<PAGE>
Dreyfus
Third Century
Fund, Inc.
Semi-Annual
Report
November 30, 1997
<PAGE>
The Dreyfus Third Century Fund, Inc.
- -------------------------------------------------------------------------------
Letter to Shareholders
Dear Shareholder:
We are pleased to provide you with this semi-annual report for The Dreyfus
Third Century Fund, Inc. for the six-month period ended November 30, 1997. Over
this period, your Fund produced a total return of 11.39%,* which compares with a
total return of 13.54% for the Standard & Poor's 500 Composite Stock Price Index
(the "S&P 500 Index") and a more modest 7.63% for the Dow Jones Industrial
Average.**
After outpacing the S&P 500 Index in the second and third quarters of the
calendar year, the portfolio suffered a setback in October and November. In the
aftermath of the sharp market drop on October 27th, the market shifted its focus
to consumer stocks that were considered "big and safe" and to the utilities
sector. As a result of the Fund's emphasis on certain sectors, particularly
technology, performance for the six-month period lagged the S&P 500 Index.
Economic Overview
Amid all the turmoil in financial markets in the last six months, the
economic backdrop in the U.S. has remained calm and favorable. The economy grew
at a healthy pace during the third quarter (GDP was up 3.3%) with very little
inflation. After a strong spending spree in late summer, U.S. consumers pulled
back in September and early October, primarily due to the weather. However, by
late October and early November, spending had rebounded. Consumer confidence
continues to be robust. We expect consumer spending to increase and thus fuel
strong GDP growth in the fourth quarter.
Market Overview
During the reporting period, the stock market witnessed several dramatic
events in the global environment that have led to a sharp increase in stock
price volatility. Investors entered fall 1997 with renewed fears about the
market's high relative valuation and the impending 10-year anniversary of the
October 1987 stock market crash. We believe that, taken in isolation, the
anniversary of the crash of 1987 would have passed without much fanfare.
However, because of the impact of the Iraqi crisis and the currency crisis
in Southeast Asia, the anniversary gave investors cause for concern and
precipitated a climactic sell-off in the market. The October correction put an
end, at least temporarily, to the outperformance of small- and mid-
capitalization stocks, which outperformed large-caps for the June-to-September
period.
Portfolio Focus
During the six-month period, the sectors that most hurt the Fund's
performance were consumer non-durables, followed by business equipment and
services, and technology. The Fund's performance was also hurt by underweighting
the utilities sector, which performed best during the period. Utilities
benefitted from their defensive and domestic nature. In the face of turmoil in
Asia, investors gravitated toward defensive sectors and clamored to own
domestic companies because of the belief that these companies would be immune
to problems in Asia. The following technology stocks performed worst of those
held by the Fund during the period: 3 COM, Western Digital, and Seagate
Technology. Also declining by more than 10% were Sears Roebuck & Co., Green
Tree Financial and Amgen. The Fund's strongest return contribution came from
the consumer services, energy and capital goods sectors. The Fund's biggest
gainers for the period were Fort Howard, BET Holdings, Cl.A. (which experienced
a sharp run-up because of a management buyout offer), Summit Bancorp,
Schlumberger, Guidant, Consolidated Stores and EMC Corp.
We remain bullish on the technology sector. However, we are more cautious
about the sector's short-term prospects. We have concentrated the portfolio
in stocks with less exposure to the Asian region.
Social Responsibility
The Fund continues to hold many high-caliber socially responsible companies.
At BET Holdings, which owns Black Entertainment Television, diversity at all
levels is a key strength of the company. BET has a strong record of philanthropy
<PAGE>
aimed at the African American Community, and, through the production of
in-house content, BET is able to address issues of concern and interest to the
African American viewer constituency.
Bemis, a major manufacturer of packaging and labels, is a long-term holding
of the Fund and not the sort of company that one immediately thinks of as
socially responsible. However, Bemis helps to contribute to the quality of life
in America in a number of ways. By researching the move towards using plastic
flex-pack for shipping household paper products, Bemis hopes to eliminate the
need for cardboard boxes, which would involve a big cost savings for both
suppliers and supermarkets that must compact, bundle and recycle the cardboard.
The plastic resins Bemis uses contain a minimum 25% recycled materials, and all
of its facilities are set up for scrap recovery. Bemis claims plant
waste-minimization is a big priority. The company also has a history of positive
labor relations, back to the time when the Bemis family welcomed unions into its
plants in the 1920s. Bemis has been a presence in many of the communities in
which it operates for over 75 years.
A more recently acquired holding of the Fund is AES, the world's largest
global power company, owning or having interest in 82 power plants in 12
countries, including six in the U.S. The company has an excellent environmental
record both here and abroad, and has a stated commitment to earning profits
while adhering to a very strong set of socially responsible values. As domestic
electrical-utility deregulation expands, the Fund will continue to look at the
utilities sector in an attempt to identify companies like AES that provide
America with clean, affordable and profitable electric power.
Outlook
We believe that the investment and economic landscapes in the U.S. remain
positive for stocks. Inflation has remained subdued, currently at a 23-year low.
In our opinion, Asia contagion will bring more global disinflation in the next
six months. The bond market has anticipated this, as yields on long dated bonds
have declined to their lowest level since October 1993. The strong bond market
could continue to benefit the stock market in the foreseeable future. The
dollar's strength can be attributed to the flight to quality as investors
abandon Asian markets. As long as the economies in Asia remain weak, the dollar
should remain strong in 1998. The impact of slower growth in Southeast Asia has
hurt stocks in the cyclical sectors and benefited stocks in the domestic
sectors. Information about the impact of the crisis in Asia on earnings is still
sketchy. We will continue to monitor events and currently intend to tilt the
portfolio's weight away from companies with high exposure in the region. Our
favorite sectors currently include health care, financials and, to a lesser
extent, utilities.
Sincerely,
/s/ Maceo K. Sloan /s/ Eric Steedman
Maceo K. Sloan Eric Steedman
Portfolio Manager Portfolio Manager
NCM Capital Management Group, Inc. The Dreyfus Corporation
December 18, 1997
New York, N.Y.
*Total return includes reinvestment of dividends and any capital gains paid.
**SOURCE: LIPPER ANALYTICAL SERVICES, INC. - Reflects the reinvestment of
income dividends and, where applicable, capital gain distributions. Both
the Standard & Poor's 500 Composite Stock Price Index and the Dow Jones
Industrial Average are widely accepted unmanaged indices of U.S. stock
market performance, which are composed only of equity securities.
<PAGE>
The Dreyfus Third Century Fund, Inc.
- -------------------------------------------------------------------------------
Statement of Investments November 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Common Stocks--95.4% Shares Value
- ------------------------------------------------------------------------------ ------------- -------------
<S> <C> <C> <C>
Capital Goods--3.5% AES........................................... 333,300 $ 12,207,113
Illinois Tool Works........................... 261,500 14,333,468
-------------
26,540,581
-------------
Consumer Non-durables--15.6% Avon Products................................. 130,800 7,561,875
CPC International............................. 86,500 8,941,938
Clorox........................................ 254,200 19,732,275
Coca-Cola..................................... 234,100 14,631,250
Colgate-Palmolive............................. 323,500 21,613,840
Gillette...................................... 145,300 13,413,006
Interstate Bakeries........................... 207,800 7,182,088
Jones Apparel Group........................(a) 210,600 10,266,750
Proctor & Gamble.............................. 195,500 14,919,094
-------------
118,262,116
-------------
Consumer Services--1.9% BET Holdings, Cl. A........................(a) 91,900 4,916,650
Service Corp. International................... 259,600 9,491,625
-------------
14,408,275
-------------
Electronic Technology--9.3% Cisco Systems..............................(a) 271,600 23,425,500
EMC........................................(a) 261,200 7,917,625
Intel......................................(a) 91,700 7,118,213
Linear Technology..........................(a) 196,500 12,649,688
Sun Microsystems...........................(a) 285,500 10,278,000
3COM .....................................(a) 237,600 8,613,000
-------------
70,002,026
-------------
Finance--21.6% Allstate...................................... 246,100 21,133,838
American International Group.................. 129,500 13,055,219
BANKBOSTON.................................... 196,500 17,513,063
BankAmerica................................... 210,900 15,395,700
Citicorp...................................... 113,200 13,576,925
Fannie Mae.................................... 474,400 25,054,250
Green Tree Financial.......................... 423,800 12,978,875
Hartford Life, Cl. A.......................... 216,600 8,312,025
Nationwide Financial Services, Cl. A.......... 251,500 8,598,156
Summit Bancorp................................ 178,600 8,327,225
SunAmerica.................................... 467,900 18,949,950
-------------
162,895,226
-------------
Health Technology--15.4% Boston Scientific..........................(a) 254,100 11,482,144
Bristol-Myers Squibb.......................... 239,200 22,395,100
Guidant....................................... 335,500 21,555,875
HBO & Co...................................... 197,200 8,849,350
Healthsouth................................... 294,000 7,717,500
</TABLE>
<PAGE>
The Dreyfus Third Century Fund, Inc.
- -------------------------------------------------------------------------------
Statement of Investments (continued) November 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Common Stocks (continued) Shares Value
- ------------------------------------------------------------------------------- ------------- ------------
<S> <C> <C> <C>
Health Technology (continued) Medtronic..................................... 507,400 $ 24,228,350
Merck & Co.................................... 213,400 20,179,638
-------------
116,407,957
-------------
Industrial Services--4.4% Global Marine..............................(a) 231,100 6,080,819
Schlumberger.................................. 282,500 23,253,281
Seitel.....................................(a) 104,100 4,007,850
-------------
33,341,950
-------------
Process Industries--3.3% Avery Dennison................................ 216,300 9,057,563
Bemis ........................................ 216,100 9,103,213
Fort James.................................... 163,000 6,377,375
-------------
24,538,151
-------------
Producer Manufacturing--1.2% Dover......................................... 135,300 9,073,556
-------------
Publishing & Newspapers--.3% New York Times, Cl. A......................... 37,500 2,226,563
-------------
Retail Trade--4.7% Consolidated Stores........................(a) 203,999 9,919,451
OfficeMax..................................(a) 771,600 10,850,625
Home Depot.................................... 264,400 14,789,875
-------------
35,559,951
-------------
Technology Services--11.8% Automatic Data Processing..................... 153,600 8,640,000
BMC Software...............................(a) 321,200 20,837,850
Computer Associates International............. 326,550 17,001,009
Microsoft..................................(a) 97,300 13,767,950
Oracle.....................................(a) 451,400 15,037,263
Tellabs....................................... 273,500 14,222,000
-------------
89,506,072
-------------
Utilities--2.4% Ameritech..................................... 118,500 9,131,906
MCI Communications............................ 104,300 4,582,681
WorldCom...................................(a) 142,600 4,563,200
-------------
18,277,787
-------------
TOTAL COMMON STOCKS
(cost $516,694,204)........................ $721,040,211
=============
</TABLE>
<PAGE>
The Dreyfus Third Century Fund, Inc.
- -------------------------------------------------------------------------------
Statement of Investments (continued) November 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Principal
Short-Term Investments--6.9% Amount Value
- ------------------------------------------------------------------------------- ----------- --------------
<S> <C> <C> <C>
U.S. Treasury Bills: 4.87%, 1/2/1998............................... $ 197,000 $ 196,082
4.92%, 1/8/1998............................... 3,170,000 3,152,121
4.89%, 1/15/1998.............................. 156,000 154,981
5.14%, 1/22/1998.............................. 31,743,000 31,497,309
5.10%, 2/5/1998............................... 5,151,000 5,101,293
-------------
TOTAL SHORT-TERM INVESTMENTS
(cost $40,114,740)......................... $ 40,101,786
=============
TOTAL INVESTMENTS (cost $556,808,944).......................................... 100.7% $761,141,997
======= =============
LIABILITIES, LESS CASH AND RECEIVABLES......................................... (.7%) $ (5,063,278)
======= =============
NET ASSETS..................................................................... 100.0% $756,078,719
======= =============
</TABLE>
Notes to Statement of Investments:
- -------------------------------------------------------------------------------
(a) Non-income producing.
See notes to financial statements.
<PAGE>
The Dreyfus Third Century Fund, Inc.
- -------------------------------------------------------------------------------
Statement of Assets and Liabilities November 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Cost Value
------------- -------------
<S> <C> <C> <C>
ASSETS: Investments in securities--See Statement of Investments $556,808,944 $761,141,997
Cash............................................. 464,045
Receivable for investment securities sold........ 17,729,604
Dividends and interest receivable................ 432,117
Receivable for shares of Common Stock subscribed. 37,394
Prepaid expenses................................. 34,657
-------------
779,839,814
-------------
LIABILITIES: Due to The Dreyfus Corporation and affiliates.... 467,209
Payable for investment securities purchased...... 23,086,267
Payable for shares of Common Stock redeemed...... 68
Loan commitment fees payable--Note 2.............. 200
Accrued expenses................................. 207,351
-------------
23,761,095
-------------
NET ASSETS..................................................................... $756,078,719
=============
REPRESENTED BY: Paid-in capital.................................. $481,373,851
Accumulated undistributed investment income--net. 1,335,022
Accumulated net realized gain (loss) on investments 69,036,793
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4......................... 204,333,053
-------------
NET ASSETS..................................................................... $756,078,719
=============
SHARES OUTSTANDING
(150 million shares of $.331/3 par value Common Stock authorized).............. 67,805,842
NET ASSET VALUE, offering and redemption price per share....................... $11.15
=======
</TABLE>
See notes to financial statements.
<PAGE>
The Dreyfus Third Century Fund, Inc.
- -------------------------------------------------------------------------------
Statement of Operations Six Months Ended November 30, 1997 (Unaudited)
INVESTMENT INCOME
<TABLE>
<S> <C> <C> <C>
INCOME: Cash dividends............................. $ 3,020,316
Interest................................... 1,036,638
------------
Total Income............................. $ 4,056,954
EXPENSES: Management fee--Note 3(a).................. 2,795,511
Shareholder servicing costs--Note 3(b)..... 677,323
Professional fees.......................... 42,984
Registration fees.......................... 32,464
Custodian fees--Note 3(b).................. 29,491
Directors' fees and expenses--Note 3(c).... 22,377
Prospectus and shareholders' reports....... 22,170
Interest expense--Note 2................... 5,098
Loan commitments fees--Note 2.............. 2,427
Miscellaneous.............................. 9,488
------------
Total Expenses........................... 3,639,333
------------
INVESTMENT INCOME--NET................................................... 417,621
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 4:
Net realized gain (loss) on investments.... $41,181,472
Net unrealized appreciation (depreciation) on
investments.............................. 33,898,384
------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS................... 75,079,856
------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS..................... $75,497,477
============
</TABLE>
See notes to financial statements.
<PAGE>
The Dreyfus Third Century Fund, Inc.
- ------------------------------------------------------------------------------
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Six Months Ended
November 30, 1997 Year Ended
(Unaudited) May 31, 1997
------------------ ---------------
<S> <C> <C>
OPERATIONS:
Investment income--net................................................. $ 417,621 $ 1,203,325
Net realized gain (loss) on investments................................ 41,181,472 62,677,975
Net unrealized appreciation (depreciation) on investments.............. 33,898,384 66,809,492
------------- --------------
Net Increase (Decrease) in Net Assets Resulting from Operations..... 75,497,477 130,690,792
------------- --------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net................................................. -- (1,059,465)
Net realized gain on investments....................................... -- (73,897,734)
------------- --------------
Total Dividends..................................................... -- (74,957,199)
------------- --------------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold.......................................... 700,280,632 1,044,680,240
Dividends reinvested................................................... -- 72,507,283
Cost of shares redeemed................................................ (696,783,572) (969,289,077)
------------- --------------
Increase (Decrease) in Net Assets from Capital Stock Transactions... 3,497,060 147,898,446
------------- --------------
Total Increase (Decrease) in Net Assets.......................... 78,994,537 203,632,039
NET ASSETS:
Beginning of Period.................................................... 677,084,182 473,452,143
-------------- --------------
End of Period.......................................................... $ 756,078,719 $ 677,084,182
============== ==============
Undistributed investment income--net...................................... $ 1,335,022 $ 917,401
-------------- --------------
Shares Shares
--------------- ---------------
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................ 63,482,821 109,951,947
Shares issued for dividends reinvested................................. -- 8,277,087
Shares redeemed........................................................ (63,288,385) (101,819,266)
------------- --------------
Net Increase (Decrease) in Shares Outstanding....................... 194,436 16,409,768
------------- --------------
------------- --------------
</TABLE>
See notes to financial statements.
<PAGE>
The Dreyfus Third Century Fund, Inc.
- -------------------------------------------------------------------------------
Financial Highlights
Contained below is per share operating performance data for a share of Common
Stock outstanding, total investment return, ratios to average net assets and
other supplemental data for each period indicated. This information has been
derived from the Fund's financial statements.
<TABLE>
<CAPTION>
Six Months Ended Year Ended May 31,
November 30, 1997 --------------------------------------------------
PER SHARE DATA: (Unaudited) 1997 1996 1995 1994 1993
------------------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period. $10.01 $ 9.25 $ 7.45 $ 7.80 $ 8.48 $ 7.80
------ ------ ------ ------ ------ ------
Investment Operations:
Investment income--net................ .01 .02 .03 .07 .05 .04
Net realized and unrealized gain (loss)
on investments.................... 1.13 2.16 2.39 .65 (.08) .74
------ ------ ------ ------ ------ ------
Total from Investment Operations..... 1.14 2.18 2.42 .72 (.03) .78
------ ------ ------ ------ ------ ------
Distributions:
Dividends from investment income--net. -- (.02) (.05) (.07) (.04) (.05)
Dividends from net realized gain on
investments....................... -- (1.40) (.57) (1.00) (.61) (.05)
------ ------ ------ ------ ------ ------
Total Distributions.................. -- (1.42) (.62) (1.07) (.65) (.10)
------ ------ ------ ------ ------ ------
Net asset value, end of period....... $11.15 $10.01 $ 9.25 $ 7.45 $ 7.80 $ 8.48
====== ====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN................. 11.39%(1) 25.70% 33.63% 11.81% (.63%) 10.02%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .49%(1) 1.03% 1.11% 1.12% 1.17% 1.11%
Ratio of net investment income
to average net assets............. .06%(1) .22% .36% .93% .52% .48%
Portfolio Turnover Rate.............. 34.82%(1) 66.52% 92.08% 133.54% 71.70% 67.30%
Average commission rate paid(2)....... $.0402 $.0616 -- -- -- --
Net Assets, end of period (000's Omitted) $756,079 $677,084 $473,452 $368,833 $390,340 $526,335
<FN>
- -----------------------------------------------------
(1) Not annualized.
(2) For fiscal years beginning June 1, 1996, the Fund is required to disclose
its average commission rate paid per share for purchases and sales of
investment securities.
</TABLE>
See notes to financial statements.
<PAGE>
The Dreyfus Third Century Fund, Inc.
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--Significant Accounting Policies:
The Dreyfus Third Century Fund, Inc. (the "Fund") is registered under the
Investment Company Act of 1940 ("Act") as a diversified open-end management
investment company. The Fund's investment objective is to provide capital
growth. The Dreyfus Corporation ("Dreyfus") serves as the Fund's investment
adviser. Dreyfus is a direct subsidiary of Mellon Bank, N.A. ("Mellon"). NCM
Capital Management Group, Inc. ("NCM") serves as the Fund's sub-investment
adviser. Premier Mutual Fund Services, Inc. is the distributor of the Fund's
shares which are sold to the public without a sales charge.
The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management estimates
and assumptions. Actual results could differ from those estimates.
(a) Portfolio valuation: Investments in securities are valued at the last
sales price on the securities exchange on which such securities are primarily
traded or at the last sales price on the national securities market. Securities
not listed on an exchange or the national securities market, or securities for
which there were no transactions, are valued at the average of the most recent
bid and asked prices. Bid price is used when no asked price is available.
Securities for which there are no such valuations are valued at fair value as
determined in good faith under the direction of the Board of Directors.
(b) Securities transactions and investment income: Securities transactions
are recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Dividend income is
recognized on the ex-dividend date and interest income, including, where
applicable, amortization of discount on investments, is recognized on the
accrual basis.
(c) Dividends to shareholders: Dividends are recorded on the ex-dividend
date. Dividends from investment income-net and dividends from net realized
capital gain are normally declared and paid annually, but the Fund may make
distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code. To the extent that net realized
capital gain can be offset by capital loss carryovers, if any, it is the policy
of the Fund not to distribute such gain.
(d) Federal income taxes: It is the policy of the Fund to continue to qualify
as a regulated investment company, if such qualification is in the best
interests of its shareholders, by complying with the applicable provisions of
the Internal Revenue Code, and to make distributions of taxable income
sufficient to relieve it from substantially all Federal income and excise taxes.
NOTE 2--Bank Line of Credit:
The Fund participates with other Dreyfus-managed funds in a $600 million
redemption credit facility ("Facility") primarily to be utilized for temporary
or emergency purposes, including the financing of redemptions. In connection
therewith, the Fund has agreed to pay commitment fees on its pro rata portion of
the Facility. Interest is charged to the Fund at rates based on prevailing
market rate in effect at the time of borrowings. At November 30, 1997, there
were no outstanding borrowings under the Facility.
The average daily amount of borrowings outstanding during the period ended
November 30, 1997, was approximately $172,000, with a related weighted average
annualized interest rate of 5.91%. The maximum amount borrowed at any time
during the period ended November 30, 1997, was $10 million.
<PAGE>
The Dreyfus Third Century Fund, Inc.
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
NOTE 3--Investment Advisory Fee, Sub-Investment Advisory Fee and Other
Transactions With Affiliates:
(a) Pursuant to the management agreement ("Agreement") with Dreyfus, the
management fee is computed at an annual rate of .75 of 1% of the value of the
Fund's average daily net assets and is payable monthly. The Agreement provides
that if in any full fiscal year the aggregate expenses of the Fund, exclusive of
taxes, brokerage, interest on borrowings, commitment fees and extraordinary
expenses, exceed 11 1/42% of the value of the Fund's average net assets, the
Fund may deduct from the fees paid to Dreyfus, or Dreyfus will bear such excess
expense. There was no expense reimbursement for the period ended November 30,
1997.
Pursuant to a Sub-Investment Advisory Agreement with NCM, the sub-investment
advisory fees are payable monthly by Dreyfus, and are bases upon the value of
the Fund's average daily net assets , computed at the following rates:
Average Net Assets
-----------------
0 to $400 million.................................. .10 of 1%
$400 to $500 million............................... .15 of 1%
$500 to $750 million............................... .20 of 1%
In excess of $750 million.......................... .25 of 1%
(b) Under the Shareholder Services Plan, the Fund reimburses Dreyfus Service
Corporation, a wholly-owned subsidiary of Dreyfus, an amount not to exceed an
annual rate of .25 of 1% of the value of the Fund's average daily net assets for
certain allocated expenses of providing personal services and/or maintaining
shareholder accounts. The services provided may include personal services
relating to shareholder accounts, such as answering shareholder inquiries
regarding the Fund and providing reports and other information, and services
related to the maintenance of shareholder accounts. During the period ended
November 30, 1997, the Fund was charged $468,212 pursuant to the Shareholder
Services Plan.
The Fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of
Dreyfus, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the Fund. During the period
ended November 30, 1997, the Fund was charged $139,116 pursuant to the transfer
agency agreement.
The Fund entered into a custody agreement with Mellon to provide custodial
services for the Fund. During the period ended November 30, 1997, the Fund was
charged $29,491 pursuant to the custody agreement.
(c) Each director who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $10,000. The Chairman of the Board
receives an additional 25% of such compensation.
NOTE 4--Securities Transactions:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended November 30, 1997
amounted to $285,972,245 and $242,094,046, respectively.
At November 30, 1997, accumulated net unrealized appreciation on investments
was $204,333,053, consisting of $212,231,695 gross unrealized appreciation and
$7,898,642 gross unrealized depreciation.
At November 30, 1997, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
<PAGE>
The Dreyfus
Third Century Fund, Inc.
200 Park Avenue
New York, NY 10166
Investment Adviser
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Sub-Investment Adviser
NCM Captial Management Group, Inc.
103 West Main Street
Durham, North Carolina 27705
Custodian
Mellon Bank, N.A.
One Mellon Bank Center
Pittsburgh, PA 15258
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 035SA9711
