About Renaissance Capital Growth & Income Fund III, Inc.

The conference will feature presentations by the management of six unique emerging growth companies from our portfolio which are: Bovie Medical Corp. (AMEX:BVX), BPO Management Services, Inc. (OTC:BPOM), Hemobiotech, Inc. (OTC:HMBT), PetroHunter Energy Corporation (OTC:PHUN), Points International Ltd. (OTC:PTSEF), and Vertical Branding (OTC:VBDG). We will also have Dr. Richard Propper, an expert in Chinese investing, speak on China and give an update on two additional RENN holdings: A-Power Energy Generation Systems, Ltd. (NASDAQ:APWR) and HLS Systems International, Ltd. (OTC: HLSYF). These companies represent such diverse industries as electric utilities, healthcare equipment, medical, office services and supplies, oil and gas, and specialty retail.

Please RSVP by Thursday, May 1, 2007 to Kathryn Semon at kathryn@rencapital.com or 214-891-8295 if you plan to attend.

 

About Renaissance Capital Growth & Income Fund III, Inc.

Renaissance Capital Growth & Income Fund III, Inc. is a closed-end Business Development Company 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 30 businesses in various industries.

 

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Foward Looking Statements

The Fund seeks long-term capital appreciation and current income by investing in emerging growth companies.  This report contains forward-looking statements.  Such statements reflect the current views of the Fund with respect to future events and are subject to certain risks, uncertainties, and assumptions.  Although the Fund believes that the expectations reflected in such forward-looking statements are reasonable, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual future results or events may vary materially from those described herein.  Past performance is not indicative of future results.  For additional information, please visit www.rencapital.com.

  

Investor Contacts:                                                                       Media Relations Contact:           

RENN Capital Group, Inc.                                                                                 Chris Rosgen

Kathryn Semon                                                                                                   Capital Market Relations

(214) 891-8294                                                                                                   (949)481-9739

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 PRESS RELEASE - FOR IMMEDIATE RELEASE

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Renaissance Capital Announces First Quarter Distribution

Total cash distribution since inception to reach $14.01 per share

Dallas, Texas, March 11, 2008 Renaissance Capital Growth & Income Fund III, Inc. (AMEX: RCG), a specialty closed-end fund announces that the Board of Directors has approved a quarterly cash dividend distribution of $0.10 per share. The dividend will be payable on March 31, 2008, to shareholders of record as of March 21, 2008.

With this dividend, the Fund will have paid its investors a total of $14.01 per share in cash distributions since it was established in 1994 at $10.00. Total distribution since inception, including cash and deemed dividends, is $18.99 per share.

 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 30 businesses in various industries.

 

# # #

 

Forward Looking Statements

The Fund seeks long-term capital appreciation and current income by investing in emerging growth companies.  This report contains forward-looking statements.  Such statements reflect the current views of the Fund with respect to future events and are subject to certain risks, uncertainties, and assumptions.  Although the Fund believes that the expectations reflected in such forward-looking statements are reasonable, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual future results or events may vary materially from those described herein.  Past performance is not indicative of future results.  For additional information, please visit www.rencapital.com.

  

Investor Contacts:                                                                       Media Relations Contact:           

RENN Capital Group, Inc.                                                                                 Chris Rosgen

Kathryn Semon                                                                                                   Capital Market Relations

(214) 891-8294                                                                                                   (949)481-9739

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NEWS ALERT

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Renaissance Capital Discusses Deemed Dividend

  

Dallas, Texas, March 3, 2008.

 

TO SHAREHOLDERS OF RECORD ON DECEMBER 31, 2007:

 

What exactly is a deemed dividend, anyway?

 

Renaissance Capital Growth & Income Fund III, Inc. (the “Fund”) is a non-diversified, closed-end fund that has elected to be treated as a business development company (a “BDC”) under the Investment Company Act of 1940 (the “1940 Act”), as amended.  The Fund has also elected to be a regulated investment company (a “RIC”) under Subchapter M of the Internal Revenue Code (the “Code”).  Under Subchapter M of the Code, a RIC may deduct distributions paid out of its taxable income and accordingly may avoid federal income tax if it distributes all of its taxable income.  With respect to its net long-term capital gains, Subchapter M provides the Fund with three choices:  it can retain them and pay tax, it can declare a deemed dividend (or designated undistributed capital gain dividend) or it can pay out the gains as a distribution.

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 Fund and deemed paid by the shareholder, or approximately $0.62 (approximately $0.95 deemed distribution, less approximately $0.33 deemed tax paid). 

During the year ended December 31, 2007, the Fund realized net taxable long-term gains of approximately $4,689,640 or $1.05 per share.  From these capital gains, cash dividends of $0.10 were distributed, bringing the total cash distributions from inception of the Fund to $13.91 per share.  In addition to the cash distribution, the Fund elected to retain an estimated $4,243,244 of realized capital gains and has designated them as deemed paid to shareholders of record on December 31, 2007 and will pay the federal income taxes of 35%, equivalent to approximately $1,485,135 or $0.33 per share.  The tax effect is the same as if the capital gains had been distributed to the Fund’s shareholders, who then elected to reinvest 65% of the amount received.  

What is the payment date?

There is no payment date, as no cash is paid out.  However, the net asset value of the Fund was adjusted downward by $0.33 per share as of December 31, 2007 to account for the deemed dividend federal tax payable on behalf of shareholders of record date December 31, 2007.  To receive the $0.33 per share deemed dividend tax credit, you must have been a shareholder of record on December 31, 2007.

Who will send me the tax information of the deemed dividend, and when will I get this information?

If you own your shares in “street name” in electronic format, your brokerage firm or bank will send you the tax information.

If you own your shares directly in your own name, American Stock Transfer and Trust Company will send you the tax information.

The Fund filed a capital gains tax return for the year ended December 31, 2007, in January, 2008, and has notified the brokerage firms, banks and American Stock Transfer and Trust Company with the details of the cash and deemed dividends.

If you do not receive the information by March 1, 2008, you should contact your brokerage firm, bank or American Stock Transfer and Trust Company for it.  On your tax return you should report your deemed dividend as reflected on the IRS Form 2439 provided to you and attach the form to your return.

What are the consequences of a deemed dividend to me as a shareholder?

The deemed dividend is deemed paid to the shareholders of record as of December 31, 2007.  Shareholders of record on the record date will be provided with the exact amount of the deemed dividend attributable to their shares by their brokerage firm or bank, if their shares are held in electronic format, or by American Stock Transfer and Trust Company if their shares are held directly.  This information is to be reported to you on an IRS Form 2439 which should be attached to your tax return. 

The following simplified example illustrates the tax treatment under Sub-Chapter M of the Internal Revenue Code for the Fund and its shareholders with regard to the estimated $4,243,244 or $0.95 per share net long-term realized capital gain to be retained by the Fund and designated as an undistributed capital gain or deemed dividend: 

1.    The Fund will pay a corporate-level federal income tax of 35% or approximately $1,485,135 on the undistributed capital gain, or approximately $0.33 per share, on behalf of shareholders.

2.    Shareholders will increase their cost basis in their stock by approximately $0.62 per share.

3.    All shareholders will receive a federal tax credit equal to the 35% tax paid by the Fund on the undistributed capital gain, or approximately $0.33 per share.  Taxable shareholders can use that credit to offset their federal tax liabilities for 2007 and can claim a refund on Form 1040 to the extent of any unused credit.  (After payment of the federal income tax of the deemed dividend, a shareholder taxable at 15% federal capital gains tax rate will have a remaining tax credit of $0.19 per share.)  Shareholders who hold their shares in tax-deferred accounts can receive a refund from the IRS of the taxes paid on their behalf by the Fund on the deemed dividend by having their custodians file IRS Form 990T with the IRS.  (It typically takes several months for custodians to receive the refund and deposit it into shareholders’ accounts.)  Other tax exempt shareholders can also receive refunds of the taxes paid on their behalf on the deemed dividend by filing IRS Form 990T. 

Shareholders requiring further information about the impact of the deemed dividend on their state and/or local taxes should consult their tax advisors.

Why did the company choose to declare a deemed dividend rather that a cash dividend at this time?

The Board of Directors, after careful deliberation and the review of feedback from shareholders, has decided that it is in the best interest of the Fund and its continued growth to declare a deemed dividend.  Allowing the Fund to retain capital will enable the Fund to take advantage of future investment opportunities and allow the net asset value to grow.  From a bookkeeping point of view, shareholders wind up in the same position whether the Fund pays deemed dividends or cash dividends, as Figures 1 and 2 illustrate.

Figure 1 – Analysis of Deemed Dividend Effect with Respect to Taxable Shareholders

 

Taxable Shareholders

 

                                                                        Cash Dividends           Deemed Dividends

                                                                            Per Share                        Per Share     

Cash distributed to shareholders                           $0.95                              $0.00

Maximum federal capital gains tax                        (0.14)                             (0.14)

   for individuals

Tax credit to shareholders                                       0.00                                0.33

Increase in investment in Fund                                 0.00                                0.62

After-tax increase in shareholder

   assets per share                                                   $0.81                             $0.81

 

Figure 2 – Analysis of Deemed Dividend Effect with Respect to Tax Deferred Shareholders

                                                                        Cash Dividends           Deemed Dividends

                                                                            Per Share                       Per Share      

Cash distributed to shareholders                           $0.95                              $0.00

Maximum federal capital gains tax                          0.00                                0.00

Refundable Tax credit to shareholders                   0.00                                0.33

Increase in investment in Fund                                 0.00                                0.62

After-tax increase in shareholder

assets per share                                                      $0.95                              $0.95

 

If I have questions about my individual tax situation, where can I get them answered?

Renaissance Capital Growth & Income Fund III, Inc. is not equipped or qualified to give tax advice.  You should consult your tax advisor.

Forward Looking Statements

The Fund seeks long-term capital appreciation and current income by investing in emerging growth companies.  This report contains forward-looking statements.  Such statements reflect the current views of the Fund with respect to future events and are subject to certain risks, uncertainties, and assumptions.  Although the Fund believes that the expectations reflected in such forward-looking statements are reasonable, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual future results or events may vary materially from those described herein.  Past performance is not indicative of future results.  For additional information, please visit www.rencapital.com.

Investor Contacts:                                                                        Media Relations Contact:             

RENN Capital Group, Inc.                                                                                  Chris Rosgen

Kathryn Semons                                                                                                  Capital Market Relations

(214) 891-8294                                                                                                    (949)481-9739

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 PRESS RELEASE - FOR IMMEDIATE RELEASE

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Renaissance Capital Resumes Quarterly Dividend Program

 

Board of Directors Announces Fourth Quarter 2007
Cash and Deemed Dividends

 
Dallas, Texas, December 17, 2007 - Renaissance Capital Growth & Income Fund III, Inc. (AMEX: 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.

 

# # #

 

Forward Looking Statements

The Fund seeks long-term capital appreciation and current income by investing in emerging growth companies.  This report contains forward-looking statements.  Such statements reflect the current views of the Fund with respect to future events and are subject to certain risks, uncertainties, and assumptions.  Although the Fund believes that the expectations reflected in such forward-looking statements are reasonable, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual future results or events may vary materially from those described herein.  Past performance is not indicative of future results.  For additional information, please visit www.rencapital.com.

 

 

Investor Contacts:                                                                                              Media Relations Contact:           

RENN Capital Group, Inc.                                                                                   Chris Rosgen

Kathryn Semon                                                                                                  Capital Market Relations

(214) 891-8294                                                                                                     (949)481-9739

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 PRESS RELEASE - FOR IMMEDIATE RELEASE

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New Book by Fund Manager Offers Investment Insight

“It’s all about the CEO,” states the author.

 

Dallas, Texas, June 12, 2007 (PR Newswire) – What exactly makes a company worth investing in? Russell Cleveland, the President of Renaissance Capital Growth & Income Fund III, Inc. (AMEX: RCG), answers that question in his new book, Finding Midas, an entertaining and enlightening discourse on investment fundamentals.

 

"The key to mega-stock investing is not focusing on the industry, but rather on the entrepreneurial leadership characteristics of the CEO. This strategy is what RENN Capital Group uses to provide, in some cases, soaring returns for investors. You might just find the next Wal-Mart, Starbucks, or eBay," he says.

 

Cleveland explains his CEO assessment strategy in a manner that is accessible to beginners, while containing insights that can benefit the most experienced investor. Filled with plenty of relevant anecdotes, Finding Midas convincingly argues that the companies with the strongest and most involved leaders are the ones that bring in the biggest profits for their investors.

 

The book includes case studies on some of the most successful business executives in recent history, including Warren Buffett, Michael Dell, Howard Schultz and Meg Whitman. Not only does the book examine the leadership traits that can be used to predict success, it also examines fundamental topics such as diversification, pricing, when to sell and other critical information.

 

“Every serious student of investing should read this book.  It should be required reading for every broker and advisor in the business.  Exposure to the ideas set forth would be invaluable to students in helping jumpstart their knowledge and investing experience.  It’s a great read,” according to Don Hodges, Chairman of the Hodges Fund and who was awarded 2006 Best Fund Manager by Lipper Analytical for three years among all US multi cap funds.

 

About the Author:

Russell Cleveland is the principal founder and the majority shareholder of RENN Capital Group, Inc. RENN provides capital to emerging publicly owned companies. Russell is a Chartered Financial Analyst who has specialized in investing in emerging growth companies for over 40 years. Mr. Cleveland is a graduate of the University of Pennsylvania, Wharton School of Finance and Commerce.

 

Besides serving as President and Director of Renaissance Capital Growth & Income Fund III, Inc. (AMEX: RCG), he is also Director and Manager of Renaissance US Growth and Income Trust PLC, which is traded on the London Exchange, U.S. Portfolio manager of US Special Opportunities Trust PLC (London based) and Premier RENN US Emerging Growth Limited (London based).

 

Mr. Cleveland currently serves on the Board of Directors of Cover-All Technologies, Inc., CaminoSoft Corp., Integrated Security Systems, Inc., Tutogen Medical, Inc., and Access Plans USA. Over the years, he has served on the boards of many publicly traded emerging growth companies. More information on the book is available at www.findingmidas.com.

 

About Renaissance Capital Growth & Income Fund III, Inc.

Renaissance Capital Growth & Income Fund III, Inc. is a closed-end Business Development Company 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 28 businesses in various industries. The Fund has paid its investors a total of $13.81 per share to its investors in cash distributions since its initial public offering in 1994 at $10.00. To help preserve the investing power of the future of the Fund, the Board of Directors on December 31, 2006 declared a deemed dividend of $4.03 per share ($1.41 of which was a deemed tax paid to the IRS on its shareholders behalf), the remainder was reinvested. To be added to the Renaissance Capital Growth & Income Fund III, Inc. news distribution list, click here: http://www.b2i.us/irpass.asp?BzID=1404&to=ea&s=0.  More information on the company can be found at www.rencapital.com.

 

Forward Looking Statements:

The Fund seeks long-term capital appreciation and current income by investing in emerging growth companies. This report contains forward-looking statements. Such statements reflect the current views of the Fund with respect to future events and are subject to certain risks, uncertainties, and assumptions. Although the Fund believes that the expectations reflected in such forward-looking statements are reasonable, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual future results or events may vary materially from those described herein. Past performance is not indicative of future results.

 

Contact:

Chris Rosgen

Capital Market Relations

www.capitalmarketrelations.com

949.481.9739 Office

949.289.5075 Mobile

 

"Building Shareholder Value Through Proactive Communications."

 

Capital Market Relations serves as financial relations counsel to this company and is acting on the company's behalf in issuing this bulletin and is receiving compensation for these services. This e-mail is being sent to you for your information or at your request. Neither this e-mail nor any attachment is an offer or a solicitation to buy or sell securities. Information upon which this material is based was obtained from sources believed to be reliable but has not been verified and cannot be warranted as to completeness or accuracy. Investors should not rely on the information given by Capital Market Relations to make investment decisions. Rather, investors should use the information only as a starting point to do additional independent research so that the investor is able to make his or her own investment decision. The contents of this e-mail or any attachment are strictly intended for use only by professional or institutional investors and select members of the media or trade. Additional information is available upon request. To be removed from the client news distribution list, please use the link below. Capital Market Relations, 27674 Emerald Mission Viejo, CA. 92691

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 PRESS RELEASE - FOR IMMEDIATE RELEASE

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Renaissance Capital Growth & Income Fund III (RENN) to be listed on the American Stock Exchange under the Ticker Symbol: (AMEX: RCG)

Dallas, Texas, May 21, 2007, Renaissance Capital Growth, Inc., (OTC:RENN), is scheduled to be listed on the AMEX effective Tuesday, May 22, 2007. The company will trade under the symbol RCG. To commemorate this event, the company will ring the bell opening the trading session at 9:30 a.m. EDT. Russell Cleveland, CEO of Renaissance, will do the honors, and will then tour the floor and join the specialist for the company on the trading floor. “We are very excited about the move to the American Stock Exchange,” Mr. Cleveland stated. “This will provide added exposure of the Fund to institutional investors and provide our current investors with increased transparency and liquidity.”

About American Stock Exchange

The American Stock Exchange® (Amex®) offers trading across a full range of equities, options and exchange traded funds (ETFs), including structured products and HOLDRSSM. In addition to its role as a national equities market, the Amex is the pioneer of the ETF, responsible for bringing the first domestic product to market in 1993. Leading the industry in ETF listings, the Amex lists 309 ETFs to date. The Amex is also one of the largest options exchanges in the U.S., trading options on broad-based and sector indexes as well as domestic and foreign stocks.

About Renaissance Capital Growth & Income Fund III, Inc.

Renaissance Capital Growth & Income Fund III, Inc. is a closed-end Business Development Company 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 28 businesses in various industries. The Fund has paid its investors a total of $13.81 per share to its investors in cash distributions since its initial public offering in 1994 at $10.00. To help preserve the investing power of the future of the Fund, the Board of Directors on December 31, 2006 declared a deemed dividend of $4.03 per share ($1.41 of which was a deemed tax paid to the IRS on its shareholders behalf), the remainder was reinvested. More information on the company can be found at www.rencapital.com.

Forward Looking Statements:
The Fund seeks long-term capital appreciation and current income by investing in emerging growth companies. This report contains forward-looking statements. Such statements reflect the current views of the Fund with respect to future events and are subject to certain risks, uncertainties, and assumptions. Although the Fund believes that the expectations reflected in such forward-looking statements are reasonable, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual future results or events may vary materially from those described herein. Past performance is not indicative of future results.

Shareholder Relations: Michelle Sparks, Renaissance Capital 214-891-8294

Media Relations: Chris Rosgen, Capital Market Relations (949)481-9739

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 PRESS RELEASE - FOR IMMEDIATE RELEASE

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Renaissance Investor Conference To Be Webcast Live Friday May 18, 2007

Six Emerging Growth Companies To Present