Performance at month end

Impax Environmental Markets PLC
05 March 2004

IMPAX ENVIRONMENTAL MARKETS plc



All information is at 29 February 2004 and unaudited



DATA AND PERFORMANCE


Data                                      Pricing & Performance
Price (pence)                       61.75                         IEM            MSCI         Impax

                                                            Net Asset Value      World         ET50
Total Fund Size (m)                  34.1   Pence (29.2.04)       68.3            n/a          n/a
Management fee                       1.0%
Established              22 February 2002       Performance
Fund structure           Investment Trust       1 month (%)      +0.5%           -0.4%        -0.2%
Number of stocks                       58      3 Months (%)      +4.1%           +1.5%        +4.5%
held
Exchange                           London        1 year (%)      +39.4%         +20.5%        +33.1%
Currency                              GBP  Year to date (%)      +3.0%           -0.5%        +2.3%
ISIN Number                  GB0031232498
Sedol                             3123249
Reuters RIC Code                    IEM.L
Bloomberg Code                     IEM LN



TOP TEN HOLDINGS


Company                        Holding %      Description                  Country
RPS Group                            4.5      Environmental consulting     UK
Vestas Wind Systems                  3.9      Wind                         Denmark
Casella Waste                        3.4      Waste disposal & recycling   US
BWT                                  3.3      Water treatment              Austria
Itron                                3.1      Meters & Software            US
Hydrogenics                          3.0      Fuel cells                   Canada
Ionics                               3.0      Water treatment              US
Tetra Tech                           2.9      Environmental consulting     US
Trojan Tech                          2.9      UV disinfection              Canada
Shanks                               2.8      Waste management             UK

                 Total              32.8



PORTFOLIO ANALYSIS*


Geographical                         Company Size
North America             53%        >£500m                  21%
Europe                    41%        £100-500m               59%
Rest of the World          6%        <£100m                  20%

Sectoral                             Profitability
Energy                    33%        Profitable              84%
Water                     32%        Pre-Profitable          16%
Waste                     33%
Cash                       2%
* of funds invested as of 29 February 2004



























MANAGER'S COMMENTARY


The Company NAV increased by +0.5% during the month compared with the MSCI World Index which decreased by -0.4%
and the Impax ET50 which decreased -0.2%.   The US alternative energy stocks were weakest which reflects their
high correlation to the technology sector (weakest sector during the month) and low correlation to conventional
energy companies (best performing sector during the month). Wind, water and waste stocks generally had a good
month.  Specific developments in Environmental Markets during the month are discussed below.



The global warming debate has seen a number of interventions from European insurance companies.  Both Munich Re
and Swiss Re have reported a huge rise in payouts on global natural disasters which they blame, in part, on
climate change.  Estimates on the annual costs to insurers range from $30-$60 billion and both groups highlight
the need to make progress with global warming policy.  In this regard, there is still no clarification from
Russia on its plans to ratify the Kyoto Protocol but EU environment ministers made a statement confirming their
unanimous commitment to the Kyoto process.  Meanwhile, results in the alternative energy sector were generally
strong during the month as Gamesa  (wind, Spain) showed strong results for 2003 and >20% growth expectations for
2004; Ballard (fuel cells, Canada) reported good results but acknowledged that revenues would be weaker in 2004;
and Vacon (frequency converters, Finland) reported increased margins and a better capital spending environment
going forward.

In the water sector, there is increasing legislation for the control of 'environmental contaminants'.  In the
US, we have recently seen new controls for carcinogenic compounds such as MTBE and perchlorate, and this month
the UK Drinking Water Inspectorate introduce new standards for bromate and benzene as well as tighter standards
for lead, arsenic and nickel.  These standards will continue to create market opportunities for physical water
treatment technologies including membranes, UV disinfection and ion exchange.  Two companies expected to benefit
from these developments have been in the news this month.  Firstly, Zenon (membranes, Canada) announced $35
million in municipal contracts for the drinking water treatment in North America while Calgon Carbon (air &
water pollution control), the leader in perchlorate decontamination, has acquired the assets of Waterlink (water
treatment, US).  Other companies that reported positive news from key water markets during the month were Cuno
(filtration, US) and Badger Meter (water meters, US).



The compliance of the UK waste industry with the plethora of EU waste Directives was under discussion during the
month.  On the one hand plastic bottle collections have grown by over 50% in two years but still remains well
short of the Packaging Directive target (70% for all plastics by 2008), while a House of Commons review of UK
progress with implementing the end of life vehicles (ELV) and waste electrical and electronic equipment (WEEE)
Directives called for an increase in government effort to support the waste industry in its compliance effort.
Further afield, Energy Developments (landfill gas, Australia) announced that it was receiving greenhouse gas
abatement credits for its landfill gas plants in Australia, which will offset some of the poor performance by
its US facilities.  Finally, there was positive news from two hazardous waste markets as Stericycle (hospital
waste, US) reported EPS growth of 40% for 2003 and Seche Environnement (hazardous waste, France) continued to
recover with top line growth of nearly 10%.



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



5 March 2004


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