Interim Management Statement

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

                         INTERIM MANAGEMENT STATEMENT                          

                    For the quarter ended 31 December 2011                     

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 2011. 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     At 30 September
                                                                        2011                2011
                                                                                                
Net assets attributable to shareholders                          £50,682,122         £49,152,799
                                                                                                
Shares in issue                                                   40,692,048          40,692,048
                                                                                                
Net asset value (NAV) per share 1                                    124.5 p             120.9 p
                                                                                                
Cumulative dividends paid to date per share 2                          4.5 p               4.5 p
                                                                                                
Total return per share since inception (NAV basis)                   129.5 p             125.3 p
                                                                                                
---------------------------------------------------------------                                 
                                                                                                
1 NAV per share includes current year income of                        0.18p               2.21p

2 After the end of this period, an interim capital dividend of 20 pence per
share was paid on 27 January 2012 and shareholders have also approved a final
dividend in respect of the year ended 30 September 2011 of 4 pence per share to
be paid on 15 February 2012

For shareholders in the former `O' Share Fund, the equivalent data is:

                                      At 31 December 2011  At 30 September 2011
                                                                               
Net asset value (NAV) per share 3                  94.4 p                91.5 p
                                                                               
Cumulative dividends paid to date per              25.5 p                25.5 p
share 3,4                                                                      
                                                                               
Total return per share since inception            119.9 p               117.0 p
(NAV basis) 3                                                                  

3 The data for the former `O' Shares, which merged with the current class of
Ordinary Shares (formerly `S' Shares) on 29 March 2010, shows the return on an
initial subscription price of 100p at the date of inception of that fund. For
every one `O' Share formerly held at the date of the Merger, 0.7578 Ordinary
Shares were received.

4 After the dividends in note 2 above have been paid, the amount of 25.5p will
change to 43.7p, and the NAV will become 76.2p

NEW INVESTMENTS

Two new investments were made during the period. The first of these was an
investment of £1,383,313 to provide mezzanine finance as part of a £7.8m
transaction to support the acquisition of the international intellectual
property and assets of Lowe Alpine Srl from administration in Italy by Equip
Outdoor Technologies Limited, a company specialising in owning and distributing
brands focused on the outdoor sector.

Secondly, the VCT made a new investment of £1,878,124 to support the MBO of
EMaC Limited, the UK's leading provider of outsourced Service Plans to
franchised dealers in the automotive sector.

DIVESTMENTS

The Company fully realised its investment in App-DNA Group Limited in November
2011 for an initial consideration of £14.6 million (plus a further
approximately £1.8 million of deferred consideration which could be receivable
over the next four years) through a sale to Citrix Systems Inc. These amounts
contributed to total proceeds of £16.7 million over the life of the investment
which equated to a return of approximately 32 times the original investment
making it the most successful realisation in the history of the Company. The
Board anticipates that a performance incentive fee of up to an estimated £2.8
million could be payable for the current financial year ending 30 September
2012 in respect of this realisation and have included this in arriving at the
NAV per share above.

In December 2011 the VCT made a partial realisation of its investment in DiGiCo
Europe Limited ("DiGiCo") through a sale to ISIS Equity Partners. This
realisation increased the total cash proceeds received by the Company over the
life of the investment by £1.4 million to £2.0 million, representing a 3.0
times cash return on the Company's original investment of £0.7 million. In
addition, the VCT retains a 1.6% equity stake, and new loan stock in DiGiCo
valued at £0.9 million at the date of completion of the transaction. The total
return to date thus equates to approximately £2.9 million, a 4.4 times return
on the VCT's original cost.

DIVIDENDS

Two dividends have been paid or approved for payment following the period-end.

An Interim capital dividend of 20 pence per share was paid on 27 January in
respect of the year ending 30 September 2012.

A final dividend in respect of the year ended 30 September 2011 of 4 pence per
share comprising 2 pence from income and 2 pence from capital was approved by
shareholders at the Annual General Meeting of the Company held on 9 February
2012.

These dividends will bring cumulative dividends paid to date to 28.5 pence per
ordinary share (formerly called `S' Shares) and will reduce the NAV per share
announced above to 100.6 pence per share. .

SHARE BUY-BACKS

The Company did not buy back any of its own shares during the quarter ended 31
December 2011 but has made one buy-back since the period-end of 134,818 shares
at 86.7 pence per share on 31 January 2012.

ISSUE OF EQUITY

The Company allotted 1,247,556 shares at a price of 87.5 pence per share on 30
January 2012 under the Company's Dividend Investment Scheme in relation to the
interim capital dividend in respect of the year-ended 30 September 2012 paid on
27 January 2012.

MATRIX VCTs' JOINT OFFER FOR SUBSCRIPTION

The Company launched a linked fundraising with Matrix Income & Growth VCT plc
and Matrix Income & Growth 4 VCT plc on 20 January 2012 to raise up to £21
million across the three VCTs of which up to £7 million will be allocated to
the VCT.

The Offer will remain open until 30 April 2012 (5 April 2012 in respect of the
current tax year) although the Directors of the three VCTs reserve the right to
extend the closing date at their discretion.

CHANGE OF OWNERSHIP AT MATRIX PRIVATE EQUITY PARTNERS("MPEP")

Since April 2004, the Company's Manager MPEP has been owned jointly by its
executive partners and Matrix Group Limited ("Matrix"). On 12 January 2012, the
executive partners reached agreement to acquire Matrix's interest in the
business. The acquisition is subject to approval from the FSA of the change of
control in MPEP and is expected to be completed on or around 30 June 2012.

For further information, please contact:

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