UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                               ___________________
                                    FORM 10-Q




     [X]     QUARTERLY  REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
             EXCHANGE  ACT  OF  1934
             FOR  THE  FISCAL  QUARTER  ENDED  JUNE  30,  2002


     [  ]    TRANSITION  REPORT  PURSUANT  TO  SECTION  13  OR  15(D)  OF  THE
             SECURITIES  EXCHANGE  ACT  OF  1934
             FOR  THE  TRANSITION  PERIOD  FROM              TO


                         COMMISSION FILE NUMBER 0-26594
                             _______________________




                     PLM EQUIPMENT GROWTH & INCOME FUND VII
             (Exact name of registrant as specified in its charter)


                      CALIFORNIA                        94-3168838
            (State or other jurisdiction of          (I.R.S. Employer
             incorporation or organization)          Identification No.)

             450 CARILLON PARKWAY, SUITE 200
                   ST. PETERSBURG, FL                     33716
                 (Address of principal                  (Zip code)
                   executive offices)


       Registrant's telephone number, including area code: (727) 803-8200
                             _______________________


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding  12  months  (or  for such shorter period that the registrant was
required  to  file  such  reports)  and  (2)  has  been  subject  to such filing
requirements  for  the  past  90  days.  Yes    X  No  ____
                                             ----

<PAGE>

                     PLM EQUIPMENT GROWTH & INCOME FUND VII
                             (A LIMITED PARTNERSHIP)
                            CONDENSED BALANCE SHEETS
                 (in thousands of dollars, except unit amounts)
                                   (unaudited)

<TABLE>
<CAPTION>


                                                                           June 30,              December 31,
                                                                            2002                     2001
                                                                           ------                   -------
<S>                                                             <C>       <C>        <C>           <C>
ASSETS

Equipment held for operating leases, at cost                              $ 79,960                 $ 79,955
Less accumulated depreciation                                              (46,128)                 (42,910)
                                                                          ---------                ---------
  Net equipment                                                             33,832                   37,045


Cash and cash equivalents                                                    7,596                    3,129
Restricted cash                                                                 96                       75
Accounts receivable, less allowance for doubtful accounts
    of $834 in 2002 and $306 in 2001                                         1,756                    1,764
Investments in unconsolidated special-purpose entities                       7,529                    8,351
Deferred charges, net of accumulated amortization
    of $383 in 2002 and $324 in 2001                                           171                      229
Prepaid expenses and other assets                                               70                       91
                                                                          ---------                ---------
      Total assets                                                        $ 51,050                 $ 50,684

LIABILITIES AND PARTNERS' CAPITAL

Liabilities:
Accounts payable and accrued expenses                                     $    240                 $    959
Due to affiliates                                                              704                      551
Lessee deposits and reserve for repairs                                      1,143                      945
Notes payable                                                               14,000                   14,000
                                                                          ---------                ---------
  Total liabilities                                                         16,087                   16,455


Partners' capital:
Limited partners (4,981,450 limited partnership units in 2002
    and 5,041,936 in 2001)                                                  34,963                   34,229
General Partner                                                                 --                       --
                                                                          ---------                ---------
  Total partners' capital                                                   34,963                   34,229

      Total liabilities and partners' capital                             $ 51,050                 $ 50,684
                                                                          =========                =========
</TABLE>

















       See accompanying notes to unaudited condensed financial statements.

<PAGE>


                     PLM EQUIPMENT GROWTH & INCOME FUND VII
                             (A LIMITED PARTNERSHIP)
                         CONDENSED STATEMENTS OF INCOME
         (in thousands of dollars, except weighted-average unit amounts)
                                   (unaudited)
<TABLE>
<CAPTION>


                                                                    For the Three Months           For the Six Months
                                                                        Ended June 30,                Ended June 30,
                                                                    2002             2001         2002           2001
                                                                   ------           ------       ------         -----
<S>                                          <C>                   <C>      <C>                 <C>     <C>     <C>
REVENUES

Lease revenue                                                      $3,759           $4,128        $7,700        $8,119
Interest and other income                                              25               59            42           136
Net gain (loss) on disposition of equipment                            (1)              12             2            14
                                                                   -------          ------        ------        ------
    Total revenues                                                  3,783            4,199         7,744         8,269

EXPENSES

Depreciation and amortization                                       1,640            2,015         3,279         4,040
Repairs and maintenance                                               324              395           803           763
Equipment operating expense                                           422              414           866           786
Insurance expense                                                     112               54           254           218
Management fees to affiliate                                          186              222           383           430
Interest expense                                                      257              366           509           690
General and administrative expenses
      to affiliates                                                    96              111           164           295
Other general and administrative expenses                             233              169           342           401
Provision for bad debts                                               283                1           529            24
                                                                   -------          ------        ------        ------
    Total expenses                                                  3,553            3,747         7,129         7,647

Equity in net income of unconsolidated
      special-purpose entities                                         12            2,408            35         2,036
                                                                   -------          ------        ------        ------
Net income                                                         $  242           $2,860        $  650        $2,658

PARTNERS' SHARE OF NET INCOME

Limited partners                                                   $  242           $2,860        $  650        $2,532
General Partner                                                        --               --            --           126
                                                                   -------          ------        ------        ------
Total                                                              $  242           $2,860        $  650        $2,658
                                                                   -------          ------        ------        ------
Net income per weighted-average
    limited partnership unit                                       $ 0.05           $ 0.54        $ 0.13        $ 0.48
                                                                   -------          ------        ------        ------
Cash distributions                                                 $   --           $   --        $   --        $1,422
                                                                   -------          ------        ------        ------
Cash distributions per weighted-average
    limited partnership unit                                       $   --           $   --        $   --        $ 0.24
                                                                   =======          ======        ======        ======
</TABLE>







       See accompanying notes to unaudited condensed financial statements.


                     PLM EQUIPMENT GROWTH & INCOME FUND VII
                             (A LIMITED PARTNERSHIP)
              CONDENSED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
             FOR THE PERIOD FROM DECEMBER 31, 2000 TO JUNE 30, 2002
                            (in thousands of dollars)
                                   (unaudited)

<TABLE>
<CAPTION>


                                                           Limited        General
                                                          Partners        Partner            Total
                                                         ----------      ---------           ------
<S>                                             <C>       <C>       <C>      <C>    <C>     <C>
  Partners' capital as of December 31, 2000               $36,715         $  --             $36,715

Net income                                                  2,021           126               2,147

Purchase of limited partnership units                      (3,211)           --              (3,211)

Cash distribution                                          (1,296)         (126)             (1,422)
                                                          --------        ------            --------
  Partners' capital as of December 31, 2001                34,229            --              34,229

Net income                                                    650            --                 650

Canceled purchase of limited partnership units                 84            --                  84
                                                          --------        ------            --------
  Partners' capital as of June 30, 2002                   $34,963         $  --             $34,963
                                                          ========        ======            ========
</TABLE>

































       See accompanying notes to unaudited condensed financial statements.

<TABLE>
<CAPTION>



<PAGE>

<PAGE>

                      PLM EQUIPMENT GROWTH & INCOME FUND VII
                            (A LIMITED PARTNERSHIP)
                        CONDENSED STATEMENTS OF CASH FLOWS
                           (in thousands of dollars)
                                 (unaudited)

                                                                                              For the Six Months
                                                                                                Ended June 30,
                                                                                                2002      2001
                                                                                               ------    -------
<S>                                                                        <C>                 <C>      <C>
OPERATING ACTIVITIES

Net income                                                                                     $  650   $ 2,658
Adjustments to reconcile net income to net cash
      provided by (used in) operating activities:
  Depreciation and amortization                                                                 3,279     4,040
  Provision for bad debts                                                                         529        24
  Net gain on disposition of equipment                                                             (2)      (14)
  Equity in net income from unconsolidated special-purpose entities                               (35)   (2,036)
  Changes in operating assets and liabilities:
    Restricted cash                                                                               (21)      (17)
    Accounts receivable                                                                          (521)     (228)
    Prepaid expenses and other assets                                                              21        32
    Accounts payable and accrued expenses                                                          59      (193)
    Due to affiliates                                                                             153      (681)
    Lessee deposits and reserve for repairs                                                       198       237
                                                                                              -------   --------
      Net cash provided by operating activities                                                 4,310     3,822

INVESTING ACTIVITIES

Payments for purchase of equipment and capitalized repairs                                        (14)   (8,011)
Investment in and equipment purchased and placed in
    unconsolidated special purpose entities                                                        --       (86)
Distribution from unconsolidated special-purpose entities                                         857     1,455
Distribution from liquidation of unconsolidated special-purpose entities                           --     5,293
Payments for acquisition fees to affiliate                                                         --      (134)
Payments for lease negotiation fees to affiliate                                                   --       (50)
Proceeds from disposition of equipment                                                              8        42
                                                                                              -------   --------
      Net cash provided by (used in) investing activities                                         851    (1,491)

FINANCING ACTIVITIES

Canceled purchase of limited partnership units                                                     84        --
Decrease in accounts payable and accrued expenses                                                (778)       --
Proceeds from short-term notes payable to affiliate                                                --     5,500
Payments of short-term notes payable to affiliate                                                  --    (5,500)
Cash distribution paid to limited partners                                                         --    (1,296)
Cash distribution paid to General Partner                                                          --      (126)
                                                                                              -------   --------
      Net cash used in financing activities                                                      (694)   (1,422)

Net increase in cash and cash equivalents                                                       4,467       909
Cash and cash equivalents at beginning of period                                                3,129     2,941
                                                                                              -------   --------
Cash and cash equivalents at end of period                                                     $7,596   $ 3,850
                                                                                              =======   ========

SUPPLEMENTAL INFORMATION

Interest paid                                                                                  $  509   $   690
                                                                                              =======   ========
</TABLE>


       See accompanying notes to unaudited condensed financial statements.

<PAGE>
                     PLM EQUIPMENT GROWTH & INCOME FUND VII
                             (A LIMITED PARTNERSHIP)
                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                                   (UNAUDITED)

1.     Opinion  of  Management
       -----------------------

In  the  opinion  of  the management of PLM Financial Services, Inc. (FSI or the
General  Partner),  the  accompanying  unaudited  condensed financial statements
contain  all  adjustments  necessary,  consisting  primarily of normal recurring
accruals,  to  present  fairly the unaudited condensed financial position of PLM
Equipment  Growth  &  Income  Fund VII (the Partnership) as of June 30, 2002 and
December  31,  2001,  the unaudited condensed statements of income for the three
and  six months ended June 30, 2002 and 2001, the unaudited condensed statements
of  changes  in  partners' capital for the period from December 31, 2000 to June
30, 2002 and the unaudited condensed statements of cash flows for the six months
ended June 30, 2002 and 2001.  Certain information and note disclosures normally
included  in  financial  statements  prepared  in  accordance  with  accounting
principles  generally  accepted  in  the  United  States  of  America  have been
condensed  or omitted from the accompanying condensed financial statements.  For
further  information,  reference  should be made to the financial statements and
notes  thereto  included in the Partnership's Annual Report on Form 10-K for the
year ended December 31, 2001, on file at the Securities and Exchange Commission.

2.     Schedule  of  Partnership  Phases
       ---------------------------------

The  Partnership  is  currently  in  its  investment  phase  during  which  the
Partnership  uses  a  portion of the cash generated from operations and proceeds
from asset sales to purchase additional equipment.  The General Partner believes
these acquisitions may cause the Partnership to generate additional earnings and
cash  flow  for  the  Partnership.

The  Partnership  may  reinvest  its  cash flow, surplus cash and equipment sale
proceeds  in  additional  equipment,  consistent  with  the  objectives  of  the
Partnership,  until  December  31,  2004.  The  Partnership  will  terminate  on
December  31,  2013, unless terminated earlier upon sale of all equipment and by
certain  other  events.

3.     Reclassification
       ----------------

Certain  amounts  in  the  2001  financial  statements have been reclassified to
conform  to  the  2002  presentations.

4.     Cash  Distributions
       -------------------

Cash  distributions  are recorded when paid and may include amounts in excess of
net  income  that  are  considered  a  return of capital.  For the three and six
months  ended  June  30, 2001, cash distributions totaled $-0- and $1.4 million,
respectively.  No  cash  distributions  were paid to the limited partners during
the  three  and  six months ended June 30, 2002.  None of the cash distributions
paid  to the limited partners for the six months ended June 30, 2001 were deemed
to  be  a  return  of  capital.

5.     Transactions  with  General  Partner  and  Affiliates
       -----------------------------------------------------

The  balance  due to affiliates as of June 30, 2002 included $0.1 million due to
FSI  and  its  affiliates for management fees and $0.6 million due to affiliated
unconsolidated  special-purpose entities (USPEs).  The balance due to affiliates
as  of December 31, 2001 includes $0.2 million due to FSI and its affiliates for
management  fees  and  $0.4  million  due  to  affiliated  USPEs.

The  Partnership's  proportional  share  of  the affiliated expenses incurred by
USPEs  during  2002  and  2001 is listed in the following table (in thousands of
dollars):
<TABLE>
<CAPTION>


                                                                   For the Three Months       For the Six Months
                                                                      Ended June 30,            Ended June 30,
                                                                    2002         2001        2002           2001
                                                                   ===================       ===================
<S>                                          <C>                   <C>    <C>                 <C>    <C>    <C>
Management fees                                                    $  33        $  37       $  57          $  96
Data processing and administrative expenses                           10           21          17             62
</TABLE>


<PAGE>

                     PLM EQUIPMENT GROWTH & INCOME FUND VII
                             (A LIMITED PARTNERSHIP)
                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                                   (UNAUDITED)

5.     Transactions  with  General  Partner  and  Affiliates(continued)
       -----------------------------------------------------

These  affiliate  expenses  reduced  the Partnership's proportional share of the
equity  interest  in  the  income  of  USPEs.

The  Partnership  and  USPEs  accrued  or  paid  FSI  $0.3 million for equipment
acquisition  and  lease  negotiation  fees  during the six months ended June 30,
2001.  No  fees  were paid or accrued during the six months ended June 30, 2002.

6.     Equipment
       ---------

Owned  equipment held for operating leases is stated at cost.  The components of
owned  equipment  were  as  follows  (in  thousands  of  dollars):
<TABLE>
<CAPTION>


                                            June 30,    December 31,
                                              2002          2001
                                             ------        -------
<S>                            <C>       <C>             <C>
Marine containers                        $      38,907   $ 38,915
Marine vessels                                  22,212     22,212
Rail equipment                                   9,615      9,602
Aircraft                                         5,483      5,483
Trailers                                         3,743      3,743
                                         --------------  ---------
                                                79,960     79,955
Less accumulated depreciation                  (46,128)   (42,910)
                                         --------------  ---------
    Net equipment                        $      33,832   $ 37,045
                                         ==============  =========
</TABLE>


As  of  June 30, 2002, all owned equipment in the Partnership's portfolio was on
lease  except  for 22 railcars.  As of December 31, 2001, all owned equipment in
the  Partnership's  portfolio  was on lease except for 8 railcars.  The net book
value  of  the  equipment  off  lease  was  $0.2 million as of June 30, 2002 and
December  31,  2001.

During  the  six  months  ended  June 30, 2001, the Partnership purchased marine
containers for $8.0 million and paid acquisition fees of $0.1 million to FSI for
this  purchase.  No equipment was purchased during the six months ended June 30,
2002.

During  the  six  months ended June 30, 2002, the Partnership disposed of marine
containers  with  a net book value of $6,000 for proceeds of $8,000.  During the
six  months  ended  June 30, 2001, the Partnership disposed of marine containers
with  a  net  book  value  of  $13,000  for  proceeds  of  $27,000.

7.     Investments  in  Unconsolidated  Special-Purpose  Entities
       ----------------------------------------------------------

The  Partnership  owns  equipment  jointly  with  affiliated programs. These are
single  purpose  entities  that  do  not  have  any  debt  or  other  financial
encumbrances.  The  net investments in USPEs include the following jointly-owned
equipment  and  related  assets  and  liabilities  (in  thousands  of  dollars):
<TABLE>
<CAPTION>


                                                                            June 30,       December 31,
                                                                              2002            2001
                                                                           =========        =========
<S>                                                                    <C>       <C>             <C>   <C>
38% interest in a trust owning a stage III commercial aircraft            $    5,090         $5,564
50% interest in a trust owning a stage III commercial aircraft                 2,494          2,845
80% interest in an entity that owned a dry bulk-carrier marine vessel            (14)           (14)
50% interest in a trust owning a stage III commercial aircraft                   (41)           (44)
                                                                          -----------       --------
    Net investments                                                       $    7,529         $8,351
                                                                          ===========       ========
</TABLE>



<PAGE>
                     PLM EQUIPMENT GROWTH & INCOME FUND VII
                             (A LIMITED PARTNERSHIP)
                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                                   (UNAUDITED)

7.     Investments  in  Unconsolidated  Special-Purpose  Entities  (continued)
       ----------------------------------------------------------

As  of  June  30, 2002 and December 31, 2001, all jointly-owned equipment in the
Partnership's  USPE  portfolio  was  on  lease.

8.     Operating  Segments
       -------------------

The  Partnership  operates  in  five  primary  operating segments: marine vessel
leasing,  trailer  leasing,  aircraft  leasing,  railcar  leasing,  and  marine
container  leasing.  Each  equipment  leasing  segment  engages in short-term to
mid-term  operating  leases  to  a  variety  of  customers.

The  following  tables present a summary of the operating segments (in thousands
of  dollars):
<TABLE>
<CAPTION>


                                           Marine                                      Marine
For the three months ended                 Vessel    Trailer    Aircraft   Railcar    Container
      June 30, 2002                       Leasing    Leasing    Leasing    Leasing     Leasing     Other 1    Total
<S>                                       <C>       <C>        <C>         <C>       <C>          <C>        <C>

REVENUES
  Lease revenue                           $  1,319  $    124   $     272   $    532  $    1,512   $     --   $ 3,759
  Interest income and other                     --        --          --         --          --         25        25
  Loss on disposition of equipment              --        --          --         --          (1)        --        (1)
                                          --------  ---------  ----------  --------  -----------  ---------  --------
     Total revenues                          1,319       124         272        532       1,511         25     3,783


COSTS AND EXPENSES
  Operations support                           604        87           2        133          17         15       858
  Depreciation and amortization                310        52          --        119       1,152          7     1,640
  Interest expense                              --        --          --         --          --        257       257
  Management fees to affiliate                  66         7          --         37          76         --       186
  General and administrative expenses           18        27           9         20          --        255       329
  Provision for (recovery of) bad debts         --        --         272         11          --         --       283
                                          --------  ---------  ----------  --------  -----------  ---------  --------
      Total costs and expenses                 998       173         283        320       1,245        534     3,553
                                          --------  ---------  ----------  --------  -----------  ---------  --------
Equity in net loss of USPEs                      5        --           7         --          --         --        12
                                          --------  ---------  ----------  --------  -----------  ---------  --------
Net income (loss)                         $    326  $    (49)  $      (4)  $    212  $      266   $   (509)  $   242

Total assets as of June 30, 2002          $  5,129  $    870   $   7,726   $  3,323  $   26,049   $  7,953   $51,050
                                          ========  =========  ==========  ========  ===========  =========  ========


                                          Marine                                     Marine
For the three months ended                Vessel    Trailer    Aircraft    Railcar   Container
         June 30, 2001                    Leasing   Leasing    Leasing     Leasing   Leasing      Other 2    Total

REVENUES
  Lease revenue                           $  1,433  $    138   $     272   $    601  $    1,684   $     --   $ 4,128
  Interest income and other                     --        --          33         --          --         26        59
  Gain on disposition of equipment              --         1          --         --          11         --        12
                                          --------  ---------  ----------  --------  -----------  ---------  --------
     Total revenues                          1,433       139         305        601       1,695         26     4,199


COSTS AND EXPENSES
  Operations support                           615        83          (2)       131          19         17       863
  Depreciation and amortization                309        53         154        135       1,358          6     2,015
  Interest expense                              --        --          --         --          --        366       366
  Management fees to affiliate                  72         7          13         45          85         --       222
  General and administrative expenses           21        34           7         12          --        206       280
  Provision for (recovery of) bad debts         --        --          --          1          --         --         1
                                          --------  ---------  ----------  --------  -----------  ---------  --------
      Total costs and expenses               1,017       177         172        324       1,462        595     3,747
                                          --------  ---------  ----------  --------  -----------  ---------  --------
Equity in net loss of USPEs                  1,929        --         479         --          --         --     2,408
                                          --------  ---------  ----------  --------  -----------  ---------  --------
Net income (loss)                         $  2,345  $    (38)  $     612   $    277  $      233   $   (569)  $ 2,860
                                          ========  =========  ==========  ========  ===========  =========  ========
</TABLE>


1  Includes  certain assets not identifiable to a specific segment such as cash,
certain  restricted  cash  and accounts receivable, deferred charges and prepaid
expenses.  Also  includes  interest  income  and  costs  not  identifiable  to a
particular  segment, such as interest expense, and certain amortization, general
and  administrative  and  operations  support  expenses.

2  Includes  interest income and costs not identifiable to a particular segment,
such  as  interest expense, and certain amortization, general and administrative
and  operations  support  expenses.

<PAGE>
                     PLM EQUIPMENT GROWTH & INCOME FUND VII
                             (A LIMITED PARTNERSHIP)
                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                                   (UNAUDITED)

8.     Operating  Segments  (continued)
       -------------------
<TABLE>
<CAPTION>


                                           Marine                                       Marine
For the six months ended                   Vessel    Trailer    Aircraft    Railcar   Container
      June 30, 2002                       Leasing    Leasing    Leasing     Leasing    Leasing     Other 1   Total
<S>                                       <C>       <C>        <C>         <C>        <C>         <C>        <C>

REVENUES
  Lease revenue                           $  2,624  $    319   $     543   $  1,144   $    3,070  $     --   $7,700
  Interest income and other                     --        --          --         --           --        42       42
  Loss on disposition of equipment              --        --          --         --            2        --        2
                                          --------  ---------  ----------  ---------  ----------  ---------  ------
     Total revenues                          2,624       319         543      1,144        3,072        42    7,744


COSTS AND EXPENSES
  Operations support                         1,397       185           4        271           35        31    1,923
  Depreciation and amortization                620       104          --        237        2,304        14    3,279
  Interest expense                              --        --          --         --           --       509      509
  Management fees to affiliate                 131        16          --         82          154        --      383
  General and administrative expenses           31        54           7         42           --       372      506
  Provision for (recovery of) bad debts         --        10         543        (24)          --        --      529
                                          --------  ---------  ----------  ---------  ----------  ---------  ------
      Total costs and expenses               2,179       369         554        608        2,493       926    7,129
                                          --------  ---------  ----------  ---------  ----------  ---------  ------
Equity in net income of USPEs                   31        --           4         --           --        --       35
                                          --------  ---------  ----------  ---------  ----------  ---------  ------
Net income (loss)                         $    476  $    (50)  $      (7)  $    536   $      579  $   (884)  $  650
                                          ========  =========  ==========  =========  ==========  =========  ======


                                          Marine                                      Marine
For the six months ended                  Vessel    Trailer    Aircraft    Railcar    Container
         June 30, 2001                    Leasing   Leasing    Leasing     Leasing    Leasing     Other 1    Total

REVENUES
  Lease revenue                           $  2,896  $    308   $     543   $  1,212   $    3,160  $     --   $8,119
  Interest income and other                     --        --          33         --           --       103      136
  Gain on disposition of equipment              --         1          --         --           13        --       14
                                          --------  ---------  ----------  ---------  ----------  ---------  ------
     Total revenues                          2,896       309         576      1,212        3,173       103    8,269


COSTS AND EXPENSES
  Operations support                         1,211       146           2        294           37        77    1,767
  Depreciation and amortization                619       105         308        270        2,725        13    4,040
  Interest expense                              --        --          --         --           --       690      690
  Management fees to affiliate                 145        16          27         84          158        --      430
  General and administrative expenses           35        56          11         28           --       566      696
  Provision for (recovery of) bad debts         --        (3)         --         19            8        --       24
                                          --------  ---------  ----------  ---------  ----------  ---------  ------
      Total costs and expenses               2,010       320         348        695        2,928     1,346    7,647
                                          --------  ---------  ----------  ---------  ----------  ---------  ------
Equity in net income of USPEs                2,036        --          --         --           --        --    2,036
                                          --------  ---------  ----------  ---------  ----------  ---------  ------
Net income (loss)                         $  2,922  $    (11)  $     228   $    517   $      245  $ (1,243)  $2,658
                                          ========  =========  ==========  =========  ==========  =========  ======
</TABLE>



9.     Net  Income  Per  Weighted-Average  Limited  Partnership  Unit
       --------------------------------------------------------------

Net  income  per  weighted-average  limited  partnership  unit  was  computed by
dividing  net  income  attributable  to limited partners by the weighted-average
number  of  limited partnership units deemed outstanding during the period.  The
weighted-average  number  of limited partnership units deemed outstanding during
the  three  and  six  months  ended  June  30, 2002 was 4,981,450 and 4,991,809,
respectively.  The  weighted-average  number of limited partnership units deemed
outstanding  during  the three and six months ended June 30, 2001 was 5,323,569.



1     Includes  interest  income  and  costs  not  identifiable  to a particular
segment,  such  as  interest  expense,  and  certain  amortization,  general and
administrative  and  operations  support  expenses.

<PAGE>
                     PLM EQUIPMENT GROWTH & INCOME FUND VII
                             (A LIMITED PARTNERSHIP)
                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                                   (UNAUDITED)

10.     Limited  Partnership  Units
        ---------------------------

During  2001, the General Partner agreed to purchase 351,290 limited partnership
units  and  paid  or  accrued  $3.2  million  to  the  purchasing agent for this
purchase.

The purchasing agent purchased 60,486 units during the six months ended June 30,
2002  and  281,633  units  as  of  December  31,  2001,  which is reflected as a
reduction in Partnership units.  Under the terms of the purchase agreement, only
the  units  held  by  the owner on the date of the agreement were eligible to be
purchased.  The  General  Partner  has  not  been able to purchase the remaining
9,171  units  due  to  the eligible owners selling the units in the open market.
The  General  Partner  has  determined  that  the  remaining  units  will not be
purchased  and  has  received  a  $0.1 million refund from the purchasing agent.

11.     Subsequent  Event
        -----------------

In July 2002, PLM International, Inc. (PLMI), the parent company of FSI, reached
an  agreement with the lenders of the $10.0 million warehouse facility to extend
the expiration date of the facility to June 30, 2003.  The warehouse facility is
shared  by  the  Partnership,  PLM Equipment Growth Fund V, PLM Equipment Growth
Fund  VI, and Professional Lease Management Income Fund I, LLC and Acquisub LLC,
a  wholly  owned  subsidiary of PLMI.  The facility provides for financing up to
100%  of  the  cost  of  the  equipment.  Outstanding borrowings by one borrower
reduce  the  amount available to each of the other borrowers under the facility.
Individual  borrowings  may  be  outstanding for no more than 270 days, with all
advances  due no later than June 30, 2003.  Interest accrues either at the prime
rate  or  LIBOR  plus 2.0% at the borrower's option and is set at the time of an
advance  of  funds.  Borrowings  by the Partnership are guaranteed by PLMI.  The
Partnership  is  not  liable  for  the  advances  made  to  the other borrowers.







                      (This space intentionally left blank)


<PAGE>
ITEM  2.     MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OF FINANCIAL CONDITION AND
             -------------------------------------------------------------------
RESULTS  OF  OPERATIONS
    -------------------

(I)     RESULTS  OF  OPERATIONS

Comparison  of  the PLM Equipment Growth & Income Fund VII's (the Partnership's)
--------------------------------------------------------------------------------
Operating  Results  for  the  Three  Months  Ended  June  30,  2002  and  2001
------------------------------------------------------------------------------

(A)     Owned  Equipment  Operations

Lease  revenues  less  direct  expenses  (defined  as  repairs  and maintenance,
equipment  operating,  and asset-specific insurance expenses) on owned equipment
decreased  during  the  three  months  ended  June 30, 2002 compared to the same
period  of 2001.  Gains or losses from the sale of equipment, interest and other
income,  and certain expenses such as management fees to affiliate, depreciation
and  amortization  and  general  and  administrative  expenses  relating  to the
operating segments (see Note 8 to the unaudited condensed financial statements),
are  not  included  in the owned equipment operation discussion because they are
indirect  in  nature  and not a result of operations, but the result of owning a
portfolio of equipment.  The following table presents lease revenues less direct
expenses  by  segment  (in  thousands  of  dollars):
<TABLE>
<CAPTION>


                                         For the Three Months
                                             Ended June 30,
                                          2002           2001
                                          ===================
<S>                <C>                   <C>     <C>   <C>
Marine containers                        $1,495        $1,665
Marine vessels                              715           818
Railcars                                    399           470
Aircraft                                    270           274
Trailers                                     37            55
</TABLE>


Marine  containers:     Lease revenues and direct expenses for marine containers
were  $1.5 million and $17,000 respectively, for the three months ended June 30,
2002, compared to $1.7 million and $19,000, respectively, during the same period
of  2001.  The  decrease  in  lease  revenues  of $0.2 million during the second
quarter of 2002 compared to the same period of 2001 was due to lower lease rates
earned  on  the  Partnership's  marine  containers.

Marine  vessels:     Marine  vessel lease revenues and direct expenses were $1.3
million  and  $0.6  million,  respectively,  for the three months ended June 30,
2002,  compared  to $1.4 million and $0.6 million, respectively, during the same
period  of  2001.  The  decrease  in  lease  revenues of $0.1 million during the
second  quarter  of  2002  compared  to the same period of 2001 was due to lower
lease  rates  earned  on  the  Partnership's  marine  vessels.

Railcars:     Railcar  lease  revenues and direct expenses were $0.5 million and
$0.1  million,  respectively, for the three months ended June 30, 2002, compared
to  $0.6 million and $0.1 million, respectively, during the same period of 2001.
The decrease in lease revenues of $0.1 million during the second quarter of 2002
compared  to  2001  was  due  to  lower  lease rates earned on the Partnership's
railcars.

Aircraft:     Aircraft  lease revenues and direct expenses were $0.3 million and
$2,000, respectively, for the three months ended June 30, 2002, compared to $0.3
million  and  $(2,000),  respectively,  during  the  same  period  of  2001.

Trailers:     Trailer  lease  revenues and direct expenses were $0.1 million and
$0.1  million,  respectively, for the three months ended June 30, 2002 and 2001.

(B)     Indirect  Expenses  Related  to  Owned  Equipment  Operations

Total indirect expenses of $2.7 million for the three months ended June 30, 2002
decreased  from $2.9 million for the same period in 2001.  Significant variances
are  explained  as  follows:

     (i)     A  $0.4  million decrease in depreciation and amortization expenses
from  2001  levels reflects the decrease of approximately $0.2 million caused by
the  double-declining  balance  method  of depreciation which results in greater
depreciation in the first years an asset is owned and a decrease of $0.2 million
resulting  from  certain  assets  being  fully  depreciated  during  2001;

     (ii)     A  $0.1  million  decrease  in interest expense was due to a lower
average  outstanding  debt balance in the second quarter of 2002 compared to the
same  period  of  2001;

     (iii)  A  $0.3 million increase in the provision for bad debts was based on
PLM  Financial  Services,  Inc. (FSI or the General Partner's) evaluation of the
collectability  of  receivables  compared  to  2001.  The provision for bad debt
recorded  in the second quarter of 2002 of $0.3 million was primarily related to
one  aircraft  lessee.

(C)     Interest  and  Other  Income

Interest  and  other  income decreased $34,000 due to a decrease in the interest
rate  earned  on  cash  balances.

(D)     Equity  in Net Income of Unconsolidated Special-Purpose Entities (USPEs)

Equity  in  net  income  of  USPEs represents the Partnership's share of the net
income  generated from the operation of jointly owned assets accounted for under
the  equity method of accounting.  These entities are single purpose and have no
debt  or  other  financial encumbrances.  The following table presents equity in
net  income  by  equipment  type  (in  thousands  of  dollars):
<TABLE>
<CAPTION>


                                                    For the Three Months
                                                        Ended June 30,
                                                      2002          2001
                                                      ==================
<S>                              <C>                   <C>  <C>   <C>
Aircraft                                               $ 7        $  479
Marine vessel                                            5         1,929
                                                      -----       ------
  Equity in net income of USPEs                        $12        $2,408
                                                      =====       ======
</TABLE>


Aircraft:  As  of  June  30, 2002 and 2001, the Partnership owned an interest in
entities  that  owned  three commercial aircraft.  During the three months ended
June  30,  2002,  lease  revenues  of  $0.5  million were offset by depreciation
expense,  direct  expenses, and administrative expenses of $0.5 million.  During
the same period of 2001, lease revenues of $0.5 million and other income of $0.8
million were offset by depreciation expense, direct expenses, and administrative
expenses  of  $0.8  million.

Other  income decreased $0.8 million during the three months ended June 30, 2002
when  compared  to  the same period of 2001, due to the recognition of an engine
reserve  liability  as  income  upon termination of the previous lease agreement
during  2001.  A  similar  event  did  not occur during the same period of 2002.

The  decrease  in  depreciation  expense  of  $0.2 million was the result of the
double  declining-balance  method  of  depreciation  which  results  in  greater
depreciation  in  the first years an asset is owned and by $0.2 million in lower
depreciation  expense resulting from one aircraft being fully depreciated during
2001.

Marine  vessel:  As  of  June  30,  2002  and 2001, the Partnership had sold its
interest in an entity that owned a marine vessel.  During the three months ended
June  30,  2002,  the  Partnership's  interest  in an entity that owned a marine
vessel  received  an  insurance settlement of $5,000.  During the same period of
2001,  lease revenues of $0.2 million and the gain of $2.1 million from the sale
of  the  Partnership's  interest  in  an  entity that owned a marine vessel were
offset  by depreciation expense, direct expenses, and administrative expenses of
$0.4  million.

The  decrease  in  marine  vessel  contribution  was  due  to  the  sale  of the
Partnership  interest  in  an  entity  that  owned  a marine vessel during 2001.

<PAGE>

(E)     Net  Income

As  a  result of the foregoing, the Partnership had a net income of $0.2 million
for the three months ended June 30, 2002, compared to net income of $2.9 million
during  the same period of 2001.  The Partnership's ability to acquire, operate,
and  liquidate  assets,  secure  leases  and  re-lease those assets whose leases
expire  is subject to many factors.  Therefore, the Partnership's performance in
the  second  quarter  of  2002  is not necessarily indicative of future periods.

Comparison  of the Partnership's Operating Results for the Six Months Ended June
--------------------------------------------------------------------------------
30,  2002  and  2001
--------------------

(A)     Owned  Equipment  Operations

Lease  revenues less direct expenses on owned equipment decreased during the six
months  ended  June 30, 2002 compared to the same period of 2001.  The following
table  presents  lease revenues less direct expenses by segment (in thousands of
dollars):
<TABLE>
<CAPTION>


                                         For the Six Months
                                            Ended June 30,
                                         2002          2001
                                         ==================
<S>                <C>                 <C>     <C>   <C>
Marine containers                      $3,035        $3,123
Marine vessels                          1,227         1,685
Railcars                                  873           918
Aircraft                                  539           541
Trailers                                  134           162
</TABLE>


Marine  containers:     Lease revenues and direct expenses for marine containers
were  $3.1  million  and $35,000 respectively, for the six months ended June 30,
2002, compared to $3.2 million and $37,000, respectively, during the same period
of  2001.  A  decrease  in lease revenues of $0.1 million was due to lower lease
rates  earned  on  the  Partnership's  marine  containers.

Marine  vessels:     Marine  vessel lease revenues and direct expenses were $2.6
million  and $1.4 million, respectively, for the six months ended June 30, 2002,
compared  to $2.9 million and $1.2 million, respectively, during the same period
of  2001.  The  decrease in lease revenues of $0.3 million during the six months
ended  June 30, 2002 compared to 2001 was due to lower lease rates earned on the
Partnership's  marine  vessels.  The increase in direct expenses of $0.2 million
was  caused  by  higher  repair  and  operating costs to one of the owned marine
vessels  during  2002  compared  to  2001.

Railcars:     Railcar  lease  revenues and direct expenses were $1.1 million and
$0.3  million, respectively, for the six months ended June 30, 2002, compared to
$1.2  million  and  $0.3  million, respectively, during the same period of 2001.
The  decrease in lease revenues of $0.1 million during the six months ended June
30,  2002  compared  to  2001  was  due  to  lower  lease  rates  earned  on the
Partnership's  railcars.

Aircraft:     Aircraft  lease revenues and direct expenses were $0.5 million and
$4,000,  respectively,  for the six months ended June 30, 2002, compared to $0.5
million  and  $2,000,  respectively,  during  the  same  period  of  2001.

Trailers:     Trailer  lease  revenues and direct expenses were $0.3 million and
$0.2  million, respectively, for the six months ended June 30, 2002, compared to
$0.3  million  and  $0.1  million, respectively, during the same period of 2001.

(B)     Indirect  Expenses  Related  to  Owned  Equipment  Operations

Total  indirect  expenses of $5.2 million for the six months ended June 30, 2002
decreased  from $5.9 million for the same period in 2001.  Significant variances
are  explained  as  follows:

     (i)     A  $0.8  million decrease in depreciation and amortization expenses
from  2001  levels reflects the decrease of approximately $0.5 million caused by
the  double-declining  balance  method  of depreciation which results in greater
depreciation in the first years an asset is owned and a decrease of $0.3 million
resulting  from  certain  assets  being  fully  depreciated  during  2001;

     (ii)     A  $0.2  million  decrease  in general and administrative expenses
during  the  six months ended June 30, 2002 was due to lower professional costs;

     (iii)     A  $0.2  million  decrease in interest expense was due to a lower
average  outstanding debt balance in the six months ended June 30, 2002 compared
to  the  same  period  of  2001;  and

     (iv)  A  $0.5  million increase in the provision for bad debts was based on
the  General  Partner's evaluation of the collectability of receivables compared
to  2001.  The  provision for bad debt recorded in the six months ended June 30,
2002  of  $0.2  million  was  primarily  related  to  one  aircraft  lessee.

(C)     Interest  and  Other  Income

Interest  and  other  income  decreased $0.1 million due to a one time insurance
settlement  of  $36,000  received  during the six months ended June 30, 2001.  A
similar  settlement  was  not  received  during  the  same  period  of  2002.
Additionally,  interest  income  decreased $0.1 million due to a decrease in the
interest  rate  earned  on  cash  balances.

(D)     Net  Gain  on  Disposition  of  Owned  Equipment

The net gain on disposition of owned equipment for the six months ended June 30,
2002  totaled  $2,000 and resulted from the sale of marine containers with a net
book value of $6,000 for $8,000.  The net gain on disposition of owned equipment
for  the  six  months  ended June 30, 2001 totaled $14,000 and resulted from the
sale  of  a  marine  containers  with an aggregate net book value of $12,000 for
$27,000.

(E)     Equity  in Net Income of Unconsolidated Special-Purpose Entities (USPEs)

Equity  in  net  income  of  USPEs represents the Partnership's share of the net
income  generated from the operation of jointly owned assets accounted for under
the  equity method of accounting.  These entities are single purpose and have no
debt  or  other  financial encumbrances.  The following table presents equity in
net  income  by  equipment  type  (in  thousands  of  dollars):
<TABLE>
<CAPTION>


                                                    For the Six Months
                                                       Ended June 30,
                                                     2002         2001
                                                     =================
<S>                              <C>                 <C>  <C>   <C>
Marine vessel                                        $31        $2,036
Aircraft                                               4            --
                                                    -----       ------
  Equity in net income of USPEs                      $35        $2,036
                                                    =====       ======
</TABLE>


Marine  vessel:  As  of  June  30,  2002  and 2001, the Partnership had sold its
interest  in  an entity that owned a marine vessel.  During the six months ended
June  30,  2002,  revenues  of $32,000 were offset by administrative expenses of
$1,000.  During  the  six months ended June 30, 2002, the Partnership's interest
in  an  entity  that  owned  a marine vessel received an insurance settlement of
$32,000.  During the same period of 2001, lease revenues of $0.7 million and the
gain  of  $2.1  million from the sale of the Partnership's interest in an entity
that owned a marine vessel were offset by depreciation expense, direct expenses,
and  administrative  expenses  of  $0.8  million.

The  decrease  in  marine  vessel  contribution  was  due  to  the  sale  of the
Partnership's  interest  in  an  entity  that owned a marine vessel during 2001.

Aircraft:  As  of  June  30, 2002 and 2001, the Partnership owned an interest in
entities that owned three commercial aircraft.  During the six months ended June
30,  2002,  lease  revenues of $1.0 million were offset by depreciation expense,
direct  expenses,  and administrative expenses of $1.0 million.  During the same
period  of 2001, lease revenues of $1.2 million and other income of $0.8 million
were  offset  by  depreciation  expense,  direct  expenses,  and  administrative
expenses  of  $2.0  million.

Lease  revenues  decreased  $0.2  million  due  to the leases for two commercial
aircraft  in  the  trusts being renegotiated at a lower rate.  This decrease was
offset,  in  part,  by  an increase of $0.1 million earned by the trust owning a
Boeing  737-300  commercial  aircraft  due to a new lease going into effect at a
higher  rate.  Other  income  decreased $0.8 million during the six months ended
June  30,  2002  due to the recognition of an engine reserve liability as income
upon  termination  of the previous lease agreement during 2001.  A similar event
did  not  occur  during  the  same  period  of  2002.

The  decrease  in  expenses  of  $1.0  million  was  due to required repairs and
maintenance  of $0.3 million to the Boeing 737-300 that were not required during
2002,  by $0.2 million in lower depreciation expense as the result of the double
declining-balance  method  of depreciation which results in greater depreciation
in  the first years an asset is owned, and by $0.4 million in lower depreciation
expense  resulting  from  one  aircraft  being  fully  depreciated  during 2001.

(F)     Net  Income

As  a  result of the foregoing, the Partnership had a net income of $0.7 million
for  the  six months ended June 30, 2002, compared to net income of $2.7 million
during  the same period of 2001.  The Partnership's ability to acquire, operate,
and  liquidate  assets,  secure  leases  and  re-lease those assets whose leases
expire  is subject to many factors.  Therefore, the Partnership's performance in
the  six  months  ended  June  30,  2002 is not necessarily indicative of future
periods.

(II)     CRITICAL  ACCOUNTING  POLICIES  AND  ESTIMATES

The preparation of financial statements in conformity with accounting principles
generally  accepted in the United States of America requires the General Partner
to make estimates and assumptions that affect the reported amounts of assets and
liabilities  and the disclosure of contingent assets and liabilities at the date
of  the  financial  statements and the reported amounts of revenues and expenses
during  the  reporting  period.  On a regular basis, the General Partner reviews
these estimates including those related to asset lives and depreciation methods,
impairment  of  long-lived  assets,  allowance  for  doubtful accounts, reserves
related  to legally mandated equipment repairs and contingencies and litigation.
These  estimates are based on the General Partner's historical experience and on
various  other  assumptions  believed  to be reasonable under the circumstances.
Actual  results  may  differ from these estimates under different assumptions or
conditions.  The  General  Partner  believes,  however,  that  the  estimates,
including  those  for  the  above-listed  items,  are reasonable and that actual
results  will  not  vary  significantly  from  the  estimated  amounts.

The  General  Partner believes the following critical accounting policies affect
the  more  significant  judgments  and  estimates used in the preparation of the
Partnership's  financial  statements:

Asset  lives  and  depreciation  methods:  The  Partnership's  primary  business
involves  the  purchase  and  subsequent  lease of long-lived transportation and
related equipment.   The General Partner has chosen asset lives that it believes
correspond  to  the economic life of the related asset.  The General Partner has
chosen  a  deprecation  method  that  it  believes  matches  the  benefit to the
Partnership from the asset with the associated costs.  These judgments have been
made based on the General Partner's expertise in each equipment segment that the
Partnership operates.  If the asset life and depreciation method chosen does not
reduce  the  book value of the asset to at least the potential future cash flows
from the asset to the Partnership, the Partnership would be required to record a
loss  on  revaluation.  Likewise, if the net book value of the asset was reduced
by  an  amount greater than the economic value has deteriorated, the Partnership
may  record  a  gain  on  sale  upon  final  disposition  of  the  asset.

Impairment  of  long-lived  assets:  On  a  regular  basis,  the General Partner
reviews  the  carrying  value  of  its  equipment  and  investments  in USPEs to
determine  if  the  carrying  value  of the assets may not be recoverable due to
current  economic  conditions.  This  requires  the  General  Partner  to  make
estimates  related  to  future  cash  flows  from  each  asset  as  well  as the
determination  if  the  deterioration  is  temporary  or  permanent.  If  these
estimates  or  the related assumptions change in the future, the Partnership may
be  required  to  record  additional  impairment  charges.

Allowance  for  doubtful  accounts:  The  Partnership  maintains  allowances for
doubtful  accounts  for  estimated  losses  resulting  from the inability of the
lessees  to make the lease payments.  These estimates are primarily based on the
amount  of  time  that has lapsed since the related payments were due as well as
specific  knowledge  related  to the ability of the lessees to make the required
payments.  If  the  financial  condition  of  the  Partnership's lessees were to
deteriorate,  additional  allowances could be required that would reduce income.
Conversely,  if  the  financial  condition  of the lessees were to improve or if
legal  remedies  to  collect past due amounts were successful, the allowance for
doubtful  accounts  may  need  to  be  reduced  and  income  would be increased.

Reserves  for  repairs:  The Partnership accrues for legally required repairs to
equipment  such  as  dry  docking  for  marine  vessels  and engine overhauls to
aircraft engines over the period prior to the required repairs.  The amount that
is  reserved  is  based  on  the  General  Partner's expertise in each equipment
segment, the past history of such costs for that specific piece of equipment and
discussions  with  independent,  third  party  equipment brokers.  If the amount
reserved for is not adequate to cover the cost of such repairs or if the repairs
must  be  performed  earlier than the General Partner estimated, the Partnership
would  incur  additional repair and maintenance or equipment operating expenses.

Contingencies  and  litigation:  The Partnership is subject to legal proceedings
involving  ordinary  and  routine  claims related to its business.  The ultimate
legal  and  financial liability with respect to such matters cannot be estimated
with  certainty  and  requires the use of estimates in recording liabilities for
potential litigation settlements.  Estimates for losses from litigation are made
after  consultation  with  outside  counsel.  If  estimates  of potential losses
increase  or  the  related  facts  and  circumstances  change in the future, the
Partnership  may  be  required  to  record  additional  litigation  expense.

(III)     FINANCIAL CONDITION -- CAPITAL RESOURCES, LIQUIDITY, AND DISTRIBUTIONS

For the six months ended June 30, 2002, the Partnership generated operating cash
of  $5.2 million (net cash provided by operating activities plus non-liquidating
distributions  from  USPEs)  to  meet  its  operating  obligations, pay debt and
interest  payments  and  maintain  working  capital  reserves.

During  the  six  months ended June 30, 2002, the Partnership disposed of marine
containers  for  proceeds  of  $8,000.

Accounts  receivable  decreased  $8,000  in  the six months ended June 30, 2002.
This decrease was due to increase in the allowance for bad debts of $0.5 million
due  to  the  General  Partner's  evaluation  of  the collectibility of accounts
receivable.  This  decrease  was partially offset by an increase of $0.5 million
during  the  six  months ended June 30, 2002 due to the timing of cash receipts.

Investments in USPEs decreased $0.8 million during the six months ended June 30,
2002 due to cash distributions of $0.9 million from the USPEs to the Partnership
offset,  in  part, by $35,000 in income that was recorded by the Partnership for
its  equity  interests  in  the  USPEs.

Accounts  payable  decreased  $0.7  million during the six months ended June 30,
2002.  The decrease was due to the payment of $0.8 million due to the purchasing
agent  that  was  accrued  at  December  31, 2001 resulting from the purchase of
Partnership  units  offset,  in  part, by an increase of $0.1 million due to the
timing  of  cash  payments.

During  the  six  months  ended  June  30, 2002, lessee deposits and reserve for
repairs  increased  $0.2  million  due  to an increase in the reserve for marine
vessel  dry  docking.

The  Partnership  is scheduled to make an annual debt payment of $3.0 million to
the  lenders  of  the  notes  payable  on  December 31, 2002.  The cash for this
payment  will  come  from  operations  and proceeds from equipment dispositions.

In July 2002, PLM International, Inc. (PLMI), the parent company of FSI, reached
an  agreement with the lenders of the $10.0 million warehouse facility to extend
the expiration date of the facility to June 30, 2003.  The warehouse facility is
shared  by  the  Partnership,  PLM Equipment Growth Fund V, PLM Equipment Growth
Fund  VI, and Professional Lease Management Income Fund I, LLC and Acquisub LLC,
a  wholly  owned  subsidiary of PLMI.  The facility provides for financing up to
100%  of  the  cost  of  the  equipment.  Outstanding borrowings by one borrower
reduce  the  amount available to each of the other borrowers under the facility.
Individual  borrowings  may  be  outstanding for no more than 270 days, with all
advances  due no later than June 30, 2003.  Interest accrues either at the prime
rate  or  LIBOR  plus 2.0% at the borrower's option and is set at the time of an
advance  of  funds.  Borrowings  by the Partnership are guaranteed by PLMI.  The
Partnership  is  not  liable  for  the  advances  made  to  the other borrowers.

As  of  August 13,  2002,  no  eligible borrower has any outstanding borrowings.

(IV)     OUTLOOK  FOR  THE  FUTURE

Several  factors  may  affect the Partnership's operating performance during the
remainder  of  2002  and  beyond,  including  changes  in  the  markets  for the
Partnership's  equipment and changes in the regulatory environment in which that
equipment  operates.


The Partnership's operation of a diversified equipment portfolio in a broad base
of  markets  is  intended  to  reduce  its  exposure to volatility in individual
equipment  sectors.

Other  factors  affecting the Partnership's contribution during the remainder of
2002  and  beyond  include:

(1)     The  cost  of  new  marine containers have been at historic lows for the
past  several  years  which has caused downward pressure on per diem lease rates
for  this  type  of  equipment;

(2)     Railcar loadings in North America for the six months ended June 30, 2002
were  below those of 2001.  This decrease has led to lower utilization and lower
contribution to the Partnership as existing leases expire and renewal leases are
negotiated;

(3)     Marine  vessel freight rates are dependent upon the overall condition of
the  international  economy.  Freight  rates  earned by the Partnership's marine
vessel  began  to  decrease during the latter half of 2001 and continued through
the  first  six  months  of 2002.  This trend is expected to continue during the
latter  half  of  2002  or  until international economies stabilize and begin to
improve;

(4)     Industry  wide  utilization of inter-modal trailers decreased 12% during
the  six  months  ended  June  30, 2002 compared to 2001.  This has led to lower
utilization of the Partnership's trailers as existing leases expire and may lead
to  lower  utilization  during  the  remainder  of  2002;  and

(5)     The  airline  industry  began to see lower passenger travel during 2001.
The  tragic events on September 11, 2001 worsened the situation.  As a result of
this and the general turmoil in the airline industry, the Partnership has had to
renegotiate  leases  on  its  owned  aircraft  during 2001 that will result in a
decrease  in revenues during 2002.

In addition, these events have had a negative impact on the fair market value of
the  Partnership's  owned and partially owned aircraft. Although no revaluations
were required during 2002 to these aircraft, the General Partner does not expect
these  aircraft  values  to  return  to  their previous value in the foreseeable
future.

During  2001,  the  lessee  of  a  Stage  II  Boeing 737-200 commercial aircraft
notified  the  General  Partner  of  its intention to return this aircraft.  The
lessee  is  located  in  Brazil,  a  country  currently  experiencing  economic
difficulty.  As of June 30, 2002, the lessee has not remitted ten lease payments
due to the Partnership.  The Partnership has a security deposit from this lessee
that could be used to pay a portion of the amount due.  During October 2001, the
General  Partner  sent a notification of default to the lessee.  The lease, with
an  expiration  date  of October 2002, has certain return condition requirements
for  each aircraft.  The General Partner has recorded an allowance for bad debts
for  the  amount  due  less  the  security  deposit  and  is  uncertain  of  the
collectibility  of  this  receivable.

The  ability  of  the  Partnership  to  realize  acceptable  lease  rates on its
equipment in the different equipment markets is contingent on many factors, such
as specific market conditions and economic activity, technological obsolescence,
and  government  or  other  regulations.  The  unpredictability of some of these
factors,  or  of their occurrence, makes it difficult for the General Partner to
clearly  define  trends  or  influences  that  may impact the performance of the
Partnership's  equipment.  The  General  Partner  continually  monitors both the
equipment  markets  and  the performance of the Partnership's equipment in these
markets.  The General Partner may decide to reduce the Partnership's exposure to
equipment  markets in which it determines it cannot operate equipment to achieve
acceptable  rates  of  return.  Alternatively,  the  General  Partner may make a
determination  to enter equipment markets in which it perceives opportunities to
profit  from  supply/demand  instabilities  or  other  market  imperfections.

The  Partnership  may  reinvest  its cash flow, surplus cash, and equipment sale
proceeds  in  additional  equipment,  consistent  with  the  objectives  of  the
Partnership,  until  December 31, 2004.  The General Partner believes that these
acquisitions  may cause the Partnership to generate additional earnings and cash
flow  for the Partnership.  Surplus funds, if any, less reasonable reserves, may
be  distributed to the partners.  The Partnership will terminate on December 31,
2013,  unless terminated earlier upon sale of all equipment and by certain other
events.

(V)     FORWARD-LOOKING  INFORMATION

Except  for the historical information contained herein, this Form 10-Q contains
forward-looking  statements  that  involve  risks  and  uncertainties,  such  as
statements of the Partnership's plans, objectives, expectations, and intentions.
The  cautionary  statements  made  in  this  Form  10-Q  should be read as being
applicable  to  all  related  forward-looking statements wherever they appear in
this  Form  10-Q.  The Partnership's actual results could differ materially from
those  discussed  here.





<PAGE>
ITEM  3.     QUANTITATIVE  AND  QUALITATIVE  DISCLOSURES  ABOUT  MARKET  RISK
             ----------------------------------------------------------------

The  Partnership's  primary market risk exposure is that of currency devaluation
risk.  During the six months ended June 30, 2002, 84% of the Partnership's total
lease  revenues  from wholly- and partially-owned equipment came from non-United
States  domiciled  lessees.  Most of the Partnership's leases require payment in
United States (US) currency.  If these lessees' currency devalues against the US
dollar,  the  lessees  could  potentially  encounter difficulty in making the US
dollar  denominated  lease  payments.



                          PART II -- OTHER INFORMATION


ITEM  6.     EXHIBITS  AND  REPORTS  ON  FORM  8-K
             -------------------------------------

     (a)     Exhibits
             --------

10.1     Third amendment to the Warehouse Credit Agreement, dated July 11, 2002.

     (b)     Reports  on  Form  8-K
             ----------------------

     None.




<PAGE>



Pursuant  to  the  requirements  of  the  Securities  Exchange  Act of 1934, the
registrant  has  duly  caused  this  report  to  be  signed on its behalf by the
undersigned  thereunto  duly  authorized.



                                   PLM  EQUIPMENT  GROWTH  &  INCOME  FUND  VII

                                   By:PLM  Financial  Services,  Inc.
                                      General  Partner



Date:  August  13,  2002              By:/s/  Stephen  M.  Bess
                                         ----------------------
                                         Stephen  M.  Bess
                                         President  and
                                         Current  Chief  Accounting  Officer





CERTIFICATION

The  undersigned  hereby certifies, in his capacity as an officer of the General
Partner  of  PLM  Equipment Growth & Income Fund VII (the Partnership), that the
Quarterly  Report  of the Partnership on Form 10-Q for the period ended June 30,
2002,  fully  complies  with the requirements of Section 13(a) of the Securities
Exchange  Act  of  1934 and that the information contained in such report fairly
presents,  in  all material respects, the financial condition of the Partnership
at  the  end of such period and the results of operations of the Partnership for
such  period.



                                  PLM  EQUIPMENT  GROWTH  &  INCOME  FUND  VII

                                  By:PLM  Financial  Services,  Inc.
                                     General  Partner



Date:  August  13,  2002             By:/s/  Stephen  M.  Bess
                                        ---------------------
                                        Stephen  M.  Bess
                                        President  and
                                        Current  Chief  Accounting  Officer




Date:  August  13,  2002             By:/s/  James  A.  Coyne
                                        ---------------------
                                        James  A.  Coyne
                                        Chief  Financial  Officer