Interim Report.

(From Hugin)

Puma VCT III plc Interim Report For the six months ended 30 June 2008 Chairman's Statement This statement forms the Interim Management Report for the half year ended 30 June 2008. Highlights

Net asset value per share of 95.25p. This represents a 0.7% decrease from year-end (adding back the 1.5p 2007 final dividend paid at the end of the period) compared to a decrease of 27.4% on the FTSE AIM Index for the same period.

GBP3.9 million invested into qualifying investments in the period.

Several large qualifying investments in the pipeline. Introduction During the six months to 30 June 2008, the investment manager's conservative approach has held Puma VCT III plc's performance stable though the continuing turmoil inflicting the wider financial markets, resulting in a small drop in NAV. The fund has a remit to invest in both unquoted and AIM/Plus listed equities, but the investment manager has concentrated upon investments in unquoted companies. The focus in unquoted investments is on providing secured mezzanine finance rather than taking an equity risk. The fund also holds some AIM stocks where the Investment Manager considered that the fund-raising offered good medium term value. This strategy has proven to be prudent as the AIM market fell 27.4% during the six months to 30 June 2008, suffering from the continuing economic downturn affecting global financial markets. It is likely that the value of typical unquoted equities of a kind in which VCTs can invest will have fallen by the same amount or more. In the same period the Company is reporting a fall of only 0.7% (adding back the 1.5p 2007 final dividend paid at the end of the period) in the NAV per share which now stands at 95.25p. The fall in value is primarily attributable to the Company's AIM quoted stocks, many of which are trading at a discount to their respective net asset values. This is less to do with the quality of these companies than the continuing result of the volatility and sentiment in the stock market for smaller companies that we reported on at the year end. New Qualifying investments The Company completed three qualifying transactions during the period totalling GBP3,890,000. The investments were into Bond Contracting Limited, Clifford Contracting Limited and Albemarle Contracting Limited. All three of these are private equity investments, primarily of mezzanine, under which the investment manager has a seat on the board and has direct …