Performance at month end

Impax Environmental Markets PLC
08 August 2002


IMPAX ENVIRONMENTAL MARKETS plc

All information is at 31 July 2002 and unaudited

DATA AND PERFORMANCE


Data                                         Pricing & Performance

Total Fund Size (m)                  GBP32.7                      Net Asset Value   Ord. Share Price

Management fee                          1.0%      Pence (31/7/02)       65.4               63

Established                 22 February 2002

Fund structure              Investment Trust          Performance

Number of stocks held                     45          1 month (%)      -19.5%            -19.7%

Exchange                              London         3 Months (%)      -35.0%            -38.6%

Currency                                 GBP           1 year (%)        na                na

ISIN Number                     GB0031232498     Since launch (%)      -33.5%             -37%

Sedol                                3123249

Reuters RIC Code                       IEM.L

Bloomberg Code                        IEM LN



TOP TEN HOLDINGS


Company                            Holding %       Description                        Country

Vestas Windsystems                       8.6       Wind                               Denmark

Vivendi Environnement                    7.3       Water & Waste                      France

Tomra Systems                            4.6       Recycling                          Norway

RPS Group                                4.4       Environmental Consulting           UK

Ballard Power                            3.8       Fuel Cells                         Canada

Astropower                               3.7       Photovoltaics                      US

Kurita Water                             3.5       Water                              Japan

Nordex                                   3.5       Wind                               Germany

NEG Micon                                3.3       Wind                               Denmark

BWT                                      3.2       Water                              Austria

                    Total               45.9



PORTFOLIO ANALYSIS


Portfolio Analysis- Geographical*   Portfolio Analysis- Company Size*   Portfolio Analysis -

                                                                        Sectoral

North America              41%      >£500m                  27%         Energy              43%

Europe                     53%      £100-500m               52%         Water               33%

Rest of the World          6%       <£100m                  21%         Waste               22%

                                                                        Cash                2%

* of funds invested as of 31 July 02



MANAGER'S COMMENTARY


During the month of July, the Company's NAV fell 19.5% compared with the MSCI
World Index which fell 10.7% and the Impax ET50 Index which fell 18%.  The
weakness of global equity markets has also affected Environmental Markets,
particularly energy and waste, and this has been compounded by some
disappointing results from US companies active in the power equipment markets.
Nevertheless, we believe that the long term fundamentals of Environmental
Markets remain strong and some of the key news items from the month of July in
each of the three sectors are shown below.



The alternative energy sector has seen a number of developments during the
month.  The automotive fuel cell sector has been in particular focus as Nissan
brought forward their commercial programme by two years and now expects to sell
fuel cell vehicles (FCVs) in 2003.  General Motors opened a new fuel cell
research facility in New York, and Honda was the first original equipment
manufacturer (OEM) to have its FCV certified by US authorities.  GM also took a
20% stake in Quantum Fuel Systems (hydrogen storage, US), a Company which was
spun off from Impco Technologies (gaseous fuels, US). Also in the automotive
sector, the uncertainty surrounding the introduction of environmental standards
for diesel engines in the US as a result of intensive lobbying by a number of
large industrial groups has ended - the legislation was finalised on 1 August
and will be introduced in October, 2002. In the renewables sector, Vestas
Windsystems (wind, Denmark) announced a large order (£55 million) with National
Windpower to supply wind turbines to a 90 MW offshore wind farm off the west
coast of Wales in the U.K offsetting concerns in Germany that the CDU party
(currently ahead in the polls) might lower the renewables feed in tariff if
elected in September.  Finally the target date for reconciling the US Energy
Bill was set at September 30 with items such as ethanol quotas, further
production tax credit extensions and renewable portfolio standards all waiting
to be agreed.


The recapitalisation of Vivendi Environnement (water & waste, France) has
dominated the news in the water sector last month. The transaction was
successfully completed following the decision by the board of Vivendi Universal
to deconsolidate the waste and water Company from the Group's accounts through a
private placement and rights offering for 15.5% of the share capital. In the US
last month, the city of Detroit, and the Detroit Water and Sewerage Department
awarded a $50 million, three-year term contract for sewer inspection and
rehabilitation to a consortium that included Insituform Technologies (sewer
repair, US) . The contract is expected to require a strong focus on Insituform's
cured-in-place pipe (CIPP) method of pipeline rehabilitation. Also in the US,
Ionics (membrane treatment, US) announced the acquisition of the patents and
know-how of Microbar Incorporated's EnChem(R) wastewater treatment process. The
EnChem process removes dissolved and suspended contaminants from process
wastewater and is thought to be of particular relevance to the microelectronics
industry as it responds to current and anticipated regulations governing the
industry's wastewater discharge requirements.


There was mixed news from global waste and resource management markets.  RPS
Group (environmental consulting, UK) reported excellent results while, on the
other side of the Atlantic, Tetra Tech (environmental consulting, US)
disappointed for the second successive quarter.  Shanks (waste, UK) highlighted
'difficult trading conditions' for the early part of 2002 but Tomra announced
results that were ahead of expectations and remained confident that ongoing
court action by German retailers will not derail the implementation of a deposit
scheme. More positive news came from Australia where Energy Developments Ltd
(waste, Australia)  announced that it will recommence testing of its SWERF waste
gasification technology.


Latest information available at: www.impax.co.uk/asset/iemper.htm


8 August 2002


                      This information is provided by RNS
            The company news service from the London Stock Exchange