in the 2004/05 and 2005/06 tax years and 30 per cent. since then, so any adjusted performance measureincluding this relief will vary depending on the date of subscription. There isthe additional benefit of receiving VCT dividends tax free.

Investment Performance

The net asset value of the company increased by 4.4 per cent. during thequarter. The unquoted portfolio valuation increased by 3.8 per cent. in thequarter and the AIM portfolio increased by 6.2 per cent.

The Company's net assets as at 31 March 2013 were £74.47 million. This figuretakes account of the valuation of the Company's investments as at 31 March 2013and an accrual for the payment of the final dividend of 4.5p per share payableon 15 April 2013 (£3 million).

Top Ten Investment Holdings

Position at Position at Company Percentage 31 March 31 Dec 2012 of NAV as at2013 31 March 2013 1 3 CableCom Networking Holdings 6.7 Limited 2 2 Nexus Vehicle Holdings Limited 6.7 3 4 Independent Living Services Limited 4.6 4 1 IDOX plc 4.3 5 5 Crew Clothing Holdings Limited 4.0 6 6 Kafevend Holdings Limited 3.8 7 7 CSC (World) Limited 3.5 8 8 Valldata Group Limited 2.9 9 13 Netcall plc 2.5 10 10 Inspired Thinking Group 2.4 Total 41.4 Analysis of Total Assets Percentage of total Percentage of total assets assets 31 March 2013 31 Dec 2012 Unquoted investments 52 50 AIM, listed & collective 36 36investments vehicle Listed interest bearing 6 3 securities Net current assets 6 11 Total cash portfolio 12 14 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 2013 31 Dec 2012 Business Services 33 31 Consumer Markets 18 18 Financial Services 2 2 Healthcare & Education 17 16 Technology, Media & 30 33Telecommunications Total 100 100 Investment Activity

During the period under review Baronsmead VCT 3 invested a total of £1,909,000in three new and four follow on investments.

The unquoted investments during the period consisted of a new investment of £1,065,000, in an internationally renowned fertility clinic, Create Health, anda further investment of £248,000 in Impetus.

New AIM investments were made in two companies: £225,000 was invested inIdeagen plc, a document management and compliance software provider, and £169,000 was invested in

Pinnacle Technology Group plc, an SME focused telecoms and IT service provider.

A total of £202,000 was invested in three follow on investments in AIM tradedcompanies: £39,000 invested in Accumuli plc, £50,000 invested in GreenCompliance plc and £113,000 invested in TLA Worldwide plc.

Investments made Company Date Cost (£'000) Accumuli plc Feb 2013 39 Create Health Limited Mar 2013 1,065 Green Compliance plc Jan 2013 50 Ideagen plc Jan 2013 225 Impetus Holdings Limited Mar 2013 248 Pinnacle Technology Group plc Feb 2013 169 TLA Worldwide plc Jan 2013 113 Total investments 1,909 Realisations

During the period under review Baronsmead VCT 3 received £3,588,000 from thesale of an unquoted investment (MLS Limited) and two quoted investments(FFastFill plc and IDOX plc).

The sale of Baronsmead VCT 3's holding in MLS Limited to Capita plc in March2013 realised a return of 2.8 times its original cost when the cash proceedsfrom the earlier repayments of the Company's investment are taken into account. FFastFill plcwas sold to ION Group at 2.8 times return on original cost while the partialrealisation of the Company's holding in IDOX plc through market sales yielded a 5.7 times return on originalcost. Company Date Cost Proceeds Multiple (£'000) (£'000) (X) FFastFill plc (Full trade Mar 2013 314 874 2.8sale) IDOX plc (Market sale) Jan 2013 306 1,752 5.7 MLS Limited (Full trade Jan/Mar 2013 93 962 2.8*sale) Total realisations 713 3,588

* Includes interest and loan redemption from prior periods.

Events after the period end

After the end of the period, Baronsmead VCT 3 invested £0.9 million in anunquoted investment Eque2 Limited, a provider of Enterprise Resource Planningsolutions to the construction industry. In addition, Baronsmead VCT 3 sold itsunquoted investment in ILS realising £3.4 million, representing a return ofapproximately 2.5 times the original cost of the investment. Other than the events described above, the Board is not aware of anysignificant events or transactions which have occurred between 1 April 2013 andthe date of publication of this statement which would have a material impact onthe financial position of the Company.

Investment objective

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

Further information

Further information regarding the Company, including net asset values publishedsince the end of the period and quarterly factsheets, can be found at theCompany's website

www.baronsmeadvct3.co.uk Contact

For further information please contact:

The Company's Investment Manager, ISIS EP LLP as follows:

Email: [email protected] Telephone: 020 7506 5717 Facsimile: 020 7506 5718 Post: 100 Wood Street, London, EC2V 7AN

Neither the contents of the Company's website nor the contents of any websiteaccessible from hyperlinks on this announcement (or any other website) isincorporated into, or forms part of, this announcement.