UNITED  STATES
                       SECURITIES  AND  EXCHANGE  COMMISSION
                             WASHINGTON,  D.C.  20549
                               ___________________
                                    FORM 10-Q




[X]     QUARTERLY  REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
        EXCHANGE  ACT  OF  1934
        FOR  THE  FISCAL  QUARTER  ENDED  SEPTEMBER  30,  2002

[  ]    TRANSITION  REPORT  PURSUANT  TO  SECTION  13  OR  15(D)  OF  THE
        SECURITIES  EXCHANGE  ACT  OF  1934
        FOR  THE  TRANSITION  PERIOD  FROM              TO

                         COMMISSION FILE NUMBER 1-10813
                             _______________________

                          PLM EQUIPMENT GROWTH FUND III
             (Exact name of registrant as specified in its charter)

<TABLE>
<CAPTION>

<S>                               <C>
                 CALIFORNIA . . . . . . . . . . .           68-0146197
        (State or other jurisdiction of.                (I.R.S. Employer
         incorporation or organization) .                Identification No.)

       450 CARILLON PARKWAY SUITE 200
             ST. PETERSBURG, FL . . . . .   . .                33716
           (Address of principal. . . . . .                  (Zip code)
            executive offices)
</TABLE>



       Registrant's telephone number, including area code: (727) 803-8200
                             _______________________


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding  12  months  (or  for such shorter period that the registrant was
required  to  file  such  reports)  and  (2)  has  been  subject  to such filing
requirements  for  the  past  90  days.  Yes    X  No  ______
                                             ----



<PAGE>

                          PLM EQUIPMENT GROWTH FUND III
                             (A LIMITED PARTNERSHIP)
                            CONDENSED BALANCE SHEETS
                 (in thousands of dollars, except unit amounts)
                                   (unaudited)

<TABLE>
<CAPTION>

<S>                                                             <C>              <C>
                                                                  September 30,     December 31,
                                                                      2002             2001
                                                                ===============  ==============
ASSETS

Equipment held for operating leases at cost. . . . . . . . . .  $       30,635   $      37,731
Less accumulated depreciation. . . . . . . . . . . . . . . . .         (28,248)        (33,833)
                                                                ---------------  --------------
  Net equipment. . . . . . . . . . . . . . . . . . . . . . . .           2,387           3,898

Cash and cash equivalents. . . . . . . . . . . . . . . . . . .           7,317          10,141
Accounts receivable, net of allowance for doubtful
    accounts of $475 in 2002 and $518 in 2001. . . . . . . . .             367             420
Prepaid expenses and other assets. . . . . . . . . . . . . . .              60              23
                                                                ---------------  --------------
    Total assets . . . . . . . . . . . . . . . . . . . . . . .  $       10,131   $      14,482
                                                                ===============  ==============
LIABILITIES AND PARTNERS' CAPITAL

Liabilities:
Accounts payable and accrued expenses. . . . . . . . . . . . .  $          238   $         416
Due to affiliates. . . . . . . . . . . . . . . . . . . . . . .              50              66
Lessee deposits and reserves for repairs . . . . . . . . . . .               2              29
                                                                ---------------  --------------
  Total liabilities. . . . . . . . . . . . . . . . . . . . . .             290             511
                                                                ---------------  --------------
Partners' capital:
Limited partners (9,871,210 depositary units in 2002 and 2001)           9,841          13,971
General Partner. . . . . . . . . . . . . . . . . . . . . . . .              --              --
                                                                ---------------  --------------
  Total partners' capital. . . . . . . . . . . . . . . . . . .           9,841          13,971
                                                                ---------------  --------------
    Total liabilities and partners' capital. . . . . . . . . .  $       10,131   $      14,482
                                                                ===============  ==============
</TABLE>


















       See accompanying notes to unaudited condensed financial statements.
<PAGE>

                          PLM EQUIPMENT GROWTH FUND III
                             (A LIMITED PARTNERSHIP)
                         CONDENSED STATEMENTS OF INCOME
         (in thousands of dollars, except weighted-average unit amounts)
                                   (unaudited)
<TABLE>
<CAPTION>

<S>                                                <C>                     <C>                    <C>      <C>
                                                   For the Three Months    For the Nine Months
                                                    Ended September 30,    Ended September 30,
                                                    2002         2001      2002          2001
                                                   ==========================================
REVENUES

Lease revenue . . . . . . . . . . . . . . . . . .  $  1,351   $  1,688   $  4,397   $  5,363
Interest and other income . . . . . . . . . . . .        40         78        107        248
Gain on disposition of equipment. . . . . . . . .       106         31        305      4,015
                                                   ---------  ---------  ---------  ---------
  Total revenues. . . . . . . . . . . . . . . . .     1,497      1,797      4,809      9,626
                                                   ---------  ---------  ---------  ---------

EXPENSES

Depreciation. . . . . . . . . . . . . . . . . . .       366        428      1,121      1,464
Repairs and maintenance . . . . . . . . . . . . .       507        483      1,525      1,574
Equipment operating expenses. . . . . . . . . . .         9          9         28         26
Insurance expense . . . . . . . . . . . . . . . .        21         20         63        115
Management fees to affiliate. . . . . . . . . . .        97        119        307        354
General and administrative expenses to
     affiliates . . . . . . . . . . . . . . . . .        55         60        163        310
Other general and administrative expenses . . . .       371        182        817        880
(Recovery of) provision for bad debts . . . . . .      (57)       (92)       (33)          4
                                                   ---------  ---------  ---------  ---------
  Total expenses. . . . . . . . . . . . . . . . .     1,369      1,209      3,991      4,727
                                                   ---------  ---------  ---------  ---------

Equity in net income (loss) of an unconsolidated
    special-purpose entity. . . . . . . . . . . .        --         --         40        (10)
                                                   ---------  ---------  ---------  ---------
    Net income. . . . . . . . . . . . . . . . . .  $    128   $    588   $    858   $  4,889
                                                   =========  =========  =========  =========
PARTNERS' SHARE OF NET INCOME

Limited partners. . . . . . . . . . . . . . . . .  $    128   $    588   $    609   $  4,858
General Partner . . . . . . . . . . . . . . . . .        --         --        249         31
                                                   ---------  ---------  ---------  ---------
    Total . . . . . . . . . . . . . . . . . . . .  $    128   $    588   $    858   $  4,889
                                                   =========  =========  =========  =========
Limited partners' net income per weighted-
  average depositary unit . . . . . . . . . . . .  $   0.01   $   0.06   $   0.06   $   0.49
                                                   =========  =========  =========  =========
Cash distribution . . . . . . . . . . . . . . . .  $     --   $     --   $  4,988   $    624
                                                   =========  =========  =========  =========
Cash distribution per limited partners' weighted-
    average depositary unit . . . . . . . . . . .  $     --   $     --   $   0.48   $   0.06
                                                   =========  =========  =========  =========
</TABLE>






       See accompanying notes to unaudited condensed financial statements.
<PAGE>

                          PLM EQUIPMENT GROWTH FUND III
                             (A LIMITED PARTNERSHIP)
              CONDENSED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
           FOR THE PERIOD FROM DECEMBER 31, 2000 TO SEPTEMBER 30, 2002
                            (in thousands of dollars)
                                   (unaudited)
<TABLE>
<CAPTION>


                                               Limited     General
                                               Partners    Partner     Total
                                              ==========  =========  ========
<S>                                           <C>         <C>        <C>
  Partners' capital as of December 31, 2000.  $   9,316   $     --   $ 9,316

Net income . . . . . . . . . . . . . . . . .      5,247         31     5,278

Cash distribution. . . . . . . . . . . . . .       (592)       (31)     (623)
                                              ----------  ---------  --------
  Partners' capital as of December 31, 2001.     13,971         --    13,971

Net income . . . . . . . . . . . . . . . . .        609        249       858

Cash distribution. . . . . . . . . . . . . .     (4,739)      (249)   (4,988)
                                              ----------  ---------  --------
  Partners' capital as of September 30, 2002  $   9,841   $     --   $ 9,841
                                              ==========  =========  ========
</TABLE>































      See accompanying notes to unaudited condensed financial statements.
<PAGE>
<TABLE>
<CAPTION>

<S>                                                                        <C>                    <C>
PLM EQUIPMENT GROWTH FUND III
(A LIMITED PARTNERSHIP)
CONDENSED STATEMENTS OF CASH FLOWS
(in thousands of dollars)
(unaudited)
                                                                            For the Nine Months
                                                                            Ended September 30,
                                                                            2002          2001
                                                                           ====================
OPERATING ACTIVITIES

Net income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $    858   $  4,889
Adjustments to reconcile net income to net cash provided by (used in)
    operating activities:
  Depreciation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     1,121      1,464
  Gain on disposition of equipment. . . . . . . . . . . . . . . . . . . .     (305)     (4,015)
  Equity in net (income) loss from unconsolidated special-purpose entity.      (40)         10
  Changes in operating assets and liabilities:
    Accounts receivable, net. . . . . . . . . . . . . . . . . . . . . . .        48        125
    Restricted cash . . . . . . . . . . . . . . . . . . . . . . . . . . .        --        (23)
    Prepaid expenses and other assets . . . . . . . . . . . . . . . . . .      (37)         18
    Accounts payable and accrued expenses . . . . . . . . . . . . . . . .     (178)        (32)
    Due to affiliates . . . . . . . . . . . . . . . . . . . . . . . . . .      (16)         (2)
    Lessee deposits and reserves for repairs. . . . . . . . . . . . . . .      (27)       (187)
                                                                           ---------  ---------
      Net cash provided by operating activities . . . . . . . . . . . . .     1,424      2,247
                                                                           ---------  ---------

INVESTING ACTIVITIES

Payments for capitalized improvements . . . . . . . . . . . . . . . . . .      (21)        (70)
Distributions from unconsolidated special-purpose entity. . . . . . . . .        40         66
Proceeds from disposition of equipment. . . . . . . . . . . . . . . . . .       721      5,626
                                                                           ---------  ---------
      Net cash provided by investing activities . . . . . . . . . . . . .       740      5,622
                                                                           ---------  ---------

FINANCING ACTIVITIES

Cash distribution paid to limited partners. . . . . . . . . . . . . . . .   (4,739)       (593)
Cash distribution paid to General Partner . . . . . . . . . . . . . . . .     (249)        (31)
                                                                           ---------  ---------
      Net cash used in financing activities . . . . . . . . . . . . . . .   (4,988)       (624)
                                                                           ---------  ---------
Net (decrease) increase in cash and cash equivalents. . . . . . . . . . .   (2,824)      7,245
Cash and cash equivalents at beginning of period. . . . . . . . . . . . .    10,141      1,832
                                                                           ---------  ---------
Cash and cash equivalents at end of period. . . . . . . . . . . . . . . .  $  7,317   $  9,077
                                                                           =========  =========

</TABLE>












       See accompanying notes to unaudited condensed financial statements.


                          PLM EQUIPMENT GROWTH FUND III
                             (A LIMITED PARTNERSHIP)
                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                                   (UNAUDITED)

1.     Opinion  of  Management
       -----------------------

In  the  opinion  of  the management of PLM Financial Services, Inc. (FSI or the
General  Partner),  the  accompanying  unaudited  condensed financial statements
contain  all  adjustments  necessary,  consisting  primarily of normal recurring
accruals,  to  present  fairly the unaudited condensed financial position of PLM
Equipment  Growth  Fund  III  (the  Partnership)  as  of  September 30, 2002 and
December  31,  2001,  the unaudited condensed statements of income for the three
and  nine  months  ended  September  30,  2002 and 2001, the unaudited condensed
statements of changes in partners' capital for the period from December 31, 2000
to  September 30, 2002, and the unaudited condensed statements of cash flows for
the nine months ended September 30, 2002 and 2001.  Certain information and note
disclosures  normally  included  in  financial statements prepared in accordance
with  accounting  principles  generally accepted in the United States of America
have  been  condensed  or  omitted  from  the  accompanying  condensed financial
statements.  For  further information, reference should be made to the financial
statements and notes thereto included in the Partnership's Annual Report on Form
10-K  for  the  year  ended  December  31,  2001,  on file at the Securities and
Exchange  Commission.

2.     Schedule  of  Partnership  Phases
       ---------------------------------

The  Partnership,  in accordance with its limited partnership agreement, entered
its  liquidation  phase  on  January  1,  2000  and  has  commenced  an  orderly
liquidation  of  the  Partnership's  assets.  The  General  Partner  filed  a
certificate  of  dissolution  on behalf of the Partnership with the Secretary of
State for the State of California on December 31, 2000, and following completion
of  the liquidation of the Partnership, will file a certificate of cancellation.
The  General  Partner  may  no  longer  reinvest cash flows and surplus funds in
equipment.  All  future cash flows and surplus funds, if any, are to be used for
distributions  to  partners,  except  to  the extent used to maintain reasonable
reserves.  During  the liquidation phase, the Partnership's assets will continue
to  be reported at the lower of carrying amount or fair value less cost to sell.

3.     Cash  Distributions
       -------------------

Cash  distributions  are recorded when paid and may include amounts in excess of
net  income that are considered to represent a return of capital.  For the three
and nine months ended September 30, 2002, cash distributions totaled $0 and $5.0
million,  respectively.  Cash  distributions  to  the  limited  partners of $4.1
million  for the nine months ended September 30, 2002 were deemed to be a return
of  capital.  For  the  three  and  nine  months  ended September 30, 2001, cash
distributions  were  $-0-  and  $0.6  million,  respectively.  None  of the cash
distributions  in  the  nine  months  ended September 30, 2001 were considered a
return  of  capital.

4.     Transactions  with  General  Partner  and  Affiliates
       -----------------------------------------------------

The  balance due to affiliates as of September 30, 2002 and December 31, 2001 of
$0.1  million  is  a  payable  to  FSI  and  its  affiliate for management fees.


<PAGE>
                          PLM EQUIPMENT GROWTH FUND III
                             (A LIMITED PARTNERSHIP)
                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                                   (UNAUDITED)

5.     Equipment
       ---------

Owned  equipment held for operating leases is stated at cost.  The components of
owned  equipment  were  as  follows  (in  thousands  of  dollars):
<TABLE>
<CAPTION>


                                  September 30,    December 31,
                                      2002             2001
                               ===============================
<S>                            <C>              <C>
Railcars. . . . . . . . . . .  $       27,735   $      32,305
Trailers. . . . . . . . . . .           2,473           3,036
Marine containers . . . . . .             427           2,390
                               ---------------  --------------
                                       30,635          37,731

Less accumulated depreciation         (28,248)        (33,833)
                               ---------------  --------------
    Net equipment . . . . . .  $        2,387   $       3,898
                               ===============  ==============
</TABLE>


As  of  September  30,  2002,  all equipment in the Partnership portfolio was on
lease  except for six containers and 175 railcars.  As of December 31, 2001, all
equipment  in  the  Partnership  portfolio was on lease except for 100 railcars.
The  net  book value of the equipment off lease was $0.3 million as of September
30,  2002  and  December  31,  2001.

Capital  improvements to the Partnership's equipment of $21,000 and $0.1 million
were  made  during  the  nine  months  ended  September  30,  2002  and  2001,
respectively.

During  the  nine  months  ended September 30, 2002, the Partnership disposed of
marine  containers,  trailers, and railcars, with an aggregate net book value of
$0.4  million  for  aggregate  proceeds of $0.7 million.  During the nine months
ended  September  30,  2001,  the  Partnership  disposed  of  aircraft,  marine
containers,  trailers,  and  railcars,  with an aggregate net book value of $1.6
million,  for  proceeds  of  $5.6  million.











                      (This space intentionally left blank)

<PAGE>
                          PLM EQUIPMENT GROWTH FUND III
                             (A LIMITED PARTNERSHIP)
                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                                   (UNAUDITED)

6.     Operating  Segments
       -------------------

The  Partnership  operates  or  operated  primarily  in four different segments:
aircraft  leasing,  railcar  leasing,  marine  container  leasing,  and  trailer
leasing.  Each  equipment-leasing  segment  engages  in  short-term and mid-term
operating  leases  to  a  variety  of customers.  The following tables present a
summary  of  the  operating  segments  (in  thousands  of  dollars):
<TABLE>
<CAPTION>


                                                    Marine
For the three months ended               Railcar   Container    Trailer
September 30, 2002                       Leasing    Leasing     Leasing    Other 1    Total
-------------------------------------------------------------------------------------------
<S>                                     <C>        <C>         <C>        <C>        <C>

REVENUES
  Lease revenue. . . . . . . . . . . .  $  1,270   $        1  $     80   $     --   $ 1,351
  Interest income and other. . . . . .        --           --        --         40        40
  Gain on disposition of equipment . .        67           39        --         --       106
                                        ---------  ----------  ---------  ---------  --------
     Total revenues. . . . . . . . . .     1,337           40        80         40     1,497
                                        ---------  ----------  ---------  ---------  --------

COSTS AND EXPENSES
  Operations support . . . . . . . . .       445           --        77         15       537
  Depreciation . . . . . . . . . . . .       328            6        32         --       366
  Management fees to affiliates. . . .        93            1         3         --        97
  General and administrative expenses.       160           --        19        247       426
  Recovery of bad debts. . . . . . . .       (57)          --        --         --       (57)
                                        ---------  ----------  ---------  ---------  --------
      Total costs and expenses . . . .       969            7       131        262     1,369
                                        ---------  ----------  ---------  ---------  --------
Net income (loss). . . . . . . . . . .  $    368   $       33  $    (51)  $   (222)  $   128
                                        =========  ==========  =========  =========  ========

Total assets as of June 30, 2002 . . .  $  2,085   $       21  $    648   $  7,377   $10,131
                                        =========  ==========  =========  =========  ========
</TABLE>


<TABLE>
<CAPTION>


                                                                     Marine
For the three months ended                   Aircraft    Railcar    Container    Trailer
September 30, 2001                           Leasing     Leasing     Leasing     Leasing    Other 2    Total
------------------------------------------------------------------------------------------------------------
<S>                                         <C>         <C>        <C>          <C>        <C>        <C>

REVENUES
  Lease revenue. . . . . . . . . . . . . .  $      --   $  1,586   $       (3)  $    105   $     --   $1,688
  Interest income and other. . . . . . . .         --         --           --         --         78       78
  Gain (loss) on disposition of equipment.         (5)        23           11          2         --       31
                                            ----------  ---------  -----------  ---------  ---------  -------
     Total revenues. . . . . . . . . . . .         (5)     1,609            8        107         78    1,797
                                            ----------  ---------  -----------  ---------  ---------  -------

COSTS AND EXPENSES
  Operations support . . . . . . . . . . .         77        362           --         57         16      512
  Depreciation and amortization. . . . . .         --        386            7         35         --      428
  Management fees to affiliates. . . . . .         (2)       116           --          5         --      119
  General and administrative expenses. . .         --         48           --         26        168      242
  Recovery of  bad debts . . . . . . . . .         --        (92)          --         --         --      (92)
                                            ----------  ---------  -----------  ---------  ---------  -------
      Total costs and expenses . . . . . .         75        820            7        123        184    1,209
                                            ----------  ---------  -----------  ---------  ---------  -------
Net income (loss). . . . . . . . . . . . .  $     (80)  $    789   $        1   $    (16)  $   (106)  $  588
                                            ==========  =========  ===========  =========  =========  =======
</TABLE>


_________________________
1     Includes  certain assets not identifiable to a particular segment, such as
cash  and  prepaid  expenses.  Also  includes  interest  income  and  costs  not
identifiable  to  a  particular  segment  such as certain operations support and
general  and  administrative  expenses  and  costs  related to sold aircraft and
marine  vessels  that  were  wholly  owned.

2     Includes  certain  interest  income  and  costs  not  identifiable  to  a
particular  segment  such  as  certain  operations  support  and  general  and
administrative  expenses.

<PAGE>
                          PLM EQUIPMENT GROWTH FUND III
                             (A LIMITED PARTNERSHIP)
                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                                   (UNAUDITED)

6.     Operating  Segments  (continued)
       -------------------
<TABLE>
<CAPTION>


                                                    Marine
For the nine months ended                Railcar   Container    Trailer
September 30, 2002                       Leasing    Leasing     Leasing    Other 1    Total
-------------------------------------------------------------------------------------------
<S>                                     <C>        <C>         <C>        <C>        <C>

REVENUES
  Lease revenue. . . . . . . . . . . .  $  4,094   $       12  $    291   $     --   $4,397
  Interest income and other. . . . . .        13           --        --         94      107
Net gain on disposition of equipment .       172          108        25         --      305
                                        ---------  ----------  ---------  ---------  -------
     Total revenues. . . . . . . . . .     4,279          120       316         94    4,809
                                        ---------  ----------  ---------  ---------  -------

COSTS AND EXPENSES
  Operations support . . . . . . . . .     1,362           --       207         47    1,616
  Depreciation . . . . . . . . . . . .     1,001           17       103         --    1,121
  Management fees to affiliates. . . .       291            1        15         --      307
  General and administrative expenses.       333           --        57        590      980
  Provision for bad debts. . . . . . .       (42)          --         9         --      (33)
                                        ---------  ----------  ---------  ---------  -------
      Total costs and expenses . . . .     2,945           18       391        637    3,991
                                        ---------  ----------  ---------  ---------  -------
Equity in net income of an USPE. . . .        --           --        --         40       40
                                        ---------  ----------  ---------  ---------  -------
Net income (loss). . . . . . . . . . .  $  1,334   $      102  $    (75)  $   (503)  $  858
                                        =========  ==========  =========  =========  =======
</TABLE>


<TABLE>
<CAPTION>

<S>                                     <C>        <C>       <C>        <C>         <C>        <C>        <C>
                                                               Marine      Marine
For the nine months ended. . . . . . .    Aircraft   Railcar   Vessel     Container   Trailer
 September 30, 2001. . . . . .            Leasing    Leasing   Leasing    Leasing     Leasing    Other 2    Total
---------------------------------------------------------------------------------------------------------------
REVENUES
--------------------------------------
  Lease revenue. . . . . . . . . . . .  $     185  $  4,864  $     --   $       20  $    294   $     --   $5,363
  Interest income and other. . . . . .         39        --        --           --        --        209      248
  Gain on disposition of equipment . .      3,694       247        --           51        23         --    4,015
                                        ---------  --------  ---------  ----------  ---------  ---------  -------
     Total revenues. . . . . . . . . .      3,918     5,111        --           71       317        209    9,626
                                        ---------  --------  ---------  ----------  ---------  ---------  -------

COSTS AND EXPENSES
  Operations support . . . . . . . . .        104     1,363        --           --       155         93    1,715
  Depreciation . . . . . . . . . . . .        151     1,174        --           23       116         --    1,464
  Management fees to affiliate . . . .          2       336        --            1        15         --      354
  General and administrative expenses.        215       178        15            1        64        717    1,190
  Provision for bad debts. . . . . . .         --         4        --           --        --         --        4
                                        ---------  --------  ---------  ----------  ---------  ---------  -------
      Total costs and expenses . . . .        472     3,055        15           25       350        810    4,727
                                        ---------  --------  ---------  ----------  ---------  ---------  -------
Equity in net loss of USPEs. . . . . .         --        --       (10)          --        --         --      (10)
                                        ---------  --------  ---------  ----------  ---------  ---------  -------
Net income (loss). . . . . . . . . . .  $   3,446  $  2,056  $    (25)  $       46  $    (33)  $   (601)  $4,889
                                        =========  ========  =========  ==========  =========  =========  =======
</TABLE>


7.     Net  Income  Per  Weighted-Average  Depositary  Unit
       ----------------------------------------------------

Net  income  per  weighted-average  depositary unit was computed by dividing net
income  attributable  to  the limited partners by the weighted-average number of
depositary  units  deemed  outstanding  during the period.  The weighted-average
number  of  depositary units deemed outstanding during the three and nine months
ended  September  30,  2002  and  2001  was  9,871,210.
_________________________
1     Includes  interest  income  and  costs  not  identifiable  to a particular
segment  such  as  certain  operations  support  and  general and administrative
expenses  and costs related to sold aircraft and marine vessels that were wholly
owned.

2     Includes  certain  interest  income  and  costs  not  identifiable  to  a
particular  segment  such  as  certain  operations  support  and  general  and
administrative  expenses.   Also  includes  the  equity in the loss of an entity
that  owned  a  marine  vessel.

<PAGE>
                          PLM EQUIPMENT GROWTH FUND III
                             (A LIMITED PARTNERSHIP)
                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                                   (UNAUDITED)

8.     Liquidation
       -----------

On  January  1,  2000,  the  General  Partner began the liquidation phase of the
Partnership and commenced an orderly liquidation of the Partnership assets.  The
General  Partner  is marketing the remaining equipment portfolio with the intent
of  maximizing  sale proceeds.  During the liquidation phase of the Partnership,
the  equipment will continue to be leased under operating leases until sold. The
amounts  reflected  for  assets and liabilities of the Partnership have not been
adjusted  to reflect liquidation values. The equipment portfolio continues to be
carried  at  the  lower  of depreciated cost or fair value less cost to dispose.
Although  the  General  Partner estimates that there will be distributions after
liquidation  of  assets  and  liabilities,  the  amounts  cannot  be  accurately
determined  prior  to  actual  liquidation  of  the  equipment.  Upon  final
liquidation,  the  Partnership  will  be  dissolved.

























                      (this space intentionally left blank)


<PAGE>

ITEM 2.          MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
                 ---------------------------------------------------------------
RESULTS  OF  OPERATIONS
-----------------------

(I)  RESULTS  OF  OPERATIONS

Comparison  of  PLM  Equipment  Growth  Fund III's (the Partnership's) Operating
--------------------------------------------------------------------------------
Results  for  the  Three  Months  Ended  September  30,  2002  and  2001
------------------------------------------------------------------------

(A)  Owned  Equipment  Operations

Lease  revenues  less  direct  expenses  (defined  as  repairs  and maintenance,
equipment  operating  and  asset-specific insurance expenses) on owned equipment
decreased  during the three months ended September 30, 2002 compared to the same
period  of 2001.  Gains or losses from the sale of equipment, interest and other
income, and certain expenses such as depreciation and general and administrative
expenses  relating  to  the  operating  segments  (see  Note  6 to the unaudited
condensed  financial  statements),  are  not  included  in  the  owned equipment
operation discussion because these expenses are indirect in nature, not a result
of  operations but the result of owning a portfolio of equipment.  The following
table  presents  lease revenues less direct expenses by segment (in thousands of
dollars):
<TABLE>
<CAPTION>


                   For the Three Months
                    Ended September 30,
                    2002         2001
                   ====================
<S>                <C>                    <C>
Railcars. . . . .  $   825  $  1,224
Trailers. . . . .        3        48
Marine containers        1        (3)
Aircraft. . . . .       --       (77)
</TABLE>


Railcars:     Railcar  lease  revenues and direct expenses were $1.3 million and
$0.4 million, respectively, for the quarter ended September 30, 2002 compared to
$1.6  million  and  $0.4  million for the quarter ended September 30, 2001.  The
reduction  in  lease revenue in 2002 compared to 2001 was due to the disposition
of  railcars over the past year.  Direct expenses increased $0.1 million in 2002
compared  to  2001  due  to  increased  repair  and  maintenance  costs.

Trailers:     Trailer  lease  revenues and direct expenses were $0.1 million and
$0.1  million, respectively, for the quarters ended September 30, 2002 and 2001.

(B)  Interest  and  Other  Income

Interest  and  other income decreased $38,000 in the quarter ended September 30,
2002 compared to the same quarter of 2001 due to a reduction in the average cash
balances  in  the  Partnership.

(C)     Indirect  Expenses  Related  to  Owned  Equipment  Operations

Total indirect expenses of $0.8 million for the quarter ended September 30, 2002
increased  from $0.7 million for the same period of 2001.  Significant variances
are  explained  as  follows:

(i)     A  $0.2  million increase in general and administrative expenses was due
to  increased  professional  service  costs.

(ii)     A  $0.1  million  decrease  in  depreciation  expenses from 2001 levels
reflects  the  effect  of  asset  dispositions  in  2002  and  2001

(D)     Gain  on  Disposition  of  Owned  Equipment

The gain on the disposition of owned equipment for the third quarter of 2002 was
$0.1  million, resulting from the disposition of marine containers and railcars,
with  an  aggregate  net book value of $7,000 for proceeds of $0.1 million.  The
gain  on  the  disposition  of owned equipment for the third quarter of 2001 was
$31,000,  resulting  from  the  disposition  of marine containers, trailers, and
railcars,  with  an  aggregate  net  book  value of $19,000 for proceeds of $0.1
million


(E)     Net  Income

As  a result of the foregoing, the Partnership had net income of $0.1 million in
the  third  quarter  of 2002 compared to net income of $0.6 million in the third
quarter  of  2001.  The  Partnership's  ability to operate and liquidate assets,
secure  leases, and re-lease those assets whose leases expire is subject to many
factors.  Therefore,  the  Partnership's  performance  in the three months ended
September  30,  2002  is  not  necessarily  indicative  of  future  periods.

Comparison  of  the  Partnership's  Operating  Results for the Nine Months Ended
--------------------------------------------------------------------------------
September  30,  2002  and  2001
-------------------------------

(A)  Owned  Equipment  Operations

Lease revenues less direct expenses on owned equipment decreased during the nine
months  ended  September  30,  2002  compared  to  the same period of 2001.  The
following  table  presents  lease  revenues  less direct expenses by segment (in
thousands  of  dollars):
<TABLE>
<CAPTION>


                   For the Nine Months
                   Ended September 30,
                    2002         2001
                   ===================
<S>                <C>                   <C>
Railcars. . . . .  $  2,732  $  3,501
Trailers. . . . .        84       139
Marine containers        12        20
Aircraft. . . . .        --        81
</TABLE>


Railcars:     Railcar  lease  revenues and direct expenses were $4.1 million and
$1.4  million,  respectively,  for  the  nine  months  ended  September 30, 2002
compared  to  $4.9  million  and  $1.4 million for the same period of 2001.  The
reduction  in  lease revenue in 2002 compared to 2001 was due to the disposition
of  railcars  over  the  past  year.

Trailers:     Trailer  lease  revenues and direct expenses were $0.3 million and
$0.2  million,  respectively,  for  the nine months ended September 30, 2002 and
2001.

Aircraft:     Aircraft  lease revenues and direct expenses were $0.2 million and
$0.1  million,  respectively,  during  the nine months ended September 30, 2001.
There  were  no  aircraft  lease  revenues and expenses in the nine months ended
September  30,  2002  as the Partnership sold its wholly owned aircraft in 2001.

(B)  Interest  and  Other  Income

Interest  and  other  income  decreased  $0.1  million  in the nine months ended
September 30, 2002 compared to the same period of 2001 due to a reduction in the
average  cash  balance  in  the  Partnership.

(C)     Indirect  Expenses  Related  to  Owned  Equipment  Operations

Total indirect expenses of $2.4 million for the quarter ended September 30, 2002
decreased  from $3.0 million for the same period of 2001.  Significant variances
are  explained  as  follows:

(i)     A  decrease  of  $0.4 million in depreciation expense in the nine months
ended  September  30,  2002  compared  to  the  same period in 2001 reflects the
disposition  of  Partnership  assets  during  2002  and  2001.

(ii)     A  $0.2  million decrease in general and administrative expenses during
the nine months ended September 30, 2002 resulted from the reduction in the size
of  the  Partnership's  equipment  portfolio  over  the  last  twelve  months.

(D)     Gain  on  Disposition  of  Owned  Equipment

The  gain  on  the  disposition  of  owned  equipment  for the nine months ended
September  30,  2002  was $0.3 million, resulting from the disposition of marine
containers,  railcars  and  trailers,  with  an aggregate net book value of $0.4
million  for proceeds of $0.7 million.  The gain on the disposition of equipment
was  $4.0  million  for the nine months ended September 30, 2001, resulting from
the  disposition  of aircraft, marine containers, trailers, and railcars with an
aggregate  net  book  value  of  $1.6  million,  for  aggregate proceeds of $5.6
million.

(E)     Equity  in Net Income (Loss) of an Unconsolidated Special-Purpose Entity
(USPE)

Equity in net income (loss) of an USPE represents the Partnership's share of the
net  income  or  loss  generated  from  the  operation  of  jointly owned assets
accounted  for  under the equity method of accounting.  This entity was a single
purpose  entity  that  had  no debt.  Net income generated from the operation of
jointly  owned  assets  was  $40,000 in the nine months ended September 30, 2002
compared  to  a  loss  of  $10,000  in  the  same  period  of  2001.

As  of September 30, 2002 and 2001, the Partnership had no remaining interest in
entities  that jointly owned equipment.  The Partnership's share of revenues and
expenses  in jointly owned equipment was $40,000 and $0 in the nine months ended
September  30, 2002, respectively, compared to $6,000 and $16,000, respectively,
for  the same period of 2001. The revenue in 2002 primarily related to insurance
proceeds  from  a  marine  vessel  in  which  the  Partnership previously had an
interest.

(F)     Net  Income

As  a result of the foregoing, the Partnership had net income of $0.9 million in
the  nine months ended September 30, 2002 compared to net income of $4.9 million
in  the same period of 2001.  The Partnership's ability to operate and liquidate
assets,  secure leases, and re-lease those assets whose leases expire is subject
to  many  factors.  Therefore,  the Partnership's performance in the nine months
ended  September  30,  2002 is not necessarily indicative of future periods.  In
the  nine  months  ended  September  30,  2002, the Partnership distributed $4.7
million  to  the  limited  partners  or  $0.48  per  depositary  unit.

(II)  CRITICAL  ACCOUNTING  POLICIES  AND  ESTIMATES

The preparation of financial statements in conformity with accounting principles
generally  accepted in the United States of America requires the General Partner
to make estimates and assumptions that affect the reported amounts of assets and
liabilities  and the disclosure of contingent assets and liabilities at the date
of  the  financial  statements and the reported amounts of revenues and expenses
during  the  reporting  period.  On a regular basis, the General Partner reviews
these estimates including those related to asset lives and depreciation methods,
impairment  of  long-lived  assets,  allowance  for  doubtful  accounts,  and
contingencies  and  litigation.  These  estimates  are  based  on our historical
experience  and on various other assumptions believed to be reasonable under the
circumstances.  Actual  results  may differ from these estimates under different
assumptions  or  conditions.  The  General  Partner  believes, however, that the
estimates,  including  those for the above-listed items, are reasonable and that
actual  results  will  not  vary  significantly  from  the  estimated  amounts.

The  General  Partner believes the following critical accounting policies affect
the  more  signifigant  judgments  and  estimates used in the preparation of our
financial  statements:

Asset  lives  and  depreciation  methods:  The  Partnership's  primary  business
involves  the  purchase  and  subsequent  lease of long-lived transportation and
related equipment.   The General Partner has chosen asset lives that it believes
correspond  to  the economic life of the related asset.  The General Partner has
chosen  a  deprecation  method  that  it  believes  matches  the  benefit to the
Partnership from the asset with the associated costs.  These judgments have been
made based on the General Partner's expertise in each equipment segment that the
Partnership operates.  If the asset life and depreciation method chosen does not
reduce  the  book value of the asset to at least the potential future cash flows
from the asset to the Partnership, the Partnership would be required to record a
loss  on  revaluation.  Likewise, if the net book value of the asset was reduced
by  an  amount greater than the economic value has deteriorated, the Partnership
may  record  a  gain  on  sale  upon  final  disposition  of  the  asset.

Impairment  of  long-lived  assets:  On  a  regular  basis,  the General Partner
reviews  the  carrying value of its equipment to determine if the carrying value
of  the  assets  may  not  be  recoverable  in consideration of current economic
conditions.  This  requires  the  General  Partner  to make estimates related to
future  cash  flows  from  each  asset  as  well  as  the  determination  if the
deterioration  is  temporary  or  permanent.  If  these estimates or the related
assumptions  change  in  the  future,  the Partnership may be required to record
additional  impairment  charges.

Allowance  for  doubtful  accounts:  The  Partnership  maintains  allowances for
doubtful  accounts  for  estimated  losses  resulting  from the inability of the
lessees  to make the lease payments.  These estimates are primarily based on the
amount  of  time  that has lapsed since the related payments were due as well as
specific  knowledge  related  to the ability of the lessees to make the required
payments.  If  the  financial  condition  of  the  Partnership's lessees were to
deteriorate,  additional  allowances could be required that would reduce income.
Conversely,  if  the  financial  condition  of the lessees were to improve or if
legal  remedies  to  collect past due amounts were successful, the allowance for
doubtful  accounts  may  need  to  be  reduced  and  income  would be increased.

Contingencies  and  litigation:  The Partnership is subject to legal proceedings
involving  ordinary  and  routine  claims related to its business.  The ultimate
legal  and  financial liability with respect to such matters cannot be estimated
with  certainty  and  requires the use of estimates in recording liabilities for
potential litigation settlements.  Estimates for losses from litigation are made
after  consultation  with  outside  counsel.  If  estimates  of potential losses
increase  or  the  related  facts  and  circumstances  change in the future, the
Partnership  may  be  required  to  record  additional  litigation  expense.

(III)  FINANCIAL  CONDITION  --  CAPITAL RESOURCES, LIQUIDITY, AND DISTRIBUTIONS

For  the  nine  months  ended September 30, 2002, the Partnership generated $1.5
million  in  operating  cash  (net  cash  provided  by operating activities plus
non-liquidating  distributions  from  an USPE) to meet its operating obligations
and  fund  distributions  (a  total  of  $5.0  million for the nine months ended
September  30,  2002)  but  also  used  undistributed  available cash from prior
periods  and  proceeds  from  equipment  dispositions  of  $3.5  million.

During  the nine months ended September 30, 2002, the Partnership sold equipment
and  received  aggregate  proceeds  of  $0.7  million.

During  the  nine months ended September 30, 2002, accounts receivable decreased
$0.1  million  due  the  decrease  in  the  size  of the Partnership's equipment
portfolio.

During  the  nine  months ended September 30, 2002, accounts payable and accrued
expenses  decreased  $0.2  million  due  to  the  payment of $0.2 million for an
aircraft  repair  that  was  accrued  for  as  of  December  31,  2001.

The  General  Partner  has  not planned any expenditures, nor is it aware of any
contingencies  that  would  cause  the  Partnership  to  require  any additional
capital.

The  Partnership  is  in its active liquidation phase.  As a result, the size of
the  Partnership's remaining equipment portfolio and, in turn, the amount of net
cash  flows  from  operations  will  continue to become progressively smaller as
assets are sold.  Significant asset sales may result in special distributions to
the  partners.

The  amounts  reflected  for  assets and liabilities of the Partnership have not
been  adjusted  to  reflect liquidation values.  The equipment portfolio that is
actively  being marketed for sale by the General Partner continues to be carried
at  the lower of depreciated cost or fair value less cost of disposal.  Although
the  General  Partner estimates that there will be distributions to the partners
after final disposal of assets and settlement of liabilities, the amounts cannot
be  accurately  determined  prior  to  actual  disposal  of  the  equipment.

(IV)  OUTLOOK  FOR  THE  FUTURE

The  Partnership  entered its liquidation phase on January 1, 2000.  The General
Partner is seeking to selectively re-lease or sell assets as the existing leases
expire.  Sale  decisions  may cause the operating performance of the Partnership
to  decline  over  the  remainder  of  its  life.  The  General  Partner filed a
certificate  of  dissolution  on behalf of the Partnership with the Secretary of
State  for the State of California in December 2000, and following completion of
the  liquidation of the Partnership, the General Partner will file a certificate
of  cancellation.

The  Partnership  has  received  an offer for the Partnership railcar portfolio,
which  represents  76% of the Partnership's equipment net book value.  The offer
is  in  excess  of  the carrying value of the equipment.  Due diligence is being
performed  on  the  railcar  portfolio by the offering entity.  At this time, no
assurances  can  be  made  that  the  offer  will  be  consummated.

Several  factors  may  affect  the  Partnership's  operating  performance in the
remainder  of  2002  and  beyond,  including  changes  in  the  markets  for the
Partnership's  equipment and changes in the regulatory environment in which that
equipment  operates.

Liquidation of the Partnership's equipment will cause a reduction in the size of
the  equipment  portfolio  and  may result in a reduction of contribution to the
Partnership.  Other factors affecting the Partnership's contribution in the year
2002  include:

1.     The Partnership's fleet of marine containers is in excess of twelve years
of age and is no longer suitable for use in international commerce either due to
its  specific  physical  condition, or lessee's preferences for newer equipment.
Demand  for  the Partnership's marine containers will continue to be weak due to
their  age.

2.     Through the first nine months of 2002, U.S. and Canadian freight carloads
decreased  1%  and  3% respectively, compared to the same period of 2001.  There
has  been, however, some recent increase in some of the commodities, which drive
demand  for  those  types of railcars most prevalent in the partnership's fleet.
It will be some time, however, before this translates into new leasing demand by
shippers  since  most  shippers  have  idle  cars  in  their  fleets.

3.     Utilization of intermodal trailers owned by the Partnership decreased 15%
in  the  nine  months ended September 30, 2002 compared to the nine months ended
September  30,  2001.  The  decline  was similar to the decline in industry wide
utilization.  As  the  Partnership's  trailers  are  smaller  than many shippers
prefer,  the  General Partner expects continued declines in utilization over the
next  few  years.  Additionally,  one  of  the  major  shippers  that leased the
Partnership's  trailers  has  entered bankruptcy.  While the Partnership did not
have  any  outstanding  receivables from the company, its bankruptcy may cause a
further  decline  in  performance  of  the  trailer  fleet  in  the  future.

The  ability  of  the  Partnership  to  realize  acceptable  lease  rates on its
equipment in the different equipment markets is contingent on many factors, such
as specific market conditions and economic activity, technological obsolescence,
and  government  or other regulations. The unpredictability of these factors, or
of  their  occurrence,  makes  it  difficult  for the General Partner to clearly
define trends or influences that may impact the performance of the Partnership's
equipment.  The  General Partner continually monitors both the equipment markets
and  the  performance  of  the  Partnership's  equipment  in these markets.  The
General  Partner  may  decide  to  reduce  the  Partnership's  exposure to those
equipment  markets  in  which it determines that it cannot operate equipment and
achieve  acceptable  rates  of  return.

The  Partnership  intends  to  use  cash  flow from operations and proceeds from
disposition of equipment to satisfy its operating requirements, maintain working
capital  reserves,  and  pay  cash  distributions  to  the  unitholders.

(V)  FORWARD-LOOKING  INFORMATION

Except  for the historical information contained herein, this Form 10-Q contains
forward-looking  statements  that  involve  risks  and  uncertainties,  such  as
statements of the Partnership's plans, objectives, expectations, and intentions.
The  cautionary  statements  made  in  this  Form  10-Q  should be read as being
applicable  to  all  related  forward-looking statements wherever they appear in
this  Form  10-Q.  The Partnership's actual results could differ materially from
those  discussed  here.

ITEM  3.     QUANTITATIVE  AND  QUALITATIVE  DISCLOSURES  ABOUT  MARKET  RISK
             ----------------------------------------------------------------

The  Partnership's  primary  market  risk exposure is currency devaluation risk.
During  the nine months ended September 30, 2002, 67% of the Partnership's total
lease revenues equipment came from non-United States domiciled lessees.  Most of
the  Partnership's  leases  require payment in United States (U.S) currency.  If
these  lessees'  currency  devalues  against  the U.S. dollar, the lessees could
potentially  encounter  difficulty  in  making the U.S. dollar denominated lease
payments.









ITEM  4.     CONTROLS  AND  PROCEDURES
             -------------------------

Within  the  90-day  period prior to the filing of this report, evaluations were
carried  out  under  the  supervision  and with the participation of the General
Partner's  management,  including  its President and Chief Financial Officer, of
the  effectiveness  of  the  design and operation of our disclosure controls and
procedures  (as  defined  in Rule 13a-14(c) under the Securities Exchange Act of
1934).  Based  upon those evaluations, the President and Chief Financial Officer
concluded  that  the  design  and  operation  of  these  disclosure controls and
procedures  were  effective.  No  significant  changes  have  been  made  in the
Partnership's  internal  controls  or  in other factors that could significantly
affect  these  controls  subsequent  to  the  date  of  the  evaluations.

<PAGE>

                           PART II  OTHER INFORMATION

ITEM  6.     EXHIBITS  AND  REPORTS  ON  FORM  8-K
             -------------------------------------

     (a)     Exhibits
             --------

     None.

     (b)     Reports  on  Form  8-K
             ----------------------

     None.





















                      (This space intentionally left blank)














<PAGE>


CONTROL  CERTIFICATION
----------------------



I,  James  A.  Coyne,  certify  that:

1.     I  have  reviewed  this  quarterly  report  on Form 10-Q of PLM Equipment
Growth  Fund  III.

2.     Based  on my knowledge, this quarterly report does not contain any untrue
statement  of a material fact or omit to state a material fact necessary to make
the  statements  made, in light of the circumstances under which such statements
were  made,  not misleading with respect to the period covered by this quarterly
report;

3.     Based  on  my  knowledge,  the  financial statements, and other financial
information  included  in  this quarterly report, fairly present in all material
respects  the  financial  condition, results of operations and cash flows of the
registrant  as  of,  and  for,  the  periods presented in this quarterly report;

4.     The  registrant's  other  certifying  officer  and  I are responsible for
establishing  and  maintaining disclosure controls and procedures (as defined in
Exchange  Act  Rules  13a-14  and  15d-14)  for  the  registrant  and  we  have:

a)     designed  such disclosure controls and procedures to ensure that material
information  relating  to  the  registrant  is  made  known  to  us  by  others,
particularly  during  the  period  in  which  this quarterly report is prepared;

b)     evaluated  the  effectiveness of the registrant's disclosure controls and
procedures  as  of  a  date  within  90  days  prior  to the filing date of this
quarterly  report  (the  "Evaluation  Date");  and

c)     presented  in  this  quarterly  report  our  conclusions  about  the
effectiveness  of the disclosure controls and procedures based on our evaluation
as  of  the  Evaluation  Date;

5.     The  registrant's other certifying officer and I have disclosed, based on
our  most recent evaluation, to the registrant's auditors and board of Managers:

a)     all  significant  deficiencies  in  the  design  or operation of internal
controls  which  could  adversely  affect  the  registrant's  ability to record,
process,  summarize  and  report  financial  data  and  have  identified for the
registrant's  auditors  any  material  weaknesses  in  internal  controls;  and

b)     any  fraud,  whether  or  not material, that involves management or other
employees who have a significant role in the registrant's internal controls; and

6.     The  registrant's  other  certifying officer and I have indicated in this
quarterly  report  whether  or  not  there  were significant changes in internal
controls  or  in other factors that could significantly affect internal controls
subsequent  to  the date of our most recent evaluation, including any corrective
actions  with  regard  to  significant  deficiencies  and  material  weaknesses.




Date:  November  11,  2002     By:     /s/  James  A.  Coyne
                                       ---------------------
     James  A.  Coyne
     President
     (Principal  Executive  Officer)

<PAGE>
------

CONTROL  CERTIFICATION
----------------------



I,  Richard  K  Brock,  certify  that:

5.     I  have  reviewed  this  quarterly  report  on Form 10-Q of PLM Equipment
Growth  Fund  III.

6.     Based  on my knowledge, this quarterly report does not contain any untrue
statement  of a material fact or omit to state a material fact necessary to make
the  statements  made, in light of the circumstances under which such statements
were  made,  not misleading with respect to the period covered by this quarterly
report;

7.     Based  on  my  knowledge,  the  financial statements, and other financial
information  included  in  this quarterly report, fairly present in all material
respects  the  financial  condition, results of operations and cash flows of the
registrant  as  of,  and  for,  the  periods presented in this quarterly report;

8.     The  registrant's  other  certifying  officer  and  I are responsible for
establishing  and  maintaining disclosure controls and procedures (as defined in
Exchange  Act  Rules  13a-14  and  15d-14)  for  the  registrant  and  we  have:

d)     designed  such disclosure controls and procedures to ensure that material
information  relating  to  the  registrant  is  made  known  to  us  by  others,
particularly  during  the  period  in  which  this quarterly report is prepared;

e)     evaluated  the  effectiveness of the registrant's disclosure controls and
procedures  as  of  a  date  within  90  days  prior  to the filing date of this
quarterly  report  (the  "Evaluation  Date");  and

f)     presented  in  this  quarterly  report  our  conclusions  about  the
effectiveness  of the disclosure controls and procedures based on our evaluation
as  of  the  Evaluation  Date;

5.     The  registrant's other certifying officer and I have disclosed, based on
our  most recent evaluation, to the registrant's auditors and board of Managers:

a)     all  significant  deficiencies  in  the  design  or operation of internal
controls  which  could  adversely  affect  the  registrant's  ability to record,
process,  summarize  and  report  financial  data  and  have  identified for the
registrant's  auditors  any  material  weaknesses  in  internal  controls;  and

b)     any  fraud,  whether  or  not material, that involves management or other
employees who have a significant role in the registrant's internal controls; and

6.     The  registrant's  other  certifying officer and I have indicated in this
quarterly  report  whether  or  not  there  were significant changes in internal
controls  or  in other factors that could significantly affect internal controls
subsequent  to  the date of our most recent evaluation, including any corrective
actions  with  regard  to  significant  deficiencies  and  material  weaknesses.




Date:  November  11,  2002     By:     /s/  Richard  K  Brock
                                       ----------------------
     Richard  K  Brock
     Chief  Financial  Officer
     (Principal  Financial  Officer)


<PAGE>

Pursuant  to  the  requirements  of  the  Securities  Exchange  Act of 1934, the
registrant  has  duly  caused  this  report  to  be  signed on its behalf by the
undersigned  thereunto  duly  authorized.



     PLM  EQUIPMENT  GROWTH  FUND  III


     By:     PLM  Financial  Services,  Inc.
     General  Partner




Date:  November  11,  2002     By:  /s/  Richard  K  Brock
                                    ----------------------
     Richard  K  Brock
     Chief  Financial  Officer



CERTIFICATION

The undersigned hereby certifies, in their capacity as an officer of the General
Partner  of  PLM Equipment Growth Fund III (the Partnership), that the Quarterly
Report  of the Partnership on Form 10-Q for the period ended September 30, 2002,
fully complies with the requirements of Section 13(a) of the Securities Exchange
Act  of  1934 and that the information contained in such report fairly presents,
in  all material respects, the financial condition of the Partnership at the end
of such period and the results of operations of the Partnership for such period.



     PLM  EQUIPMENT  GROWTH  FUND  III


     By:     PLM  Financial  Services,  Inc.
     General  Partner




Date:  November  11,  2002     By:  /s/  James  A.  Coyne
                                    ---------------------
     James  A.  Coyne
     President



Date:  November  11,  2002     By:  /s/  Richard  K  Brock
                                    ----------------------
     Richard  K  Brock
     Chief  Financial  Officer