Interim Management Statement

The Income & Growth VCT plc (the Company)

                         INTERIM MANAGEMENT STATEMENT                          

                    For the quarter ended 31 December 2007                     

NET ASSET VALUE PER SHARE

                                            At 31 December    At 30 September  
                                            2007              2007             
                                                                               
Net assets attributable to shareholders     £37,179,980       £36,778,493      
                                                                               
Shares in issue                             36,303,436        36,589,479       
                                                                               
Net asset value per Ordinary Share          *102.41pence      **100.52 pence   

*including current year income of 0.14p

** including current year income of 0.65p

SHARE BUY-BACKS and ISSUES

During the quarter the Company bought back a total of 322,068 Ordinary Shares
at a price of 90.468 pence per share. 36,025 Ordinary Shares were allotted at a
price of £1.0495 pence per share, under the Company's dividend investment
scheme.

NEW INVESTMENTS

The Company made three further investments in the quarter. £516,900 was
invested in Focus Pharma Holdings Limited, a distributor of generic drugs, and
£424,447 in Monsal Holdings Limited, which provides engineering services to the
water and waste sectors. In addition, a further £387,764 was invested in
Oxonica plc.

DIVESTMENTS

There were several disposals, most notably being Ministry of Cake Holdings
Limited, which was sold for net proceeds of £1,802,824, realising a profit of £
1,081,544. In addition, a further receipt of £397,489 was received in respect
of the Company's former investment in Secure Mail Services, where further
deferred consideration became payable to the Company, all of which is an
additional realised gain.

In December, one of the Company's investments, BBI Holdings PLC, received an
agreed takeover offer. The Company has sold its entire investment in the market
in January 2008, at a higher price than the offer price, realising a further
profit of £1,397,079, although all but £195,375 of this gain was already
included within the net asset value per share disclosed above.

S SHARE OFFER

The Company expects to commence allotting shares shortly, in accordance with
the offer for subscription of up to 15 million S shares, to be issued at £1 per
share, launched on 14 December 2007.

For further information, please contact:

Robert Brittain, for Matrix-Securities Limited, Company Secretary: 020 7925
3300