Performance at month end - new

IMPAX ENVIRONMENTAL MARKETS plc

All information is at 30 April 2006 and unaudited

DATA AND PERFORMANCE


Data                         Pricing & Performance
                                                  IEM    MSCI  Impax
                                                  Net   World   ET50
Share Price                                      Asset
(pence)                117.5                     Value
Warrants                42.8
(pence)
Total Fund Size    GBP 146.8        Diluted NAV  112.1   n/a    n/a
(m)                                     (pence)
Market             GBP 148.6   Premium/discount  +4.8
Capitalisation                              (%)
(m)
Management fee           1.0      Undiluted NAV  115.0
(%)                                     (pence)
Established      22 February        Performance
                        2002
Fund structure    Investment        1 month (%)  +2.6    -1.8   +0.3
                       Trust
Number of                 73       3 Months (%)  +12.4   +2.3  +10.0
stocks held
Exchange              London         1 year (%)  +62.4  +28.4  +65.7
Currency                 GBP         3 year (%) +118.2  +48.5  +93.8
ISIN Number     GB0031232498   Year to date (%)  +24.3   +3.1  +26.8
Sedol                3123249
Reuters RIC            IEM.L NB1 Performance data is for undiluted
Code                         NAV.
                             NB2 To comply with guidelines issued by
                             the AITC, portfolio valuation moved to
Bloomberg Code        IEM LN bid from mid price with effect from 31
                             December 2005.


TOP TEN HOLDINGS


Company             Holding %   Description                   Country
Itron                     2.9   Meters & software             US
                                High efficiency electric
Regal Beloit              2.5   motors                        US
Vestas Wind Systems       2.5   Wind                          Denmark
Gamesa                    2.3   Wind                          Spain
Canadian Hydro            2.3   Renewable energy IPP          Canada
LKQ                       2.2   Automotive recycling          US
Tomra                     2.2   Reverse vending machines      Norway
RPS                       2.2   Environmental consulting      UK
Abengoa                   2.1   Bioethanol & recycling        Spain
Chloride Group            2.1   UPS systems                   UK

Total                    23.3


PORTFOLIO ANALYSIS*


Geographical          Company Size
North America     46% >£500m         45%
Europe            47% £100-500m      40%
Rest of the World 7%  <£100m         16%

Sectoral              Profitability
Energy            42% Profitable     87%
Water             27% Pre-Profitable 13%
Waste             31%
Cash              2%
* of funds invested as of 30 April 2006






MANAGER'S COMMENTARY (April 2006)


The Company NAV was up 2.6% over the month compared with the MSCI
World, which was down 1.8%, and the Impax ET50, which increased by
0.3% over the same period.  The energy services and equipment sector
continued to outperform, buoyed by record oil prices, which rose
above $70 per b.b.l.  Information technology and healthcare were the
only global sectors to fall.

During the month, UK politicians sought to align themselves with
environmental issues in advance of local elections. Opposition leader
David Cameron travelled to the Arctic to witness the effects of
global warming, whilst Chancellor Gordon Brown urged the World Bank
to set up a US$20 billion fund to help developing countries invest in
alternative energy sources.  In the US, California Governor Arnold
Schwarzenegger endorsed measures to reduce industrial emissions of
greenhouse gases, particularly market-based solutions.  Ironically
the flagship example of this, the EU Emissions Trading Scheme,
suffered its first set-back towards the end of the month as carbon
credits fell from ¤30 per tonne to ¤11 after several countries
reported lower-than-expected carbon dioxide emissions in 2005.  The
allocations for Phase 1, covering 2005-07, had never been considered
aggressive, and were originally intended to prepare member states and
companies for the First Commitment Period of the Kyoto Protocol,
which runs 2008-12.  However, the likely outcome of this is that
emissions limits will be much stricter from 2008.  At the corporate
level, Severn Trent Plc announced the demerger of its UK integrated
waste management business, Biffa, which is expected to gain a higher
market valuation on the evidence of prices paid by private equity
firms to take waste management companies private.  In the US, amidst
growing public support for the mandated use of biofuel, two companies
announced their intention to float on the New York Stock Exchange.

The best performers in particular were Questair (hydrogen
purification systems, Canada), which gained 63% on the successful
installation of a hydrogen recovery system into an Exxon oil
refinery, and Ballard (fuel cells, Canada), which rose 37% following
the announcement of higher engineering development revenues and lower
operating expenses in Q1.  BWT (water treatment, Austria) increased
by 26% on strong full year results, and Bioteq (effluent treatment,
Canada) gained 25%.  On the downside, Senea (automated meter reading,
Sweden) and Headwaters (recycling & clean coal, US) fell 16% and 15%
respectively, both on disappointing results.

During the month we made our first private equity investment into
Cellex Power Products Inc. (fuel cells, Canada), a company providing
fuel cell power solutions to the fork lift truck industry.


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

11 May 2006




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