PruTech Research and Development Partnership III


                                                November 1999

To our Unitholders:

PruTech Research and Development Partnership III (the "Partnership")
was recently advised by Forest Laboratories, Inc. that Forest has still
not responded to the FDA's November 1998 non-approval letter relating
to their application for Synapton. Forest believes they would incur
significant additional costs to pursue the matter without any
assurance that Synapton would ultimately be approved. As a
result, there is no expectation that the Partnership will
receive any revenues from its royalty interest in Synapton. The
Partnership's royalty positions with Creative BioMolecules, Inc.
and Forest, both of which expire in December 1999, are deemed to
have no value. As a result, the Partnership has been liquidated
in accordance with the Partnership Agreement.

On November 12, 1999, the Partnership made a final liquidating
distribution to the Unitholders of $23.26 per unit. With this
final liquidating distribution, the Partnership has
made cash distributions to Unitholders of $720.76 per unit
since its inception or approximately 72% of the Unitholders'
original capital contributions.

As the final liquidating distribution to the Unitholders
represented the final step in the liquidation process, the
General Partner terminated the Partnership effective November
15, 1999. The General Partner will prepare and file the final
tax return, as soon as practicable, and will distribute the
final tax information return on Schedule K-1 to the
Unitholders in early 2000. Should you have any questions
concerning the dissolution and liquidation of the Partnership,
please feel free to contact your Financial Advisor or call
the Prudential Securities' Client Services Department
at 1-800-535-2077.


Sincerely,

/s/ Brian J. Martin
Brian J. Martin
President
R&D Funding Corp
General Partner