<ARTICLE>           5
<LEGEND>
                    The Schedule contains summary financial 
                    information extracted from the financial
                    statements for PruTech Research & Development
                    Partnership III and is qualified in its entirety
                    by reference to such financial statements
</LEGEND>
<RESTATED>          
<CIK>               0000794357
<NAME>              PruTech Research & Development Partnership III
<MULTIPLIER>        1

<FISCAL-YEAR-END>               Dec-31-1996

<PERIOD-START>                  Jan-1-1996

<PERIOD-END>                    Mar-31-1996

<PERIOD-TYPE>                   3-Mos

<CASH>                          294,110

<SECURITIES>                    15,360,314

<RECEIVABLES>                   216,669

<ALLOWANCES>                    0

<INVENTORY>                     0

<CURRENT-ASSETS>                15,871,093

<PP&E>                          0

<DEPRECIATION>                  0

<TOTAL-ASSETS>                  15,871,093

<CURRENT-LIABILITIES>           288,249

<BONDS>                         0

<PREFERRED-MANDATORY>           0

<PREFERRED>                     0

<COMMON>                        0

<OTHER-SE>                      15,582,844

<TOTAL-LIABILITY-AND-EQUITY>    15,871,093

<SALES>                         3,621,513

<TOTAL-REVENUES>                3,637,766

<CGS>                           0

<TOTAL-COSTS>                   0

<OTHER-EXPENSES>                234,801

<LOSS-PROVISION>                0

<INTEREST-EXPENSE>              0

<INCOME-PRETAX>                 0

<INCOME-TAX>                    0

<INCOME-CONTINUING>             0

<DISCONTINUED>                  0

<EXTRAORDINARY>                 0

<CHANGES>                       0

<NET-INCOME>                    3,402,965

<EPS-PRIMARY>                   74.82

<EPS-DILUTED>                   0