Interim Management Statement

Impax Environmental Markets Plc (the 'Company')
                    Interim Management Statement
              For the four months ended 31 October 2009

This interim management statement covers  the period from the 1  July
2009 to 31 October  2009, 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,  utilize, 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 July until 31  October 2009, the  Company's
diluted Net Asset Value ("NAV") per Ordinary Share (excluding current
year net  revenue)  rose  by  13.6%  from  102.1p  to  116.0p,  under
performing the MSCI World Index and  the MSCI World Small Cap  Index,
which rose  14.9%  and 17.1%  respectively  during the  period  (both
priced in  pounds sterling).   The  shares continued  to trade  at  a
modest discount to NAV during the period.

The slight  underperformance  follows strong  outperformance  in  the
first half of  the year and  also reflects strong  gains in  industry
sectors not targeted by the Company, such as financial institutions.
Against this backdrop, the  Manager is pleased to  be able to  report
positive year to  date performance to  31 October 2009  of 17.4%,  in
line with the MSCI World Small Cap Index (up 17.6%) and well ahead of
the MSCI World Index (up 6.6%).

Portfolio activity

During the  period,  the Manager  has  participated in  a  number  of
capital raisings  at compelling  valuations,  and has  increased  the
Company's exposure to the Asia Pacific region after several  positive
policy  developments.    In   addition,  the   Manager   has   become
incrementally more positive on the renewable energy sector  following
a period of underperformance and in anticipation of strong growth  in
2010/11.  Finally, it has been  encouraging to note the  re-emergence
of merger  and  acquisition activity,  which  has been  an  important
driver of the Company's performance in the past.  Since 30 June 2009,
one company  in the  portfolio  has been  acquired at  an  attractive
premium and a further two have received takeover bids.

The top ten holdings as at 31 October 2009 are set out below.



Company                 Activity                    Weighting
China Everbright        Water and waste projects      2.7%
Itron                   Automated meter reading       2.4%
Transpacific Industries Integrated waste management   2.3%
Nibe                    Ground source heat pumps      2.3%
Ormat                   Geothermal power              2.3%
Vestas                  Wind turbines                 2.3%
Telvent                 Utility software              2.2%
Clean Harbors           Hazardous waste management    2.2%
Taewoong                Wind turbine components       2.1%
Pentair                 Water treatment               2.0%


The top ten holdings list illustrates the continued preference for  a
diversified portfolio, with all sectors (energy, water and waste) and
geographical regions (North America, Europe and Asia) represented.

Outlook

The Manager remains positive on outlook for the Company.  In
particular, the momentum of environmental legislation remains strong
and many Environmental Markets are set to receive significant
additional stimulus funding.  Although the pace of economic recovery
remains uncertain, the Manager is confident that the secular growth
characteristics of Environmental Markets will continue and that
acquisition activity will make an incremental contribution to
performance.

At the time of writing, the Q3 2009 earnings reporting season is in
full swing and, as was the case in Q2, the majority of portfolio
companies are beating expectations.  We believe that the earnings
growth expectations of ca. 12% are realistic, with scope for
upgrades.  The portfolio is valued with a PE of 18 (based on expected
earnings over the next twelve months) which is at the lower end of
the historic range and leaves scope for further re-rating in the
medium term.

The interim management statement will be made available on the
Manager's website www.impax.co.uk

13 November 2009

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