Renaissance Capital Resumes Quarterly Dividend Program
Renaissance Capital Group


Dallas, Texas, December 17, 2007 -- Renaissance Capital Growth & Income Fund III, Inc. (RCG), a specialty closed-end fund announces that the Board of Directors has approved a cash dividend distribution of $0.10 per share. The dividend will be payable on January 14, 2008, to shareholders of record as of December 31, 2007. This action resumes the quarterly dividend payments.

With this dividend, the Fund will have paid its investors a total of $13.91 per share in cash distributions since it was established in 1994 at $10.00. Total distribution since inception, including deemed dividends, is estimated to be $18.89 per share, including the $0.95 estimated deemed dividend as discussed in more detail below.

The board has also announced a deemed dividend for shareholders of record as of December 31, 2007. The deemed dividend is currently estimated to be $4,255,511 or approximately $0.95 per share. This estimate is subject to change as the Fund prepares and finalizes its tax return for 2007. Shareholders will receive the deemed dividend information from their brokerage firm, bank, or American Stock Transfer and Trust Company, as applicable. This information will be reported to shareholders on IRS Form 2439.

When the Fund declares a deemed dividend instead of a cash distribution, the Fund pays a 35% tax on the retained capital gains, the shareholders are deemed to have received the deemed dividend as a capital gain dividend and the shareholders are deemed to have paid the tax actually paid by the Fund. Thus, they receive a tax credit that they can use to offset their tax on the deemed dividend or for other purposes. The shareholders also increase their cost basis in their shares in the Fund by the amount of the deemed distribution, net of taxes paid by the company and deemed paid by the shareholder, approximately $0.62 (representing the $0.95 deemed distribution, less the $0.33 deemed tax paid).

About Renaissance Capital Growth & Income Fund III, Inc.
Renaissance Capital Growth & Income Fund III, Inc. is a closed-end Business Development fund concentrating on investing in emerging publicly owned growth companies, primarily through private placements of convertible securities. The Fund seeks long-term capital appreciation and current income by investing in emerging growth companies. The Fund's current Portfolio consists of investments in 25 businesses in various industries.


View more information on Renaissance Capital or other Closed-End Funds