Performance at month end

Impax Environmental Markets PLC
13 June 2002


IMPAX ENVIRONMENTAL MARKETS plc

All information is at 31 May 2002 and unaudited

DATA AND PERFORMANCE

Data                                            Pricing & Performance

Total Fund Size (m)                    GBP 46.6                          Net Asset Value     Ord. Share Price

Management fee                             1.0%          Pence (31/5/02)        93.23               97.0

Established                    22 February 2002

Fund structure                 Investment Trust              Performance

Number of stocks held                        40              1 month (%)        -7.2%               -5.6%

Exchange                                 London             3 Months (%)         na                 -3.0%

Currency                                    GBP               1 year (%)         na                  na

ISIN Number                        GB0031232498         Since launch (%)        -6.8%               -3.0%

Sedol                                   3123249

Reuters RIC Code                          IEM.L

Bloomberg Code                           IEM LN


TOP TEN HOLDINGS

Company                               Holding %           Description                Country

Vestas Windsystems                          9.2           Wind                       Denmark

Vivendi Environnement                       7.4           Water & Waste              France

Ballard Power                               5.5           Fuel Cells                 Canada

Astropower                                  4.8           Solar                      US

Nordex                                      4.4           Wind                       Germany

FuelCell Energy                             3.6           Fuel Cells                 US

Insituform                                  3.6           Water                      US

BWT                                         3.2           Water                      Austria

NEG Micon                                   3.2           Wind                       Denmark

Tomra Systems                               3.2           Waste                      Norway

                      Total                48.1

PORTFOLIO ANALYSIS

Portfolio Analysis- Geographical*       Portfolio Analysis- Company Size*        Portfolio Analysis - Sectoral

North America                 46%       >£500m                     39%           Energy                50%

Europe                        49%       £100-500m                  54%           Water                 29%

Rest of the World             5%        <£100m                     7%            Waste                 19%

                                                                                 Cash                  2%
* of funds invested as of 31 May 02

MANAGER'S COMMENTARY

During the month of May, the Company NAV fell 7.2% compared with the MSCI World Index which fell 0.5% and the
Impax ET50 which fell 5.2%. It has been a quiet month for newsflow from Environmental Markets companies which
partly explains the weak share price performance. Nevertheless, as shown below, there have been a number of
positive developments in the energy, water and waste sectors.


In the renewable energy sector, Gamesa (wind, Spain) gave more details of its plans to become a global wind
turbine manufacturer following the split with Vestas at the end of 2001. In addition to the impending IPO of the
aeronautics business, the company announced a joint venture with Navitas to develop wind farms in the US using
Gamesa turbines while also confirming that they will be selling up to 1000 MW of wind farm assets in Spain in
order to reduce debt. Also in the wind sector, General Electric completed the acquisition of Enron Wind for
US$300m making GE the fourth largest global turbine manufacturer. Meanwhile in the photovoltaic (PV) industry,
the German chemicals company Degussa announced a joint venture with Solarworld (solar, Germany) to produce solar
grade silicon for PV manufacturing.


Japan is emerging as an early market for fuel cells as the Japanese industry, transport and environment
ministries have all called for policies to accelerate the introduction of the technology for stationary and
mobile applications. At the same time both Toyota and Honda have indicated that they will be developing
substantial fuel cell production facilities to meet the demand. Also this month, Honda and Plug Power (fuel
cells, US) announced an agreement to develop residential fuel cells that can be used to refuel hydrogen
vehicles.


In the water sector, Ionics (water, US) began development of a 70 million gallon per day ultrafiltration
facility to serve the City of Minneapolis. The new plant, which is expected to be operational in 2004, will be
the largest ultrafiltration treatment plant in the United States and one of the largest membrane filtration
plants in the world. North of the border, Trojan Technologies (water, Canada) was selected to provide
ultraviolet technology systems to four municipalities in China with a combined capacity to treat 64 million
gallons of water per day. Also in Canada, the release of the second report from the Walkerton Inquiry (a public
inquiry into the E.Coli contamination of the water supply in Walkerton, Ontario) endorsed the application of
multi-barrier technology approach to water treatment and a focus away from the use of chlorination as a means of
combating Cryptosporidium infection.


In the waste sector this month the sale of Safety-Kleen's Chemical Services Division, representing the largest
hazardous waste disposal assets in North America has been in focus. The interested parties include Clean Harbors
Inc. (waste, US), Newalta (waste, Canada) and Onyx North America Corp, a subsidiary of Vivendi Environnement
(water and waste, France).

Latest information available at: www.impax.co.uk/asset/iemper.htm

13 June 2002

                      This information is provided by RNS
            The company news service from the London Stock Exchange