Interim Management Statement

Baronsmead VCT 3 plc                              

                         Interim Management Statement                          

For the three month period from 1 July 2011 to 30 September 2011.

Headlines-

4.5p second interim dividend declared payable on 9 December 2011 to            
shareholders on the register as of 25 November 2011                            
                                                                               
Sale of investment in Quantix at 3.1 times cost                                

Performance Summary

Capital return                     As at       As at   Movement                
                                                                               
                            30 Sep 2011 30 Jun 2011                           
                                                                               
Total net assets                 £62.99m     £66.70m                           
                                                                               
Net asset value per share        105.41p     108.43p*     (2.8%)                
                                                                               
Share price                       95.25p      96.25p      (1.0%)                
                                                                               
Discount to NAV                    (9.6%)     (11.2%)                           
                                                                               
                              3 month (%)  1 year (%)   5 years(%)    Since launch (%)   
                                                                        
                                                                               
Net asset valuetotal return        (2.7)        9.9       18.0            91.1
(1)                                                                            
                                                                               
Share pricetotal return(2)          2.1        15.7       25.4            73.8
                                                                               
FTSE All-sharetotal return(3)     (13.5)       (4.4)       4.0            25.6
                                                                              
                                                                               

* Stated after allowing for 3.0p interim dividend for comparative purposes. NAV
at 30 June 2011 excluding effect of dividend was 111.43p.

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 net asset value total return of the company fell 2.7% during the quarter
compared to a drop of 13.5% in the FTSE All Share Total Return over the same
period. The unquoted valuation movement stayed flat in the quarter while the
AIM portfolio fell by 10.3%.

Top ten Investments 

Position    Position                                                  Percentage
  at          at                                                       of NAV                                  

30 Sep       30 June 2011                                       as at 30 Sep 2011 2011                                                                                                                                             Company                                       
                                                                           
 1           1           Nexus Vehicle Holdings Limited                 8.9
                                                                           
 2           3           CableCom Networking Holdings                   5.9
                         Limited                                           
                                                                           
 3           5           Crew Clothing Company Limited                  4.3
                                                                           
 4           4           IDOX plc                                       3.9
                                                                           
 5           6           CSC (World) Limited                            3.4
                                                                           
 6           7           Kafévend Holdings Limited                      3.2
                                                                           
 7           9           Fisher Outdoor Leisure Holdings                2.8
                         Limited                                           
                                                                           
 8          10           Valldata Group Limited                         2.6
                                                                           
 9          12           Vectura Group plc                              2.2
                                                                           
10          15           Inspired Thinking Group Limited                2.0
                                                                           
Total                                                                  39.2

Analysis of Total Assets

                         Percentage of total      Percentage of total      
                         assets                   assets                   
                                                                           
                         30 Sep 2011              30 Jun 2011              
                                                                           
Unquoted investments                           46                        47
                                                                           
AIM, Listed & Collective                       29                        29
Investments                                                                
                                                                           
Interest Bearing                    24                       23            
Securities                                                                 
                                                                           
Net current assets                   1                        1            
                                                                           
Total cash portfolio                           25                        24
                                                                           
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   
                        30 Sep 2011               30 Jun 2011                     
                                                                           
Business Services                              35                        31
                                                                           
Consumer Markets                               18                        21
                                                                           
Financial Services                              3                         2
                                                                           
Healthcare & Education                         11                        10
                                                                           
IT & Media                                     33                        36
                                                                           
Total                                         100                       100

Investment Activity

A total of £4.05m was invested during the period under review: four unquoted
investments totalling £3.44m, comprising three new and one follow on
investment, and one AIM traded investment totalling £0.61m. The three new
unquoted investments were in acquisition companies led by an experienced
Chairman who had previously been backed by ISIS through investment by the
Baronsmead VCTs. All three investments delivered successful realisations for
shareholders and the three Chairmen are now seeking new opportunities in their
chosen sectors.

After the period end a further unquoted investment of £1.35m was completed in
ICCM a provider of high acuity care for home based care users.

A total of £5.57m was realised from the sale or partial sale of four unquoted
investments and one quoted investment. These sales realised net capital profits
of £2.48m, being 1.8 times the cost of the investments.

Investments made

Company                                 Date              Cost (£'000)
                                                                     
Escher Group Holdings plc               Aug 2011                  614
                                                                     
Independent Living Services Limited*    Sep 2011                  438
                                                                     
Arcas Investments Limited±              Sep 2011                1,000
                                                                     
Quest Venture Partners Limited±         Sep 2011                1,000
                                                                     
HealthTech Innovation Partners Limited± Sep 2011                1,000
                                                                     
Total investments                                               4,052

*Follow on investment

±Acquisition vehicles

Realisations

Company                       Date               Cost              Proceeds Multiple*
                                               (£'000)             (£'000)          
                                                                         
Alere Inc                 Aug 2011                157       108       0.7
                                                                         
Carnell Contractors       Aug 2011                558       558       N/A
Limited (partial loan                                                    
redemption)                                                              
                                                                         
Getting Personal Limited  Jul 2011                988     1,811       ND^
                                                                         
MLS Limited (partial loan Sep 2011                188       188       1.0
redemption)                                                              
                                                                         
Quantix Limited           Sep 2011              1,194     2,904       3.1
                                                                         
Total realisations                              3,085     5,569          

* Multiple includes interest and dividends received, loan note redemptions and
partial realisations accounted for in prior periods.

^Not disclosed

Net Asset Value

The NAV per share at 31 October 2011 was 105.03p representing a decrease of
0.37p per share (0.35%) since the quarter end as a result of the decrease in
the value of the Company's investments in quoted companies.

Events after the period end(to be updated)

Declaration of dividend

The Board has declared a second interim dividend in lieu of a final dividend of
4.5p per share, resulting in total dividends for the year of 7.5 per share. The
dividend will be payable on 9 December to shareholders on the register as of 25
November 2011. The ex-dividend date will be the 23 November 2011.

New investments

Since 30 September 2011, the Company has invested a total of £1.5m in one new
unquoted and one new quoted investment. The Company has investments in 67
companies, 21 unquoted and 46 quoted investments and exposure to a further 29
companies through the investment in Wood Street Microcap Investment Fund.

Other than the events described above, the Board is not aware of any
significant events or transactions which have occurred between 30 September
2011 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
[e-mail]