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Half-Life 3 & Source Engine 2 @ E3, Source Claims
Uros "Vader" Pavlovic
01:35 pm EDT @ June 08th, 2010

Here we go again. According to an unnamed source, Valve's big E3 secret is the announcement for Half-life 3, which is reportedly running on the new Source Engine 2. The report was posted by VG247 and they claim this source said it’s possible Valve will be showing off a full sequel to critically acclaimed shooter.
Bare in mind, this is not an official confirmation. Gabe Newell, the head honcho at Valve, recently commented that the developer does not plan to show Half-life 2: Episode Three,laying a lot of rumors on the subject to rest.
So, yeah, although it officially isn't Ep. 3, now it seems like it may actually be Half-life 3.
While such news would be pure awesome sauce, I'd advise you to treat the information with caution. We await Valve's confirmation on this.
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Edit-
Which actually popped into my head for no apparent reason.
*runs through a portal*
And we all know that in 2 years the world will end, so HL3 will never be released.
I know that cake is a lie...
I decided to spare you, little internets creatures, eventhough none of u useless beings was able to identify the perfection which is the nude botd:
http://www.cdn.actiontrip.com/images/babes/midsize/botd_06082010_n.jpg
8::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::D
I told you it would be a full-length game, with a drastically upgraded engine. It was always the most logical assumption, after this long of a development cycle.
Fucking told you.
FOR YEARS NOW.
/rant
edit: okay but seriously though, I shouldn't proclaim victory just yet, of course... we'll see what happens
:)