Conversion of Securities

Impax Environmental Markets plc - Conversion of C Shares

Further to the  Company's issue of  C Shares on  15 August 2006  (the
"Issue"),  over  90  per  cent.  of  the  assets  attributable  to  C
Shareholders having been  invested in accordance  with the terms  and
conditions of  the Issue,  the C  Shares will  convert into  Ordinary
Shares at opening of business on the Conversion Date, which has  been
determined by the Board of Directors to be 6 October 2006.

The Conversion Ratio, which has  been calculated by reference to  the
total net assets  of the Company  and the net  assets of the  Company
attributable to  C  Shareholders  as  at  close  of  business  on  29
September 2006, is 1.00710115.  Accordingly, a C Shareholder  holding
1,000 C Shares will hold 1,007 Ordinary Shares following  Conversion.
Fractions of Ordinary Shares arising on Conversion will be aggregated
and sold for the benefit of the Company.

The Ordinary Shares arising on Conversion will rank pari passu  with,
and will have the same rights as, the Ordinary Shares of the  Company
already in issue. The 66,000,000 C Shares in issue will be  converted
into 66,468,675 Ordinary Shares and 593,531,325 Deferred Shares.  The
Deferred  Shares  will  be  redeemed  immediately  on  Conversion  in
accordance with the  terms of  issue as described  in the  prospectus
dated 20 July 2006.

Following Conversion,  the  Company will  have  197,356,027  Ordinary
Shares in issue.


Application has  been  made  to  the UK  Listing  Authority  for  the
66,468,675 Ordinary Shares  arising on Conversion  to be admitted  to
the Official List.  An application has been made to the London  Stock
Exchange for the  same number of  Ordinary Shares to  be admitted  to
trading on the London Stock  Exchange. The C Shares were  permanently
removed from  trading  on  the  London Stock  Exchange  at  close  of
business on 5 October 2006.


5 October 2006



Enquiries

Impax Asset Management Limited                              020  7434
1122
Ian Simm
Bruce Jenkyn-Jones


Dresdner Kleinwort
David
Yovichic
020 7475 7144

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