The document discusses EGEE-III, the third phase of the EGEE program to operate a large-scale, production quality Grid infrastructure for e-science. Key objectives of EGEE-III include expanding and optimizing the existing infrastructure to include more resources and user communities, and preparing a transition to a sustainable federated infrastructure based on National Grid Initiatives. EGEE-III will be co-funded by the European Commission over 2 years with a budget of €32 million, representing less than 1/3 of total project costs.