Reduction of capital

Impax Environmental Markets PLC
20 December 2002

IMPAX ENVIRONMENTAL MARKETS PLC



REDUCTION OF CAPITAL


Impax Environmental Markets plc confirms that following an application to the
Court, as envisaged in its prospectus, it has cancelled the amount of
£44,125,000 standing to the credit of its share premium account.



The reserve created can be used for the purchase of own shares in the market 
for cancellation.





20 December 2002


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