Net Asset Value(s)

IMPAX ENVIRONMENTAL MARKETS plc

All information is at 31 July 2007 and unaudited.

DATA AND PERFORMANCE


Data                          Pricing & Performance
                                                    IEM  MSCI  Impax
                                                    Net  World  ET50
Share price                                        Asset
(pence)                 129.3                      Value
Warrants (pence)         48.0
Total fund size     GBP 276.5  Diluted NAV (pence) 124.6  n/a   n/a
(m)
Market              GBP 281.1 Premium/discount (%) +3.7
capitalisation
(m)
Management fee            1.0        Undiluted NAV 127.2
(%)                                        (pence)
Established       22 February         Performance*
                         2002
Fund structure     Investment          1 month (%) -1.7  -3.5   +1.1
                        Trust
Number of stocks           83         3 months (%) +3.9  -2.3  +11.2
held
Exchange               London           1 year (%) +28.7 +8.4  +51.8
Currency                  GBP          3 years (%) +93.5 +36.4 +114.0
ISIN number      GB0031232498          5 years (%) +94.6 +44.9 +90.8
Sedol                 3123249         Since launch +29.5 +16.5 +39.2
                                  (22/02/2002) (%)
Reuters RIC code        IEM.L
                              * Performance data is for undiluted
Bloomberg code         IEM LN NAV.


TOP TEN HOLDINGS


Company        Holding %   Description                    Country
Itron                2.6   Meters & software              US
                           High efficiency electric
Regal Beloit         2.4   motors                         US
Grontmij             2.4   Environmental consulting       Netherlands
Ormat                2.2   Geothermal                     Israel / US
Tomra                2.2   Reverse vending machines       Norway
Chloride Group       2.2   UPS systems                    UK
Gamesa               2.1   Wind                           Spain
Vestas Wind
Systems              2.0   Wind                           Denmark
Abengoa              2.0   Bioethanol & recycling         Spain
Mayr Melnhof
Karton               2.0   Recycled packaging             Austria

Total               22.1


PORTFOLIO ANALYSIS*


Geographical          Company Size
North America     40% >£1bn          25%
Europe            50% £100-1bn       65%
Rest of the World 10% <£100m         10%

Sectoral              Profitability
Energy            43% Profitable     91%
Water             26% Pre-Profitable 9%
Waste             31%
* of funds invested as of 31 July 2007













MANAGER'S COMMENTARY (July 2007)


The Company was down 1.7% over the month compared with the MSCI
World, which fell 3.5%, and the Impax ET50, which increased by 1.1%
over the same period.  In the broader markets, Financials were the
worst performing sectors, owing to concerns over the US sub-prime
credit market, with Energy Equipment & Services bucking the trend as
the price of crude oil rose to US$78 per bbl.

During the month, the Chinese government announced that it would be
allocating a further US$ 1.3 billion to energy conservation and
carbon emission reduction programmes for 2007, in addition to the US$
1.5 billion already financed by the state.  Key measures include
optimising power plants and energy saving for buildings.  In 2006,
China overtook the United States as the largest emitter of carbon
dioxide, according to the Netherlands Environmental Assessment
Agency.

Elsewhere, statements from the Spanish Government have created
uncertainty in the solar sector.  The current incentive program in
Spain targets 371 MW of installed capacity.  However, strong investor
interest has led to a backlog of over 1 GW of projects, which could
cost up to ¤900 million per year in feed-in tariffs.  The fate of the
backlog hangs in the balance, with the government expected to publish
an updated proposal in September.  A negative response in this
important market could prove negative to sentiment and forecasts for
solar companies.

In the water sector, following severe floods in the north-east of
England at the end of June, areas in the south-west of England
succumbed to the worst floods in 60 years in July.  Meanwhile, amidst
continued flooding in Kansas and Missouri in the US, Southern
California suffered its lowest level of rainfall since records began
in 1880s.  Increasing levels of flooding and droughts worldwide
should focus more attention on stormwater management and water
conservation and sourcing issues, which should benefit portfolio
companies.

Stocks that contributed to the decrease in the Company's NAV during
July included Tomra (reverse vending machines, Norway), which fell
12% on lower profits resulting from lower demand in Germany.  Lassila
& Tikanoja (waste disposal and recycling, Finland) also fell 11%
after a profit warning.  On the upside, Badger (water metering, US)
rose 19% after winning a large contract for the city of Chicago, and
LKQ (automotive recycling, US) gained 15% following the strategic
acquisition of Keystone Automotive Industries.


Latest information available at:


http://www.impax.co.uk/impax/funds/listed_funds/environmental_plc/

22 August 2007

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