Interim Management Statement

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

                         INTERIM MANAGEMENT STATEMENT                          

                    For the quarter ended 31 December 2009                     

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 2009. 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

                                            `O' Share Fund           `S' Share Fund      
                                                                                         
                                       At 31-Dec-09  At 30-Sep- At 31-Dec-09 At 30-Sep-09
                                                             09                          
                                                                                         
Net assets attributable to              £24,995,094 £24,881,881  £10,995,037  £11,001,216
shareholders                                                                             
                                                                                         
Shares in issue                          34,620,627  34,824,397   11,806,467   11,806,467
                                                                                         
Net asset value (NAV) per share *            72.20p      71.45p       93.13p       93.18p
                                                                                         
Cumulative dividends paid to date per        20.45p      20.45p       00.00p       00.00p
share                                                                                    
                                                                                         
Total return per share since inception       92.65p      91.90p       93.13p       93.18p
(NAV basis)*                                                                             
                                                                                         
--------------------------------------                                                   
                                                                                         
* NAV per share includes current year       (0.15)p       0.52p      (0.26)p        0.09p
income of                                                                                

As announced on 16 December 2009, the Board is recommending a final income
dividend of 0.5 pence and a final capital dividend of 1.5 pence payable to `O'
Fund Shareholders in respect of the year ended 30 September 2009 at the Annual
General Meeting to be held on 3 March 2010. Including these dividends,
cumulative dividends paid to `O' Fund Shareholders to date amount to 22.45
pence per `O' Share.

Your Board will be recommending a final income dividend of 0.5 pence per `S'
Share in respect of the year ended 30 September 2009 at the Annual General
Meeting to be held on 3 March 2010.

The dividends will be paid on 17 March 2010 to both `O' and `S' Shareholders on
the Register on 19 February 2010.

PROPOSALS TO MERGE THE SHARE CLASSES OF THE COMPANY, APPROVE REVISED MANAGEMENT
AND ADMINISTATION AGREEMENTS AND AMEND THE COMPANY'S INVESTMENT POLICY

The Company will shortly be circulating to Shareholders a Circular setting out
the Board's proposals to merge the Share Classes of the Company, approve
revised management and administration arrangements and amend the Company's
investment policy.

SHARE BUY-BACKS and ISSUES

During the quarter the `O' Share Fund bought back a total of 203,770 `O' Shares
at an average price of 47.52 pence per share. Following the end of the quarter
the Fund bought back a further 132,508 `O' Shares at an average price of 46.78
pence per share.

NEW INVESTMENTS

The `O' Share Fund made a further investment of £90,909 into British
International Holdings Limited in November.

In December, one of the `O' Share Fund's acquisition vehicles, Calisamo
Management Limited changed its name to CB Imports Group Limited on completing
the management buy-out of Country Baskets, an established importer and
distributor of floral sundries. The Company invested a total of £1 million
comprising £696,911 from the `O' Share Fund and £303,089 from the `S' Share
Fund.

Also in December, the Company invested £1 million (`O' Share Fund: £696,909;
`S' Share Fund: £303,091) to finance the management buy-out of Iglu.com, the
UK's largest specialist ski holiday travel agent and fastest growing cruise
holiday travel agent.

After the quarter end, in January, the `O' Share Fund made a further investment
of £423,486 into HWA Group Limited (Holloway White Allom) to provide additional
working capital to this specialist contractor in the high end residential and
heritage property refurbishment market.

DIVESTMENTS

In November, the `O' Share Fund fully realised its investment in PastaKing
Holdings Limited, the Newton Abbot based award winning supplier of fresh pasta
meals to the education sector and industry.

This investment was sold to NBGI Private Equity for net proceeds of some £
787,483, contributing to total proceeds of some £949,065 to the `O' Share Fund
over the life of the investment and representing a 3.25 fold return on the
Fund's original investment of £292, 405.

The Company also received loan stock repayments during the quarter from DiGiCo
Europe Limited of £142,805 plus a premium of £10,634 (`O' Share Fund only) and
MC 440 Limited (Westway Cooling) repaid £68,532 (`O' Share Fund: £47,761; `S'
Share Fund: £20,771) plus a premium of £3,427 (`O' Share Fund; £2,388; `S'
Share Fund: £1,039).

For further information, please contact:

Sarah Penfold, for Matrix-Securities Limited, Company Secretary: 020 3206 7000