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 March 31, 1998

[  ] 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>


                                                                              March 31,          December 31,
                                                                                 1998                 1997
                                                                          ----------------------------------------
<S>                                                                          <C>                   <C>       
Assets:

Equipment held for operating leases, at cost                                 $    90,457           $   79,132
Less accumulated depreciation                                                    (29,691)             (26,749)
                                                                          ----------------------------------------
    Net equipment                                                                 60,766               52,383

Cash and cash equivalents                                                         10,825               19,179
Investment in unconsolidated special-purpose entities                             25,829               26,252
Accounts receivable, less allowance for doubtful accounts
      of $46 in 1998 and $70 in 1997                                               1,657                2,026
Deposit on equipment                                                                  --                  920
Prepaid expenses                                                                     296                  341
Deferred charges, less accumulated amortization
      of $265 in 1998 and $238 in 1997                                               354                  381
                                                                          ----------------------------------------

      Total assets                                                           $    99,727           $  101,482
                                                                          ========================================

Liabilities and members' equity:

Liabilities:
Accounts payable and accrued expenses                                        $       925           $      594
Due to affiliates                                                                    184                2,005
Lessee deposits and reserves for repairs                                           1,691                1,409
Note payable                                                                      25,000               25,000
                                                                          ----------------------------------------
    Total liabilities                                                             27,800               29,008
                                                                          ----------------------------------------

Members' equity:
Class A members (4,999,581 units as of March 31, 1998
      and December 31, 1997)                                                      71,814               72,298
Class B member                                                                       113                  176
                                                                          ----------------------------------------
    Total members' equity                                                         71,927               72,474
                                                                          ----------------------------------------

       Total liabilities and members' equity                                 $    99,727           $  101,482
                                                                          ========================================

</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
                      For the Three Months Ended March 31,
         (in thousands of dollars, except weighted-average unit amounts)

<TABLE>
<CAPTION>



                                                         1998            1997
                                                    -------------------------------
<S>                                                   <C>             <C>      
Revenues

Lease revenue                                         $   4,294       $   3,517
Interest and other income                                   197              48
Net gain on disposition of equipment                         28               4
                                                    -------------------------------
    Total revenues                                        4,519           3,569
                                                    -------------------------------

Expenses

Depreciation and amortization                             2,982           3,577
Repairs and maintenance                                     265             269
Equipment operating expenses                                238             242
Interest expense                                            458              46
Insurance expense to affiliate                               (3 )             7
Other insurance expense                                      50              53
Management fees to affiliate                                237             233
General and administrative expenses
      to affiliates                                         194             353
Other general and administrative expenses                   161             122
                                                    -------------------------------
    Total expenses                                        4,582           4,902
                                                    -------------------------------

Equity in net income of unconsolidated
      special-purpose entities                            2,457             137
                                                    -------------------------------

      Net income (loss)                               $   2,394       $  (1,196 )
                                                    ===============================

Members' share of net income (loss)

Class A members                                       $   2,016       $  (1,599 )
Class B member                                              378             403
                                                    -------------------------------

       Total                                          $   2,394       $  (1,196 )
                                                    ===============================

Net income (loss) per weighted-average
      Class A unit (4,999,581 units as of
      March 31, 1998 and 1997)                        $    0.40       $   (0.32 )
                                                    ===============================

Cash distributions                                    $   2,941       $   2,941
                                                    ===============================
Cash distributions per weighted-average
      Class A units                                   $    0.50       $    0.50
                                                    ===============================
</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, 1996 to March 31, 1998
                            (in thousands of dollars)


<TABLE>
<CAPTION>


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

<S>                                                    <C>                   <C>                  <C>          
Members' equity as of December 31, 1996                $       86,024        $         265        $      86,289

Net income (loss)                                              (3,728)               1,676               (2,052 )

Cash distributions                                             (9,998)              (1,765)             (11,763 )
                                                     -------------------------------------------------------------

  Members' equity as of December 31, 1997                      72,298                  176               72,474

Net income                                                      2,016                  378                2,394

Cash distributions                                             (2,500)                (441)              (2,941 )
                                                     -------------------------------------------------------------

  Members' equity as of March 31, 1998                 $       71,814        $         113        $      71,927
                                                     =============================================================

</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
                      For the Three Months Ended March 31,
                            (in thousands of dollars)

<TABLE>
<CAPTION>



                                                                      1998                  1997
                                                              -------------------------------------------
<S>                                                             <C>                   <C>             
Operating activities
Net income (loss)                                               $         2,394       $        (1,196)
Adjustments to reconcile net income (loss) to net cash
      provided by operating activities:
  Depreciation and amortization                                           2,982                 3,577
  Net gain on disposition of equipment                                      (28)                   (4)
  Equity in net income of unconsolidated
        special-purpose entities                                         (2,457)                 (137)
  Changes in operating assets and liabilities:
    Accounts receivable, net                                                421                  (292)
    Prepaid expenses                                                         45                   128

    Accounts payable and accrued expenses                                   331                   196

    Due to affiliates                                                       (28)                   60
    Lessee deposits and reserves for repairs                                282                   285
                                                              -------------------------------------------
        Net cash provided by operating activities                         3,942                 2,617
                                                              -------------------------------------------

Investing activities
Payments for purchase of equipment and capital
      improvements                                                      (10,442)              (10,530)
Investment in and equipment purchased and placed
      in unconsolidated special-purpose entities                         (6,143)               (5,100)
Liquidation distributions from unconsolidated
      special-purpose entities                                            4,707                    --
Proceeds from disposition of equipment                                       --                    26
Distributions from unconsolidated special-purpose
      entities                                                            4,316                 3,260
                                                              -------------------------------------------
      Net cash used in investing activities                              (7,562)              (12,344)
                                                              -------------------------------------------

Financing activities
Proceeds from note payable                                                   --                25,000
Payment due to affiliates                                                (1,793)                   --
Cash distributions to Class A members                                    (2,500)               (2,500)
Cash distributions to Class B Member                                       (441)                 (441)
Payments of debt placement fees                                              --                  (177)
                                                              -------------------------------------------
      Net cash (used in) provided by financing activities                (4,734)               21,882
                                                              -------------------------------------------

Net (decrease) increase in cash and cash equivalents                     (8,354)               12,155
Cash and cash equivalents at beginning of period                         19,179                 1,692
                                                              -------------------------------------------
Cash and cash equivalents at end of period                      $        10,825       $        13,847
                                                              ===========================================

Supplemental information
Interest paid                                                   $            --       $            --
                                                              ===========================================
Sale proceeds included in accounts receivable                   $            52       $            --
                                                              ===========================================

See accompanying notes to financial statements.

</TABLE>


<PAGE>



               PROFESSIONAL LEASE MANAGEMENT INCOME FUND I, L.L.C.
                     (A Delaware Limited Liability Company)
                          NOTES TO FINANCIAL STATEMENTS
                                 March 31, 1998


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 March 31, 1998 and
     December 31, 1997,  the statements of operations for the three months ended
     March 31, 1998 and 1997, the  statements of changes in members'  equity for
     the period from December 31, 1996 to March 31, 1998,  and the statements of
     cash flows for the three  months  ended  March 31,  1998 and 1997.  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, 1997, on file with the
     Securities and Exchange Commission.

2.   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 are allocated 1% to the Class B member and 99% to the Class A members.
     During the three  months  ended  March 31,  1998,  the  Manager  received a
     special allocation of income of $0.4 million.

     Cash  distributions are recorded when paid and totaled $2.9 million for the
     three months ended March 31, 1998 and 1997. 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 $0.5 million and $2.5
     million for the three months  ended March 31, 1998 and 1997,  respectively,
     were deemed to be a return of capital.  Cash  distributions  related to the
     results from the first quarter of 1998,  of $1.7 million,  were paid during
     the second quarter of 1998.

3.   Transactions with Manager and Affiliates

     Company  management  fees of $0.2 million were payable as of March 31, 1998
     and December 31, 1997. The Company's  proportional share of management fees
     affiliated with unconsolidated special- purpose entities (USPEs) of $44,000
     and  $24,000  were  payable as of March 31,  1998 and  December  31,  1997,
     respectively.

     The Company's proportional share of the affiliated expenses incurred by the
     USPEs during 1998 and 1997 is listed in the  following  table (in thousands
     of dollars):

                                                     For the Three Months
                                                       Ended March 31,

                                                     1998            1997
                                                -------------------------------

Management fees                                   $      87       $      85
Data processing and administrative
   Expenses                                              31              19
Insurance expense                                         1               4


     Transportation Equipment Indemnity Company, Ltd. (TEI), an affiliate of the
     Manager,  provided certain marine insurance  coverage for Company equipment
     and other  insurance  brokerage  services during 1998 and 1997. TEI did not
     provide the same insurance coverage during 1998 as had been provided during
     1997. These services were provided by an unaffiliated third party.


 

<PAGE>



               PROFESSIONAL LEASE MANAGEMENT INCOME FUND I, L.L.C.
                     (A Delaware Limited Liability Company)
                          NOTES TO FINANCIAL STATEMENTS
                                 March 31, 1998

4.   Equipment

     The  components of equipment  held for  operating  lease are as follows (in
thousands of dollars):

<TABLE>
<CAPTION>

                                               March 31,              December 31,
                                                  1998                     1997
                                           -------------------------------------------

<S>                                           <C>                      <C>        
Marine vessels                                $    29,957              $    20,756
Aircraft                                           25,783                   24,605
Rail equipment                                     19,919                   18,958
Trailers                                           14,798                   14,813
                                           -------------------------------------------
                                                   90,457                   79,132
Less accumulated depreciation                     (29,691)                 (26,749)
                                           -------------------------------------------
      Net equipment                           $    60,766              $    52,383
                                           ===========================================
</TABLE>

     During the three  months  ended March 31,  1998,  the Company  purchased 39
railcars,  a marine  vessel (a deposit of $0.9 million was lodged in December of
1997 for the purchase of the marine vessel) and a hush kit for an aircraft for a
total of $11.3  million.  During the three  months  ended  March 31,  1997,  the
Company purchased a mobile offshore drilling unit for $10.5 million.

     During the three months  ended March 31,  1998,  the Company sold a trailer
and a railcar with a net book value of $24,000, for proceeds of $52,000.  During
the three months ended March 31, 1997, the Company sold trailers with a net book
value of $22,000, for proceeds of $26,000.

     As of March 31,  1998,  all  equipment  was either on lease or operating in
PLM-affiliated short-term trailer rental facilities, except for one railcar with
a carrying  value of $15,000.  As of December 31, 1997, all equipment was either
on lease or operating in PLM-affiliated  short-term  trailer rental  facilities,
except for one railcar with a carrying value of $22,000.



<PAGE>




               PROFESSIONAL LEASE MANAGEMENT INCOME FUND I, L.L.C.
                     (A Delaware Limited Liability Company)
                          NOTES TO FINANCIAL STATEMENTS
                                 March 31, 1998

5.   Investments in Unconsolidated Special-Purpose Entities

     The net investments in unconsolidated special-purpose entities included the
following  jointly-owned  equipment  (and related  assets and  liabilities)  (in
thousands of dollars):

<TABLE>
<CAPTION>

                                                                        March 31,              December 31,
   % Ownership    Equipment                                               1998                     1997
----------------------------------------------------------------------------------------------------------------

       <S>        <C>                                               <C>                      <C>            
       61%        Mobile offshore drilling unit                     $         9,528          $         9,766
       50%        Trust consisting of MD DC9-82 stage III                     5,896                      682
                       commercial aircraft
       33%        Two trusts consisting of:
                    Three 737-200A Stage II
                       commercial aircraft
                    Two stage II JT8D aircraft engines
                    Portfolio of rotable components                           4,863                    7,788
       25%        Trust consisting of four 737-200A
                    stage II commercial aircraft                                 --                    3,163
       45%        Trust consisting of two 737-200A
                    stage II commercial aircraft                              2,979                       --
       50%        Cargo marine vessel                                         2,405                    2,638
       25%        Trust consisting of six 737-200A
                    stage II commercial aircraft                                158                    2,215
                    Total investments                               $        25,829          $        26,252
                                                                  ==============================================

</TABLE>

     The Company has  interests  in two USPEs that own  multiple  aircraft  (the
Trusts).  These  Trusts  contain  provisions  under  certain  circumstances  for
allocating specific aircraft to the beneficial owners.  During the first quarter
of 1998, PLM Equipment Growth Fund VI and PLM Equipment Growth & Income Fund VII
each sold the  interest  in the  aircraft  designated  to it. The result for the
Company was to restate the  ownership in this Trust from 25% to 45%.  During the
three  months  ended  March  31,  1998,  an  affiliated  program  increased  its
investment  in this  Trust by funding a hushkit  to a  specific  aircraft.  This
change has no effect on the income or loss  recognized  in the first  quarter of
1998.

     For the second Trust,  the Company and an affiliated  program each sold the
aircraft  designated to it during the first quarter of 1998.  This change had no
effect  on net  income  or loss in 1997 and in the first  quarter  of 1998.  The
Company's 25% interest in the Trust owning the commercial  aircraft was sold for
proceeds of $4.7 million.

     During the first quarter ended March 31, 1998, the Company  purchased a 50%
interest in an MD DC-9-82  Stage III  commercial  aircraft  for $6.8  million (a
deposit of $0.7 million was lodged in December of 1997).

6.   Subsequent Event

     On May 1, 1998,  the Company  purchased  an interest in an trust  owning an
MD-82 commercial aircraft for $7.4 million, the remaining interest in this trust
is an affiliated program.


                                                      -7-


<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 March
31, 1998 and 1997

(A)       Owned Equipment Operations

Lease revenues less direct expenses on owned  equipment  (defined as repairs and
maintenance,   equipment  operating  expenses,   and  asset-specific   insurance
expenses)  on owned  equipment  increased  during  the  first  quarter  of 1998,
compared  to the same  quarter  of 1997.  The  following  table  presents  lease
revenues less direct expenses by owned equipment type (in thousands of dollars):

<TABLE>
<CAPTION>

                                                                           For the Three Months
                                                                              Ended March 31,
                                                                          1998               1997
                                                                      -------------------------------

<S>                                                                     <C>               <C>     
Aircraft                                                                $  1,252          $  1,252
Marine vessels                                                               973               215
Rail equipment                                                               871               700
Trailers                                                                     676               713
Mobile offshore drilling unit                                                 --                71

</TABLE>

Aircraft:  Aircraft  lease  revenues and direct  expenses  were $1.3 million and
$13,000,  respectively,  for the first quarter of 1998, compared to $1.3 million
and $0,  respectively,  during the same quarter of 1997.  Aircraft  contribution
remained the same due to the relative stability of the aircraft fleet.

Marine  vessels:  Marine  vessel lease  revenues and direct  expenses  were $1.3
million and $0.3 million,  respectively, for the first quarter of 1998, compared
to $0.6 million and $0.4 million, respectively, during the same quarter of 1997.
Marine vessel lease revenue  increased due to the purchase of a marine vessel in
the first quarter of 1998 and another vessel at the end of the second quarter of
1997.  Direct  expenses  decreased in the first  quarter of 1998 compared to the
same period in 1997, due to lower marine operating expenses for a marine vessel.

Rail equipment: Railcar lease revenues and direct expenses were $1.0 million and
$0.1  million,  respectively,  for the first  quarter of 1998,  compared to $0.8
million and $0.1 million, respectively, during the same quarter of 1997. Railcar
contribution  increased  due to the purchase of 39 railcars in the first quarter
of 1998.

Trailers:  Trailer  revenues  and direct  expenses  were $0.8  million  and $0.1
million,  respectively,  for  the  first  quarter  of  1998  and  1997.  Trailer
contribution  remained  approximately the same due to the relative  stability of
the trailer fleet.

Mobile  offshore  drilling  unit (rig):  Revenues and direct  expenses were $0.1
million and $0,  respectively,  during the first  quarter of 1997.  This rig was
sold in the fourth  quarter of 1997 as part of the original  purchase  agreement
that gave the charterers the option to purchase the rig. The Company did not own
any rigs in the first quarter of 1998.

(B) Interest and Other Income

Interest and other  income  increased  $0.1  million due to higher  average cash
balances in the first quarter of 1998, compared to the same period in 1997.



<PAGE>



(C) Indirect Expenses Related to Owned Equipment Operations

Total  indirect  expenses of $4.0  million for the quarter  ended March 31, 1998
decreased from $4.3 million for the same period in 1997.  Significant  variances
are explained as follows:

     (1) A $0.6 million decrease in depreciation and amortization  expenses from
1997 levels reflects the Company's  double-declining balance depreciation method
and the effect of the sale of the mobile  offshore  drilling  unit at the end of
1997,  which was partially  offset by the purchase of equipment  during 1997 and
the first quarter of 1998.

     (2) A $0.1 million  decrease in  administrative  expenses  from 1997 levels
resulted from  decreased  administrative  costs  associated  with the short-term
trailer  rental  facilities in the first  quarter of 1998,  compared to the same
period in 1997.

     (3) A $0.4 million  increase in interest  expense was due to higher average
outstanding  borrowings in the first quarter of 1998 compared to the same period
in 1997.

(D)  Net Gain on Disposition of Owned Equipment

Net gain on  disposition  of  equipment  for the first  quarter of 1998  totaled
$28,000 which  resulted from the sale of a railcar and a trailer with a net book
value of $24,000,  for proceeds of $52,000. Net gain on disposition of equipment
for the first  quarter of 1997 totaled  $4,000 which  resulted  from the sale of
trailers with a net book value of $22,000, for proceeds of $26,000.

(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 of dollars).

<TABLE>
<CAPTION>

                                                                           For the Three Months
                                                                              Ended March 31,
                                                                          1998               1997
                                                                      -------------------------------

<S>                                                                     <C>               <C>     
Aircraft                                                                $  2,440          $    448
Mobile offshore drilling unit                                                143              (264 )
Marine vessel                                                               (126)              (47 )
       Equity in Net Income (Loss) of USPEs                             $  2,457          $    137
                                                                      ================================
</TABLE>

Aircraft:  As of March 31, 1998,  the Company  owned an interest in a trust that
owns two  commercial  aircraft,  an interest  in a trust that owns a  commercial
aircraft,  and an interest in two trusts that own three commercial aircraft, two
aircraft engines,  and a portfolio of aircraft  rotables.  As of March 31, 1997,
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.  During the first  quarter of 1998,  aircraft
revenues were $1.3 million and the gain from the sale of the Company's  interest
in a trust that owned four  commercial  aircraft  of $2.7  million was offset by
expenses of $1.6 million.  During the same period in 1997, revenues and expenses
were  $1.6  million  and  $1.2  million,  respectively.   Aircraft  contribution
increased  due to the  purchase of an interest in a trust that owns a commercial
aircraft in the first quarter of 1998,  which was partially offset by a decrease
in contribution due to the sale of the Company's  interest in a trust that owned
four commercial aircraft in the first quarter of 1998.

Mobile offshore drilling unit: As of March 31, 1998 and 1997, the Company had an
interest in an entity that owns a mobile  offshore  drilling unit (rig).  Mobile
offshore drilling unit revenues and expenses were $0.6 million and $0.4 million,
respectively,  for the first quarter of 1998,  compared to $0.3 million and $0.6
million,  respectively,  during  the  same  quarter  of 1997.  Rig  contribution
increased in the first  quarter of 1998  compared to the same period in 1997 due
to the increase of the  Company's  interest in this  investment  from 35% to 61%
during the first quarter of 1997.

Marine vessel:  As of March 31, 1998 and 1997, 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 first quarter of 1998, compared
to $0.3 million and $0.3 million, respectively,  during the same period in 1997.
Expenses  increased in the first  quarter of 1998 compared to the same period in
1997, due to repairs needed on this marine vessel.

(F)       Net Income (Loss)

As a result of the  foregoing,  the Company had a net income of $2.4 million for
the first  quarter of 1998,  compared to a net loss of $1.2  million  during the
same period of 1997.  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 first  quarter  of 1998 is not
necessarily  indicative of future  periods.  In the first  quarter of 1998,  the
Company   distributed   $2.5   million  to  Class  A   members,   or  $0.50  per
weighted-average Class A unit.

(II)      FINANCIAL CONDITION -- CAPITAL RESOURCES AND LIQUIDITY

For the three  months  ended March 31, 1998,  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 three months ended March 31, 1998, the Company purchased 39 railcars,
a marine  vessel (a deposit of $0.9  million  was lodged in December of 1997 for
the purchase of the marine  vessel),  and a hush kit for an aircraft for a total
of $11.3 million.

The Manager has entered into a short-term  joint $50.0 million credit  facility.
As of May 14, 1998, PLM Equipment  Growth Fund V had $1.6 million in outstanding
borrowings and American  Finance Group,  Inc., a wholly owned  subsidiary of PLM
International,  Inc.,  had $37.6  million in  outstanding  borrowings.  No other
eligible borrower had any outstanding borrowings.

(III) YEAR 2000 COMPLIANCE

The Manager is currently addressing the year 2000 computer software issue and is
creating a timetable  for  carrying  out any program  modifications  that may be
required.  The Manager does not anticipate that the cost of those  modifications
allocable to the Company will be material.

(IV)  ACCOUNTING PRONOUNCEMENTS

In  June  1997,  the  Financial   Accounting  Standards  Board  issued  two  new
statements:  SFAS No. 130,  "Reporting  Comprehensive  Income,"  which  requires
enterprises to report,  by major  component and in total,  all changes in equity
from  nonowner  sources;  and SFAS No. 131,  "Disclosures  about  Segments of an
Enterprise  and  Related  Information,"  which  establishes  annual and  interim
reporting  standards  for a public  company's  operating  segments  and  related
disclosures about its products, services, geographic areas, and major customers.
Both statements are effective for the  Partnership's  fiscal year ended December
31, 1998, with earlier  application  permitted.  The effect of adoption of these
statements  will  be  limited  to the  form  and  content  of the  Partnership's
disclosures and will not impact the  Partnership's  results of operations,  cash
flow, or financial position.


<PAGE>



(V)       OUTLOOK FOR THE FUTURE

Several  factors  may affect the  Company's  operating  performance  in 1998 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's operation of a diversified  equipment portfolio in a broad base of
markets is intended to reduce its exposure to volatility in individual equipment
sectors.

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

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 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.

(VI)      FORWARD-LOOKING INFORMATION

Except for the 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: May 14, 1998         By: /s/ Richard K Brock
                               ---------------------
                               Richard K Brock
                               Vice President and
                               Corporate Controller



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