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


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


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

   Equipment held for operating leases, at cost                               $   89,365          $   70,333
   Less accumulated depreciation                                                 (19,733 )           (12,189 )
       Net equipment                                                              69,632              58,144

   Cash and cash equivalents                                                       5,704               1,692
   Restricted cash                                                                     -                 223
   Investment in unconsolidated special-purpose entities                          26,686              25,349
   Accounts receivable, net of allowance for doubtful accounts
         of $371 in 1997 and $36 in 1996                                           1,743               1,534
   Prepaid expenses                                                                  345                 505
   Deferred charges, net of accumulated amortization
         of $185 in 1997 and $134 in 1996                                            434                 308

   Total assets                                                               $  104,544          $   87,755

   Liabilities and members' equity:

   Liabilities:
   Accounts payable and accrued expenses                                      $      293          $      430
   Due to affiliates                                                                 262                 163
   Lessee deposits and reserves for repairs                                        1,085                 873
   Notes payable                                                                  25,000                   -
       Total liabilities                                                          26,640               1,466

   Members' equity:
   Class A members (4,999,581 units as of June 30, 1997
         and December 31, 1996)                                                   77,716              86,024
   Class B Member                                                                    188                 265
       Total members' equity                                                      77,904              86,289

   Total liabilities and members' equity                                      $  104,544          $   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 Six Months
                                                             Ended June 30,                   Ended June 30,
                                                          1997           1996               1997           1996
   <S>                                                   <C>            <C>              <C>            <C>     
   Revenues:

   Lease revenue                                         $ 4,108        $ 2,117          $  7,625       $  4,274
   Interest and other income                                 167            445               215            700
   Net gain on disposition of equipment                        -              -                 4              -
       Total revenues                                      4,275          2,562             7,844          4,974

   Expenses:

   Depreciation and amortization                           4,025          1,551             7,602          3,057
   Marine equipment operating expenses                       233            219               475            477
   Repairs and maintenance                                   290            243               559            523
   Interest expense                                          459              -               505              9
   Insurance expense to affiliate                              2              2                 9              4
   Other insurance expense                                    91             44               144            132
   Management fees to affiliate                              199            143               432            256
   General and administrative expenses
         to affiliates                                       155            162               508            214
   Other general and administrative expenses                 206             73               328            154
       Total expenses                                      5,660          2,437            10,562          4,826

   Equity in net income (loss) of unconsolidated
         special-purpose entities                             78            (18 )             215            (65 )

   Net (loss) income                                     $(1,307 )      $   107          $ (2,503 )     $     83

   Members' share of net (loss) income:

   Class A Members                                       $(1,709 )      $   (84 )        $ (3,308 )     $   (108 )
   Class B Member                                            402            191               805            191

   Total                                                 $(1,307 )      $   107          $ (2,503 )     $     83

   Net loss per weighted-average
         Class A unit (4,999,581 units as of
         June 30, 1997 and 1996)                         $ (0.34 )      $ (0.02 )        $  (0.66 )     $  (0.02 )

   Cash distributions                                    $ 2,941        $ 2,376          $  5,882       $  3,999
   Cash distributions per weighted-average
         Class A units                                   $  0.50            N/A          $   1.00            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 June 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 (loss) income                                           (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 (loss) income                                           (3,308 )               805               (2,503 )

   Distributions                                               (5,000 )              (882 )             (5,882 )

   Members' equity as of June 30, 1997                     $   77,716           $     188           $   77,904

</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 Six Months
                                                                                Ended June 30,
                                                                          1997                 1996
      
      <S>                                                           <C>                  <C>            
      Operating activities
      Net (loss) income                                             $        (2,503 )    $            83
      Adjustments to reconcile net (loss) income to net cash
            provided by operating activities:
        Depreciation and amortization                                         7,602                3,057
        Gain on disposition of equipment                                         (4 )                  -
        Equity in net (income) loss of unconsolidated
              special-purpose entities                                         (215 )                 65
        Changes in operating assets and liabilities:
          Restricted cash                                                       223                    -
          Accounts receivable, net                                             (209 )               (398 )
          Prepaid expenses                                                      160                   22
          Accounts payable and accrued expenses                                (137 )               (479 )
          Due to affiliates                                                      99                 (328 )
          Lessee deposits and reserves for repairs                              212                   36
              Net cash provided by operating activities                       5,228                2,058

      Investing activities:
      Payments for purchase of equipment                                    (19,062 )             (1,984 )
      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                                                          3,978                3,609
          Net cash used in investing activities                             (20,157 )             (7,443 )

      Financing activities:
      Proceeds from notes payable                                            25,000                    -
      Cash distributions to Class A members                                  (5,000 )             (3,495 )
      Cash distributions to Class B Member                                     (882 )               (504 )
      Payments of 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                          18,941               39,421

      Net increase in cash and cash equivalents                               4,012               34,036
      Cash and cash equivalents at beginning of period                        1,692                6,804
      Cash and cash equivalents at end of period                    $         5,704      $        40,840

      Supplemental information:
      Cash items:
        Interest paid                                               $           505      $             9
      Noncash items:
        Syndication and offering costs paid by Class B Member       $             -      $         5,053
</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
                                 June 30, 1997


1.   Opinion of Management

     In the opinion of the  management of PLM Financial  Services,  Inc. (FSI or
     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 June 30,  1997 and
     December 31,  1996,  the  statements  of  operations  for the three and six
     months ended June 30, 1997 and 1996,  the statements of changes in members'
     equity for the period  from  December  31, 1995 to June 30,  1997,  and the
     statements  of cash flow for the six months  ended June 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  Class B  members  and 99% to the  Class A
     members.  During the six months ended June 30, 1997, the Manager received a
     special allocation of income of $838,000.

     Cash distributions are recorded when paid and totaled $2.9 million and $2.4
     million for the three  months  ended June 30, 1997 and 1996,  respectively,
     and $5.9  million and $4.0  million for the six months  ended June 30, 1997
     and 1996. Cash distributions to Class A unitholders in excess of net income
     are  considered  to  represent  a return of  capital  using  the  generally
     accepted  accounting   principle  basis.  Cash  distributions  to  Class  A
     unitholders  of $5.0 million and $3.5 million for the six months ended June
     30,  1997 and 1996,  respectively,  were  deemed to be a return of capital.
     Cash distributions  related to the results from the second quarter of 1997,
     of $1.3  million,  were paid or are payable  during  July and August  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
                                 June 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>

                                                                               June 30,               December 31
          % Ownership    Equipment                                              1997                     1996


           
               <S>                                                         <C>                      <C>            
               61%        Mobile offshore drilling unit                    $        10,460          $             -
               33%        Two trusts consisting of:
                            Three 737-200A Stage II
                               commercial aircraft
                            Two aircraft engines
                            Portfolio of rotable components                          6,934                    8,767
               25%        Trust consisting of four 737-200A
                            Stage II commercial aircraft                             3,744                    3,981
               50%        Cargo marine vessel                                        2,979                    3,011
               17%        Trust consisting of six 737-200A
                            Stage II commercial aircraft                             2,569                    2,684
               35%        Mobile offshore drilling unit                                  -                    6,906
                            Total investments                              $        26,686          $        25,349
</TABLE>

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

5.   Transactions with Manager and Affiliates

    Company  management fees of $0.2 million and $0.2 million were payable as of
    June  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 June 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 Six Months
                                                          Ended June 30,                    Ended June 30,
                                                          1997         1996              1997            1996

     <S>                                             <C>            <C>               <C>             <C>      
     Management fees                                 $      99      $      61         $     184       $     122
     Data processing and administrative
        expenses                                            25             19                44              41
     Insurance expense                                       1              -                 5               -
</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.


<PAGE>



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

6.   Equipment

     Components of equipment are as follows (in thousands):
<TABLE>
<CAPTION>

                                                  June 30,             December 31,
                                                    1997                   1996

   <S>                                          <C>                    <C>       
   Aircraft                                     $   24,605             $   24,605
   Marine vessel                                    20,757                 12,257
   Rail equipment                                   18,937                 18,876
   Trailers                                         14,566                 14,595
   Mobile offshore drilling unit                    10,500                     --
                                                    89,365                 70,333
   Less accumulated depreciation                   (19,733 )              (12,189 )

     Net equipment                              $   69,632             $   58,144
</TABLE>

     During the six months ended June 30, 1997,  the Company  purchased a mobile
     offshore  drilling unit and a marine vessel for $19.1  million.  During the
     six months ended June 30, 1996, the Company  purchased 50 new  refrigerated
     trailers and 1 box car for $2.0 million.

     During the six months ended June 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 six months of 1996.

     As of June 30,  1997,  all  equipment  was either on lease or  operating in
     PLM-affiliated  short-term  trailer  rental  facilities,   except  for  105
     railcars with a carrying  value of $5.1  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.

7.   Debt

     During the first six months of 1997,  the Company  completed two draw-downs
     totaling $25.0 million by issuing two notes related to the long-term senior
     note  agreement  entered into in December 1996. A total of $24.1 million of
     the proceeds was used to fund additional equipment  acquisitions during the
     six months ended June 30, 1997.  This included $5.1 million in  investments
     in  equipment  placed into USPEs.  The Company  anticipates  utilizing  the
     remaining debt proceeds to purchase  equipment  during the third quarter of
     1997.  During the six months ended June 30, 1997, a $0.2 million  placement
     fee was paid to the lender in connection with this loan agreement.

     As of June 30,  1997, the Company did not have any borrowings with the 
     short-term  $50.0 million joint credit facility, and  American  Finance  
     Group,  Inc.,  a  wholly-owned  subsidiary  of  PLM International,  Inc., 
     had $7.1 million in outstanding  borrowings under the short-term  committed
     bridge  facility.  None of the other programs 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>


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 
June 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 second  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 March 31,
                                                                            1997             1996

<S>                                                                      <C>               <C>
   Aircraft                                                              $  1,248          $   162
   Trailers                                                                   778              425
   Rail equipment                                                             698              621
   Mobile offshore drilling unit                                              483               --
   Marine vessel                                                              304              406
</TABLE>

Aircraft:  Aircraft  lease  revenues and direct  expenses  were $1.2 million and
$12,000,  respectively, for the second quarter of 1997, compared to $0.2 million
and $4,000, respectively, during the same quarter of 1996. Aircraft contribution
increased due to the purchase of four 737-200A  Stage II commercial  aircraft at
the end of the  third  quarter  of 1996.  These  aircraft  were on lease for the
entire second quarter of 1997.

Trailers:  Trailer  revenues  and direct  expenses  were $0.9  million  and $0.1
million,  respectively, for the second quarter of 1997, compared to $0.4 million
and $17,000, respectively, during the same quarter of 1996. Trailer contribution
increased  due to the purchase of additional  trailers  throughout  1996.  These
trailers  were  operating in the  short-term  rental  facilities  for the entire
second quarter of 1997.

Rail equipment: Railcar lease revenues and direct expenses were $0.8 million and
$0.1 million,  respectively,  for the second  quarter of 1997,  compared to $0.8
million and $0.2 million,  respectively,  during the same quarter of 1996. Lease
revenue remained  relatively  stable in the second quarter of 1997,  compared to
the same period in 1996.  Expenses decreased due to lower running repairs in the
second  quarter  of 1997,  compared  to the same  period in 1996.  Although  the
Company  purchased  additional  railcars  in the last two months of 1996,  these
railcars were off lease  throughout 1997 and did not impact the contribution for
the second quarter of 1997.

Mobile  offshore  drilling  unit (rig):  Revenues and direct  expenses were $0.5
million and $18,000,  respectively,  in the second quarter of 1997. This rig was
purchased  in the first  quarter of 1997 and earned a full quarter of revenue in
the second quarter of 1997.

Marine  vessel:  Marine  vessel  lease  revenues and direct  expenses  were $0.6
million and $0.3 million, respectively, for the second quarter of 1997, compared
to $0.7 million and $0.3 million, respectively, during the same quarter of 1996.
Marine vessel  contribution  decreased due to lower  re-lease rates for a marine
vessel as a result of a softer bulk carrier  vessel  market;  this  decrease was
offset  slightly by an increase in lease revenue due to the purchase of a marine
vessel at the end of the second quarter of 1997.

(B)   Interest and Other Income

Interest and other  income  decreased  $0.3  million due to lower cash  balances
available  for  investment in the second  quarter of 1997,  compared to the same
period in 1996.



<PAGE>


(C)   Indirect Expenses Related to Owned Equipment Operations

Total  indirect  expenses of $5.0 million for the quarter ended June 30, 1997  
increased  from $1.9 million for the same period in 1996.  The variances are 
explained as follows:

     (1) A $2.5 million increase in depreciation and amortization expenses from
1996 levels reflects the purchase of assets during 1997 and 1996.

     (2) A $0.4 million  increase in interest expense was due to the  Company's
incurring of debt in 1997 for the purchase of equipment.

     (3) A $0.1 million  increase in  administrative  expenses  from 1996 levels
resulted from  increased  administrative  costs  associated  with the short-term
rental facilities due to additional  trailers operating in the facilities in the
second 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 additional
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 June 30,
                                                                            1997             1996

   <S>                                                                   <C>              <C>
   Aircraft                                                              $    445         $    151
   Marine vessel                                                             (158 )           (169 )
   Mobile offshore drilling unit                                             (209 )              -
</TABLE>

Aircraft:  As of June 30,  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. As of June
30, 1996,  the Company  owned an interest in a trust that owns seven  commercial
aircraft,  an interest in another trust that owns five 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 $1.5  million and $1.0  million,  respectively,  for the second  quarter of
1997, compared to $1.6 million and $1.4 million,  respectively,  during the same
quarter  in  1996.  Expenses  decreased  due to the use of the  double-declining
balance  depreciation method, which results in greater depreciation in the early
years an asset is owned.

Marine  vessel:  As of June 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 $0.5 million, respectively, for the second quarter of 1996 and 1997.

Mobile offshore  drilling unit: As of June 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 second quarter of 1997,
revenues of $0.6 million were offset by depreciation and administrative expenses
of $0.8 million.


<PAGE>



(E)   Net (Loss) Income

As a result of the  foregoing,  the Company's had a net loss of $1.3 million for
the second  quarter of 1997,  compared to net income of $0.1 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 second  quarter of 1997 is not
necessarily  indicative of future  periods.  In the second  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 Six Months Ended 
June 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 six months ended June 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 Six Months
                                                                               Ended June 30,
                                                                            1997             1996

   <S>                                                                   <C>               <C>
   Aircraft                                                              $  2,500          $   471
   Trailers                                                                 1,492              704
   Rail equipment                                                           1,397            1,291
   Mobile offshore drilling unit                                              554               --
   Marine vessel                                                              518              685
</TABLE>

Aircraft:  Aircraft  lease  revenues and direct  expenses  were $2.5 million and
$19,000,  respectively,  during the six months ended June 30, 1997,  compared to
$0.5 million and $9,000, respectively,  during the same period of 1996. Aircraft
contribution  increased due to the purchase of four 737-200A Stage II commercial
aircraft at the end of the third quarter of 1996.  These  aircraft were on lease
for the entire six months of 1997.

Trailers:  Trailer  revenues  and direct  expenses  were $1.7  million  and $0.2
million,  respectively, for the six months of 1997, compared to $0.7 million and
$46,000,  respectively,  during the same  period in 1996.  Trailer  contribution
increased  due to the purchase of additional  trailers  throughout  1996.  These
trailers were operating in the short-term  rental  facilities for the entire six
months of 1997.

Rail equipment: Railcar lease revenues and direct expenses were $1.6 million and
$0.2 million,  respectively, for the six months ended June 30, 1997, compared to
$1.6  million and $0.3  million,  respectively,  during the same period of 1996.
Lease revenues remained relatively stable in the six months of 1997, compared to
the same period of 1996.  Expenses decreased due to lower running repairs in the
six months  ended June 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 six  months of 1997 and did not impact the
contribution for the first six months of 1997.

Mobile  offshore  drilling  unit (rig):  Revenues  were $0.6  million in the six
months ended June 30,  1997.  This rig was  purchased  near the end of the first
quarter of 1997.

Marine  vessel:  Marine  vessel  lease  revenues and direct  expenses  were $1.2
million and $0.7 million,  respectively, for the six months ended June 30, 1997,
compared to $1.5 million and $0.8 million, respectively,  during the same period
of 1996. Marine vessel  contribution  decreased due to lower re-lease rates as a
result of a softer bulk carrier vessel market.  The decrease in direct  expenses
were due to the lower marine operating expenses in the six months ended June 30,
1997, compared to the same period in 1996.

(B)   Interest and Other Income

Interest and other  income  decreased  $0.5  million due to lower cash  balances
available for investment in the six months ended June 30, 1997,  compared to the
same period of 1996.

(C)   Indirect Expenses Related to Owned Equipment Operations

Total  indirect  expenses of $9.4  million for the six months ended June 30, 
1997  increased  from $3.7 million for the same period of 1996.  The variances
are explained as follows:

     (1) A $4.5 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  administrative  expenses  from 1996 levels
resulted from  increased  administrative  costs  associated  with the short-term
rental facilities due to additional  trailers operating in the facilities in the
first six months of 1997, compared to the same period of 1996.

     (3) A $0.5 million  increase in interest  expense was due to the  Company's
incurring of debt in 1997 to purchase equipment.

     (4) A $0.2 million  increase in management  fees to affiliate  reflects the
higher levels of lease revenues in 1997, compared to 1996, due to the additional
purchase of equipment throughout 1996 and the beginning of 1997.

(D)   Net Gain on Disposition of Owned Equipment

Net gain on the  disposition of equipment for the six months ended June 30, 1997
totaled $4,000,  and resulted from the sale of trailers with a net book value of
$22,000, for proceeds of $26,000.  There were no sales or disposals of equipment
in the first six 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 Six Months
                                                                               Ended June 30,
                                                                            1997             1996

   <S>                                                                   <C>              <C>     
   Aircraft                                                              $    892         $    120
   Marine vessel                                                             (204 )           (185 )
   Mobile offshore drilling unit                                             (473 )              -
</TABLE>

Aircraft:  As of June 30,  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. As of June
30, 1996,  the Company  owned an interest in a trust that owns seven  commercial
aircraft,  an interest in another trust that owns five 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 $3.0 million and $2.1 million,  respectively, for the six months ended June
30, 1997,  compared to $2.7 million and $2.6 million,  respectively,  during the
same period in 1996.  The primary reason  revenues  increased 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 six
months of 1997,  compared to only a quarter in 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 early years an asset is owned.

Marine  vessel:  As of June 30, 1997 and 1996, the Company had an interest in an
entity that owns a marine vessel.  Marine vessel revenues and expenses were $0.6
million and $0.8 million,  respectively, for the six months ended June 30, 1997,
compared to $0.3 million and $0.5 million, respectively,  during the same period
in 1996. The primary reason revenues  increased was because of the purchase of a
50% interest in a marine  vessel  during the later half of the first  quarter of
1996.  Revenues  and  expenses  during 1997  represent  a full six months,  when
compared to 1996 in which revenues and expenses were for only four months.

Mobile offshore  drilling unit: As of June 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 six months ended June
30,  1997,   revenues  of  $0.9  million   were  offset  by   depreciation   and
administrative expenses of $1.4 million.

(F)   Net (Loss) Income

As a result of the  foregoing,  the Company's had a net loss of $2.5 million for
the six months of 1997,  compared to net income of $0.1 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 six months ended June 30, 1997 is
not necessarily  indicative of future periods.  In the six months ended June 30,
1997, the Company  distributed $5.0 million to the Class A members, or $1.00 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 B  unitholders,  and grow the Company's  equipment
portfolio  through  reinvestment  of any  remaining  surplus  cash  available in
additional equipment.

The Manager had entered into a short-term  joint $50.0 million credit  facility.
As of August  12,  1997,  PLM  Equipment  Growth  Fund VI had $10.0  million  in
outstanding borrowings;  American Finance Group, Inc., a wholly-owned subsidiary
of PLM International, Inc., had $13.9 million in outstanding borrowings; and TEC
Acquisub, Inc. had $7.2 million in outstanding borrowings.  Neither the Company,
PLM  Equipment  Growth Fund V, PLM  Equipment  Growth Fund IV, nor PLM Equipment
Growth & Income Fund VII 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.

For the six  months  ended  June 30,  1997,  the  Company  generated  sufficient
operating cash flow to meet its operating  obligations and pay  distributions to
Class A and B unitholders.

(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
earnings 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.



<PAGE>


(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: August 12, 1997                   By:  /s/ Richard Brock
                                             ------------------
                                             Richard Brock
                                             Vice President and
                                             Corporate Controller