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, 1996.

         [  ]     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

   Class                                   Outstanding at November 12, 1996

  Member A                                        4,999,581
  Member B                                              1


<PAGE>



               PROFESSIONAL LEASE MANAGEMENT INCOME FUND I, L.L.C.
                     (A Delaware Limited Liability Company)

                                 BALANCE SHEETS

                                     ASSETS
<TABLE>
<CAPTION>

                                                                               September 30,        December 31,
                                                                                    1996                1995
                                                                              -------------------------------------
   <S>                                                                        <C>                 <C>           
   Assets:

   Equipment held for operating leases                                        $   64,465,916      $   36,139,950
   Less accumulated depreciation                                                  (8,223,345 )        (2,869,535 )
                                                                              -------------------------------------
     Net equipment                                                                56,242,571          33,270,415

   Cash and cash equivalents                                                      14,491,509           6,803,946
   Restricted cash                                                                        --           6,315,548
   Investment in unconsolidated special purpose entities                          19,548,978          14,596,206
   Accounts receivable, net of allowance for doubtful accounts
     of $0 in 1996 and $7,835 in 1995                                              1,506,589             797,097
   Prepaid expenses                                                                  348,894             416,515
   Organization and offering costs, net of accumulated amortization
     of $111,632 in 1996 and $45,732 in 1995                                         330,505             389,289
                                                                              -------------------------------------

   Total assets                                                               $   92,469,046      $   62,589,016
                                                                              =====================================


                         LIABILITIES AND MEMBERS' EQUITY


   Liabilities:

   Accounts payable and accrued expenses                                      $      573,884      $      664,686
   Due to affiliates                                                                  59,148             387,197
   Prepaid deposits and reserves for repairs                                         595,300             135,409
                                                                              -------------------------------------
     Total liabilities                                                             1,228,332           1,187,292

   Subscriptions in escrow                                                                --           6,259,500

   Members' equity:

   Class A Members (4,999,581 Units at September 30, 1996 and
     2,831,388 Units at December 31, 1995)                                        91,240,714          54,836,617
   Class B Member                                                                         --             305,607
                                                                              -------------------------------------
     Total Members' Equity                                                        91,240,714          55,142,224
                                                                              -------------------------------------

   Total liabilities and members' equity                                      $   92,469,046      $   62,589,016
                                                                              =====================================

</TABLE>



                       See accompanying notes to financial
                                  statements.


<PAGE>



               PROFESSIONAL LEASE MANAGEMENT INCOME FUND I, L.L.C.
                     (A Delaware Limited Liability Company)

                             STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>

                                                        For the three months                 For the nine months
                                                         ended September 30,                 ended September 30,
                                                        1996             1995             1996              1995
                                                   ---------------------------------------------------------------------

   Revenues:

     <S>                                           <C>              <C>             <C>                <C>              
     Lease revenue                                 $   2,194,389    $  1,969,109    $   6,468,408      $   2,329,606    
     Interest and other income                           487,199          15,634        1,187,925             48,871
     Gain on sale of equipment                                --          24,593               --             24,593
                                                   ---------------------------------------------------------------------
         Total revenues                                2,681,588       2,009,336        7,656,333          2,403,070

   Expenses:

     Depreciation and amortization                     2,363,072       1,492,507        5,419,712          1,956,829
     Management fees to affiliate                        127,349         138,527          383,905            156,552
     Repairs and maintenance                             322,038         233,882          845,324            283,150
     Interest expense                                         --         125,757            8,902            227,467
     Insurance expense to affiliate                        2,237             393            6,449              5,393
     Insurance expense                                    85,665              --          218,014                 --
     Marine equipment operating expenses                 139,374         304,940          616,010            310,200
     General and administrative
       expenses to affiliates                              5,509          49,736          219,227             58,304
     Other general and administrative
        expenses                                         210,995         116,972          365,038            123,893
                                                   ---------------------------------------------------------------------
         Total expenses                                3,256,239       2,462,714        8,082,581          3,121,788
                                                   ---------------------------------------------------------------------

   Equity in net income of unconsolidated
     special purpose entities                            103,755              --           38,334                 --
                                                   ---------------------------------------------------------------------

   Net loss                                        $    (470,896 )  $   (453,378 )  $    (387,914 )    $    (718,718 ) 
                                                   =====================================================================

   Partners' share of net income (loss):

     Class A Members                               $    (886,696 )  $   (448,845 )  $    (995,111 )    $    (711,531 ) 
     Class B Member                                      415,800          (4,533 )        607,197             (7,187 )
                                                   ---------------------------------------------------------------------

           Total                                   $    (470,896 )  $   (453,378 )  $    (387,914 )    $    (718,718 ) 
                                                   =====================================================================

   Net loss per Class A Unit
     (4,999,581 and 1,810,068 Units,
      respectively, at September 30,
      1996 and 1995)                               $       (0.18 )  $      (0.25 )  $       (0.20 )    $       (0.39 )  
                                                   =====================================================================

   Cash distributions                              $   2,885,107    $    316,360    $   6,884,572      $     338,085   
                                                   =====================================================================

</TABLE>

                       See accompanying notes to financial
                                  statements.

<PAGE>



               PROFESSIONAL LEASE MANAGEMENT INCOME FUND I, L.L.C.
                     (A Delaware Limited Liability Company)

                     STATEMENT OF CHANGES IN MEMBERS' EQUITY
           For the period from December 31, 1994 to September 30, 1996
<TABLE>
<CAPTION>


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

   <S>                                                   <C>                <C>                   <C>               
   Members' equity at December 31, 1994                  $        100       $          --         $        100      

   Members' capital contributions                          56,627,660           9,536,106           66,163,766

   Syndication costs                                               --          (9,101,085 )         (9,101,085 )

   Net loss                                                  (611,811 )            (6,180 )           (617,991 )

   Distributions                                           (1,179,332 )          (123,234 )         (1,302,566 )
                                                        ---------------------------------------------------------

   Members' equity at December 31, 1995                    54,836,617             305,607           55,142,224

   Members' capital contributions                          43,363,860           5,068,825           48,432,685

   Syndication costs                                               --          (5,061,709 )         (5,061,709 )

   Net income (loss)                                         (995,111 )           607,197             (387,914 )

   Distributions                                           (5,964,652 )          (919,920 )         (6,884,572 )
                                                        ---------------------------------------------------------

   Members' equity at September 30, 1996                 $ 91,240,714       $          --         $ 91,240,714      
                                                        =========================================================

</TABLE>


                       See accompanying notes to financial
                                  statements.

<PAGE>





               PROFESSIONAL LEASE MANAGEMENT INCOME FUND I, L.L.C.
                     (A Delaware Limited Liability Company)

                             STATEMENT OF CASH FLOWS
                     For the nine months ended September 30,
<TABLE>
<CAPTION>

                                                                                 1996                  1995
                                                                           ----------------------------------------
    <S>                                                                    <C>                   <C>              
    Cash flows from operating activities:
      Net loss                                                             $     (387,914 )      $      (718,718 )
      Adjustments to reconcile net loss to net cash
        provided by operating activities:
      Depreciation and amortization                                             5,419,712              1,956,829
      Gain on sale of equipment                                                        --                (24,593 )
      Cash distribution from unconsolidated special purpose
        entities in excess of income                                            4,114,841                     --
      Changes in operating assets and liabilities:
        Accounts receivable, net                                                 (709,492 )             (740,848 )
        Prepaid expenses                                                           67,621               (145,000 )
        Accounts payable and accrued expenses                                    (536,602 )              176,989
        Due to affiliates                                                        (328,049 )              156,552
        Prepaid deposits and reserves for repairs                                 459,891                 22,171
                                                                           ----------------------------------------
    Net cash provided by operating activities                                   8,100,008                683,382
                                                                           ----------------------------------------

    Investing activities:
      Payments for purchase of equipment                                      (27,880,168 )          (37,219,347 )
      Equipment purchased and placed in unconsolidated
        special purpose entities                                               (9,067,613 )                   --
      Proceeds from disposition of equipment                                           --                 55,028
                                                                           ----------------------------------------
                                                                           ----------------------
    Net cash used in investing activities                                     (36,947,781 )          (37,164,319 )
                                                                           ----------------------------------------

    Financing activities:
      Proceeds from notes payable                                                      --              1,057,221
      Cash distributions to Class A Members                                    (5,964,652 )             (321,069 )
      Cash distributions to Class B Member                                       (919,920 )              (17,016 )
      Class A members capital contribution                                     43,363,860             36,201,260
      (Decrease) increase in subscriptions in escrow                           (6,259,500 )            6,864,660
      Decrease (increase) in restricted cash from subscriptions
        in escrow, net                                                          6,315,548             (6,875,956 )
                                                                           ----------------------------------------
    Cash provided by financing activities                                      36,535,336             36,909,100
                                                                           ----------------------------------------

    Cash and cash equivalents:
    Net increase in cash and cash equivalents                                   7,687,563                428,163

    Cash and cash equivalents at beginning of period                            6,803,946                    100
                                                                           ----------------------------------------
    Cash and cash equivalents at end of period                             $   14,491,509        $       428,263
                                                                           ========================================

    Supplemental information:
    Interest paid                                                          $        8,902        $       227,467
                                                                           ========================================

    Non cash items:
      Syndication and offering costs paid by Class B Member                $    5,061,709        $     6,886,933
                                                                           ========================================
</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, 1996


1.   Basis of Preparation

     Organization

     Professional  Lease  Management  Income Fund I, L.L.C.,  a Delaware Limited
     Liability  Company  (Fund I or the  Company) was formed on August 22, 1994.
     The  Company's  offering  became  effective on January 23, 1996. On May 13,
     1996, the Company ceased its offering after subscriptions were accepted for
     5,000,000 Class A Units ($100,000,000).

     At September  30,  1996,  the Class B Member had capital  contributions  of
     $14,604,932 representing the cash payments for organization and syndication
     costs.  Syndication  costs of  $14,162,794  are  recorded as a reduction to
     Class B Member's equity.

2.   Opinion of Management

     In the opinion of the management of PLM Financial Services, Inc. (FSI), the
     Manager,  the  accompanying  unaudited  financial  statements  contain  all
     adjustments  necessary,  consisting primarily of normal recurring accruals,
     to present  fairly the  financial  position  of Fund I or the Company as of
     September 30, 1996,  the  statements  of operations  for the three and nine
     months ended  September  30, 1996 and 1995,  the  statements  of changes in
     partners'  capital for the period from  December 31, 1994 to September  30,
     1996, and the  statements of cash flow for the nine months ended  September
     30, 1996 and 1995. 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 Partnership's  Annual Report on Form 10-K-A for the year ended December
     31, 1995, on file at the Securities and Exchange Commission.

3.   Investment in Unconsolidated Special Purpose Entities

     During the nine months ended  September 30, 1996,  the Company  purchased a
     20% beneficial  interest in a trust which owns five Boeing 737-200 aircraft
     for $5.6 million, and a 50% interest in a marine vessel for $3.4 million (a
     deposit of $0.4  million  was lodged in December  of 1995).  The  remaining
     interests are owned by affiliated partnerships.

     The Company  accounts for  investments in  unconsolidated  special  purpose
entities using the equity method.



<PAGE>


               PROFESSIONAL LEASE MANAGEMENT INCOME FUND I, L.L.C.
                     (A Delaware Limited Liability Company)
                          NOTES TO FINANCIAL STATEMENTS
                               September 30, 1996

3.   Investment in Unconsolidated Special Purpose Entities (continued)

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

                                                                            September 30,             December 31,
           % Ownership    Equipment                                              1996                     1995
        ---------------------------------------------------------------------------------------------------------------

             <S>          <C>                                              <C>                      <C>            
             33.33%       Two trusts consisting of:
                            Three 737-200A Stage II
                               commercial aircraft
                            Two aircraft engines
                            Portfolio of rotable components                $     8,428,387          $    10,109,664
             14.28%       Trust consisting of seven 737-200A
                            Stage II commercial aircraft (see
                            note below)                                                 --                4,108,555
             16.67%       Trust consisting of six 737-200A
                            Stage II commercial aircraft (see
                            note below)                                          3,149,497                       --
               25%        Trust consisting of four 737-200A
                            Stage II commercial aircraft (see
                            note below)                                          4,613,368                       --
               50%        Cargo marine vessel                                    3,357,726                  377,987
                                                                         ----------------------------------------------
                          Total investments                                $    19,548,978          $    14,596,206
                                                                         ==============================================
</TABLE>

     The Company has beneficial  interest in two unconsolidated  special purpose
     entities  that own multiple  aircraft (the  Trusts).  These Trusts  contain
     provisions,  under certain circumstances,  for allocating specific aircraft
     to the beneficial owners.  During September 1996, PLM Equipment Growth Fund
     V, an affiliated  partnership  which also has a beneficial  interest in the
     Trust,  renegotiated  its senior loan agreement and was required,  for loan
     collateral  purposes,  to withdraw the aircraft  designated  to it from the
     Trust. The result was to restate the percentage  ownership of the remaining
     beneficial  owners of the Trusts beginning  September 30, 1996. This change
     has no effect on the income or loss  recognized  in the nine  months  ended
     September 30, 1996.

4.   Reclassifications

     Certain amounts in the 1995 financial  statements have been reclassified to
     conform with the 1996 presentation.

5.   Cash Distributions

     Cash  distributions  are  recorded  when paid and  totaled  $2,885,107  and
     $316,360  for  the  three  months  ended   September  30,  1996  and  1995,
     respectively,  and  $6,884,572  and  $338,085  for the  nine  months  ended
     September 30, 1996 and 1995,  respectively.  Cash  distributions to Class A
     Unitholders in excess of net income are considered to represent a return of
     capital  on  a  generally   accepted   accounting   principle  basis.  Cash
     distributions  to Class A Unitholders  of  $5,964,652  and $321,069 for the
     nine months ended  September 30, 1996 and 1995,  were deemed to be a return
     of capital.


               PROFESSIONAL LEASE MANAGEMENT INCOME FUND I, L.L.C.
                     (A Delaware Limited Liability Company)
                          NOTES TO FINANCIAL STATEMENTS
                               September 30, 1996

5.   Cash Distributions (continued)

     Cash  distributions  related to the third quarter  results of $621,124 were
     paid or are payable  during  October,  1996, to the Class A Unitholders  of
     record as of September 30, 1996,  for  unitholders  who elected for monthly
     distributions.  Quarterly cash  distributions of  approximately  $1,087,027
     were  declared on October 30, 1996 and are to be paid on November  15, 1996
     to Class A and Class B Unitholders.

6.   Restricted Cash

     At December 31, 1995, restricted cash represented subscription deposits for
     Units in escrow  which were  considered  restricted  cash until the members
     were admitted, usually the first day of the following month, upon which the
     funds were no longer considered restricted cash.

7.   Equipment

     Owned equipment held for operating leases is stated at cost. The components
     of owned equipment are as follows:
<TABLE>
<CAPTION>

                                                September 30,         December 31,
                                                     1996                 1995
                                               ---------------------------------------

   <S>                                         <C>                  <C>           
   Rail equipment                              $   13,161,235       $   13,112,390
   Aircraft                                        24,605,000            4,000,000
   Marine vessel                                   12,256,531           12,256,532
   Trailers                                        14,443,150            6,771,028
                                               ---------------------------------------
                                                   64,465,916           36,139,950
   Less accumulated depreciation                   (8,223,345 )         (2,869,535 )
                                               ---------------------------------------

    Net equipment                              $   56,242,571       $   33,270,415
                                               =======================================
</TABLE>

     Revenues are earned by placing the equipment under  operating  leases which
     are generally  billed monthly or quarterly.  The Company's marine vessel is
     leased to an  operator of  utilization-type  leasing  pools  which  include
     equipment  owned by  unaffiliated  entities.  In such  instances,  revenues
     received  by the  Company  consist of a  specified  percentage  of revenues
     generated by leasing the equipment to sublessees,  after deducting  certain
     direct operating  expenses of the pooled equipment.  Rents for railcars are
     based on mileage  traveled or a fixed rate;  rents for all other  equipment
     are based on fixed rates.

     During the nine months ended September 30, 1996, the Company purchased four
     737-200A Stage II commercial aircraft, 50 new refrigerated trailers and one
     railcar for $28.3 million.

     As of September 30, 1996, all equipment in the Company portfolio was either
     on  lease  or  operating  in  PLM-affiliated   short-term   trailer  rental
     facilities  except for three railcars with a carrying value of $84,000.  At
     December 31, 1995,  all  equipment in the Company  portfolio  was either on
     lease or operating in PLM-affiliate short-term trailer rental facilities.




<PAGE>



               PROFESSIONAL LEASE MANAGEMENT INCOME FUND I, L.L.C.
                     (A Delaware Limited Liability Company)
                          NOTES TO FINANCIAL STATEMENTS
                               September 30, 1996

8.   Other Transactions with Affiliates

     In  certain  circumstances,  the  Manager  will be  entitled  to a  monthly
     re-lease fee for re-leasing  services  following  expiration of the initial
     lease,  charter or other contract for certain Equipment equal to the lesser
     of (a) the fees which  would be charged by an  independent  third party for
     comparable  services  for  comparable  equipment  or (b) 2% of Gross  Lease
     Revenues  derived from such re-lease.  No re-lease fee,  however,  shall be
     payable if such fee would cause the combination of the equipment management
     fee paid to IMI or the re-lease fees to exceed 7% Gross Lease Revenues.

9.   Debt

     The Manager  has entered  into a joint $35  million  credit  facility  (the
     "Committed Bridge Facility") on behalf of the Company, PLM Equipment Growth
     Fund III, PLM Equipment  Growth Fund IV, PLM  Equipment  Growth Fund V, PLM
     Equipment  Growth Fund VI, and PLM Equipment  Growth & Income Fund VII, all
     affiliated investment programs, TEC Acquisub,  Inc. ("TECAI"),  an indirect
     wholly-owned  subsidiary of the Manager and American Finance Group ("AFG"),
     a subsidiary  of PLM  International,  which may be used to provide  interim
     financing  of up to (i)  70%  of the  aggregate  book  value  or 50% of the
     aggregate net fair market value of eligible equipment owned by an affiliate
     plus (ii) 50% of  unrestricted  cash held by the  borrower.  The  Committed
     Bridge Facility became  available on December 20, 1993, and was amended and
     restated  in June 1996 to  expire on May 23,  1997.  The  Committed  Bridge
     Facility also provides for a $5 million  Letter of Credit  Facility for the
     eligible borrowers.  Outstanding  borrowings by the Company,  TECAI, AFG or
     PLM Equipment  Growth Funds III through VII reduce the amount  available to
     each other under the Committed Bridge Facility.  Individual  borrowings may
     be  outstanding  for no more than 179 days,  with all advances due no later
     than May 23, 1997. The Committed Bridge Facility prohibits the Company from
     incurring any additional indebtedness. Interest accrues at either the prime
     rate or adjusted LIBOR plus 2.5% at the borrowers  option and is set at the
     time of an advance of funds.  To the extent the  Company is unable to raise
     sufficient  capital  through the sale of  interests to repay its portion of
     the Committed  Bridge  Facility,  the Company will continue to be obligated
     under the Committed  Bridge Facility until the Company  generates  proceeds
     from  operations  or  the  sale  of  Equipment  sufficient  for  repayment.
     Borrowings by the Company are  guaranteed  by the Manager.  As of September
     30,  1996,  AFG had  $27.8  million  in  outstanding  borrowings  under the
     Committed Bridge Facility.
     None of the other borrowers had any outstanding borrowings.

     On October 31,  1996,  the General  Partner  amended  this  agreement  (for
     details refer to "Liquidity and Capital Resources").


<PAGE>


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

(I)  RESULTS OF OPERATIONS - Quarter Over Quarter Summary

(A)  Owned equipment operations

Professional  Lease Management Income Fund I, L.L.C.  (the "Company")  commenced
significant  operations in May 1995. As of May 13, 1996,  the Company  completed
its  equity-raising  stage.  As of September 30, 1996, the Company had purchased
and placed into service $64.5 million of equipment, compared to $37.2 million at
September 30, 1995. All of these  purchases were completed with a combination of
unrestricted cash,  interim  financing,  and an advance from an affiliate of the
Manager. The nine day advance from the Manager was repaid (including interest at
commercial loan rates) in July of 1995.  Revenues of $7.7 million were generated
during the nine months ended September 30, 1996, compared to $2.3 million in the
same period in 1995. The variance is due to the Company's  equipment  purchasing
activities  throughout 1996.  Expenses of $8.1 million for the nine months ended
September  30, 1996  consisted  primarily  of  depreciation  expense,  using the
double-declining   balance  method,  and  normal  operating  costs  incurred  as
equipment is being purchased and placed in service. Expenses for the same period
in 1995 totaled $3.0 million,  and also  consisted of  depreciation  expense and
normal  operating  costs  incurred  when  equipment is  purchased  and placed in
service.

(B) Equity in net loss of unconsolidated special purpose entities represents net
loss generated from the operation of  jointly-owned  assets  accounted for under
the equity method (see Note 3 to the financial statements).

As of September  30,  1996,  the Company had  purchased  and placed into service
$23.7  million of  jointly-owned  assets  which  consists of a 50% interest in a
marine  vessel,  a 16.67%  beneficial  interest in a trust which owns six Boeing
737-200A aircraft,  a 25% beneficial  interest in a trust which owns four Boeing
737-200A aircraft,  and a 33.33% beneficial  interest in two trusts (the Trusts)
which own three Boeing  737-200A  aircraft,  two spare Pratt & Whitney  JT8D-17A
engines and a rotables  package.  Revenues of $4.8 million were generated in the
nine months ended September 30, 1996 compared to $0.1 million in the same period
in 1995. The variance is due to the Company's  equipment  purchasing  activities
throughout  1996.  Expenses of $4.8 million for the nine months ended  September
30,  1996,  compared  to $0.1  million  in the same  period  in 1995,  consisted
primarily of depreciation expense for both periods.

During  September of 1996,  an affiliated  Partnership  converted its portion of
partial  beneficial  interests in the trust of five commercial  aircraft and the
trust of seven commercial aircraft into the ownership of two commercial aircraft
by the PLM  Equipment  Growth Fund V,  resulting  in a change in the  beneficial
interests  for the  Company.  This  change  has no effect on the  income or loss
recognized in the nine months ended September 30, 1996.

The Company's  performance  during the nine months ended  September 30, 1996, is
not necessarily indicative of future periods.

All  equipment  purchased  by the Company was on lease at  September  30,  1996,
except for three railcars.

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

The Manager is currently  purchasing the Company's initial  equipment  portfolio
with  capital  raised from its equity  offering  and interim  financing.  In the
future,  permanent  financing  may be  secured  by the  Manager  to be used  for
additional equipment purchases. The Company will use operating cash flow to meet
its operating  obligations,  make cash distributions to investors,  and reinvest
any available surplus cash to increase the Company's equipment portfolio.

The Manager has entered into a joint $50 million credit facility (the "Committed
Bridge  Facility") on behalf of the Company,  PLM Equipment  Growth Fund IV, PLM
Equipment  Growth Fund V, PLM Equipment Growth Fund VI, and PLM Equipment Growth
& Income Fund VII,  all  affiliated  investment  programs,  TEC  Acquisub,  Inc.
("TECAI"),  an indirect  wholly-owned  subsidiary  of the  Manager and  American
Finance Group ("AFG"), a subsidiary of PLM  International,  which may be used to
provide interim financing of up to (i) 70% of the aggregate book value or 50% of
the aggregate net fair market value of eligible  equipment owned by an affiliate
plus (ii) 50% of unrestricted  cash held by the borrower.  The Committed  Bridge
Facility became  available on December 20, 1993, and was amended and restated in
October 1996 to expire on October 31, 1997 and increase the available borrowings
for  AFG  to  $50  million.  The  Company,  TECAI  and  the  other  partnerships
collectively may borrow up to $35 million of the Committed Bridge Facility.  The
Committed  Bridge  Facility  also  provides  for a $5  million  Letter of Credit
Facility  for the eligible  borrowers.  Outstanding  borrowings  by the Company,
TECAI,  AFG or PLM  Equipment  Growth  Funds IV  through  VII  reduce the amount
available  to  each  other  under  the  Committed  Bridge  Facility.  Individual
borrowings may be outstanding  for no more than 179 days,  with all advances due
no later than October 31, 1997.  The  Committed  Bridge  Facility  prohibits the
Company from incurring any additional  indebtedness.  Interest accrues at either
the prime rate or adjusted LIBOR at 2.5% at the borrower's  option and is set at
the time of  advance  of funds.  To the  extent  the  Company is unable to raise
sufficient  capital  through the sale of  interests  to repay its portion of the
Committed Bridge  Facility,  the Company will continue to be obligated under the
Committed Bridge Facility until the Company  generates  proceeds from operations
or the sale of Equipment sufficient for repayment. Borrowings by the Company are
guaranteed  by the Manager.  As of November 11, 1996,  AFG had $39.0  million in
outstanding  borrowings  and  neither  the  Company,  TECAI nor any of the other
programs had any outstanding borrowings.

 (III)   TRENDS

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.  Throughout 1995 and the first nine months of 1996, market  conditions,
supply and demand  equilibrium,  and other factors varied in several markets. In
the refrigerated over-the-road trailer markets, oversupply conditions,  industry
consolidations,  and other factors  resulted in falling rates and lower returns.
In the dry  over-the-road  trailer  markets,  strong demand and a backlog of new
equipment  deliveries  produced high utilization and returns.  The marine vessel
and rail  markets  could be generally  categorized  by  increasing  rates as the
demand for equipment is increasing faster than new additions net of retirements.
Finally,  demand for  narrowbody  Stage II aircraft,  such as those owned by the
Company,  has increased as expected savings from newer narrowbody  aircraft have
not  materialized  and deliveries of the newer aircraft have slowed down.  These
trends are expected to continue for the near term. These different  markets have
had individual  effects on the performance of Company  equipment - in some cases
resulting in declining performance, and in others, improved performance.

     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,
governmental or other regulations,  and others. 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  continuously  monitors  both the  equipment
markets and the  performance of the Company's  equipment in these  markets.  The
Manager may make an  evaluation  to reduce the  Company's  exposure to equipment
markets in which it  determines  that it cannot  operate  equipment  and 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,  if any,  after  payment of
expenses,  and cash  distributions  to acquire  additional  equipment during the
first six years of Company  operations.  The Manager believes these acquisitions
may cause the  Company to  generate  additional  earnings  and cash flow for the
Company.





<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 12, 1996
                                         By:       /s/ David J. Davis
                                                   ------------------------- 
                                                   David J. Davis
                                                   Vice President and
                                                   Corporate Controller