Performance at month end

Impax Environmental Markets PLC
11 November 2002

IMPAX ENVIRONMENTAL MARKETS plc



All information is at 31 October 2002 and unaudited



DATA AND PERFORMANCE


Data                                      Pricing & Performance
Share price (pence)                  43.0                         IEM            MSCI         Impax

                                                            Net Asset Value      World         ET50
Total Fund Size (m)               GBP27.6  Pence (31/10/02)       55.2            n/a          n/a
Management fee                       1.0%
Established              22 February 2002       Performance
Fund structure           Investment Trust       1 month (%)      +4.4%           +7.8%        +6.7%
Number of stocks                       48      3 Months (%)      -15.1%          -4.8%        -16.6%
held
Exchange                           London        1 year (%)        na           -22.0%        -45.4%
Currency                              GBP  Since launch (%)      -43.8%         -23.5%        -39.1%
ISIN Number                  GB0031232498
Sedol                             3123249
Reuters RIC Code                    IEM.L
Bloomberg Code                     IEM LN



TOP TEN HOLDINGS


Company                         Holding %     Description                Country
Vivendi Environnement                 6.2     Water & Waste              France
RPS Group                             5.0     Environmental Consulting   UK
Vestas Windsystems                    4.9     Wind                       Denmark
Tomra Systems                         4.9     Recycling                  Norway
Nordex                                3.8     Wind                       Germany
Ionics                                3.5     Water                      US
Insituform                            3.4     Sewer Repair               US
Technologies
Wedeco                                3.4     Water                      Germany
NEG Micon                             3.1     Wind                       Denmark
Kurita Water                          3.0     Water                      Japan
                 Total               41.2



PORTFOLIO ANALYSIS*


Geographical                         Company Size
North America             43%        >£500m                  25%
Europe                    51%        £100-500m               55%
Rest of the World          6%        <£100m                  20%

Sectoral                             Profitability
Energy                    33%        Profitable              85%
Water                     33%        Pre-Profitable          15%
Waste                     28%
Cash                       6%
* of funds invested as of 31 October 2002



MANAGER'S COMMENTARY


The Company NAV increased 4.4% in October compared with an increase of 7.8% in the MSCI World Index and the
Impax ET50 which rose 6.7%.  The direction of global equity markets continues to be the primary driver of
short-term movements in share prices for companies operating in Environmental Markets. There have been a number
of developments in the sector during the month and some of the highlights are shown below.



After much anticipation, no agreement was reached on the US Energy Bill before Congress closed for the mid-term
election for the Senate and House of Representatives.  The draft versions of the Bill all contained measures to
encourage renewable energy, biofuels and fuel cells; however the principal stumbling block appears to have been
the Democrats' refusal to accept drilling for oil in the Arctic National Wildlife Refuge. Whilst there remains a
chance that the work on the Bill will be completed when Congress returns on November 12 for a post-election
'lame-duck' session, it is now more likely that the Bill will be renegotiated when the new Congress reconvenes
in January 2003.



Alternative energy markets continue to show good growth.  The German Q3 wind market data for 2002 showed a YoY
increase of 39%, once again outstripping analysts' forecasts and there was also an endorsement of the potential
for combined heat and power (CHP) applications of microturbines as Capstone Turbine (microturbine CHP, US)
announced a joint venture with United Technologies. Meanwhile Shell Solar (a relatively new entrant to the
sector) estimated the current and ongoing growth rate for the solar market to be around 15% per year; this
level, while healthy, is somewhat lower than recent years and may have implications for Astropower
(photovoltaics, US).



In the water technology and pollution control sector last month, capital spending plans were in focus with the
release of a US Environmental Protection Agency (EPA) report entitled: 'The Clean Water & Drinking Water
Infrastructure Gap Analysis'. The report highlights the requirement for increased capital investment in water
treatment infrastructure in the US in order to meet the projected growth in demand for clean water and estimates
that between US$331bn and US$450bn needs to be invested in clean water infrastructure over the next 20 years.
This and concerns over security of clean water supply issues, which is an ongoing issue in North America, should
ultimately benefit the water technology companies active in the disinfection market such as Ionics (membranes,
US), Calgon Carbon (activated carbon, US) and Zenon Environmental (membranes, Canada). The growing market was
demonstrated by Trojan Technologies' (UV treatment, Canada) Q3 results which showed a 38% increase in revenues
YoY.



In the UK waste sector, there are signs of increasing Government intervention.  In the short term this has led
to increased costs for companies to meet regulatory requirements.  In the longer term, the Chancellor is
considering increasing landfill tax from the current £13/tonne to over £30/tonne which is likely to lead to a
preference for more 'integrated' waste recovery and disposal solutions. This should benefit Shanks (waste, UK),
Waste Recycling Group (waste, UK) and Energy Developments (waste, Australia).  In a similar vein, a European
Court of Justice judge has indicated that incineration should be considered as 'disposal' rather than a
'recovery' process.  If this trend feeds through into European waste legislation, this could favour integrated
waste solutions ahead of straight incineration.  Across in the US, the large quoted waste management companies
have reported steady volumes and prices, which should also be positive for smaller integrated waste solutions
companies such as Casella Waste (waste & recycling, US).



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



11 November 2002


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