Performance at month end

Impax Environmental Markets PLC
13 May 2003


IMPAX ENVIRONMENTAL MARKETS plc

All information is at 30 April 2003 and unaudited

DATA AND PERFORMANCE


Data                                      Pricing & Performance

Price (pence)                          41                         IEM            MSCI         Impax

                                                            Net Asset Value      World         ET50

Total Fund Size (m)              GBP 26.4  Pence (30/04/03)      52.72            n/a          n/a
Management fee                       1.0%
Established              22 February 2002       Performance
Fund structure           Investment Trust       1 month (%)      +11.2%          +7.4%       -+11.0%
Number of stocks                       51      3 Months (%)      +1.4%           +9.4%        +7.6%
held
Exchange                           London        1 year (%)      -47.8%         -23.4%        -45.0%
Currency                              GBP  Year to date (%)      -3.6%           +3.4%        +0.2%
ISIN Number                  GB0031232498
Sedol                             3123249
Reuters RIC Code                    IEM.L
Bloomberg Code                     IEM LN


TOP TEN HOLDINGS


Company                        Holding %      Description                  Country

Veolia Environnement                 6.1      Water & Waste                France
RPS Group                            4.8      Environmental Consulting     UK
Wedeco                               4.2      Water                        Germany
Casella Waste                        3.7      Waste Disposal & Recycling   US
BWT                                  3.6      Water                        Austria
Ionics                               3.4      Water                        US
Vestas Wind Systems                  3.2      Wind                         Denmark
Kurita Water                         3.1      Water Treatment              Japan
Insituform                           3.1      Sewer repair                 US
Waste Recycling Group                3.0      Waste Management             UK
                 Total              38.2



PORTFOLIO ANALYSIS*


Geographical                         Company Size
North America             44%        >£500m                  18%
Europe                    51%        £100-500m               57%
Rest of the World          5%        <£100m                  25%

Sectoral                             Profitability
Energy                    25%        Profitable              89%
Water                     37%        Pre-Profitable          11%
Waste                     33%
Cash                       5%

* of funds invested as of 30 April 2003



MANAGER'S COMMENTARY


The Company NAV increased 11.2% during the month compared with the MSCI World Index which rose 7.4% and an
increase of 11.0% in the Impax ET50. Environmental Markets performed well during the month with positive
developments in all of the sub sectors. The key developments are shown below.



In the alternative energy sector last month, Quantum Fuel Systems Technologies (hydrogen & fuel cells, US)
signed an agreement to acquire all of the outstanding shares of Global Thermoelectric (fuel cells, Canada). The
transaction will give Quantum a strengthened balance sheet and access to additional fuel-cell intellectual
property. Quantum also signed a marketing agreement with Sumitomo Corporation which should strengthen the
company's strategic position in Japan. GE Power Systems reported that its offer to purchase Jenbacher AG
(reciprocating engines, Austria) had been accepted with over 95% of the company's shareholders in favour of the
transaction. Jenbacher will now join the Aero Energy Products division of the GE Power Systems Business Unit.
The US Energy Bill was once again in focus as both the Senate Finance Committee and the House Ways and Means
Committee approved separate legislation to promote the use of alternative fuels and the implementation of energy
conservation measures.



In the wind sector, Gamesa (wind turbines, Spain) announced that it has entered into exclusive talks with Endesa
to acquire the latter's wind turbine manufacturing unit, MADE. The announcement comes in light of rumours that
Vestas Wind Systems (wind turbines, Denmark) were also in discussions to acquire the company. News from the
German wind industry was less positive with BWE, the German wind industry group, reporting that wind turbine
installations in Germany declined in the first quarter of 2003. The fall was attributed to delays in the
approval of new projects using larger turbines (>100m in height) that require special permits.



There was positive news in the water sector last month as Moody's upgraded Vivendi Environnement's (waste &
water, France) credit rating. The move was followed the next day by an approval from the company's shareholders
to change the Group's name to Veolia Environnement (VE). Also during the month, VE's subsidiary, USFilter,
announced that it has been awarded a turnkey contract for the construction of a zero liquid discharge water
treatment facility for Calpine Corporation's 600-MW Rocky Mountain Energy Center in Colorado. The water
treatment system will use multiple technologies to soften, recycle and purify the process water. Meanwhile,
Zenon Environmental (membranes, Canada) announced the award of a US$5 million membrane supply contract for a
power plant in Poland. Zenon's membranes are already used for purifying the boiler-feed water at the plant but
the new system will treat the wastewater and either discharge or reuse it as pre-treatment for boiler feed
water.



In the waste and resource management sector, the Environmental Audit Committee of the House of Commons published
its report entitled 'Waste - An Audit' during the month. The report highlights the scale of the waste problem
facing the UK and the inadequacy of current instruments to enable waste minimisation and diversion from
landfill. Recommendations such as further Landfill Tax increases should benefit the waste solution providers
such as Shanks (waste management, UK) and Waste Recycling Group (waste management, UK).  Mayr-Melnhof (recycled
packaging, Austria) reported strong year-end results amidst a challenging business environment although forward
expectations maybe influenced adversely by the SARS outbreak in South-East Asia. There was further positive news
from the US meter market as Barron's highlighted the strength of Esco Technologies' (filtration and meters, US)
Automated Meter Reading business and Itron (meters, US) reported strong first quarter results (up 20% year on
year).


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


13 May 2003


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