Performance at month end

Impax Environmental Markets PLC
06 February 2004

IMPAX ENVIRONMENTAL MARKETS plc

All information is at 31 January 2004 and unaudited

DATA AND PERFORMANCE


Data                                      Pricing & Performance
Price (pence)                          63                         IEM            MSCI         Impax

                                                            Net Asset Value      World         ET50
Total Fund Size (m)                  33.9  Pence (31.01.04)       68.0            n/a          n/a
Management fee                       1.0%
Established              22 February 2002       Performance
Fund structure           Investment Trust       1 month (%)      +2.6%           -0.1%        +2.5%
Number of stocks                       56      3 Months (%)      +1.5%           +1.9%        +2.2%
held
Exchange                           London        1 year (%)      +30.8%         +23.8%        +30.2%
Currency                              GBP  Year to date (%)      +2.6%           -0.1%        +2.5%
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
Casella Waste                        3.8      Waste disposal & recycling   US
Vestas Wind Systems                  3.8      Wind                         Denmark
Itron                                3.1      Meters & Software            US
BWT                                  3.0      Water treatment              Austria
Ionics                               2.9      Water treatment              US
Hydrogenics                          2.9      Fuel cells                   Canada
Shanks                               2.9      Waste management             UK
Tetra Tech                           2.8      Environmental consulting     US
Trojan Tech                          2.7      UV disinfection              Canada

                 Total              32.4



PORTFOLIO ANALYSIS*

Geographical                         Company Size
North America             53%        >£500m                  22%
Europe                    41%        £100-500m               57%
Rest of the World          6%        <£100m                  21%

Sectoral                             Profitability
Energy                    32%        Profitable              84%
Water                     32%        Pre-Profitable          16%
Waste                     32%
Cash                       4%
* of funds invested as of 31 January 2004




MANAGER'S COMMENTARY

The Company NAV increased by +2.6% during the month compared with the MSCI World
Index which decreased by -0.1% and the Impax ET50 which increased +2.5%.   The
alternative energy stocks performed strongest which is in line with global
markets where energy equipment and technology companies also outperformed;
materials and traditional energy were the weakest sectors.  Specific
developments in Environmental Markets during the month are discussed below.

As the Vestas/NEG Micon transaction made steady progress with merger approvals
from various jurisdictions, the main news in the wind sector came from Germany
and Spain.  The market data from Germany revealed a stronger than expected
fourth quarter (but still 9.4% down on 2002) with Vestas (Denmark) and Repower
(Germany) being the winners of market share.  Meanwhile, the Spanish government
continued to make progress with new proposals for the subsidy system in Spain -
the plans are generally favourable to both wind park developers and wind turbine
manufacturers and designed to keep Spain on track for its target of 13,000 MW by
2011 (representing around 18% of 2000 consumption).   There were signs that the
global power equipment market is beginning to pick up as Active Power
(flywheels, US) reported good results and a healthy outlook for the market for
uninterruptible power supply (UPS).  These claims were backed up by generally
positive statements on power equipment from the larger players such as GE,
Siemens and Caterpillar.  The rapid growth of environmental technologies in Asia
continued as an important theme with first Westport Innovations (natural gas
engines, Canada) announced an extension of their collaboration with Isuzu and
then Quantum Fuel (hydrogen systems, US) announcing the award of a contract from
a major bus manufacturer in Asia to supply hydrogen fuel systems for the
production of a fleet of fuel cell buses.

Capital spending in the water treatment and pollution control sector continues
to improve particularly in ultrapure water where both Ionics (water treatment,
US) and BWT (water treatment, Austria) received orders for new plant capacity. 
General Electric continued to develop its profile in the water sector through a
joint venture with Pall Corp. (water treatment & filtration, US) for the
marketing of ultra/micro-filtration products in industrial markets.  The
pollution control markets remain robust as Clarcor (air pollution control, US)
reported strong results and Global Power Equipment (power station emissions
control, US) benefited with the news that the large turbine producers were
seeing a pickup in orders, particularly in Asia and Europe.

The Company has benefited from strong performance by those environmental
consultancies that have a successful track record of growth through acquisition
(eg RPS Group and TetraTech which are in the top ten holdings).  This month,
Stantec (environmental consulting, Canada) announced the purchase of US-based
Sear Brown which is its largest acquisition to date and expands the company's
footprint in the United States.  Meanwhile Arcadis (environmental consultancy,
Netherlands) announced the largest landfill gas energy plant in the world - a
345 acre landfill near Sao Paolo in Brazil that will be used as fuel for a newly
built 23 MW energy plant.  Finally, the turnaround at Seche Environnement
(hazardous waste, France) made some progress as the company disposed of its non-
performing French assets; this is an important step in returning the company to
the high levels of profitability seen before the recent acquisitions.

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

6 February 2004


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