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

quarterly period ended                 June 30, 2006
                       ---------------------------------------------------------

[ ] 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                      000-27926
                       ---------------------------------------------------------

                       ICON Cash Flow Partners L.P. Seven
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)

         Delaware                                       13-3835387
--------------------------------------------------------------------------------
(State or other jurisdiction of             (IRS Employer Identification Number)
incorporation or organization)

 100 Fifth Avenue, 4th Floor, New York, New York               10011-1505
--------------------------------------------------------------------------------
(Address of principal executive offices)                       (Zip code)

                                 (212) 418-4700
--------------------------------------------------------------------------------
               Registrant's telephone number, including area code

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. [x] Yes [ ] No

Indicate by check mark whether the registrant is a large  accelerated  filer, an
accelerated  filer or a  non-accelerated  filer.  See definition of "accelerated
filer and large  accelerated  filer" in Rule 12b-2 of the  Exchange  Act.  Large
accelerated filer [ ] Accelerated filer [ ] Non-accelerated filer [x]

Indicate by check mark whether the  registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act). [ ] Yes [x] No

Number of outstanding  limited  partnership units of the registrant on August 1,
2006 is 987,378.

<PAGE>

                       ICON Cash Flow Partners L.P. Seven
                                      Index


<TABLE>
<CAPTION>


PART I - FINANCIAL INFORMATION                                                           Page

<S>                                                                                       <C>
     Item 1.  Condensed Consolidated Financial Statements

         Condensed Consolidated Balance Sheets at June 30, 2006 (Unaudited) and
           December 31, 2005                                                               1

         Condensed Consolidated Statements of Operations for the Three and Six Months
           Ended June 30, 2006 and 2005 (Unaudited)                                        3

         Condensed Consolidated Statement of Changes in Partners' Equity for the Six
           Months Ended June 30, 2006 (Unaudited)                                          4

         Condensed Consolidated Statements of Cash Flows for the Six Months Ended
           June 30, 2006 and 2005 (Unaudited)                                              5

         Notes to Condensed Consolidated Financial Statements (Unaudited)                  7

     Item 2. General Partner's Discussion and Analysis of Financial Condition and
              Results of Operations                                                       14

     Item 3.  Quantitative and Qualitative Disclosures About Market Risk                  19

     Item 4.  Controls and Procedures                                                     19

PART II - OTHER INFORMATION

     Item 1.  Legal Proceedings                                                           20

     Item 1A. Risk Factors                                                                20

     Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds                 20

     Item 3.  Defaults Upon Senior Securities                                             21

     Item 4.  Submission of Matters to a Vote of Security Holders                         21

     Item 5.  Other Information                                                           21

     Item 6.  Exhibits                                                                    21

Signatures                                                                                22

</TABLE>

<PAGE>


                         PART I - FINANCIAL INFORMATION

Item 1.  Condensed Consolidated Financial Statements

                       ICON Cash Flow Partners L.P. Seven
                        (A Delaware Limited Partnership)
                      Condensed Consolidated Balance Sheets

                                     ASSETS


                                                (Unaudited)
                                                  June 30,      December 31,
                                                -----------    ------------

                                                   2006            2005
                                                -----------    ------------
 Cash and cash equivalents                      $ 3,289,963    $    151,326
                                                -----------    ------------

 Investment in operating lease:
      Equipment, at cost                          2,565,000       2,565,000
      Accumulated depreciation                   (1,666,620)     (1,388,850)
                                                -----------    ------------

         Net investment in operating lease          898,380       1,176,150
                                                -----------    ------------

 Investments in joint ventures                    7,675,042      11,241,860
 Investments in estimated
    unguaranteed residual values                         -                -
 Equipment held for sale                             90,500         165,152
 Restricted cash                                  2,715,764       2,285,723
 Other assets, net                                    1,314         233,114
                                                -----------    ------------

         Total assets                           $14,670,963    $ 15,253,325
                                                ===========    ============

See accompanying notes to condensed consolidated financial statements.

                                       1
<PAGE>


                       ICON Cash Flow Partners L.P. Seven
                        (A Delaware Limited Partnership)
                      Condensed Consolidated Balance Sheets

                        LIABILITIES AND PARTNERS' EQUITY


                                                      (Unaudited)
                                                        June 30,   December 31,
                                                         2006          2005
                                                      -----------  ------------

 Note payable - recourse                              $ 4,698,538  $  4,698,538
 Security deposits and other payables                     263,347       219,327
 Due to General Partner                                   132,499       132,499
 Maintenance reserve payable                            2,611,429     2,185,723
                                                      -----------  ------------

      Total liabilities                                 7,705,813     7,236,087
                                                      -----------  ------------

 Commitments and contingencies

 Partners' equity:
      General Partner                                    (779,233)     (768,734)
      Limited Partners (987,378 and 987,548
          units outstanding,
            $100 original unit original issue price)    7,744,383     8,785,972
                                                      -----------  ------------

      Total partners' equity                            6,965,150     8,017,238
                                                      -----------  ------------

      Total liabilities and partners' equity          $14,670,963  $ 15,253,325
                                                      ===========  ============

See accompanying notes to condensed consolidated financial statements.

                                       2
<PAGE>

                       ICON Cash Flow Partners L.P. Seven
                        (A Delaware Limited Partnership)
                 Condensed Consolidated Statements of Operations
                                   (Unaudited)


<TABLE>
<CAPTION>
                                                                Three Months Ended June 30,         Six Months Ended June 30,
                                                               ----------------------------        ---------------------------
                                                                  2006              2005              2006             2005
                                                               ----------       -----------        ----------      -----------
<S>                                                          <C>                <C>               <C>             <C>
 Revenue:
      Rental income                                           $   150,000       $   150,000       $   300,000      $   300,000
      Finance income                                                    -                 -                 -            1,928
      (Loss) income from investments in joint ventures            (32,161)          372,801           390,850         878,972
      Gain on transfer of investment in joint ventures                  -                 -                 -        1,171,786
      Net gain (loss) on sales of equipment                         4,900                 -           (12,734)              -
      Interest and other income                                    12,446             3,535            23,440           20,704
                                                              -----------       -----------       -----------      -----------

         Total revenue                                            135,185           526,336           701,556        2,373,390
                                                              -----------       -----------       -----------      -----------

 Expenses:
      Impairment loss                                              20,289         1,020,826            20,289        1,320,826
      Depreciation and amortization                               343,822           165,616           509,438          331,232
      Interest                                                     58,731           119,758           117,463          237,160
      Remarketing expense                                          62,004            75,000           124,129          150,000
      General and administrative                                  843,446           146,353           980,128          255,864
      Minority interest                                                -               (639)               -            (1,278)
                                                              -----------       -----------       -----------      -----------

         Total expenses                                         1,328,292         1,526,914         1,751,447        2,293,804
                                                              -----------       -----------       -----------      -----------

 Net (loss) income                                            $(1,193,107)      $(1,000,578)      $(1,049,891)     $    79,586
                                                              ===========       ===========       ===========      ===========


 Net (loss) income allocable to:
      Limited Partners                                        $(1,181,176)      $  (990,572)      $(1,039,392)     $    78,790
      General Partner                                             (11,931)          (10,006)          (10,499)             796
                                                              -----------       -----------       -----------      -----------

                                                              $(1,193,107)      $(1,000,578)      $(1,049,891)     $    79,586
                                                              ===========       ===========       ===========      ===========

 Weighted average number of limited partnership
      units outstanding                                           987,378           987,548           987,419          987,548
                                                              ===========       ===========       ===========      ===========

 Net (loss) income per weighted average limited
      partnership unit outstanding                             $    (1.20)      $     (1.00)      $     (1.05)     $      0.08
                                                               ==========       ===========       ===========      ===========

</TABLE>


See accompanying notes to condensed consolidated financial statements.

                                       3
<PAGE>

                       ICON Cash Flow Partners L.P. Seven
                        (A Delaware Limited Partnership)
         Condensed Consolidated Statement of Changes in Partners' Equity
                         Six Months Ended June 30, 2006
                                   (Unaudited)


<TABLE>
<CAPTION>

                                                                                            Total
                                        Units           Limited          General          Partners'
                                     Outstanding       Partners          Partner            Equity
                                    ------------     -----------     ---------------    ---------------


<S>                                <C>               <C>              <C>               <C>
 Balance, January 1, 2006                987,548     $ 8,785,972     $      (768,734)   $     8,017,238

 Limited partnership units redeemed         (170)         (2,197)                 -              (2,197)
 Net loss                                     -       (1,039,392)            (10,499)        (1,049,891)
                                    ------------     -----------     ---------------    ---------------

 Balance, June 30, 2006                  987,378     $ 7,744,383     $      (779,233)   $     6,965,150
                                    ============    ============     ===============    ===============

</TABLE>

See accompanying notes to condensed consolidated financial statements.

                                       4
<PAGE>

                       ICON Cash Flow Partners L.P. Seven
                        (A Delaware Limited Partnership)
                 Condensed Consolidated Statements of Cash Flows
                            Six Months Ended June 30,
                                   (Unaudited)


<TABLE>
<CAPTION>


 Increase (decrease) in cash and cash equivalents                                    2006                  2005
                                                                                ---------------      ---------------
<S>                                                                             <C>                  <C>
 Cash flows from operating activities:
      Net (loss) income                                                         $    (1,049,891)     $        79,586
      Adjustments to reconcile net (loss) income to net cash
         (used in) provided by operating activities:
            Income from investments in joint ventures                                  (390,850)            (878,972)
            Gain on transfer of investment in joint venture                                   -           (1,171,786)
            Net loss on sales of equipment                                               12,734                   -
            Impairment loss                                                              20,289            1,320,826
            Depreciation  and amortization                                              509,438              331,232
            Interest expense on non-recourse financing paid directly
               to lenders by lessees                                                         -               196,911
            Minority interest                                                                -                (1,278)
      Changes in operating assets and liabilities:
         Collection of principal - non-financed receivables                                  -               366,565
         Due from/to General Partner and affiliates, net                                     -               (22,326)
         Increase in restricted cash                                                   (430,041)                 -
         Security deposits and other payables                                            44,152             (127,920)
         Maintenance reserve payable                                                    425,706                  -
                                                                                ---------------      ---------------

 Net cash (used in) provided by operating activities                                   (858,463)              92,838
                                                                                ---------------      ---------------

 Cash flows from investing activities:
      Proceeds from sales of equipment                                                   41,629              234,487
      Distributions received from joint ventures                                      3,957,668               10,414
                                                                                ---------------      ---------------

 Net cash provided by investing activities                                            3,999,297              244,901
                                                                                ---------------      ---------------

 Cash flows from financing activities:
      Cash paid for redemption of limited partner units                                  (2,197)                  -
      Principal payments on notes payable - recourse                                          -           (2,422,992)
      Loans and advances from affiliates                                                      -            2,172,992
      Distributions to minority interest in joint ventures                                    -               (1,500)
                                                                                ---------------      ---------------

 Net cash used in financing activities                                                   (2,197)            (251,500)
                                                                                ---------------      ---------------

 Net increase in cash and cash equivalents                                            3,138,637               86,239
 Cash and cash equivalents, beginning of the period                                     151,326               96,364
                                                                                ---------------      ---------------

 Cash and cash equivalents, end of the period                                   $     3,289,963      $       182,603
                                                                                ===============      ===============

</TABLE>

See accompanying notes to condensed consolidated financial statements.

                                       5
<PAGE>

                       ICON Cash Flow Partners L.P. Seven
                        (A Delaware Limited Partnership)
                 Condensed Consolidated Statements of Cash Flows
                            Six Months Ended June 30,
                                   (Unaudited)


<TABLE>
<CAPTION>


                                                                                        2006            2005
                                                                                    ------------   -------------
<S>                                                                                 <C>            <C>
 Supplemental disclosure of cash flow information:
      Cash paid during the period for interest                                      $    137,040   $     40,249
                                                                                    ============   ============

 Supplemental disclosure of non-cash investing and financing activities:
      Joint venture interests assigned to affiliates in exchange
         for amounts owed                                                           $         -    $  1,427,992
                                                                                    ============   ============

      Assignment of finance lease interest in exchange for amounts owed             $         -    $    745,000
                                                                                    ============   ============

      Non-cash repayments of loan and advances from affiliates                      $         -    $  2,172,992
                                                                                    ============   ============

</TABLE>

See accompanying notes to condensed consolidated financial statements.

                                       6
<PAGE>


                       ICON Cash Flow Partners L.P. Seven
                        (A Delaware Limited Partnership)
              Notes To Condensed Consolidated Financial Statements
                                  June 30, 2006
                                   (Unaudited)


(1)    Basis of Presentation and Consolidation

     The accompanying  condensed  consolidated financial statements of ICON Cash
Flow Partners L.P.  Seven (the  "Partnership")  have been prepared in accordance
with accounting  principles  generally  accepted in the United States of America
for interim  financial  information and pursuant to the rules and regulations of
the Securities and Exchange Commission for Form 10-Q.  Accordingly,  they do not
include all of the information and footnotes  required by accounting  principles
generally  accepted  in the United  States of  America  for  complete  financial
statements.  In the opinion of the General Partner, all adjustments  (consisting
only of normal recurring accruals)  considered necessary for a fair presentation
have been included.  These condensed consolidated financial statements should be
read in  conjunction  with  the  consolidated  financial  statements  and  notes
included in the  Partnership's  2005 Annual Report on Form 10-K. The results for
the interim  period are not  necessarily  indicative of the results for the full
year.

     The condensed consolidated financial statements include the accounts of the
Partnership and its majority owned  subsidiary.  All  intercompany  accounts and
transactions have been eliminated in consolidation.

     The Partnership accounts for its noncontrolling interests in joint ventures
where the  Partnership  has  influence on  financial  and  operational  matters,
generally greater than 5% but less than 50% ownership interest, under the equity
method of accounting.  In such cases, the Partnership's original investments are
recorded  at  cost  and  adjusted   for  its  share  of  earnings,   losses  and
distributions.  The Partnership accounts for investments in joint ventures where
the  Partnership  has  virtually no influence  over  financial  and  operational
matters using the cost method of accounting.  In such cases,  the  Partnership's
original  investments  are recorded at cost and any  distributions  received are
recorded to operations.  All of the Partnership's  investments in joint ventures
are subject to its impairment review policies.

     In joint ventures where the  Partnership's  ownership  interest is majority
owned,  minority interest represents the minority owner's proportionate share of
its equity in the joint  venture.  The  minority  interest is  adjusted  for the
minority  owner's share of the earnings,  losses and  distributions of the joint
venture.

(2)    Organization

     The  Partnership  was  formed  on  May  23,  1995  as  a  Delaware  limited
partnership for the purpose of acquiring  equipment  subject to leases and, to a
lesser degree,  acquiring ownership rights to items of leased equipment at lease
expiration.  The  Partnership  will  continue  until  December 31, 2015,  unless
terminated sooner.

     The General  Partner of the Partnership is ICON Capital Corp. (the "General
Partner"), a Connecticut  corporation.  The General Partner manages and controls
the  Partnership's  business affairs,  including,  but not limited to, equipment
leases and financing transactions under the terms of a management agreement with
the  Partnership.  Additionally,  the  General  Partner has a 1% interest in the
profits, losses, cash distributions and disposition proceeds of the Partnership.

                                       7
<PAGE>

                       ICON Cash Flow Partners L.P. Seven
                        (A Delaware Limited Partnership)
              Notes To Condensed Consolidated Financial Statements
                                  June 30, 2006
                                   (Unaudited)


(2)    Organization - continued

     The  Partnership  invested  most of the net  proceeds  from its offering in
items of equipment that are subject to a lease.  After the net offering proceeds
were invested, additional investments were made with the cash generated from the
Partnership's  initial  investments  to the extent  that cash was not needed for
expenses,  reserves and distributions to partners.  The investment in additional
equipment in this manner is called  "reinvestment."  The  Partnership  purchased
equipment  from time to time until five  years  from the date the  offering  was
completed.  This time frame is called the "reinvestment  period," which ended on
November 9, 2002. After the reinvestment  period,  the Partnership began selling
its assets in the  ordinary  course of business  during a time frame  called the
"disposition period."

     The  Partnership's  reinvestment  period  ended  November  9,  2002 and the
Partnership commenced its disposition period. During the disposition period, the
Partnership is distributing substantially all distributable cash from operations
and equipment sales to the partners and will continue the orderly termination of
its operations and affairs.  The  Partnership  will not invest in any additional
finance or lease transactions during the disposition period.

     Partners'   capital  accounts  are  increased  for  their  initial  capital
contribution plus their  proportionate  share of earnings and decreased by their
proportionate  share  of  losses  and  distributions.   Profits,   losses,  cash
distributions and disposition proceeds are allocated 99% to the limited partners
and 1% to the General  Partner  until each  limited  partner has  received  cash
distributions  and  disposition  proceeds  sufficient  to reduce their  adjusted
capital   contribution   account  to  zero  and  receive,  in  addition,   other
distributions  and  allocations  which would  provide an 8% per year  cumulative
return on their outstanding  adjusted capital contribution  account.  After such
time, distributions will be allocated 90% to the limited partners and 10% to the
General Partner.

     Certain  reclassifications  have  been made to the  accompanying  condensed
consolidated  financial  statements  for the three and six months ended June 30,
2005 to conform to the current period presentation.

(3)    Use of 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 as of the date of the financial  statements and the reported amounts
of revenues and expenses  during the  reporting  period.  Significant  estimates
primarily  include  allowance for doubtful  accounts,  the value of unguaranteed
residual values,  depreciation and  amortization and impairment  losses.  Actual
results could differ from those estimates.

(4)    Joint Ventures

     The joint venture described below is consolidated by the Partnership.

                                       8
<PAGE>

                       ICON Cash Flow Partners L.P. Seven
                        (A Delaware Limited Partnership)
              Notes To Condensed Consolidated Financial Statements
                                  June 30, 2006
                                   (Unaudited)

(4)    Joint Ventures - continued

ICON Cash Flow Partners L.L.C. III

     On December 28, 2005, ICON Cash Flow Partners,  L.P., Series E ("Series E")
sold its entire 1.0% ownership  interest in ICON Cash Flow Partners  L.L.C.  III
("LLC III") to the Partnership for approximately  $20,000,  which was determined
to be the  fair  value  of  Series  E's  interest  in LLC III.  Fair  value  was
determined by the General Partner based upon cash flow analysis of the remaining
rental payments and the excess amounts included in a maintenance  reserve escrow
account.  At December 31, 2005,  LLC III was a  wholly-owned  subsidiary  of the
Partnership.

     LLC III was  originally  formed for the purpose of acquiring and managing a
1976 McDonnell  Douglas  DC-10-30  Aircraft (the  "Aircraft").  Effective May 1,
2003,  the  Aircraft  was  leased  to World  Airways,  Inc.  ("World  Airways").
Effective  September  1, 2004,  this  lease was  modified  to a fixed  rental of
$50,000 per month plus  maintenance  reserves and the term was extended  through
September 2006.

     Aviation Investors, Inc. ("Aviation"), an unrelated third party who was the
seller in the acquisition of the Aircraft,  is entitled to receive approximately
50% of all excess  residual  proceeds  from the Aircraft  pursuant to a Residual
Sharing  Agreement (the  "Agreement").  Residual proceeds include gross proceeds
from the sale,  lease,  renewal  lease or extension or financing of the Aircraft
and casualty  payments.  The gross proceeds may be reduced,  but not below zero,
for recovery expenses,  remarketing expenses, any reasonable out-of-pocket costs
incurred by the Partnership, including remarketing fees paid to Aviation, and an
amount  calculated to provide the Partnership  with a consistent rate of return,
as  defined  in  the  Agreement.  Additionally,  Aviation  has  entered  into  a
management  agreement  with the  Partnership  to manage the operations of and to
remarket the Aircraft for sale or lease. For this service,  Aviation  receives a
monthly fee of $10,667.

     In accordance with the terms of the lease agreement with World Airways, the
Partnership receives a monthly amount which is reserved as a maintenance reserve
to cover scheduled heavy  maintenance  work as required by the Federal  Aviation
Administration.  This maintenance reserve and an offsetting  maintenance reserve
payable  were  approximately  $2,611,000  at June 30, 2006.  If the  maintenance
reserve  is not fully  utilized  for the  Aircraft,  any unused  amount  will be
allocated between the Partnership and Aviation as stipulated in the Agreement.

     On August 9, 2006, the  Partnership  sold the Aircraft to World Airways for
approximately  $1,300,000 in cash, plus the maintenance reserve of approximately
$2,664,000.  Pursuant  to the  Agreement  with  Aviation,  the  Partnership  and
Aviation  shared the  proceeds of the sale of the  Aircraft  equally.  The gross
proceeds  of the sale were  approximately  $3,964,000,  reduced by legal fees of
approximately  $10,500,  for net proceeds of  $3,953,000  to be divided  equally
between the Partnership and Aviation.  The  Partnership  received  approximately
$1,976,000  in  cash,  will  record  a gain  on the  sale  of  the  Aircraft  of
approximately $400,000 before a remarketing expense of approximately $1,976,000.

     The  Partnership's  investment in the operating  lease  discussed  above is
summarized as follows:


                                    (Unaudited)
                                      June 30,       December 31,
                                        2006            2005
                                    ------------     -----------
 Aircraft                           $  2,565,000     $ 2,565,000

 Less: accumulated depreciation      (1,666,620)      (1,388,850)
                                    ------------     -----------

                                    $    898,380     $ 1,176,150
                                    ============     ===========

                                       9
<PAGE>
                       ICON Cash Flow Partners L.P. Seven
                        (A Delaware Limited Partnership)
              Notes To Condensed Consolidated Financial Statements
                                  June 30, 2006
                                   (Unaudited)

(4)    Joint Ventures - continued

     In addition to the joint venture discussed above, the Partnership  formed a
limited  partnership  with an  unaffiliated  entity for the purpose of owning an
interest in a mobile off-shore drilling rig.

North Sea (Connecticut) Limited Partnership

     The Partnership entered into a limited partnership agreement with North Sea
(Connecticut)   Limited  Partnership  ("North  Sea"),   pursuant  to  which  the
Partnership  acquired 100% of the Class C limited partnership  interest in North
Sea giving the  Partnership  a 50% equity  interest in North Sea.  The  original
purchase price for the Class C limited  partnership  interest was  approximately
$14,726,000,  consisting of approximately  $12,325,000 in cash and approximately
$2,401,000 of  non-recourse  debt.  North Sea exercised its option to acquire an
interest in a drilling rig from its owner,  which  drilling  rig had  previously
been acquired from, and  simultaneously  leased back to the operator.  The lease
was financed on a non-recourse  basis with a bank; it was then  refinanced and a
portion  of the loan  proceeds  were used to pay for the  exercise  price of the
option, with the excess loan proceeds of $20,002,567 distributed to the partners
(the  Partnership  received a $10,001,284  distribution  which  represented  the
Partnership's  original 50% share).  The other parties to this joint venture are
not affiliates of the Partnership or the General Partner.  At June 30, 2006, the
Partnership has a right to 87.65% of the profits, losses and cash flows from its
Class C limited partnership interest in North Sea.

     The  operator  had  entered  into a charter  with the owner  trustee of the
drilling rig which had a monthly rental of approximately  $436,000 that was paid
semi-annually  and was  scheduled to expire on March 15,  2008.  Pursuant to the
terms of the charter,  the oil-rig charterer (the "Charterer"),  was required to
make its  semi-annual  payment of the charter hire following an "Event of Loss,"
which payment was made in the quarter  ending March 31, 2006.  For the three and
six  months  ended  June 30,  2006,  the  Partnership  recognized  a net loss of
approximately  $36,000  and  net  income  of  approximately  $385,000  from  its
investment in North Sea.

     On October 5, 2005,  the  Charterer  notified the owner  trustee of the rig
that an "Event of Loss"  occurred with respect to the rig in September 2005 as a
result of Hurricane  Rita.  The charter  provides that the Charterer will pay to
the lender (and upon satisfaction of all of the debt  outstanding,  to the owner
trustee on behalf of North Sea) an amount equal to the  "Stipulated  Loss Value"
of the rig. The "Stipulated Loss Value" for the rig will be determined according
to the terms of the charter  between the  Charterer and the owner trustee of the
rig. The  "Stipulated  Loss Value" is defined as the sum of (i) the charter hire
payment payable on the first charter hire payment  following an "Event of Loss",
(ii) the present value of the remaining  charter hire payments due to the lender
and (iii) the present  value of the fair  market  value of the rig at the end of
the charter,  as  determined by the appraisal  procedure  under the charter.  As
permitted  by  and  in  compliance   with  the  terms  and   conditions  of  the
Partnership's limited partnership agreement, an affiliate of the General Partner
financed and has agreed to continue to finance, on behalf of the Class C limited
partner's  interest,  certain  costs  and  expenses  that  have  been and may be
incurred by North Sea.

     Prior to North Sea initiating the appraisal  procedure,  Rowan  commenced a
declaratory  judgment  action in Texas  State  Court  requesting  that the court
declare,  among other things,  that "Stipulated Loss Value" should be determined
by "the value  estimated in advance" of the renewal  term of the charter,  which
amount was never  documented  or agreed by the  parties.  North Sea  immediately
filed a  counterclaim  against  Rowan to, among other  things,  have the charter
enforced  in  accordance  with  its  terms,  and the  owner  trustee  of the rig
initiated  the appraisal  procedure  required  under the charter.  The appraisal
procedure has been completed and it was  determined  that the  "Stipulated  Loss
Value" of the rig at the end of the charter is $80,235,317.

     On or about May 22,  2006,  Rowan  paid (i) the  March  2006  charter  hire
payment  and  (ii) the  component  of the  "Stipulated  Loss  Value"  of the rig
represented  by the present value of the remaining  charter hire payments due to
the lender,  which  amounts were used to fully  satisfy the  approximately  $9.3
million  of  outstanding  non-recourse  debt on the rig.  On May 31,  2006,  the
Partnership  received a distribution  of $3,944,250  with respect to its limited
partnership  interest in North Sea, which  distribution was net of the repayment
by North  Sea of all of the  outstanding  obligations  owed by North  Sea to the
affiliate  of  the  General  Partner  (the  "Distribution").   The  Distribution
represented  the  Partnership's  portion  of the  $10,941,943  in net  insurance
proceeds  that Rowan agreed to  distribute to North Sea with respect to the rig.
The insurance  proceeds received by North Sea neither represents the full amount
of the insurance  proceeds,  nor the final amount of the "Stipulated Loss Value"
of the rig,  that North Sea expects to receive in  accordance  with the terms of
the charter.


                                       10
<PAGE>

                       ICON Cash Flow Partners L.P. Seven
                        (A Delaware Limited Partnership)
              Notes To Condensed Consolidated Financial Statements
                                  June 30, 2006
                                   (Unaudited)


(4)    Joint Ventures - continued

     It is not  possible  at this  stage  to  determine  the  likelihood  of the
outcome,  but the  Partnership  and the other North Sea  partners  believe  that
Rowan's request for declaratory judgment is without merit and the Partnership is
working  with the other North Sea partners to  vigorously  defend this claim and
pursue North Sea's counterclaims.

     During  the  quarter  ended  June  30,  2006,  the  Partnership   amortized
approximately   an  additional   $178,000,   which   represented  the  remaining
unamortized  balance of loan  costs  incurred  in  connection  with North  Sea's
non-recourse debt financing.

     Information  as to the results of operations of North Sea for the three and
six months ended June 30, 2006 and 2005 are summarized below:

<TABLE>
<CAPTION>
                                                     Three Months Ended June 30,     Six Months Ended June 30,
                                                     ---------------------------    ---------------------------
                                                        2006             2005           2006           2005
                                                     -----------     -----------    ------------  ------------
<S>                                                  <C>             <C>            <C>           <C>
 Net (loss) income                                   $   (82,077)    $   853,204    $    877,568  $  1,668,202
                                                     ===========     ===========    ============  ============

 Partnership's share of net (loss) income            $   (35,971)    $   375,410    $    384,594  $    734,009
                                                     ===========     ===========    ============  ============
</TABLE>

(5)    Investment in Estimated Unguaranteed Residual Values

     During July 1997,  the  Partnership  entered  into an option to acquire the
residual  interests in three Boeing 737-300 aircraft (the "Boeing  Aircraft") on
lease to Continental Airlines. On August 29, 2003, the Partnership re-negotiated
the option,  which resulted in the termination of the option in exchange for the
Partnership  obtaining an  investment  in the  estimated  unguaranteed  residual
values in the Boeing Aircraft. As part of the re-negotiation, the three recourse
promissory notes payable by the Partnership,  and incurred by the Partnership in
connection  with the  original  purchase of the option,  were  converted  into a
single recourse  promissory  note payable  aggregating  $5,843,538.  This single
recourse  promissory note payable is due on November 27, 2006,  accrues interest
at 5.0% per year and requires  monthly  interest  only  payments  which began on
December 31, 2005. The  Partnership was required to prepay  $500,000,  which was
amortized into operations as interest  expense through the date monthly interest
payments began in 2005.

     On February 28, 2005, AAR Corp., the entity which owned the Boeing Aircraft
on lease to Continental  Airlines,  sold an interest in the Boeing  Aircraft for
approximately  $15,000,000.  As a result of this sale, the  Partnership  reduced
both the principal  balance on its recourse debt  obligation  and its balance in
its  investment  in  estimated   unguaranteed   residual  value  by  $1,145,000.
Additionally,  the Partnership  recorded an impairment loss of $3,542,000 on the
remaining balance of its investment in estimated unguaranteed residual values at
December 31, 2005. At June 30, 2006, the  Partnership had a zero balance for its
investment in estimated unguaranteed residual values.

     If any,  or all, of the  remaining  Boeing  Aircraft  are sold prior to the
maturity date of the recourse  promissory note payable on November 27, 2006, the
Partnership may have all or a portion of the outstanding balance of the recourse
promissory note payable  forgiven,  depending upon the total sales proceeds.  If
the Boeing Aircraft are sold after the maturity date of the recourse  promissory
note, the Partnership would be entitled to receive one-third of the net proceeds
in excess of the net book value of Boeing Aircraft, as defined in the agreement.
In  addition,  the  Partnership  is required to repay a portion of the  recourse
promissory  note with 50% of the sales proceeds from any of its assets which are
not subject to senior secured debt.

                                       11
<PAGE>
                       ICON Cash Flow Partners L.P. Seven
                        (A Delaware Limited Partnership)
              Notes To Condensed Consolidated Financial Statements
                                  June 30, 2006
                                   (Unaudited)

(6)    Equipment Held for Sale

     The  Partnership  currently  owns  rotables  for Boeing 737 and Airbus A310
aircraft.  Aircraft  rotables  are  replacement  spare  parts  that  are held in
inventory  by an  airline.  These  rotables  were  formerly  on lease to  Sabena
Technics and are currently off lease and in the process of being  remarketed for
sale.

     At June 30,  2006,  the  General  Partner  determined,  based  upon  recent
negotiations with potential buyers,  that the aircraft rotables may be impaired.
Accordingly,  the  Partnership  recorded an  impairment  loss for  approximately
$20,000 to more closely  approximate the adjusted book value to the current fair
value of the aircraft rotables.

(7)    Note Payable - Recourse

     Note payable at June 30, 2006 consisted of a recourse  obligation  totaling
$4,698,538.  The recourse  debt  obligation  is  evidenced by a promissory  note
payable to AAR Corp. that is described in Note 5 above. This recourse obligation
is due on November  27,  2006,  accrues  interest at 5.0% per year and  requires
monthly interest only payments which began on December 31, 2005.

     On July 21, 2006, the Partnership utilized a portion of the Distribution to
repay  $3,100,000  of the  outstanding  principal of the recourse  obligation in
exchange  for a reduction  in the  remaining  principal  amount of the  recourse
obligation so long as the outstanding  balance is paid on or before November 27,
2006. The Partnership intends to repay the remaining  outstanding balance of the
recourse obligation  utilizing the majority of the proceeds it received from the
sale of the Aircraft  described in Note 5 above,  ensuring that the  Partnership
can take  advantage  of the  reduction of the  principal  amount of the recourse
obligation described above.

(8)    Transactions with Related Parties

     Prior to July 1, 2004, the Partnership, in accordance with the terms of the
management agreement,  paid the General Partner (i) management fees ranging from
1% to 7% based on a percentage of the rentals  received  either  directly by the
Partnership or through joint  ventures and (ii)  acquisition  fees,  through the
reinvestment  period, of 3% of the gross value of the Partnership's  acquisition
transactions. In addition, the General Partner was reimbursed for administrative
expenses incurred in connection with the Partnership's operations.

     The General Partner also has a 1% interest in the Partnership's profits and
distributions.  The  Partnership  did not pay any  distributions  to the General
Partner  during the six months  ended June 30, 2006.  Additionally,  the General
Partner's interest in the Partnership's net loss for the three months ended June
30, 2006 and 2005 was $11,931 and $10,006,  respectively.  The General Partner's
interest in the  Partnership's  net (loss)  income for the six months ended June
30, 2006 and 2005 was $(10,499) and $796, respectively.

     At June 30, 2006, the  Partnership had a payable  totaling  $132,499 due to
its   General   Partner  for   management   fees  and   administrative   expense
reimbursements  incurred in prior years and $3,948 of bank  charges  incurred by
the Partnership during 2005 and paid by the General Partner.

                                       12
<PAGE>

                       ICON Cash Flow Partners L.P. Seven
                        (A Delaware Limited Partnership)
              Notes To Condensed Consolidated Financial Statements
                                  June 30, 2006
                                   (Unaudited)

(9)    Contingencies

     In August 2004, Fleet Capital Corp.  ("Fleet")  commenced an action against
the Partnership for unspecified damages,  alleging that the Partnership breached
its  obligations  owed  to  Fleet  under  certain  performance   guaranties  the
Partnership  entered into in connection with  non-recourse  loans made by Fleet.
The loans were made to the  Partnership's  wholly-owned  subsidiaries when these
entities entered into transactions to acquire supply tug vessels on charter with
affiliates  of  SEACOR  Marine,   Inc.  The  Partnership  and  its  subsidiaries
counterclaimed,  alleging,  among other things, that Fleet breached its covenant
of good faith and fair dealing.  On May 31, 2006,  the  Partnership  settled its
action with Fleet.  While the precise terms of the settlement are  confidential,
the settlement  provides for the full release of all of Fleet's claims,  as well
as  the  Partnership's  counterclaims.   The  settlement  payment  made  by  the
Partnership   is  included  in  general  and   administrative   expense  in  the
accompanying condensed consolidated statements of operations.

(10)   Recent Accounting Pronouncements

     The General Partner does not believe that any recently issued,  but not yet
effective accounting pronouncements, if currently adopted, would have a material
effect on the accompanying condensed consolidated financial statements.

                                       13
<PAGE>

Item 2. General  Partner's  Discussion  and Analysis of Financial  Condition and
Results of Operations

     The  following is a  discussion  of our results of  operations  and current
financial  position.  This  discussion  should be read in  conjunction  with our
unaudited condensed consolidated financial statements and related notes included
elsewhere  in this report,  Item 1A. Risk  Factors and the audited  consolidated
financial  statements  and related  notes  included in our Annual Report on Form
10-K for the year ended December 31, 2005.

     As used in this  Quarterly  Report on Form 10-Q,  references to "we," "us,"
"our" or  similar  terms  include  ICON Cash Flow  Partners  L.P.  Seven and its
consolidated subsidiaries.

Forward-Looking Statements

     Certain statements within this Quarterly Report on Form 10-Q may constitute
forward-looking   statements  within  the  meaning  of  the  Private  Securities
Litigation  Reform  Act of 1995  ("PSLRA").  These  statements  are  being  made
pursuant to the PSLRA, with the intention of obtaining the benefits of the "safe
harbor"  provisions of the PSLRA,  and, other than as required by law, we assume
no  obligation  to  update  or  supplement  such   statements.   Forward-looking
statements are those that do not relate solely to historical fact. They include,
but are not limited to, any statement  that may predict,  forecast,  indicate or
imply future  results,  performance,  achievements  or events.  You can identify
these   statements  by  the  use  of  words  such  as  "may,"  "will,"  "could,"
"anticipate," "believe," "estimate," "expects," "intend," "predict" or "project"
and variations of these words or comparable words or phrases of similar meaning.
These  forward-looking  statements  reflect our current beliefs and expectations
with respect to future  events and are based on  assumptions  and are subject to
risks and  uncertainties  and other  factors  outside our control that may cause
actual results to differ materially from those projected.

Overview

     We are an  equipment  leasing  business  formed on May 23,  1995.  We began
active  operations on January 19, 1996. We primarily  engaged in the business of
acquiring  equipment  subject  to  lease  and,  to a  lesser  degree,  acquiring
ownership rights to items of leased equipment at lease  expiration.  Some of our
equipment leases were acquired for cash and provided current cash flow, which we
refer to as "income"  leases.  The majority of the  purchase  price of our other
equipment  leases was financed,  so those leases  generated little or no current
cash flow because  substantially  the entire rental payments received from those
lessees were paid to lenders. For those "growth" leases, we anticipated that the
future value of the leased  equipment  exceeded the cash portion of the purchase
price paid for the equipment.  We ended our "reinvestment" period on November 9,
2002 and began our  disposition  period where we began to sell our assets in the
ordinary course of business.

     Our  reinvestment  period  ended  November  9,  2002 and we  commenced  our
disposition   period.   During  the  disposition  period,  we  are  distributing
substantially all distributable  cash from operations and equipment sales to the
partners  and will  continue  the  orderly  termination  of our  operations  and
affairs.  We will not invest in any  additional  finance  or lease  transactions
during the disposition  period.  Our goal was to complete the disposition period
within three years after the end of the  reinvestment  period,  but it is taking
longer to do so.

     At June 30, 2006, our portfolio,  which we hold either  directly or through
joint venture investments with affiliates and others,  consists primarily of the
following equipment:

     Mobile Off-Shore Drilling Rig:

     o    We  originally  acquired  100%  of the  Class  C  limited  partnership
          interest in the North Sea (Connecticut)  Limited  Partnership  ("North
          Sea"),  giving us a 50%  interest in a mobile  offshore  drilling  rig
          subject  to lease with an oil rig  charterer  (the  "Charterer").  The
          charter had a monthly rental of  approximately  $436,000 that was paid
          semi-annually  and was  scheduled  to expire on March  15,  2008.  The
          original purchase price for the Class C limited  partnership  interest
          was approximately $14,726,000, consisting of approximately $12,325,000
          in cash and approximately $2,401,000 of non-recourse debt.

                                       14
<PAGE>

          We currently  have a right to 87.65% of the  profits,  losses and cash
          flows  from our Class C limited  partnership  interest  in North  Sea.
          During  November 2004 and February  2005, we assigned 6.64% and 5.71%,
          respectively,  of our  rights in and to the  profits,  losses and cash
          flows from our Class C limited partnership  interest to several of our
          affiliates as repayment under the terms of a contribution agreement we
          entered  into  with such  affiliates  in  connection  with the line of
          credit we had with Comerica Bank.

          On October 5, 2005,  the  Charterer  notified the owner trustee of the
          rig  that an  "Event  of Loss"  occurred  with  respect  to the rig in
          September  2005 as a result of Hurricane  Rita.  The charter  provides
          that the Charterer  will pay to the lender (and upon  satisfaction  of
          all of the debt  outstanding,  to the owner trustee on behalf of North
          Sea) an amount  equal to the  "Stipulated  Loss Value" of the rig. The
          "Stipulated  Loss Value" for the rig will be  determined  according to
          the terms of the charter  between the  Charterer and the owner trustee
          of the rig. The  "Stipulated  Loss Value" is defined as the sum of (i)
          the charter  hire  payment  payable on the first  charter hire payment
          following an "Event of Loss",  (ii) the present value of the remaining
          charter hire payments due to the lender and (iii) the present value of
          the  fair  market  value  of the  rig at the  end of the  charter,  as
          determined by the appraisal procedure under the charter. At this time,
          the Stipulated Loss Value has not been agreed.  As permitted by and in
          compliance with the terms and conditions of the Partnership's  limited
          partnership  agreement,  an affiliate of our General Partner  financed
          and has  agreed  to  continue  to  finance,  on  behalf of the Class C
          limited partner's interest,  certain costs and expenses that have been
          and may be incurred by North Sea.

          Prior to North Sea initiating the appraisal procedure, Rowan commenced
          a declaratory judgment action in Texas State Court requesting that the
          court declare, among other things, that "Stipulated Loss Value" should
          be determined by "the value  estimated in advance" of the renewal term
          of the  charter,  which amount was never  documented  or agreed by the
          parties.  North Sea immediately filed a counterclaim against Rowan to,
          among other things,  have the charter  enforced in accordance with its
          terms,  and the  owner  trustee  of the rig  initiated  the  appraisal
          procedure required under the charter. The appraisal procedure has been
          completed and it was determined  that the  "Stipulated  Loss Value" of
          the rig at the end of the charter is $80,235,317.

          On or about May 22,  2006,  Rowan paid (i) the March 2006 charter hire
          payment and (ii) the component of the  "Stipulated  Loss Value" of the
          rig  represented  by the present value of the  remaining  charter hire
          payments due to the lender,  which  amounts were used to fully satisfy
          the approximately $9.3 million of outstanding non-recourse debt on the
          rig. On May 31, 2006, we received a  distribution  of $3,944,250  with
          respect  to our  limited  partnership  interest  in North  Sea,  which
          distribution  was  net of the  repayment  by  North  Sea of all of the
          outstanding  obligations  owed by North  Sea to the  affiliate  of our
          General Partner (the "Distribution"). The Distribution represented our
          portion of the $10,941,943 in net insurance proceeds that Rowan agreed
          to  distribute  to North Sea with  respect to the rig.  The  insurance
          proceeds  received by North Sea neither  represents the full amount of
          the insurance  proceeds,  nor the final amount of the "Stipulated Loss
          Value" of the rig,  that North Sea  expects  to receive in  accordance
          with the terms of the charter.

          It is not possible at this stage to determine  the  likelihood  of the
          outcome,  but we and the other North Sea partners believe that Rowan's
          request for  declaratory  judgment is without merit and we are working
          with the other North Sea partners to vigorously  defend this claim and
          pursue North Sea's counterclaims.

     Air Transportation Equipment:

     o    We had a 100% interest in a 1976 McDonnell Douglas DC-10-30F  aircraft
          that was subject to a lease with World Airways, Inc. ("World Airways")
          and a residual  sharing  agreement  (the  "Agreement")  with  Aviation
          Investors, Inc. ("Aviation").

          On  August  9,  2006,  we sold  the  aircraft  to  World  Airways  for
          approximately  $1,300,000  in cash,  plus the  maintenance  reserve of
          approximately $2,664,000.  Pursuant to the Agreement with Aviation, we
          and Aviation shared the proceeds of the sale of the aircraft  equally.
          The gross proceeds of the sale were approximately $3,964,000,  reduced
          by legal fees of approximately $10,500, for net proceeds of $3,953,000
          to  be  divided   equally   between  us  and  Aviation.   We  received
          approximately  $1,976,000  in cash,  will record a gain on the sale of
          the aircraft of approximately  $400,000 before a remarketing  expense,
          of approximately $1,976,000.

     o    We have a 100%  interest in 34 Boeing 737  rotables and 48 Airbus A310
          rotables.   These  assets  are  currently  off  lease  and  are  being
          remarketed.

                                       15
<PAGE>

Lease and Other Significant Transactions

Aircraft Rotables

     At June 30,  2006,  our  General  Partner  determined,  based  upon  recent
negotiations with potential buyers,  that the aircraft rotables may be impaired.
Accordingly,  we recorded an impairment loss for  approximately  $20,000 to more
closely  approximate  the  adjusted  book value to the current fair value of the
aircraft rotables.

1976 McDonnell Douglas DC-10-30F

     On August 9, 2006, we sold our 1976 McDonnell  Douglas  DC-10-30F  aircraft
which had been on lease to World  Airways,  to World  Airways for  approximately
$1,300,000 in cash, plus the maintenance  reserve of  approximately  $2,664,000.
Pursuant to the Agreement with Aviation,  we and Aviation shared the proceeds of
the  sale  of  the  aircraft  equally.  The  gross  proceeds  of the  sale  were
approximately  $3,964,000,  reduced by legal fees of approximately  $10,500, for
net proceeds of $3,953,000  to be divided  equally  between us and Aviation.  We
received  approximately  $1,976,000 in cash and record a gain on the sale of the
aircraft of approximately $400,000 before a remarketing expense of approximately
$1,976,000.

New Accounting Pronouncements

     The General Partner does not believe that any recently issued,  but not yet
effective accounting pronouncements, if currently adopted, would have a material
effect on the accompanying condensed consolidated financial statements.

Results  of  Operations  for the Three  Months  Ended  June 30,  2006 (the "2006
Quarter") and 2005 (the "2005 Quarter")

     We began our  disposition  period on  November  10,  2002.  Our goal was to
complete the disposition  period within three years,  but it has taken longer to
do so. During the  disposition  period,  we will sell our assets in the ordinary
course of  business.  As we begin to sell our  assets,  both  rental  income and
finance  income will decrease over time as will expenses  related to our assets,
such as depreciation expense. Additionally,  interest expense should decrease as
we reach the  expiration  of leases that were financed and the debt is repaid to
the lender.  As leased  equipment  is sold,  we will  experience  both gains and
losses on these sales.

     Revenue  for the  2006  Quarter  and the 2005  Quarter  are  summarized  as
follows:

<TABLE>
<CAPTION>
                                                             Three Months Ended June 30,
                                                     -------------------------------------------
                                                         2006            2005          Change
                                                     -----------     -----------    ------------
<S>                                                  <C>             <C>            <C>
 Total revenue                                       $   135,185     $   526,336    $   (391,151)
                                                     ===========     ===========    ============

 Rental income                                       $   150,000     $   150,000    $         -
 (Loss) income from investments in joint ventures    $   (32,161)    $   372,801    $   (404,962)
 Net gain (loss) on sales of equipment               $     4,900     $        -     $      4,900
 Interest and other income                           $    12,446     $     3,535    $      8,911

</TABLE>

     Total revenue for the 2006 Quarter decreased $391,151,  or 74.3%,  compared
to the 2005 Quarter. This decrease was primarily attributable to the decrease in
revenue from our  investments  in joint  ventures.  During the 2006 Quarter,  we
recognized  approximately  $32,000  of net loss  from our  investments  in joint
ventures,  of which  approximately  $36,000 was derived from our investment in a
limited  partnership.  During  the 2005  Quarter,  we  recognized  approximately
$373,000  of  net  income  from   investments  in  joint   ventures,   of  which
approximately $375,000 was derived from our investment in a limited partnership.

                                       16
<PAGE>

     Expenses  for the 2006  Quarter  and the 2005  Quarter  are  summarized  as
follows:

<TABLE>
<CAPTION>
                                                             Three Months Ended June 30,
                                                     -------------------------------------------
                                                         2006            2005          Change
                                                     -----------     -----------    ------------
<S>                                                  <C>             <C>            <C>
 Total expenses                                      $ 1,328,292     $ 1,526,914    $   (198,622)
                                                     ===========     ===========    ============

 Impairment loss                                     $    20,289     $ 1,020,826    $ (1,000,537)
 Depreciation and amortization                       $   343,822     $   165,616    $    178,206
 Interest                                            $    58,731     $   119,758    $    (61,027)
 Remarketing expense                                 $    62,004     $    75,000    $    (12,996)
 General and administrative                          $   843,446     $   146,353    $    697,093
 Minority interest                                   $        -      $      (639)   $        639

</TABLE>

     Total expenses for the 2006 Quarter decreased $198,622,  or 13.0%, compared
to the 2005  Quarter.  The  decrease  in  expenses  was  primarily a result of a
non-recurring impairment loss relating to our aircraft rotables of approximately
$20,000  incurred  during  the  2006  Quarter  as  compared  to a  non-recurring
impairment loss relating to our aircraft  rotables of  approximately  $1,021,000
during the 2005 Quarter.  This  decrease was partially  offset by an increase in
depreciation  and amortization of approximately  $178,000,  which  represented a
one-time charge to amortize the remaining balance of loan costs incurred as part
of the North Sea acquisition.  The increase in general and administrative is due
to the litigation settlement with Fleet.

Net Loss

     As a result of the foregoing factors, the net loss for the 2006 Quarter was
$1,193,107, as compared to the net loss for the 2005 Quarter of $1,000,578.  The
net loss per weighted average number of limited  partnership  units  outstanding
for the 2006 Quarter was $1.20 as compared to the net loss per weighted  average
number of limited partnership units outstanding for the 2005 Quarter of $1.00.

Results of Operations for the Six Months Ended June 30, 2006 (the "2006 Period")
and 2005 (the "2005 Period")

     Revenue for the 2006 Period and the 2005 Period are summarized as follows:


<TABLE>
<CAPTION>
                                                              Six Months Ended June 30,
                                                     -------------------------------------------
                                                         2006            2005          Change
                                                     -----------     -----------    ------------
<S>                                                  <C>             <C>            <C>
 Total revenue                                       $   701,556     $ 2,373,390    $ (1,671,834)
                                                     ===========     ===========    ============


 Rental income                                       $   300,000     $   300,000    $        -
 Finance income                                      $        -      $     1,928    $     (1,928)
 (Loss) income from investments in joint ventures    $   390,850     $   878,972    $   (488,122)
 Gain on transfer of investment in joint ventures    $        -      $ 1,171,786    $ (1,171,786)
 Net gain (loss) on sales of equipment               $   (12,734)    $       -      $    (12,734)
 Interest and other income                           $    23,440     $    20,704    $      2,736

</TABLE>


     Total revenue for the 2006 Period decreased $1,671,834,  or 70.4%, compared
to the 2005 Period. This decrease was primarily  attributable to the decrease in
revenue  from our  investments  in joint  ventures  and the gain on  transfer of
investments in joint  ventures.  During the 2005 Period,  we assigned a total of
5.71% of our  interest  in one of the joint  ventures  to two  affiliates  which
created  a  gain  of  approximately  $1,172,000.  During  the  2006  Period,  we
recognized  approximately  $391,000 of net income from our  investments in joint
ventures of which  approximately  $385,000 was derived from our  investment in a
limited  partnership.  The  Charterer  is not  required  to make any  additional
charter hire payments and, therefore, we expect that our income from investments
in joint  ventures  will  continue to  decrease.  Additionally,  the decrease in
income from  investments  in joint  ventures  was due a net gain during the 2005
Period relating to our assignment of several joint venture  interests to several
of  our  affiliates  to  repay  these  affiliates  pursuant  to the  terms  of a
contribution agreement we entered into with some of our affiliates in connection
with a line of credit agreement we had with Comerica Bank.

                                       17
<PAGE>

     Expenses for the 2006 Period and the 2005 Period are summarized as follows:

<TABLE>
<CAPTION>
                                               Six Months Ended June 30,
                                    --------------------------------------------
                                         2006            2005           Change
                                    ------------     -----------     -----------
<S>                                 <C>              <C>             <C>
 Total expenses                     $  1,751,447     $ 2,293,804     $  (542,357)
                                    ============     ===========     ===========

 Impairment loss                    $     20,289     $ 1,320,826     $(1,300,537)
 Depreciation and amortization      $    509,438     $   331,232     $   178,206
 Interest                           $    117,463     $   237,160     $  (119,697)
 Remarketing expense                $    124,129     $   150,000     $   (25,871)
 General and administrative         $    980,128     $   255,864     $   724,264
 Minority interest                  $         -      $    (1,278)    $     1,278

</TABLE>

     Total expenses for the 2006 Period decreased $542,357,  or 23.6%,  compared
to the 2005  Period.  The  decrease  in  expenses  was  primarily  a result of a
non-recurring impairment loss relating to our aircraft rotables of approximately
$20,000  incurred  during  the  2006  Period  as  compared  to  a  non-recurring
impairment loss relating to our aircraft  rotables of  approximately  $1,021,000
and  approximately  $300,000  relating  to our  marine  vessels  during the 2005
Period.  This decrease was partially  offset by an increase in depreciation  and
amortization of approximately  $178,000,  which represented a one-time charge to
amortize the remaining  balance of loan costs  incurred as part of the North Sea
acquisition. The increase in general and administrative is due to the litigation
settlement with Fleet.

     Net Income (Loss)

     As a result of the  foregoing  factors,  the net loss for 2006  Period  was
$(1,049,891),  as compared to the net income for 2005 Period of $79,586. The net
loss per weighted average number of limited  partnership  units  outstanding for
the 2006 Period was $(1.05),  as compared to the net income per weighted average
number of limited partnership units outstanding for 2005 Period of $0.08.

Liquidity and Capital Resources

Sources and Uses of Cash

     At June 30, 2006, we had cash and cash  equivalents of  $3,289,963.  During
our disposition period, our main source of cash is expected to be from investing
activities. Our main use of cash during the disposition period is expected to be
for operations,  consisting  principally of general and administrative  expenses
and financing activities, in the form of cash distributions to our partners.

     Our  main  source  of cash  during  the  2006  Period  was  from  investing
activities.  During  the 2006  Period,  our main  source of cash from  investing
activities was from distributions  received from joint ventures of approximately
$3,958,000. Of this amount, approximately $3,951,000 was a distribution from our
investment in a limited  partnership.  Additionally,  we received  approximately
$42,000 from sales of equipment.

     Our main use of cash during the 2006 Period was for  operating  activities.
Our primary use of cash for operating  activities  was increasing our restricted
cash by approximately $430,000 and due to a one-time payment to settle the Fleet
litigation.

                                       18
<PAGE>

Financings and Borrowings

     We have one recourse debt  obligation at June 30, 2006 of $4,698,538.  This
recourse debt obligation is due on November 27, 2006,  accrues  interest at 5.0%
per year and requires monthly interest only payments which began on December 31,
2005.  On July 21,  2006,  we  utilized a portion of the  Distribution  to repay
$3,100,000 of the outstanding  principal of the recourse  obligation in exchange
for a reduction in the remaining  principal amount of the recourse obligation so
long as the  outstanding  balance is paid on or before  November  27,  2006.  We
intend to repay the remaining  outstanding balance of the recourse obligation in
the near future utilizing the majority of the proceeds it received from the sale
of the 1976 McDonnell Douglas DC-10-30F aircraft described above,  ensuring that
we can take  advantage of the reduction of the principal  amount of the recourse
obligation described above.

     Based upon our current level of operations,  our General  Partner  believes
that  with the cash we have  currently  available,  cash  distributions  that we
expect to receive from our joint ventures and proceeds from equipment  sales, we
have  sufficient  cash to meet our short-term  liquidity  needs and complete our
disposition  period.  However,  our  ability to  generate  cash in the future is
subject  to  general  economic,  financial,  competitive,  regulatory  and other
factors that affect our lessee's business that are beyond our control.

Contractual Obligations and Commitments and Off Balance Sheet Transactions

     At June 30, 2006, we have one recourse debt obligation of $4,698,538.  This
recourse debt obligation is due on November 27, 2006,  accrues  interest at 5.0%
per year and requires monthly interest only payments which began on December 31,
2005.  On July 21,  2006,  we  utilized a portion of the  Distribution  to repay
$3,100,000 of the outstanding  principal of the recourse  obligation in exchange
for a reduction in the remaining  principal amount of the recourse obligation so
long as the  outstanding  balance is paid on or before  November 27,  2006.  The
remaining recourse obligation after our payment is approximately  $1,599,000. We
do not have any off balance sheet transactions.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

     We, like most other companies,  are exposed to certain market risks,  which
include  changes in interest rates and the demand for equipment (and the related
residuals)  owned by us. We believe  that our  exposure to other  market  risks,
including foreign currency  exchange rate risk,  commodity risk and equity price
risk, are  insignificant,  at this time, to both our financial  position and our
results of operations.  There were no material changes to the disclosure related
to these items  since the filing of our Annual  Report on Form 10-K for the year
ended December 31, 2005.

Item 4.  Controls and Procedures

Evaluation of disclosure controls and procedures

     In connection  with the  preparation of this Quarterly  Report on Form 10-Q
for the period  ended June 30, 2006,  as well as the  financial  statements  and
Quarterly  Reports  on Form  10-Q for the  period  ended  June 30,  2006 for our
affiliates, our General Partner carried out an evaluation, under the supervision
and with the  participation of the management of our General Partner,  including
its Chief Executive Officer and the Principal  Financial and Accounting Officer,
of the  effectiveness  of the  design and  operation  of our  General  Partner's
disclosure  controls and  procedures as of the end of the period covered by this
report pursuant to the Securities  Exchange Act of 1934.  Based on the foregoing
evaluation, except as noted below, the Chief Executive Officer and the Principal
Financial and Accounting Officer concluded that our General Partner's disclosure
controls and procedures were effective.

     While evaluating our General Partner's  disclosure controls and procedures,
our General Partner recognized that greater internal controls were needed to aid
in a more efficient closing of our financial  statements,  thereby requiring our
General  Partner to hire  additional  skilled  accounting  staff to support  the
senior vice president of accounting  hired by our General  Partner at the end of
the third quarter of 2004. In addition, our General Partner hired two additional
accounting  staff members during 2005 who are certified  public  accountants and
are  experienced  with  public  reporting  entities.  Our General  Partner  will
continue to evaluate its disclosure  controls and procedures to determine  their
effectiveness  and  adequacy and will take the steps  necessary,  in our General
Partner's  opinion,  to ensure the adequacy of our General Partner's  disclosure
controls and procedures.

                                       19
<PAGE>

     In designing and evaluating our General Partner's  disclosure  controls and
procedures,   our  General  Partner  recognized  that  disclosure  controls  and
procedures,  no  matter  how well  conceived  and  operated,  can  provide  only
reasonable,  not  absolute,  assurance  that the  objectives  of the  disclosure
controls and procedures are met. Our General Partner's  disclosure  controls and
procedures have been designed to meet reasonable assurance standards. Disclosure
controls  and  procedures  cannot  detect or prevent  all error and fraud.  Some
inherent  limitations  in disclosure  controls and  procedures  include costs of
implementation, faulty decision-making,  simple error and mistake. Additionally,
controls  can be  circumvented  by the  individual  acts  of  some  persons,  by
collusion of two or more people, or by management override of the controls.  The
design of any system of controls is based,  in part,  upon  certain  assumptions
about the  likelihood of future  events,  and there can be no assurance that any
design will succeed in  achieving  its stated  goals under all  anticipated  and
unanticipated  future  conditions.  Over time,  controls  may become  inadequate
because of changes in conditions,  or the degree of compliance with  established
policies or procedures.

     Our General Partner's Chief Executive  Officer and Principal  Financial and
Accounting  Officer have determined that no weakness in disclosure  controls and
procedures  had any  material  effect on the accuracy  and  completeness  of our
financial reporting and disclosure included in this report.

                           PART II - OTHER INFORMATION

Item 1.  Legal Proceedings

     In August 2004, Fleet Capital Corp.  ("Fleet")  commenced an action against
us for unspecified  damages,  alleging that we breached our obligations  owed to
Fleet under certain  performance  guaranties we entered into in connection  with
non-recourse  loans  made by  Fleet.  The loans  were  made to our  wholly-owned
subsidiaries when these entities entered into transactions to acquire supply tug
vessels  on  charter  with  affiliates  of  SEACOR  Marine,   Inc.  We  and  our
subsidiaries  counterclaimed,  alleging, among other things, that Fleet breached
its covenant of good faith and fair  dealings.  On May 31, 2006,  we settled our
action with Fleet.  While the preceise terms of the settlement are confidential,
the settlement  provides for the full release of all of Fleet's claims,  as well
as our counterclaims.

Item 1A. Risk Factors

     There have been no material  changes  from the risk  factors  disclosed  in
"Item 1A.  Risk  Factors"  of our Annual  Report on Form 10-K for the year ended
December 31, 2005.

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds

     Our General Partner consented to us redeeming 170 limited partnership units
during the 2006 Period.  The redemption  amounts are  calculated  according to a
specified  redemption  formula in  accordance  with the  partnership  agreement.
Redeemed  units  have no voting  rights and do not share in  distributions.  The
partnership  agreement limits the number of limited  partnership units which can
be redeemed in any one year and redeemed  limited  partnership  units may not be
reissued. The following table details our limited partnership unit redemptions:

                                       20
<PAGE>

<TABLE>
<CAPTION>
                                                   Total
                                                 Number of       Price Paid
                                                  Limited            Per
                                               Partner Units       Limited
                                                  Redeemed      Partner Units
                                               ------------     --------------

<S>                                              <C>              <C>
 January 1, 2006 through January 31, 2006                 -     $           -
 February 1, 2006 through February 28, 2006             170              12.92
 March 1, 2006 through March 31, 2006                     -                 -
 April 1, 2006 through April 30, 2006                     -                 -
 May 1, 2006 thorugh May 31, 2006                         -                 -
 June 1, 2006 through June 30, 2006                       -                 -
                                               ------------     --------------

                                                        170     $        12.92
                                               ==========       ==============
</TABLE>

Item 3.  Default Upon Senior Securities

         Not applicable.

Item 4.  Submission of Matters to a Vote of Security Holders

     No matters  were  submitted to a vote of security  holders  during the 2006
quarter.

Item 5.  Other Information

         Not applicable.

Item 6 - Exhibits

          31.1 Rule 13a-14(a)/15d-14(a) certifications.

          31.2 Rule 13a-14(a)/15d-14(a) certifications.

          32.1 Certification  pursuant to 18 U.S.C. ss.1350, as adopted pursuant
               to Section 906 of the Sarbanes-Oxley Act of 2002.

          32.2 Certification  pursuant to 18 U.S.C. ss.1350, as adopted pursuant
               to Section 906 of the Sarbanes-Oxley Act of 2002.

                                       21
<PAGE>

                                   SIGNATURES

Pursuant to the  requirements of Section 13 or 15(d) of the Securities  Exchange
Act of 1934,  the  Partnership  has duly  caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.

ICON Cash Flow Partners L.P. Seven  (Registrant)  By its General  Partner,  ICON
Capital Corp.

Date: August 14, 2006

/s/ Beaufort J.B. Clarke
----------------------------------
Beaufort J.B. Clarke
Chairman, Chief Executive Officer and Director
(Principal Executive Officer)

Date: August 14, 2006

/s/ Thomas W. Martin
----------------------------------
Thomas W. Martin
Chief Operating Officer and Chief Financial Officer
(Principal Financial and Accounting Officer)

                                       22
<PAGE>

Exhibit 31.1

Certification  Pursuant  to Section  302 of the  Sarbanes-Oxley  Act of 2002 (18
U.S.C. ss.1350)

I, Beaufort J.B. Clarke, certify that:

1.   I have  reviewed  this  Quarterly  Report  on Form  10-Q of ICON  Cash Flow
     Partners L.P. Seven;

2.   Based on my knowledge,  this report does not contain any untrue  statements
     of a material fact or omit to state a material  fact  necessary to make the
     statements made, in light of the circumstances  under which such statements
     were made,  not  misleading  with  respect  to the  period  covered by this
     report;

3.   Based  on my  knowledge,  the  financial  statements  and  other  financial
     information  included  in  this  report,  fairly  present  in all  material
     respects the financial  condition,  results of operations and cash flows of
     the registrant as of, and for, the periods presented in this report;

4.   The  registrant's  other  certifying  officer  and  I are  responsible  for
     establishing and maintaining disclosure controls and procedures (as defined
     in Exchange Act Rules  13a-15(e) and  15d-15(e))  for the registrant and we
     have:

     a.   designed  such  disclosure  controls  and  procedures,  or caused such
          disclosure   controls  and   procedures  to  be  designed   under  our
          supervision,  to ensure  that  material  information  relating  to the
          registrant,  including its consolidated subsidiaries, is made known to
          us by others within those entities,  particularly during the period in
          which this report is being prepared;

     b.   evaluated the  effectiveness of the registrant's  disclosure  controls
          and procedures and presented in this report our conclusions  about the
          effectiveness of the disclosure  controls and procedures as of the end
          of the period covered by this report based on such evaluation; and

     c.   disclosed  in this  report  any  change in the  registrant's  internal
          control over financial reporting that occurred during the registrant's
          most recent fiscal quarter (the registrant's  fourth fiscal quarter in
          the case of an annual  report)  that has  materially  affected,  or is
          reasonably  likely to materially  affect,  the  registrant's  internal
          control over financial reporting; and

5.   The registrant's  other certifying  officer and I have disclosed,  based on
     our most recent evaluation of internal control over financial reporting, to
     the  registrant's  auditors  and the board of  directors  of the  Corporate
     Manager (or persons performing the equivalent function):

     a.   all significant  deficiencies and material weaknesses in the design or
          operation  of internal  control  over  financial  reporting  which are
          reasonably  likely to  adversely  affect the  registrant's  ability to
          record, process, summarize and report financial information; and

     b.   any fraud, whether or not material,  that involves management or other
          employees who have a  significant  role in the  registrant's  internal
          control over financial reporting.


Dated:  August 14, 2006

/s/ Beaufort J.B. Clarke
----------------------------------
Beaufort J. B. Clarke
Chairman and Chief Executive Officer
ICON Capital Corp.
General Partner of ICON Cash Flow Partners L.P. Seven

<PAGE>

Exhibit 31.2

Certification  Pursuant  to Section  302 of the  Sarbanes-Oxley  Act of 2002 (18
U.S.C. ss.1350)

I, Thomas W. Martin, certify that:

1.   I have  reviewed  this  Quarterly  Report  on Form  10-Q of ICON  Cash Flow
     Partners L.P. Seven;

2.   Based on my knowledge,  this report does not contain any untrue  statements
     of a material fact or omit to state a material  fact  necessary to make the
     statements made, in light of the circumstances  under which such statements
     were made,  not  misleading  with  respect  to the  period  covered by this
     report;

3.   Based  on my  knowledge,  the  financial  statements  and  other  financial
     information  included  in  this  report,  fairly  present  in all  material
     respects the financial  condition,  results of operations and cash flows of
     the registrant as of, and for, the periods presented in this report;

4.   The  registrant's  other  certifying  officer  and  I are  responsible  for
     establishing and maintaining disclosure controls and procedures (as defined
     in Exchange Act Rules  13a-15(e) and  15d-15(e))  for the registrant and we
     have:

     a.   designed  such  disclosure  controls  and  procedures,  or caused such
          disclosure   controls  and   procedures  to  be  designed   under  our
          supervision,  to ensure  that  material  information  relating  to the
          registrant,  including its consolidated subsidiaries, is made known to
          us by others within those entities,  particularly during the period in
          which this report is being prepared;

     b.   evaluated the  effectiveness of the registrant's  disclosure  controls
          and procedures and presented in this report our conclusions  about the
          effectiveness of the disclosure  controls and procedures as of the end
          of the period covered by this report based on such evaluation; and

     c.   disclosed  in this  report  any  change in the  registrant's  internal
          control over financial reporting that occurred during the registrant's
          most recent fiscal quarter (the registrant's  fourth fiscal quarter in
          the case of an annual  report)  that has  materially  affected,  or is
          reasonably  likely to materially  affect,  the  registrant's  internal
          control over financial reporting; and

5.   The registrant's  other certifying  officer and I have disclosed,  based on
     our most recent evaluation of internal control over financial reporting, to
     the  registrant's  auditors  and the board of  directors  of the  Corporate
     Manager (or persons performing the equivalent function):

     a.   all significant  deficiencies and material weaknesses in the design or
          operation  of internal  control  over  financial  reporting  which are
          reasonably  likely to  adversely  affect the  registrant's  ability to
          record, process, summarize and report financial information; and

     b.   any fraud, whether or not material,  that involves management or other
          employees who have a  significant  role in the  registrant's  internal
          control over financial reporting.


Dated: August 14, 2006

/s/ Thomas W. Martin
----------------------------------
Thomas W. Martin
Chief Operating Officer and Chief Financial Officer
(Principal Financial and Accounting Officer)
ICON Capital Corp.
General Partner of ICON Cash Flow Partners L.P. Seven

<PAGE>

Exhibit 32.1

Certification  Pursuant  to Section  906 of the  Sarbanes-Oxley  Act of 2002 (18
U.S.C. ss.1350)

I, Beaufort J.B.  Clarke,  Chairman and Chief Executive  Officer of ICON Capital
Corp.,  the General  Partner of the Registrant in connection  with the Quarterly
Report of ICON Cash Flow Partners L.P.  Seven (the  "Partnership")  on Form 10-Q
for the period ended June 30, 2006,  as filed with the  Securities  and Exchange
Commission  on the date hereof (the  "Quarterly  Report")  certify,  pursuant to
Section  906 of the  Sarbanes-Oxley  Act  of  2002,  that,  to  the  best  of my
knowledge:

1.   The Quarterly  Report fully complies with the requirements of Section 13(a)
     or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. ss.78m); and

2.   The information  contained in the Quarterly Report fairly presents,  in all
     material respects, the financial condition and results of operations of the
     Partnership.


Dated:   August 14, 2006

 /s/ Beaufort J.B. Clarke
----------------------------------
Beaufort J.B. Clarke
Chairman and Chief Executive Officer
ICON Capital Corp.
General Partner of ICON Cash Flow Partners L.P. Seven

<PAGE>

Exhibit 32.2

Certification  Pursuant  to Section  906 of the  Sarbanes-Oxley  Act of 2002 (18
U.S.C. ss.1350)

I,  Thomas W.  Martin,  Chief  Operating  Officer  and Chief  Financial  Officer
(Principal  Financial and Accounting Officer) of ICON Capital Corp., the General
Partner of the Registrant in connection  with the Quarterly  Report of ICON Cash
Flow Partners L.P. Seven (the  "Partnership")  on Form 10-Q for the period ended
June 30, 2006, as filed with the Securities and Exchange  Commission on the date
hereof  (the  "Quarterly  Report")  certify,  pursuant  to  Section  906  of the
Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

1.   The Quarterly  Report fully complies with the requirements of Section 13(a)
     or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. ss.78m); and

2.   The information  contained in the Quarterly Report fairly presents,  in all
     material respects, the financial condition and results of operations of the
     Partnership.


Dated:   August 14, 2006

/s/ Thomas W. Martin
----------------------------------
Thomas W. Martin
Chief Operating Officer and Chief Financial Officer
(Principal Financial and Accounting Officer)
ICON Capital Corp.
General Partner of ICON Cash Flow Partners L.P. Seven