Interim Management Statement

Downing Distribution VCT 1 plc
Interim Management Statement
for the three months ended 30 June 2010

In  accordance with Rule 4.3 of the Disclosure  and Transparency Rules of the UK
Listing  Authority Downing Distribution VCT 1 plc presents an Interim Management
Statement  for the  three month  period ended  30 June 2010.  The statement also
includes  relevant financial information  between the end  of the period and the
date of this statement.

Schemes of reconstruction ("the Schemes")
On 1 April 2010 the Scheme with Pennine AIM VCT 5 plc and Pennine AIM VCT 6 plc
completed.  On that date all the assets and liabilities from Pennine AIM VCT 5
plc and Pennine AIM VCT 6 plc were transferred to the Company.

Performance
                   31 Jul   30 Jun          31 Mar
                     2010     2010            2010
                                     (as restated)

                    Pence    Pence           Pence

 Net Asset Value     97.9     96.5           105.8


Dividends paid or declared in the period
On 19 July 2010 the Company declared an interim dividend of 2.5p per share for
the year to 31 March 2011, payable on 30 September 2010 to shareholders on the
register at 27 August 2010.

Investment portfolio summary at 30 June 2010

                                                                   Valuation
                                                                    movement
                                                                       since
                                                                    31 March
                                                    Cost Valuation    2010 *

                                                   £'000     £'000

Ten largest investments by value

Cadbury House Holdings Limited        Unquoted     2,518     2,546         -

Doubletake Studios Limited            Unquoted     2,204     2,454         -

 Hoole Hall Country Club Holdings Ltd Unquoted     2,100     2,100         -

Ludorum plc                                        1,967     1,747     (335)

Hoole Hall Spa and Leisure Limited    Unquoted     1,020     1,020         -

 First Care Limited                   Unquoted       879       879         -

 Animalcare Group plc                                914       762     (152)

 Craneware plc                                       690       713        23

 ANS Group plc                        Plus quoted    201       483      (32)

IDOX plc                                             487       466      (21)



Subtotal                                          12,980    13,170     (517)

Other venture capital investments                  9,965     6,669     (966)

Listed fixed income securities                       558       350        33

Other investments                                    207       172      (14)



Total                                             23,710    20,361   (1,464)


All investments are quoted on AIM unless otherwise stated.
*After accounting for purchases, including investments purchased from Pennine
AIM VCT 5 plc and Pennine AIM VCT 6 plc, in the period

Investment additions during the three month period ended 30 June 2010

The Company purchased the portfolios of investments held by Pennine AIM VCT 5
plc and Pennine AIM VCT 6 plc valued at £6,037,000 and £11,135,000 respectively
on 1 April 2010.

                             Cost

                            £'000



 Aminghurst Limited           300

 Future Biogas Limited        175

 Tramps Nightclub Limited     333
                          --------
                              808


Since the period end the Company invested a further £193,000 in Ludorum plc, and
£140,000  in Netcall plc (from  the takeover of Telephonetics  plc at the end of
July 2010).

Investment disposals during the three month period ended 30 June 2010
                                        Market
                                      value at            Gain/(loss)    Total
                                       1 April  Disposal    in period realised
                                 Cost   2010 *  proceeds against cost     gain

                                £'000    £'000     £'000        £'000    £'000



1st Dental Laboratories plc       200       16        18        (182)        2

Bluecrest Allblue Fund LD         144      227       229           85        2

Clerkenwell Ventures plc           18        -       102           84      102

Coffee Republic plc               713        -         -        (713)        -

Connaught plc                       2       24        31           29        7

Craneware plc                      27       27        28            1        1

Glisten plc                        84       49        50         (34)        1

The Mission Marketing Group plc   130      130        87         (43)     (43)


                               -----------------------------------------------
                                1,318      473       545        (773)       72

*After accounting for purchases in the period

Since  the period  end the  Company disposed  of shares  in IDOX  plc, receiving
proceeds  of £112,000.   Telephonetics plc  was taken  over by Netcall plc, with
proceeds being received in the form of Netcall plc shares (as previously noted),
and £207,000 cash.

Changes to share capital
                                                               Ordinary Shares

                                                                  Shares   £'000

As at 1 April 2010 Ordinary shares of 25p each                13,140,436   3,285

Conversion into Ordinary shares of 1p each                   (8,547,192) (3,239)
                                                            --------------------
Restated holding at 1 April 2010 - Ordinary shares of 1p       4,593,244      46
each

Shares issued to holders of Pennine AIM VCT 5 plc under the    6,478,440      65
Scheme

Shares issued to holders of Pennine AIM VCT 6 plc under the   10,792,546     108
Scheme

Shares issued in period                                            7,089       -

Shares bought back and cancelled                                 (2,032)       -
                                                            --------------------
As at 30 June 2010 Ordinary shares of 1p each                 21,869,287     219


Upon  the  conversion  of  the  25p Ordinary  shares  into  1p Ordinary  shares,
1,541,875,401 deferred  shares  were  issued  and  cancelled  immediately.   The
Capital  Redemption  Reserve  arising  on  the  transaction, of £15,419,000, was
cancelled  on  15 July  2010 following  court  approval with the balance thereon
being transferred to the Special Reserve.

On 4 August 2010, the Company purchased 220,349 Ordinary shares of 1p each for
cancellation.

Material events
On 15 July 2010, the Share Premium account held by the Company of £356,000 was
cancelled following court approval with the balance thereon being transferred to
the Special Reserve.

Other than described above, there were no material events during the period from
1 April  2010 to 30 June 2010 or in  the period from 1 July  2010 to the date of
this announcement.


[HUG#1438363]








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