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


         [X]      Quarterly Report Pursuant to Section 13 or 15(d) of the 
                  Securities Exchange Act of 1934
                  For the fiscal quarter ended September 30, 1997

         [  ]     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 33-83216-01
                             -----------------------



               PROFESSIONAL LEASE MANAGEMENT INCOME FUND I, L.L.C.
             (Exact name of registrant as specified in its charter)


       Delaware                                             94-3209289
(State or other jurisdiction of                          (I.R.S. Employer
incorporation or organization)                          Identification No.)

One Market, Steuart Street Tower
  Suite 800, San Francisco, CA                               94105-1301
(Address of principal executive offices)                     (Zip code)


        Registrant's telephone number, including area code (415) 974-1399
                             -----------------------

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


<PAGE>



               PROFESSIONAL LEASE MANAGEMENT INCOME FUND I, L.L.C.
                     (A Delaware Limited Liability Company)
                                 BALANCE SHEETS
                 (in thousands of dollars, except unit amounts)

<TABLE>
<CAPTION>

                                                                              September 30,       December 31,
                                                                                  1997                1996
                                                                             ------------------------------------
   <S>                                                                        <C>                 <C>       
   Assets:

   Equipment held for operating leases, at cost                               $    79,123         $   70,333
   Less accumulated depreciation                                                  (22,952 )          (12,189 )
                                                                             ------------------------------------
                                                                                   56,171             58,144
   Equipment held for sale                                                          9,479                  -
                                                                             ------------------------------------
       Net equipment                                                               65,650             58,144

   Cash and cash equivalents                                                        7,114              1,692
   Restricted cash                                                                      -                223
   Investment in unconsolidated special-purpose entities                           25,839             25,349
   Accounts receivable, net of allowance for doubtful accounts
         of $25 in 1997 and $36 in 1996                                             2,071              1,534
   Prepaid expenses                                                                   311                505
   Deferred charges, net of accumulated amortization
         of $212 in 1997 and $134 in 1996                                             407                308
                                                                             ------------------------------------

   Total assets                                                               $   101,392         $   87,755
                                                                             ====================================

   Liabilities and members' equity:

   Liabilities:
   Accounts payable and accrued expenses                                      $       968         $      430
   Due to affiliates                                                                  198                163
   Lessee deposits and reserves for repairs                                         1,255                873
   Notes payable                                                                   25,000                  -
                                                                             ------------------------------------
       Total liabilities                                                           27,421              1,466
                                                                             ------------------------------------

   Members' equity:
   Class A members (4,999,581 units as of September 30, 1997
         and December 31, 1996)                                                    73,819             86,024
   Class B member                                                                     152                265
                                                                             ------------------------------------
       Total members' equity                                                       73,971             86,289
                                                                             ------------------------------------

   Total liabilities and members' equity                                      $   101,392         $   87,755
                                                                             ====================================

</TABLE>











                       See accompanying notes to financial
                                  statements.



<PAGE>



               PROFESSIONAL LEASE MANAGEMENT INCOME FUND I, L.L.C.
                     (A Delaware Limited Liability Company)
                            STATEMENTS OF OPERATIONS
         (in thousands of dollars, except weighted-average unit amounts)

<TABLE>
<CAPTION>


                                                          For the Three Months              For the Nine Months
                                                           Ended September 30,              Ended September 30,
                                                          1997           1996               1997           1996
                                                        -----------------------------------------------------------
   <S>                                                   <C>          <C>                <C>            <C>      
   Revenues:

   Lease revenue                                         $ 4,687      $   2,194          $ 12,312       $  6,468 
   Interest and other income                                  88            487               303          1,188
   Net gain on disposition of equipment                        1             --                 5             --
                                                        -----------------------------------------------------------
       Total revenues                                      4,776          2,681            12,620          7,656
                                                        -----------------------------------------------------------

   Expenses:

   Depreciation and amortization                           4,268          2,363            11,870          5,420
   Marine equipment operating expenses                       242            139               717            616
   Repairs and maintenance                                   362            322               921            845
   Interest expense                                          458             --               963              9
   Insurance expense to affiliate                              1              2                10              6
   Other insurance expense                                    61             86               205            218
   Management fees to affiliate                              259            127               691            384
   General and administrative expenses
         to affiliates                                       235              6               743            219
   Other general and administrative expenses                 158            211               486            365
                                                        -----------------------------------------------------------
       Total expenses                                      6,044          3,256            16,606          8,082
                                                        -----------------------------------------------------------

   Equity in net income of unconsolidated
         special-purpose entities                            275            104               490             38
                                                        -----------------------------------------------------------

   Net loss                                              $  (993 )    $    (471 )        $ (3,496 )     $   (388 ) 
                                                        ===========================================================

   Members' share of net income (loss):

   Class A members                                       $(1,398 )    $    (887 )        $ (4,706 )     $   (995 )  
   Class B member                                            405            416             1,210            607
                                                        -----------------------------------------------------------

   Total                                                 $  (993 )    $    (471 )        $ (3,496 )     $   (388 ) 
                                                        ===========================================================

   Net loss per weighted-average
         Class A unit (4,999,581 units as of
         September 30, 1997 and 1996)                    $ (0.28 )    $   (0.18 )        $  (0.94 )     $  (0.20 ) 
                                                        ===========================================================

   Cash distributions                                    $ 2,940      $   2,885          $  8,822       $  6,884  
                                                        ===========================================================
   Cash distributions per weighted-average
         Class A units                                   $  0.50      $     N/A          $   1.50       $    N/A 
                                                        ===========================================================

</TABLE>



                       See accompanying notes to financial
                                  statements.

<PAGE>



               PROFESSIONAL LEASE MANAGEMENT INCOME FUND I, L.L.C.
                     (A Delaware Limited Liability Company)
                  STATEMENTS OF CHANGES IN MEMBERS' EQUITY For
             the period from December 31, 1995 to September 30, 1997
                            (in thousands of dollars)

<TABLE>
<CAPTION>


                                                            Class A             Class B              Total
                                                        --------------------------------------------------------

   <S>                                                    <C>               <C>                 <C>           
   Members' equity as of December 31, 1995                $    54,836       $         306       $       55,142

   Members' capital contributions                              43,364               5,069               48,433

   Syndication costs                                                -              (5,062 )             (5,062 )

   Net income (loss)                                           (3,705 )             1,313               (2,392 )

   Distributions                                               (8,471 )            (1,361 )             (9,832 )
                                                        --------------------------------------------------------

   Members' equity as of December 31, 1996                     86,024                 265               86,289

   Net income (loss)                                           (4,706 )             1,210               (3,496 )

   Distributions                                               (7,499 )            (1,323 )             (8,822 )
                                                        --------------------------------------------------------

   Members' equity as of September 30, 1997               $    73,819       $         152       $       73,971   
                                                        ========================================================



</TABLE>

























                       See accompanying notes to financial
                                  statements.


<PAGE>



               PROFESSIONAL LEASE MANAGEMENT INCOME FUND I, L.L.C.
                     (A Delaware Limited Liability Company)
                            STATEMENTS OF CASH FLOWS
                            (in thousands of dollars)
<TABLE>
<CAPTION>

                                                                             For the Nine Months
                                                                             Ended September 30,
                                                                          1997                 1996
                                                                    ---------------------------------------
      <S>                                                           <C>                  <C>              
      Operating activities:
      Net loss                                                      $        (3,496 )    $          (388 )
      Adjustments to reconcile net loss to net cash
            provided by operating activities:
        Depreciation and amortization                                        11,870                5,420
        Gain on disposition of equipment                                         (5 )                  -
        Equity in net income of unconsolidated
              special-purpose entities                                         (490 )                (38 )
        Changes in operating assets and liabilities:
          Restricted cash                                                       223                    -
          Accounts receivable, net                                             (537 )               (709 )
          Prepaid expenses                                                      194                   68
          Accounts payable and accrued expenses                                 538                 (537 )
          Due to affiliates                                                      35                 (328 )
          Lessee deposits and reserves for repairs                              382                  460
                                                                    ---------------------------------------
              Net cash provided by operating activities                       8,714                3,948
                                                                    ---------------------------------------

      Investing activities:
      Payments for purchase of equipment and capital
            improvements                                                    (19,320 )            (27,880 )
      Investment in and equipment purchased and placed
            in unconsolidated special-purpose entities                       (5,100 )             (9,068 )
      Proceeds from disposition of equipment                                     27                    -
      Distributions from unconsolidated special-purpose
            entities                                                          5,100                4,153
                                                                    ---------------------------------------
                                                                    ---------------------------------------
          Net cash used in investing activities                             (19,293 )            (32,795 )
                                                                    ---------------------------------------

      Financing activities:
      Proceeds from notes payable                                            25,000                    -
      Cash distributions to Class A members                                  (7,499 )             (5,965 )
      Cash distributions to Class B Member                                   (1,323 )               (920 )
      Payments of debt placement fees                                          (177 )                  -
      Class A members' capital contribution                                       -               43,364
      Increase in subscriptions in escrow                                         -               (6,260 )
      Increase in restricted cash from subscriptions
            in escrow, net                                                        -                6,316
                                                                    ---------------------------------------
          Net cash provided by financing activities                          16,001               36,535
                                                                    ---------------------------------------

      Net increase in cash and cash equivalents                               5,422                7,688
      Cash and cash equivalents at beginning of period                        1,692                6,804
                                                                    ---------------------------------------
      Cash and cash equivalents at end of period                    $         7,114      $        14,492
                                                                    =======================================

      Supplemental information:
      Cash items:
        Interest paid                                               $           505      $             9
                                                                    =======================================
      Noncash items:
        Syndication and offering costs paid by Class B member       $             -      $         5,062
                                                                    =======================================

</TABLE>

                See accompanying notes to financial statements.

<PAGE>


               PROFESSIONAL LEASE MANAGEMENT INCOME FUND I, L.L.C.
                     (A Delaware Limited Liability Company)
                          NOTES TO FINANCIAL STATEMENTS
                               September 30, 1997


1.   Opinion of Management

     In the opinion of the  management  of PLM  Financial  Services,  Inc.  (the
     Manager),  the  accompanying  unaudited  financial  statements  contain all
     adjustments  necessary,  consisting primarily of normal recurring accruals,
     to present fairly the financial  position of Professional  Lease Management
     Income Fund I, L.L.C.  (Fund I or the Company) as of September 30, 1997 and
     December 31, 1996,  the  statements  of  operations  for the three and nine
     months ended  September  30, 1997 and 1996,  the  statements  of changes in
     members'  equity for the period from  December  31, 1995 to  September  30,
     1997, and the statements of cash flows for the nine months ended  September
     30, 1997 and 1996. Certain  information and footnote  disclosures  normally
     included in financial  statements  prepared in  accordance  with  generally
     accepted  accounting  principles  have been  condensed  or omitted from the
     accompanying  financial  statements.  For  further  information,  reference
     should be made to the financial  statements  and notes thereto  included in
     the Company's  Annual  Report on Form 10-K for the year ended  December 31,
     1996, on file at the Securities and Exchange Commission.

2.   Reclassifications

     Certain amounts in the 1996 financial  statements have been reclassified to
conform to the 1997 presentation.

3.   Net Income (Loss) and Cash Distributions

     After  giving  effect to the  special  allocations  set  forth in  Sections
     3.08(b) and 3.17 of the Company's operating agreement,  net profits and net
     loss  shall be  allocated  1% to the Class B member  and 99% to the Class A
     members.  During the nine months  ended  September  30,  1997,  the Manager
     received a special allocation of income of $1,257,000.

     Cash distributions are recorded when paid and totaled $2.9 million and $2.9
     million  for  the  three  months  ended   September   30,  1997  and  1996,
     respectively,  and $8.8  million and $6.9 million for the nine months ended
     September 30, 1997 and 1996. Cash  distributions  to Class A unitholders in
     excess of net income are considered to represent a return of capital.  Cash
     distributions  to Class A unitholders  of $7.5 million and $6.0 million for
     the nine  months  ended  September  30, 1997 and 1996,  respectively,  were
     deemed to be a return of capital. Cash distributions related to the results
     from the third quarter of 1997,  of $1.7 million,  were paid or are payable
     during October and November 1997, depending on whether the individual Class
     A unitholders elected to receive a monthly or quarterly distribution check.



<PAGE>


               PROFESSIONAL LEASE MANAGEMENT INCOME FUND I, L.L.C.
                     (A Delaware Limited Liability Company)
                          NOTES TO FINANCIAL STATEMENTS
                               September 30, 1997

4.   Investments in Unconsolidated Special-Purpose Entities

     The net  investments in  unconsolidated  special-purpose  entities  (USPEs)
     included the  following  jointly-owned  equipment  (and related  assets and
     liabilities) (in thousands):
<TABLE>
<CAPTION>

                                                                            September 30,             December 31,
           % Ownership    Equipment                                              1997                     1996
        ---------------------------------------------------------------------------------------------------------------

               <S>        <C>                                              <C>                      <C>            
               61%        Mobile offshore drilling unit                    $         9,959          $         6,906
               33%        Two trusts consisting of:
                            Three 737-200A Stage II
                               commercial aircraft
                            Two aircraft engines
                            Portfolio of rotable components                          7,361                    8,767
               25%        Trust consisting of four 737-200A
                            Stage II commercial aircraft                             3,456                    3,981
               50%        Cargo marine vessel                                        2,751                    3,011
               17%        Trust consisting of six 737-200A
                            Stage II commercial aircraft                             2,312                    2,684
                                                                         ==============================================
                            Total investments                              $        25,839          $        25,349
                                                                         ==============================================
</TABLE>

     During the nine months ended  September 30, 1997, the Company  purchased an
     additional  26%  interest  in a  mobile  offshore  drilling  unit  for $5.1
     million, bringing its initial investment from 35% up to 61%.

5.   Equipment

     Components of equipment are as follows (in thousands):

<TABLE>
<CAPTION>

                                               September 30,          December 31,
                                                   1997                    1996
                                              ---------------------------------------

   <S>                                         <C>                     <C>       
   Aircraft                                    $   24,605              $   24,605
   Marine vessel                                   20,757                  12,257
   Rail equipment                                  18,944                  18,876
   Trailers                                        14,817                  14,595
                                              ---------------------------------------
                                                   79,123                  70,333
   Less accumulated depreciation                  (22,952 )               (12,189 )
                                              ---------------------------------------
                                                   56,171                  58,144
   Equipment held for sale                          9,479                       -
                                              ---------------------------------------

     Net equipment                             $   65,650              $   58,144
                                              =======================================

</TABLE>

     Equipment  held  for  sale  is  stated  at the  lower  of  the  equipment's
     depreciated cost or fair value less cost to sell. As of September 30, 1997,
     one mobile offshore  drilling unit, which is currently on lease and subject
     to a pending sale for $11.0 million, was held for sale.

     During the nine months ended  September 30, 1997, the Company  purchased 24
     trailers,  a mobile offshore drilling unit, and a marine vessel for a total
     of $19.3  million.  During the nine months ended  September  30, 1996,  the
     Company  purchased  four  737-200A  Stage  II  commercial   aircraft,   178
     refrigerated trailers, and one box car for $28.3 million.



<PAGE>


               PROFESSIONAL LEASE MANAGEMENT INCOME FUND I, L.L.C.
                     (A Delaware Limited Liability Company)
                          NOTES TO FINANCIAL STATEMENTS
                               September 30, 1997

5.   Equipment (continued)

     During the nine months ended  September 30, 1997, the Company sold trailers
     with a net book value of $22,000,  for  proceeds of $27,000.  There were no
     sales or disposals of  equipment  in the nine months  ended  September  30,
     1996.

     As of September 30, 1997, all equipment was either on lease or operating in
     PLM-affiliated short-term trailer rental facilities, except for 10 railcars
     with a  carrying  value of $0.2  million.  As of  December  31,  1996,  all
     equipment  was either on lease or  operating in  PLM-affiliated  short-term
     trailer rental facilities,  except for 14 railcars with a carrying value of
     $0.3 million.

6.   Transactions with Manager and Affiliates

    Company  management fees of $0.2 million and $0.2 million were payable as of
    September  30, 1997 and  December  31,  1996,  respectively.  The  Company's
    proportional  share of USPE management fees of $0.1 million and $23,000 were
    payable as of September 30, 1997 and December 31, 1996, respectively.

    The Company's  proportional share of the affiliated expenses incurred by the
    USPEs during 1997 and 1996 is listed in the following table (in thousands):

<TABLE>
<CAPTION>
                                                       For the Three Months               For the Nine Months
                                                        Ended September 30,               Ended September 30,
                                                          1997         1996              1997            1996
                                                     -------------------------------------------------------------

     <S>                                             <C>            <C>               <C>             <C>      
     Management fees                                 $      97      $      98         $     281       $     166
     Data processing and administrative
        expenses                                            25             20                69              62
     Insurance expense                                       1              -                 6               -

</TABLE>

     Transportation  Equipment  Indemnity  Company,  Ltd. (TEI) provides  marine
     insurance  coverage for Company  equipment  and other  insurance  brokerage
     services. TEI is an affiliate of the Manager.

7.   Debt

     During the first nine months of 1997,  the Company  borrowed  $25.0 million
     under the long-term senior note agreement  entered into in December 1996. A
     total  of  $19.3  million  of the  proceeds  was  used to  fund  additional
     equipment acquisitions during the nine months ended September 30, 1997. The
     Company also used debt proceeds of $5.1 million to increase its  investment
     in  unconsolidated  special-purpose  entities  with  the  purchase  of  the
     additional  interest in an entity that owns a mobile offshore drilling unit
     (the remaining  interest in this mobile  offshore  drilling unit belongs to
     affiliated  partnerships).  The Company anticipates utilizing the remaining
     debt  proceeds to  purchase  equipment  during the fourth  quarter of 1997.
     During the nine months ended  September 30, 1997, a $0.2 million  placement
     fee was paid to the lender in connection  with this loan agreement which is
     being amortized over the life of the loan.

     The Manager entered into a short-term, joint $50.0 million credit facility.
     As of September 30, 1997,  PLM Equipment  Growth Fund V had $9.1 million in
     outstanding  borrowings  with the  short-term  $50.0  million  joint credit
     facility, and PLM Equipment Growth Fund VI had $10.0 million in outstanding
     borrowings  under the short-term  committed  bridge  facility.  Neither the
     Company  nor  any of the  other  eligible  borrowers  had  any  outstanding
     borrowings.  The  Company's  senior note  agreement  limits the  borrowings
     available  to the  Company  under this  short-term  credit  facility to the
     lesser of $10.0 million or 50% of the outstanding senior note balance.



<PAGE>


               PROFESSIONAL LEASE MANAGEMENT INCOME FUND I, L.L.C.
                     (A Delaware Limited Liability Company)
                          NOTES TO FINANCIAL STATEMENTS
                               September 30, 1997

8.  Subsequent Event

    During October 1997, the short-term credit facility was amended and restated
    to decrease the available borrowings for American Finance Group, Inc. (AFG),
    a subsidiary of PLM International,  Inc., to $35.0 million and to extend the
    termination  date of the credit  facility to  December 2, 1997.  The Manager
    believes  it will be  able  to  extend  the  credit  facility  prior  to its
    expiration on similar terms and increase the amount of available  borrowings
    for AFG to $50.0 million.
















                     (This space intentionally left blank.)



<PAGE>


Item 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

(I)  RESULTS OF OPERATIONS

Comparison of the Company's Operating Results for the Three Months Ended 
September 30, 1997 and 1996

(A)   Owned Equipment Operations

Lease revenues less direct expenses  (defined as repair and maintenance,  marine
equipment operating,  and asset-specific  insurance expenses) on owned equipment
increased  during the third  quarter of 1997,  compared  to the same  quarter of
1996. The following  table presents lease revenues less direct expenses by owned
equipment type (in thousands):

<TABLE>
<CAPTION>
                                                                            For the Three Months
                                                                             Ended September 30,
                                                                            1997             1996
                                                                         ----------------------------

   <S>                                                                   <C>             <C>        
   Aircraft                                                              $  1,249        $     273  
   Trailers                                                                   842              530
   Marine vessels                                                             806              219
   Rail equipment                                                             628              624
   Mobile offshore drilling unit                                              502                -

</TABLE>

Aircraft:  Aircraft  lease  revenues and direct  expenses  were $1.2 million and
$11,000,  respectively,  for the third quarter of 1997, compared to $0.3 million
and $2,000, respectively, during the same quarter of 1996. Aircraft contribution
increased due to the purchase of four 737-200A  Stage II commercial  aircraft in
the third  quarter of 1996.  These  aircraft  were on lease for the entire third
quarter of 1997.

Trailers:  Trailer  revenues  and direct  expenses  were $0.9  million  and $0.1
million,  respectively,  for the third quarter of 1997, compared to $0.6 million
and $40,000, respectively, during the same quarter of 1996. Trailer contribution
increased due to the purchase of additional  trailers  throughout 1996 and 1997.
These trailers were operating in the short-term rental facilities for the entire
third quarter of 1997.

Marine  vessels:  Marine  vessel lease  revenues and direct  expenses  were $1.2
million and $0.4 million,  respectively, for the third quarter of 1997, compared
to $0.5 million and $0.3 million, respectively, during the same quarter of 1996.
Marine vessel  contribution  increased due to the purchase of a marine vessel at
the end of the second quarter of 1997.

Rail equipment: Railcar lease revenues and direct expenses were $0.8 million and
$0.2  million,  respectively,  for the third  quarter of 1997 and 1996.  Railcar
contribution  remained  relatively stable in the third quarter of 1997, compared
to the same period in 1996.

Mobile  offshore  drilling  unit (rig):  Revenues and direct  expenses were $0.5
million and $4,000,  respectively,  in the third  quarter of 1997.  This rig was
purchased  in the first  quarter of 1997 and earned a full quarter of revenue in
the third  quarter  of 1997.  No rigs  were  owned by the  Company  in the third
quarter of 1996.

(B)   Interest and Other Income

Interest and other  income  decreased  $0.4  million due to lower cash  balances
available  for  investment  in the third  quarter of 1997,  compared to the same
period in 1996.



<PAGE>


(C)   Indirect Expenses Related to Owned Equipment Operations

Total indirect expenses of $5.4 million for the quarter ended September 30, 1997
increased  from $2.7  million for the same  period in 1996.  The  variances  are
explained as follows:

     (1) A $1.9 million increase in depreciation and amortization  expenses from
1996 levels reflects the purchase of assets during 1997 and 1996.

     (2) A $0.5 million  increase in interest  expense was due to the  Company's
incurrence  of debt in 1997 for the purchase of  equipment.  The Company did not
have any debt outstanding in the third quarter of 1996.

     (3) A $0.2 million  increase in  administrative  expenses  from 1996 levels
resulted from  increased  administrative  costs  associated  with the short-term
trailer rental facilities due to additional trailers operating in the facilities
in the third quarter of 1997, compared to the same period in 1996.

     (4) A $0.1 million  increase in management  fees to affiliate  reflects the
higher levels of lease  revenues in 1997,  compared to 1996, due to the purchase
of equipment throughout 1996 and the beginning of 1997.

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

Net income (loss) generated from the operation of jointly-owned assets accounted
for under the equity method are presented as follows (in thousands).

<TABLE>
<CAPTION>

                                                                            For the Three Months
                                                                             Ended September 30,
                                                                            1997             1996
                                                                         ----------------------------

   <S>                                                                   <C>              <C>      
   Aircraft                                                              $    405         $     75 
   Mobile offshore drilling unit                                                6               --
   Marine vessel                                                             (136 )             29

</TABLE>

Aircraft:  As of September 30, 1997 and 1996, the Company owned an interest in a
trust that owns six commercial aircraft,  an interest in another trust that owns
four  commercial  aircraft,  and  an  interest  in two  trusts  that  own  three
commercial aircraft, two aircraft engines, and a portfolio of aircraft rotables.
Aircraft revenues and expenses were $1.4 million and $1.0 million, respectively,
for the third  quarter  of 1997,  compared  to $1.5  million  and $1.4  million,
respectively,  during the same quarter in 1996.  Lease revenue  decreased due to
lower lease rates for a trust in the third  quarter of 1997 compared to the same
period  in  1996.  Expenses  decreased  due to the  use of the  double-declining
balance  depreciation method, which results in greater depreciation in the first
years an asset is owned.

Mobile  offshore  drilling  unit: As of September  30, 1997,  the Company had an
interest in an entity that owns a mobile offshore  drilling unit (rig) purchased
during the fourth  quarter of 1996.  The Company's  interest in this  investment
increased in the first quarter of 1997 from 35% to 61%. During the third quarter
of 1997, revenues of $0.6 million were offset by depreciation and administrative
expenses  of $0.6  million.  The  Company  did not own any rigs during the third
quarter of 1996.

Marine vessel: As of September 30, 1997 and 1996, the Company had an interest in
an entity that owns a marine  vessel.  Marine vessel  revenues and expenses were
$0.3  million and $0.4  million,  respectively,  for the third  quarter of 1997,
compared to $0.3 million and $0.3 million, respectively,  during the same period
in 1996.  Expenses  increased due to repairs needed on this marine vessel in the
third quarter of 1997, compared to the same period in 1996.

(E)   Net Loss

As a result of the foregoing, the Company had a net loss of $1.0 million for the
third  quarter of 1997,  compared to a net loss of $0.5 million  during the same
period of 1996. The Company's  ability to operate and liquidate  assets,  secure
leases,  and  re-lease  those  assets  whose  leases  expire is  subject to many
factors,  and the  Company's  performance  in the third  quarter  of 1997 is not
necessarily  indicative of future  periods.  In the third  quarter of 1997,  the
Company   distributed   $2.5   million  to  Class  A   members,   or  $0.50  per
weighted-average Class A unit.

Comparison of the Company's Operating Results for the Nine Months Ended 
September 30, 1997 and 1996

(A)   Owned Equipment Operations

Lease revenues less direct expenses  (defined as repair and maintenance,  marine
equipment operating,  and asset-specific  insurance expenses) on owned equipment
increased during the nine months ended September 30, 1997,  compared to the same
period of 1996. The following table presents lease revenues less direct expenses
by owned equipment type (in thousands):

<TABLE>
<CAPTION>
                                                                             For the Nine Months
                                                                             Ended September 30,
                                                                            1997             1996
                                                                         ----------------------------

   <S>                                                                   <C>            <C>         
   Aircraft                                                              $  3,748       $      744  
   Trailers                                                                 2,334            1,234
   Rail equipment                                                           2,025            1,915
   Marine vessels                                                           1,323              909
   Mobile offshore drilling unit                                            1,056                -

</TABLE>

Aircraft:  Aircraft  lease  revenues and direct  expenses  were $3.8 million and
$29,000, respectively, during the nine months ended September 30, 1997, compared
to $0.7  million  and  $12,000,  respectively,  during the same  period of 1996.
Aircraft  contribution  increased due to the purchase of four 737-200A  Stage II
commercial  aircraft in the third quarter of 1996.  These aircraft were on lease
for the entire nine months of 1997.

Trailers:  Trailer  revenues  and direct  expenses  were $2.6  million  and $0.3
million, respectively, for the nine months of 1997, compared to $1.3 million and
$0.1 million, respectively, during the same period in 1996. Trailer contribution
increased due to the purchase of additional  trailers  throughout 1996 and 1997.
These trailers were operating in the short-term rental facilities for the entire
nine months of 1997.

Rail equipment: Railcar lease revenues and direct expenses were $2.4 million and
$0.4  million,  respectively,  for the nine months  ended  September  30,  1997,
compared to $2.4 million and $0.5 million, respectively,  during the same period
of 1996. Lease revenues  remained  relatively stable in the nine months of 1997,
compared to the same period of 1996.  Expenses  decreased  due to lower  running
repairs in the nine months ended September 30, 1997, compared to the same period
of 1996.  Although  the Company  purchased  additional  railcars in the last two
months of 1996,  these railcars were off lease in the first eight months of 1997
and did not impact the contribution for the first eight months of 1997.

Marine  vessels:  Marine  vessel lease  revenues and direct  expenses  were $2.4
million and $1.1 million,  respectively, for the nine months ended September 30,
1997, compared to $2.0 million and $1.1 million,  respectively,  during the same
period of 1996.  Marine vessel  contribution  increased due to the purchase of a
marine vessel at the end of the second quarter of 1997; this increase was offset
slightly by a decrease in lease revenue due to lower  re-lease rates for another
marine vessel as a result of a softer bulk carrier vessel market.

Mobile offshore drilling unit (rig): Rig lease revenues and direct expenses were
$1.1 million and $22,000,  respectively, for the nine months ended September 30,
1997.  This rig was  purchased  near the end of the first  quarter of 1997.  The
Company did not own any rigs in the nine months ended September 30, 1996.

(B)   Interest and Other Income

Interest and other  income  decreased  $0.9  million due to lower cash  balances
available for investment in the nine months ended  September 30, 1997,  compared
to the same period of 1996.

(C)   Indirect Expenses Related to Owned Equipment Operations

Total indirect expenses of $14.8 million for the nine months ended September 30,
1997  increased from $6.4 million for the same period of 1996. The variances are
explained as follows:

     (1) A $6.5 million increase in depreciation and amortization  expenses from
1996 levels reflects the purchase of assets during 1997 and 1996.

     (2) A $1.0 million  increase in interest  expense was due to the  Company's
incurrence of the long-term senior note agreement in 1997 to purchase equipment.

     (3) A $0.6 million  increase in  administrative  expenses  from 1996 levels
resulted  primarily  from increased  administrative  costs  associated  with the
short-term trailer rental facilities due to additional trailers operating in the
facilities  in the first nine  months of 1997,  compared  to the same  period of
1996.

     (4) A $0.3 million  increase in management  fees to affiliate  reflects the
higher levels of lease  revenues in 1997,  compared to 1996, due to the purchase
of equipment throughout 1996 and 1997.

(D)   Net Gain on Disposition of Owned Equipment

Net gain on the disposition of equipment for the nine months ended September 30,
1997  totaled  $5,000,  and resulted  from the sale of trailers  with a net book
value of $22,000,  for proceeds of $27,000.  There were no sales or disposals of
equipment in the first nine months of 1996.

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

Net income (loss) generated from the operation of jointly-owned assets accounted
for under the equity method are presented as follows (in thousands).

<TABLE>
<CAPTION>

                                                                             For the Nine Months
                                                                             Ended September 30,
                                                                            1997             1996
                                                                         ----------------------------

   <S>                                                                   <C>              <C>        
   Aircraft                                                              $  1,297         $    194   
   Marine vessel                                                             (340 )           (156 )
   Mobile offshore drilling unit                                             (467 )              -

</TABLE>

Aircraft:  As of September 30, 1997 and 1996, the Company owned an interest in a
trust that owns six commercial aircraft,  an interest in another trust that owns
four  commercial  aircraft,  and  an  interest  in two  trusts  that  own  three
commercial aircraft, two aircraft engines, and a portfolio of aircraft rotables.
Aircraft revenues and expenses were $4.4 million and $3.1 million, respectively,
for the nine months ended September 30, 1997,  compared to $4.1 million and $3.9
million, respectively,  during the same period in 1996. The increase in revenues
was  because of the  purchase  of an  interest  in a trust that owns  commercial
aircraft at the end of the first quarter of 1996.  This  investment was on lease
for the  entire  nine  months of 1997,  compared  to only six months in the same
period in 1996.  This  increase  was  partially  offset by a  decrease  in lease
revenues  due to  lower  lease  rates  for a trust  for the  nine  months  ended
September 30, 1997 compared to the same period in 1996.  Expenses  decreased due
to the use of the double-declining balance depreciation method, which results in
greater depreciation in the first years an asset is owned.

Marine vessel: As of September 30, 1997 and 1996, the Company had an interest in
an entity that owns a marine  vessel.  Marine vessel  revenues and expenses were
$0.9 million and $1.2 million, respectively, for the nine months ended September
30, 1997,  compared to $0.6 million and $0.8 million,  respectively,  during the
same period in 1996.  Revenues  and expenses  during 1997  represent a full nine
months,  when  compared to 1996,  in which  revenues and expenses  were for only
seven  months,  due to the purchase of a 50% interest in a marine  vessel during
the later half of the first quarter of 1996. In addition, expenses increased due
to  required  repairs  needed on this  marine  vessel in the nine  months  ended
September 30, 1997.

Mobile  offshore  drilling  unit: As of September  30, 1997,  the Company had an
interest in an entity that owns a mobile offshore  drilling unit (rig) purchased
during the fourth  quarter of 1996.  The Company's  interest in this  investment
increased in the first  quarter of 1997 from 35% to 61%.  During the nine months
ended  September 30, 1997,  revenues of $1.4 million were offset by depreciation
and administrative expenses of $1.9 million.

(F)   Net Loss

As a result of the foregoing, the Company had a net loss of $3.5 million for the
nine  months of 1997,  compared  to a net loss of $0.4  million  during the same
period of 1996. The Company's  ability to operate and liquidate  assets,  secure
leases,  and  re-lease  those  assets  whose  leases  expire is  subject to many
factors,  and the Company's  performance in the nine months ended  September 30,
1997 is not necessarily  indicative of future periods.  In the nine months ended
September 30, 1997, the Company distributed $7.5 million to the Class A members,
or $1.50 per weighted-average Class A unit.

(II)  FINANCIAL CONDITION -- CAPITAL RESOURCES AND LIQUIDITY

The Company's initial  contributed capital was composed of the proceeds from its
initial offering,  and was supplemented by permanent debt in the amount of $25.0
million.  The  Company  intends  to  rely on  operating  cash  flow to meet  its
operating   obligations,   maintain   working   capital   reserves,   make  cash
distributions  to  Class A and  Class B  unitholders,  and  grow  the  Company's
equipment   portfolio  through   reinvestment  of  any  remaining  surplus  cash
available.

For the nine months ended September 30, 1997, the Company  generated  sufficient
operating  cash (net cash provided by operating  activities  plus  distributions
from  the  unconsolidated   special-purpose  entities)  to  meet  its  operating
obligations and pay distributions to Class A and Class B unitholders.

During the nine months  ended  September  30,  1997,  the Company  purchased  24
trailers,  a mobile  offshore  drilling  unit and a marine vessel for a total of
$19.3 million.

During the nine months ended  September 30, 1997, the Company sold trailers with
a net book value of $22,000, for proceeds of $27,000.

The Manager has entered into a short-term  joint $50.0 million credit  facility.
As of November 10,  1997,  the PLM  Equipment  Growth Fund V had $3.6 million in
outstanding  borrowings  and PLM  Equipment  Growth Fund VI had $2.0  million in
outstanding  borrowings.  Neither the Company, PLM Equipment Growth Fund IV, PLM
Equipment  Growth & Income Fund VII,  American  Finance  Group,  Inc.  (AFG),  a
wholly-owned  subsidiary of PLM International,  Inc., nor TEC Aquisub,  Inc., an
indirect  wholly-owned  subsidiary of FSI, had any outstanding  borrowings.  The
Company's senior note agreement  limits the borrowings  available to the Company
under this  short-term  credit facility to the lesser of $10.0 million or 50% of
the outstanding senior note balance.

During October 1997, the short-term  credit facility was amended and restated to
decrease the  available  borrowings  for AFG to $35.0  million and to extend the
termination  date of the  credit  facility  to  December  2, 1997.  The  Manager
believes it will be able to extend the credit  facility  prior to its expiration
on similar  terms and  increase the amount of  available  borrowings  for AFG to
$50.0 million.

In October of 1997, the Company received notice from a lessee of its election to
exercise its option to purchase the rig which it is currently  leasing.  The rig
is anticipated to be sold in the fourth quarter of 1997 for approximately  $11.0
million resulting in a gain of $1.5 million to the Company.


<PAGE>


(III)     OUTLOOK FOR THE FUTURE

Several  factors  may affect the  Company's  operating  performance  in 1997 and
beyond, including changes in the markets for the Company's equipment and changes
in the regulatory environment in which the equipment operates.

The Company  intends to use excess cash flow,  after  payment of  expenses,  the
maintenance of working  capital  reserves,  and cash  distributions,  to acquire
additional equipment during the first six years of the Company's operations. The
Manager believes these acquisitions may cause the Company to generate additional
earning as and cash flow for the Company.

The Company  relies on operating  cash flow to meet its  operating  obligations,
maintain  working capital  reserves,  make cash  distributions  to Class A and B
unitholders,  and grow the Company's equipment portfolio through reinvestment of
any remaining surplus cash available in additional equipment.

(IV)  FORWARD LOOKING INFORMATION

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






















                     (This space intentionally left blank.)


<PAGE>



                          PART II -- OTHER INFORMATION



Item 6.  Exhibits and Reports on Form 8-K

         (a)  Exhibits

              None.

         (b)  Reports on Form 8-K

              None.







<PAGE>




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


                                      PROFESSIONAL LEASE MANAGEMENT
                                      INCOME FUND I, L.L.C.
                                      By:  PLM Financial Services, Inc.
                                           Manager




Date: November 10, 1997
                                      By:  /s/ Richard Brock
                                           ------------------------
                                           Richard Brock
                                           Vice President and
                                           Corporate Controller