John Hancock Preferred Income Fund III Declares Monthly Dividend

John Hancock Preferred Income Fund III Declares Monthly Dividend



BOSTON, May 4  /PRNewswire-FirstCall/ -- John Hancock Preferred Income Fund III
(NYSE:HPS) declared its monthly dividend as follows:

   Declaration Date:   May 4, 2005
   Ex Date:            May 12, 2005
   Record Date:        May 16, 2005
   Payment Date:       June 2, 2005
   Dividend Amount:    $0.159



This dividend equates to an annualized yield of 8.68 percent, based on the
fund's closing market price as of May 3, 2005.

John Hancock Preferred Income Fund III is a diversified, closed-end fund. The
Fund's primary investment objective is to provide a high level of current
income, consistent with preservation of capital.  The Fund's secondary
objective is to provide growth of capital to the extent consistent with its
primary investment objective.  The Fund invests at least 80% of its total
assets in preferred securities and other fixed income securities which are
rated investment grade.

John Hancock Funds, a premier investment management company, managed $31.3
billion in open-end funds, closed-end funds, private accounts and retirement
plans for individual and institutional investors and related party assets as of
December 31, 2004.  Additional information about the company can be found on
the website: http://www.jhfunds.com/.

John Hancock Funds is a wholly owned subsidiary of John Hancock Financial
Services, Inc., which is a unit of Manulife Financial Corporation, a leading
Canadian-based financial services group serving millions of customers in 19
countries and territories worldwide.  Operating as Manulife Financial in Canada
and most of Asia, and primarily through John Hancock in the United States, the
Company offers clients a diverse range of financial protection products and
wealth management services through its extensive network of employees, agents
and distribution partners.  Funds under management by Manulife Financial and
its subsidiaries were Cdn$348 billion (US$289 billion) as of December 31, 2004.
 Manulife Financial Corporation trades as 'MFC' on the TSX, NYSE and PSE, and
under '0945' on the SEHK.  Manulife Financial can be found on the Internet at
http://www.manulife.com/.

The John Hancock unit, through its insurance companies, comprises one of the
largest life insurers in the United States.  John Hancock Financial Services
offers a broad range of financial products and services, including whole life,
term life, variable life, and universal life insurance, as well as college
savings products, fixed and variable annuities, long-term care insurance,
mutual funds and various forms of business insurance. 

DATASOURCE: John Hancock Preferred Income Fund III



CONTACT:  Kimberley Dietrich, [phone], or Investors: +1-800-843-

0090, both of John Hancock



Web site:  http://www.manulife.com/

http://www.jhfunds.com/

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