Interim Management Statement

Impax Environmental Markets Plc (the 'Company')
                    Interim Management Statement
               For the four months ended 30 April 2008
 
This interim management statement covers the period from the 1
January 2008 to 30 April 2008, and is prepared in accordance with the
UK Listing Authority's Disclosure and Transparency Rule 4.3.
 
Investment objective and policy
 
The Company's objective is to enable investors to benefit from rapid
and sustained growth anticipated in the markets for cleaner or more
efficient delivery of basic services of energy, water and waste
("Environmental Markets").  Investments are made predominantly in
quoted companies which provide, utilise, implement or advise upon
technology-based systems, products or services in Environmental
Markets, particularly those of alternative energy and energy
efficiency, water treatment and pollution control, and waste
technology and resource management.
 
Performance
 
During the period from 1 January until 30 April 2008, the Company's
diluted Net Asset Value ("NAV") fell by 3.6% from 128.3p to 123.7p,
representing a modest outperformance versus the MSCI World Index and
the MSCI World Small Cap Index, which fell 5.1% and 5.0% respectively
during the period (both priced in pounds sterling).  The shares have
continued to trade at a modest premium to NAV for the majority of the
period.
 
The first four months of the year were characterised by increased
economic uncertainty, with mounting losses in sub prime mortgages
significantly constraining liquidity in the financial markets.  This
has compounded already slowing economic growth, leading to fears of
imminent or actual recession in the US, and thereafter in the broader
global economies.
 
Economic uncertainty has led to increased market volatility,
especially in January, which saw broad market weakness, redemptions
in equity funds and a general move into larger companies.  Against
this backdrop, the Manager is pleased to be able to report a robust
performance, which again demonstrates the strength of the Company's
investment proposition.
 
Material Events
 
There have been no material events during the period.  The Manager
has increased weightings in quality companies with strong
fundamentals, management and balance sheets, where market weakness
has created attractive buying opportunities.  Conversely, the Manager
has reduced weightings in companies that have performed well.
 
The portfolio composition has not changed materially since 31
December 2007.  The top ten holdings as at 30 April 2008 are set out
below.
 

Company       Activity                        Weighting
Ormat         Geothermal Power                    2.56%
Itron         Automated Meter Reading             2.40%
Clean Harbors Hazardous Waste                     2.37%
Chloride      Uninterruptible Power Systems       2.34%
Gamesa        Wind turbines and projects          2.28%
Regal Beloit  High efficiency electric motors     2.20%
Vestas        Wind turbines                       2.11%
Pentair       Filtration                          2.10%
Mayr Melnhof  Recycled carton board               2.08%
Vacon         Variable speed drives               2.07%

 
Outlook
 
The Q1 2008 earnings season is now well underway and has overall been
positive for portfolio companies, with several companies beating
expectations and only isolated earnings disappointments.  The Manager
and the Directors continue to believe that the portfolio valuation of
around 17x PE (next twelve months) is attractive relative to growth
expectations of > 20% for the next 12 months.
 
The interim management statement will be made available on the
Manager's website www.impax.co.uk
 
 
7 May 2008
 

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