Performance at month end

Impax Environmental Markets PLC
13 April 2004


IMPAX ENVIRONMENTAL MARKETS plc

All information is at 31 March 2004 and unaudited

DATA AND PERFORMANCE

Data                                      Pricing & Performance
Price (pence)                       59.75                         IEM            MSCI         Impax

                                                            Net Asset Value      World         ET50
Total Fund Size (m)                  33.8   Pence (31.3.04)       67.5            n/a          n/a
Management fee                       1.0%
Established              22 February 2002       Performance
Fund structure           Investment Trust       1 month (%)      -1.0%           +0.1%        -3.4%
Number of stocks                       58      3 Months (%)      +1.8%           -0.4%        -1.2%
held
Exchange                           London        1 year (%)      +43.6%         +21.7%        +29.5%
Currency                              GBP  Year to date (%)      +1.8%           -0.4%        -1.2%
ISIN Number                  GB0031232498
Sedol                             3123249
Reuters RIC Code                    IEM.L
Bloomberg Code                     IEM LN


TOP TEN HOLDINGS

Company                        Holding %      Description                  Country
Vestas Wind Systems                  4.2      Wind                         Denmark
Casella Waste                        3.9      Waste disposal & recycling   US
Trojan Tech                          3.6      UV disinfection              Canada
BWT                                  3.6      Water treatment              Austria
RPS Group                            3.4      Environmental consulting     UK
Ionics                               3.4      Water treatment              US
Kunta Water                          3.0      Water treatment              Japan
Itron                                3.0      Meters & Software            US
Shanks                               3.0      Waste management             UK
Tetra Tech                           3.0      Environmental consulting     US

                 Total              34.1


PORTFOLIO ANALYSIS*

Geographical                         Company Size
North America             54%        >£500m                  22%
Europe                    38%        £100-500m               56%
Rest of the World          8%        <£100m                  22%

Sectoral                             Profitability
Energy                    32%        Profitable              86%
Water                     36%        Pre-Profitable          14%
Waste                     31%
Cash                       1%
* of funds invested as of 31 March 2004


MANAGER'S COMMENTARY


The Company NAV decreased by -1.0% during the month compared with the MSCI World
Index which increased by +0.1% and the Impax ET50 which decreased -3.4%.   It
was a volatile period for equities in general with IEM up as much as 3% at one
point and down over 6% at another.  The best performing sectors during the month
were utilities and industrials with energy equipment and technology being
weaker.  Specific developments in Environmental Markets during the month are
discussed below.

Vestas (wind, Denmark) completed its merger with NEG Micon during the month to
become the largest wind turbine manufacturing company with >30% market share. 
With the 2003 results, the new company presented an optimistic picture for 2004
despite very modest expectations for the US market which still depends on the
extension of the production tax credits beyond 2003.  In the meantime, General
Electric appeared for the fourth time since the launch of IEM as a purchaser of
Environmental Markets' assets with the acquisition of the Astropower (solar, US)
photovoltaic manufacturing assets.  The IPO of Xantrex (power electronics,
Canada) was completed successfully and the share price has continued to trade at
around the issue price.  Westport (natural gas engines, Canada) announced
substantial engine sales to China through its Cummins joint venture which is
targeting the Asian markets.  On the policy side, the UK budget contained a
number of initiatives relating to climate change, energy efficiency and urban
air quality and, in Japan, there was further progress with power sector
deregulation that is likely to act as a catalyst for the introduction of new
power production solutions and distributed generation.

The water sector was dominated by companies reporting 2003 annual results and,
in general, the IEM companies met or exceeded expectations.  The recovery in
industrial capital spending remains a key theme and this is particularly
positive for Kurita (water treatment, Japan) and BWT (water treatment, Austria).
 The new management teams at Ionics (water treatment, US) and Insituform (sewer
repair, US) continue to make good progress in restructuring these companies and
positioning them for long term growth.  The new technology providers such as
Zenon (membranes, Canada) and Trojan (UV disinfection, Canada) reported strong
order books for 2004 and a favourable utility spending environment.  Finally,
stormwater management and combined sewer overflow ('CSO') is developing as an
interesting investment area and during the month Hydro International (stormwater
& CSO, UK) announced a record year and 50% top line growth while CDS
Technologies (CSO & water treatment, Australia) reported additional orders
following its recent acquisition of the UK company Aquator.


It has been a mixed month in the waste and resource management sector.  In the
UK, RPS Group announced strong results for 2003 but revealed that costs would
increase in 2004 as an additional layer of management is put in place and staff
incentives are increased; Universal Salvage (vehicle auctions & recycling, UK)
issued a profit warning citing a weak pricing environment; however, on a more
positive note, Straight plc (recycling, UK) received a large order from
Northampton Borough Council for recycling and composting bins.  Overseas the
results were strong with Seche Environnement (hazardous waste, France) reporting
that its recovery was ahead of schedule. Also, Casella Waste (US) and Arcadis
(environmental consultancy, Netherlands) both announced good results with a
positive outlook.


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


13 April 2004


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