Performance at month end

Impax Environmental Markets PLC
07 May 2004


IMPAX ENVIRONMENTAL MARKETS plc

All information is at 30 April 2004 and unaudited


DATA AND PERFORMANCE


Data                                      Pricing & Performance
Price (pence)                       60.75                         IEM            MSCI         Impax

                                                            Net Asset Value      World         ET50
Total Fund Size (m)                  34.0   Pence (30.4.04)       68.0            n/a          n/a
Management fee                       1.0%
Established              22 February 2002       Performance
Fund structure           Investment Trust       1 month (%)      +0.8%           +1.3%        +0.5%
Number of stocks                       58      3 Months (%)      +0.0%           +1.0%        -3.1%
held
Exchange                           London        1 year (%)      +28.4%         +14.8%        +17.3%
Currency                              GBP  Year to date (%)      +2.8%           +0.9%        -0.7%
ISIN Number                  GB0031232498
Sedol                             3123249
Reuters RIC Code                    IEM.L
Bloomberg Code                     IEM LN

TOP TEN HOLDINGS


Company                        Holding %      Description                  Country
Vestas Wind Systems                  4.1      Wind                         Denmark
Casella Waste                        4.1      Waste disposal & recycling   US
Itron                                4.1      Meters & software            US
Trojan Tech                          3.5      UV disinfection              Canada
RPS Group                            3.3      Environmental consulting     UK
BWT                                  3.2      Water treatment              Austria
Shanks                               3.0      Waste management             UK
Ionics                               2.9      Water treatment              US
Kurita Water                         2.9      Water treatment              Japan
Hydrogenics                          2.8      Fuelcells                    Canada

                 Total              33.9

PORTFOLIO ANALYSIS*


Geographical                         Company Size
North America             54%        >£500m                  21%
Europe                    38%        £100-500m               57%
Rest of the World          8%        <£100m                  22%

Sectoral                             Profitability
Energy                    33%        Profitable              87%
Water                     35%        Pre-Profitable          13%
Waste                     31%
Cash                       1%

* of funds invested as of 30 April 2004

MANAGER'S COMMENTARY

The Company NAV increased by +0.8% during the month compared with the MSCI World
Index which increased +1.3% and the Impax ET50 which increased +0.5%.   The best
performing global equity sector during the month was Energy with Information
Technology being weakest.  Energy prices continued to strengthen (Brent Crude at
$34.5/bbl at month end) a trend that favours renewables and energy efficiency
companies, while higher commodity prices are positive for companies that are
producing recycled alternatives.  The US$ strengthened 3.7% during the month
which helped the NAV as around 33% of assets are held in this currency. Also, we
are seeing a substantial increase in potential IPOs of Environmental Markets
companies and are aware of at least seven companies (just in the UK) that are
proposing to float within the next nine months.  Specific developments in
Environmental Markets during the month are discussed below.

There was positive newflow for the North American alternative energy companies
during the month.  In addition to the rising energy prices, there were
indications that elements of the Energy Bill may be attached to other US
legislation (eg Jobs Act) that is passing through Congress - we remain
optimistic that the production tax credit for wind will be extended this year
but remain cautious that anything more substantial will be passed before the
Election in November.  Meanwhile on the West Coast there have been important
statements from Canadian politicians and from Governor Schwarzenegger in
California supporting the development of a 'hydrogen highway' with over 200
hydrogen filling stations to support the adoption of fuel cell and other low
emission vehicles. Although the available budget and timing remain uncertain,
this is clearly positive for suppliers of hydrogen technologies such as Quantum
Fuel (US) and Ballard (Canada).  In Germany, there was a positive outcome to the
review of the EEG (German Renewables Law) that will continue to subsidise
projects on lower wind speed sites. Finally, in the US, there were further
indications that utility spending is picking up as Itron (meters & utility
software) received an order from Entergy for transmission line design software
and Esco (powerline meters & filtration) announced a new automated meter reading
(AMR) contract with a Maine utility.

In the filtration sector, Domnick Hunter (filtration, UK) increased its US
presence and membrane capability with an acquisition of certain assets of Esco
thus further increasing DKH's market share and significance in the global
filtration business.  Insituform (sewer repair, US) reported results indicating
that, while margins remain under pressure and the restructuring of the company
is not yet complete, the market for water infrastructure tunnelling and sewer
repair is growing rapidly with several very large contracts currently being
offered in the US.   Also in the US, there was a positive surprise from Badger
Meter (water meters, US) which reported 25% revenue growth and a tripling of EPS
for the first quarter due to success with its new AMR product.

The picture was again mixed in the waste and resource management sector.  In the
UK, Straight (composting & recycling bins) reported strong results and a
favourable outlook and Universal Salvage (vehicle auctions & recycling) received
planning permission that adds  around 15% to the value of its assets.  Arcadis
(environmental consulting, Netherlands) and TetraTech (environmental consulting,
US) both reported strong markets for their services though the latter suggested
some pressure on margins.  However, Tomra (recycling systems, Norway) reported
reduced growth prospects due to the uncertainty created by the European
Commission's objection to the German deposit scheme.


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


7 May 2004


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