  We present the results of a search for variable stars in the faint sparse
globular cluster E3. We have found two variable stars: an SX Phe variable (V1)
and a W UMa eclipsing binary (V2). We have applied period-luminosity and
period-color-luminosity relations to the variables to obtain their distance
moduli. V1 seems to be a blue straggler belonging to E3, based on its distance
modulus and location on the CMD. V2 is probably located behind the cluster, in
the Milky Way halo. We also present V/B-V and V/V-I color magnitude diagrams of
E3.
