Interim Management Statement

The Income & Growth VCT plc ("the Company")                  

                         INTERIM MANAGEMENT STATEMENT                          

                    For the quarter ended 31 December 2010                     

In accordance with Rule 4.3 of the Disclosure and Transparency Rules of the UK
Listing Authority, The Income & Growth VCT plc presents an Interim Management
Statement for the quarter ended 31 December 2010. The statement also includes
relevant financial information between the end of the period and the date of
this statement.

NET ASSET VALUE AND TOTAL RETURN PER SHARE

                                       At 31 December 2010 At 30 September 2010
                                                                               
Net assets attributable to                     £38,121,121          £36,604,696
shareholders                                                                   
                                                                               
Shares in issue                                 36,673,762           36,970,891
                                                                               
Net asset value (NAV) per share               103.95 pence          99.01 pence
                                                                               
Cumulative dividends paid to date per           0.50 pence           0.50 pence
share                                                                          
                                                                               
Total return per share since                  104.45 pence          99.51 pence
inception (NAV basis)                                                          

NEW INVESTMENTS

The VCT made four new investments in the quarter.

In October 2010, the Company's acquisition vehicle Aust Construction Investors
Limited changed its name to Aust Recruitment Group Limited, and invested £1
million, alongside £441,667 from the Company itself, to support the MBO of RDL
Recruitment Corporation, a European recruitment provider within the
pharmaceutical, business intelligence and IT sectors based in London and
Woking.

Secondly, the VCT invested £487,744 in December to support the MBO of Faversham
House Group Limited, an established, family owned media company providing
magazines, exhibitions and online resources in the environment and
sustainability, visual communications and building services sectors.

Again in December, the VCT invested £280,000 into the AiM listed company Omega
Diagnostics Group Plc, a company providing high quality in vitro diagnostics
products for use in hospitals, blood banks, clinics and laboratories in over
100 countries and specialising in the areas of food intolerance, autoimmune
disease and infectious disease.

Finally, also in December 2010, the VCT used its existing acquisition vehicle,
Apricot Trading, to support the MBO of Automated Systems Group plc, a printer
and copier services business with a broad customer base of schools and SMEs.
The VCT's total investment in this company, now stands at £1.3 million.

DIVESTMENTS

In November 2010, 100,000 shares of Tikit Group plc costing £115,000 were sold
for proceeds of £1.97 per share compared to an investment price of £1.15 per
share, realising total net proceeds of £195,713.

In November 2010, Camwood Limited completed a de-merger of its AppDNA
business.  The VCT now holds two identical investments of £333,333 loan stock
and a 31.5% equity stake in both Camwood Limited and AppDNA Limited.

Following the quarter-end In January 2011, the VCT realised its entire
investment in Campden Media for a cash consideration of £287,239, compared to
the previous quarter's valuation of £125,921. This represented 85.8% of the
total investment cost of £334,880. Together with interest paid over the life of
the investment the total cash return was £349,013, representing 104.2% of cost.

Also in February 2011, the Company realised its remaining investment in HWA
Group Limited for a cash consideration. The total cash return over the life of
this investment was £5,070,682, compared to amounts originally invested of £
1,422,320.

In February 2011 the VCT sold a further 120,000 shares in Tikit Group plc at £
2.45 per share, compared to an investment price of £1.15 per share, realising
total net proceeds of £292,823.

The VCT has received total proceeds of £443,141 in cash arising from loan stock
repayments during the quarter. In October 2010, ATG Media Holdings Limited made
a partial loan stock repayment of £111,111. In November 2010, DCG Group Limited
repaid its outstanding loan of £173,802 in full plus a loan premium and overdue
interest totalling £232,349 and Westway Services Holdings (2010) Limited repaid
part of their loan stock realising £99,681 proceeds, of which £31,148 was
premium.

In February, following the quarter end, Iglu.com Holidays Limited repaid all of
its loan stock of £847,675 plus a loan premium if £150,000 totalling £997,675.

SHARE BUY-BACKS

During the quarter the Company bought back a total of 297,129 of the Company's
own shares at a price of 87.34 pence per share. Following the end of the
quarter the Fund bought back a further 230,038 shares at a price of 88.5 pence
per share.

MATRIX VCTS JOINT OFFER FOR SUBSCRIPTION

On 21 January 2011, the Company allotted 1,847,154 shares at 104.8 pence per
share, raising net proceeds of £1,833,065, pursuant to the Joint Offer for
shares launched on 12 November 2010 with Matrix Income & Growth VCT plc and
Matrix Income & Growth 4 VCT plc.

The Company is planning a further allotment on 28 February 2011. Based on the
net asset value per share of 103.95 pence, less the interim dividend of 2 pence
per share payable on 22 February 2011, the Offer price for this allotment will
be 107.9 pence per share.

DIVIDENDS IN RESPECT OF THE YEAR ENDED 30 SEPTEMBER 2010

An interim capital dividend of 2 pence per share paid will be paid to
shareholders on the Register on 28 January 2011, on 22 February 2011.

A final capital dividend of 2 pence per share was approved at the Annual
General Meeting of the Company held on 16 February 2011 for payment to
shareholders on the register on 4 March 2011, on 28 March 2011.

For further information, please contact:

Sarah Penfold, for Matrix Private Equity Partners LLP, 
Company Secretary: 020 3206 7000