Interim Results

Impax Environmental Markets PLC
12 September 2002





Impax Environmental Markets plc



Interim results for the period from 7 January 2002 to 30 June 2002




CHAIRMAN'S STATEMENT



First, I would like to start by welcoming all shareholders and thanking them for their support in launching Impax
Environmental Markets plc ('IEM' or 'the Company').



Since the launch of the Company on 22 February this year, global equity markets have dropped sharply.  The share prices
of companies operating in environmental markets have been affected by this general market malaise, and consequently the
net asset value ('NAV') of IEM has also fallen. Nevertheless, as detailed below, recent developments in environmental
markets have been broadly positive, and we remain optimistic about the long-term prospects for the Company.



During the period from the Company's launch to 30 June 2002, the MSCI World Index (priced in Pounds Sterling) fell 11%,
while the NASDAQ fell 21%.  Over the period, the Company's NAV initially rose to over 105.2p before falling back to
81.2p, a net fall of 17.3% from the NAV at launch (98.25p).  In parallel, the Company's share price also rose before
falling to 78.5p on 30 June 2002.  As has been widely reported, concerns particularly in the United States over equity
prices in the light of a weakening economy and about the reliability of company accounts have risen significantly.  In
response, markets have been very weak.  The portfolio has also been affected by its exposure to smaller innovative
companies with poor liquidity (some of which are quoted on NASDAQ) and companies operating in the US power equipment
and industrial markets which have not performed as well as global indices.



Despite the falls in equity markets, there have been many positive developments in environmental markets over recent
months which reinforce the investment hypothesis that the falling costs of environmental technology, market
liberalisation, and tightening environmental policy are continuing to drive the progress of environmental companies in
the medium to long term.  The fundamentals for companies active in alternative energy, water treatment, and waste
technologies remain robust.



In the short-term prospects for equity markets remain uncertain.   Indeed, by 31 August, the Company's NAV had fallen
further to 62.5p (down 23%) and the share price had dropped to 60p compared with the MSCI World Index which fell 9.8%
during the same period.  If stock markets continue to weaken, pressure on certain institutional investors to reduce
their exposure to equities may increase, and the Company's portfolio is unlikely to escape these effects.
Nevertheless, environmental markets are in part shaped by government initiatives that are independent of the economic
cycle, and we believe that the Company is well positioned to realise growth over the longer term.









Richard Bernays

12 September 2002










STATEMENT OF TOTAL RETURN

(incorporating the profit and loss account*)


                                                                          7 January    7 January    7 January
                                                                                  to           to           to
                                                                        30 June 2002 30 June 2002 30 June 2002
                                                                             Revenue      Capital        Total
                                                                               £'000        £'000        £'000

Losses on investments                                                              -      (8,398)      (8,398)

Income                                                                           234            -          234

Investment management fees                                                      (40)        (118)        (158)
Other expenses                                                                  (87)            -         (87)

Return on ordinary
activities before tax                                                            107      (8,516)      (8,409)

Taxation                                                                        (13)            -         (13)

Return after taxation                                                             94      (8,516)      (8,422)

Dividends                                                                          -            -            -

Transfers to/(from) reserves                                                      94      (8,516)      (8,422)

Return per Ordinary Share                                                      0.19p     (17.03)p     (16.84)p




* The revenue column of the statement of total return is the profit and loss account of the Company.



All capital and revenue items in the above statement derive from continuing operations.  No operations were acquired or
discontinued during the period.



Return per Ordinary Share for the period 7 January 2002 to 30 June 2002 is based on 50,000,000 Ordinary Shares in issue
since the launch of the Company.



There are no comparatives as this is the Company's first period of operations.  The Company was incorporated on 7
January 2002 and commenced operations on 22 February 2002.






BALANCE SHEET


                                                                                                At 30 June
                                                                                                      2002
                                                                                                     £'000

     Fixed assets
     Investments at market value                                                                    39,905

     Current assets
     Sales for future settlement                                                                        82
     Other debtors                                                                                      33
     Cash at bank and in hand                                                                          726
                                                                                                       841

     Current liabilities
     Accrued liabilities                                                                                43

     Net current assets                                                                                798

     Total net assets                                                                               40,703

     Capital and reserves
     Share capital                                                                                   5,000
     Share premium                                                                                  44,125
     Capital reserves                                                                              (8,516)
     Revenue reserve                                                                                    94
     Equity shareholders' funds                                                                     40,703


     Net asset value per share                                                                      81.22p


     Net asset value per share including current period revenue reserves                            81.41p
     Net asset value per share excluding current period revenue reserves                            81.22p
     No. of Ordinary Shares in issue                                                            50,000,000





CASH FLOW STATEMENT


                                                                                    7 January
                                                                                   to 30 June
                                                                                         2002
                                                                                        £'000


Operating activities
Net cash outflow from operating  activities                                              (14)

Financial investment
Payments to acquire fixed asset investments                                          (52,706)
Receipts on disposal of fixed asset investments                                         4,482
Exchange loss                                                                           (161)


Net cash outflow from investing activities                                           (48,385)

Net cash outflow before financing                                                    (48,399)

Financing
Expenses of issue of share capital                                                      (875)
Share placement                                                                        50,000
Net cash inflow from financing                                                         49,125

Increase in cash                                                                          726



NOTES



Net assets per share
Net assets per share is based on the number of ordinary shares in issue at the end of the period.


Dividend
The directors do not recommend an interim dividend.



Investment company status
The Company is incorporated in England and Wales.  The Company has given notice of its intention
to carry on business as an investment company and it manages its affairs to enable it to qualify
as an investment trust for taxation purposes under section 842 of the Income and Corporation
Taxes Act.  The Company therefore presents its accounts in accordance with the Statement of
Recommended Practice for Investment Trust Companies, with the Statement of Total Return as its
first primary statement.



Status of this report
These financial statements are not the Company's statutory accounts.  They are unaudited.  The
interim report will be sent to shareholders and copies will be made available to the public at
the office of the Secretary of the Company.




SECRETARY, ADMINISTRATOR AND
REGISTERED OFFICE
Cavendish Administration Limited
Crusader House
145-157 St. John Street
London EC1V 4RU








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