As many people allready stated, it is very unlikely that they DONT make KotOR3, just check around this forum and the dozenīs of people still modding and playing both parts even years after it was puplished. And then go and check how many BAD movies and games have received sequels over the last time. I honestly doubt that in our modern "GIVE MORE MONEY!" world they would pass on a chance to make some extra _guaranteed_ money.
I mean even if they make a bad KotOR3 they would still make enough money to get the invested money back since the large fanbase wouldnt hesitate to buy it no matter if the media says its not good.
And if they manage to create a real kickass K3 they would have all the previous fanīs + alot of new gamers and would get even more money.
Iam quite confident actually that they will come up with one sooner or later, its unlikely to come out this year since the force unleashed is on its way and i think LA woulndt bring to many good games at the same time. But i wouldnt be surprised to have K3 announced at the end of 2008.
And as somone allready pointed out it says "that such products are not necessarily under development at this time"
So basically they neither DENY that they have K3 or sth alike under development nor that they WILL NOT make one in the future, the only thing they state is that the lastest "K3 announced" news are incorrect.
And i rather wait another 2 years and get a really nice K3 than to get one like TSL again which was undoubtfully good but was just not compareable with K1, good games need their time and we can only hope that _when_ not _if_ K3 comes they took their time to make sth really awesome and not just a boring remake with some new features.