Packet of Three was the first release from the new waverock band Squeeze. It contained three songs produced by John Cale of the Velvet Underground, who also produced their self-titled debut LP the following year. Packet of Three was released in both 7" and 12" vinyl formats. (The 12" did not have a picture sleeve) The EP's title comes from the UK term for a standard package of condoms. The photo on the sleeve of the EP was taken outside a pub in Haddo Street, Greenwich, SE London, close to the council flat at 35 Congers House, Bronze Street, Deptford, where Chris Difford was staying at the time.
The three songs were re-released in 1990 on the "Annie Get Your Gun" CD single (IRS 74007).
Allmusic's retrospective review deemed that the EP "while quite raw compared to later material, showed enough promise to land the band a recording contract with A&M Records."
"Cat on a Wall" gained its first radio play in June 1977 on legendary North Sea pirate station Radio Caroline who gave the song extensive airplay. Jools Holland was a school friend of Radio Caroline DJ Mark Lawrence.