Interim Management Statement

The Income & Growth VCT plc (the Company)

                         INTERIM MANAGEMENT STATEMENT                          

                      For the quarter ended 30 June 2008                       

NET ASSET VALUE PER ORDINARY FUND SHARE

                                                      At 30 June    At 31 March
                                                            2008           2008
                                                               
                                                                               
Net assets attributable to shareholders              £31,146,093    £34,335,785
                                                                               
Shares in issue                                       35,747,717     36,047,146
                                                                               
Net asset value per Ordinary Share                  *87.12 pence  **95.25 pence
                                                                               
Total net asset value return per share since        103.57 pence   111.70 pence
inception                                                                      
                                                                               
% return on opening net asset value of 94.5 pence           9.6%          18.2%
per share                                                                      

*including current year income of 0.94p

** including current year income of 0.34p

SHARE BUY-BACKS and ISSUES

During the quarter the Company bought back a total of 299,429 Ordinary Shares
at a price of 85.725 pence per share.

NEW INVESTMENTS

The Company made one further investment of £307,071 into The Plastic Surgeon
Holdings Limited, which provides snagging and finishing services to domestic
and commercial properties.

DIVESTMENTS

There were several disposals by the Company, the most notable being as a result
of a recapitalisation at HWA Limited, which realised proceeds of £2,381,880 and
a profit of £2,347,328. Arising from this recapitalisation, the Company also
increased its equity interest in HWA Ltd from 17% to 21%. In addition, a
further receipt of £79,803 was received in respect of the Company's former
investment in Secure Mail Services Limited, where further deferred
consideration became payable to the Company, all of which is an additional
realised gain. Finally, VSI Limited made a partial loan repayment of £157,583,
at a premium of £14,326.

COMMENTS ON FALL IN NET ASSET VALUE

Net asset value per Ordinary share has fallen by 8.5% over the quarter. This
decrease can be attributed mainly to a reduction in the price-earnings ratios
of directly comparable quoted companies. However, the Board has also made
significant reductions to the valuations of two investments where development
prospects have deteriorated.

S SHARE FUND

The Company raised net funds of £11,171,285 from the issue of 11,806,467 S 1p
shares.

The net asset value was 94.52 pence per S 1p share, including current year
income of 0.3 of a penny per share.

This Fund also made its first qualifying investment, of £99,011 into The
Plastic Surgeon Holdings Limited.

For further information, please contact:

Robert Brittain, for Matrix-Securities Limited, Company Secretary: 020 3206
7000