John Hancock Preferred Income Fund III Declares Monthly Dividend

John Hancock Preferred Income Fund III Declares Monthly Dividend



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

   Declaration Date:        August 4, 2004
   Ex Date:                 August 12, 2004
   Record Date:             August 16, 2004
   Payment Date:            September 1, 2004
   Dividend Amount:         $0.1800



This dividend equates to an annualized yield of 9.24 percent, based on the
fund's closing market price as of August 3, 2004.

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 $30.2
billion in open-end funds, closed-end funds, private accounts and retirement
plans for individual and institutional investors as of March 31, 2004.
Additional information about John Hancock Funds can be found at
http://www.jhfunds.com/.

John Hancock Funds is a wholly owned subsidiary of John Hancock Financial
Services, Inc., a subsidiary of Manulife Financial Corporation. Founded in
1862, John Hancock Financial Services and its subsidiaries today offer a broad
range of financial products and services, including whole, term, variable, and
universal life insurance, as well as college savings products, mutual funds,
fixed and variable annuities, long-term care insurance and various forms of
business insurance.

Manulife Financial is 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. Pro forma
funds under management by Manulife Financial and its subsidiaries were Cdn$356
billion (US$272 billion) as at March 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/. 

DATASOURCE: John Hancock Preferred Income Fund III



CONTACT:  Kimberley Dietrich, [phone], or Investors:

[phone], both of John Hancock

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