The group's third album Three was released in late 2003 and Nominated for a Brit Award for Best Album, as well as Best Group and Best Dance Act, continued success reaching number three on the UK Album Chart, preceded by the Xenomania produced "Hole in the Head". It was the groups's third UK number one single and their first number one in Denmark. It reached number two in Ireland, Netherlands and Norway, and also became the babes' first single to chart on the Billboard Hot 100 peaking at #96 and hit the U.S. Hot Dance Music/Club Play chart at #1. It also performed well on the Hot Dance Airplay chart.

The second single, "Too Lost in You", which appeared on the soundtrack to the film Love Actually and was written by Diane Warren, went top ten in the UK, Germany, Netherlands and Norway, as well as going top ten on both sides of the Straits of Taiwan (Taiwan and China). The song was originally recorded in French by Patricia Kaas and entitled "Quand J'ai Peur De Tout" . The album's third single, "In the Middle", released in 2004 and nominated for a Brit Award for best single, went to number 8 in the UK. The fourth single to be released from "Three" was the ballad, "Caught in a Moment", and it reached number 8 in the UK.