Performance at month end

IMPAX ENVIRONMENTAL MARKETS plc

All information is at 31 March 2006 and unaudited

DATA AND PERFORMANCE


Data                         Pricing & Performance
                                                   IEM   MSCI  Impax
                                                   Net   World  ET50
Share Price                                       Asset
(pence)                116.1                      Value
Total Fund Size    GBP 143.1     Diluted (pence)  109.7   n/a   n/a
(m)
Market             GBP 148.2    Premium/discount  +5.9
Capitalisation                               (%)
(m)
Management fee           1.0   Undiluted (pence)  112.2
(%)
Established      22 February         Performance
                        2002
Fund structure    Investment         1 month (%)  +5.1   +2.9   +5.6
                       Trust
Number of                 73        3 Months (%)  +21.2  +5.1  +26.4
stocks held
Exchange              London          1 year (%)  +46.9  +26.3 +57.6
Currency                 GBP          3 year (%) +136.7  +62.5 +114.6
ISIN Number     GB0031232498    Year to date (%)  +21.2  +5.1  +26.4
Sedol                3123249
Reuters RIC            IEM.L NB1 Performance data is for undiluted
Code                         NAV.
                             NB2 To comply with guidelines issued by
                             the AITC, portfolio valuation moved to
Bloomberg Code        IEM LN bid from mid price with effect from 31
                             December 2005.


TOP TEN HOLDINGS


Company             Holding %   Description                   Country
Itron                     2.8   Meters & software             US
                                High efficiency electric
Regal Beloit              2.5   motors                        US
Vestas Wind Systems       2.4   Wind                          Denmark
LKQ                       2.4   Automotive recycling          US
Canadian Hydro            2.3   Renewable energy IPP          Canada
Esco Tech                 2.3   Filtration & meters           US
Kurita Water              2.2   Water treatment               Japan
Gamesa                    2.2   Wind                          Spain
Chloride Group            2.2   UPS systems                   UK
Pall Corp                 2.0   Filtration                    US

Total                    23.3


PORTFOLIO ANALYSIS*


Geographical          Company Size
North America     49% >£500m         44%
Europe            44% £100-500m      40%
Rest of the World 7%  <£100m         16%

Sectoral              Profitability
Energy            41% Profitable     88%
Water             27% Pre-Profitable 12%
Waste             30%
Cash              2%
* of funds invested as of 31 March 2006














MANAGER'S COMMENTARY (March 2006)


The Company NAV was up 5.1% over the month compared with the MSCI
World, which gained 2.9% and the Impax ET50, which rose 5.6% over the
same period.  After showing weakness in February, energy services and
equipment was again the best performing equity market sector,
followed by resources.  Utilities was the only sector to fall.

During the month Folkestone and Dover Water Services, a utility in
southeast England, gained permission for compulsory water metering.
This was soon followed by a hosepipe ban across most of the
southeast, which is suffering its most serious drought in 100 years,
with little rain falling over the region since November 2004.  In the
energy sector, EU member states approved plans to establish a
European energy strategy, which aims to liberalise energy markets,
improve security of supply and open the energy markets to
competition. The plan also called for major investment in renewable
energy to reduce the EU's dependency on oil.  This coincided with a
draft proposal from the European Commission to raise the share of
renewables to 15 per cent of energy generated in the EU from a target
of 12% by 2010, and increase the proportion of biofuels used in
transport to 8% by 2015 from a target of 5.75% by 2010.  In the UK,
Chancellor Gordon Brown published the "Green Budget", which included
a new £1bn National Institute of Energy Technologies to develop low
carbon power sources, the first rise in the climate change levy on
business electricity bills, and a £50m micro renewables fund to
encourage homes to generate renewable energy. The Chancellor also set
out plans to install micro generation equipment (such as mini wind
turbines and solar panels) in 25,000 schools and hospitals over the
next two years.  Finally, at the corporate level, General Electric
announced the acquisition of Zenon Environmental (Canada), the global
leader in advanced membranes for water purification, wastewater
treatment and water reuse.  The $656 million deal, at a 55% premium
to Zenon's stock market value, is GE's seventh acquisition of a
company within environmental markets in recent years.  Also, within
the waste sector, Transpacific Industries agreed to buy Waste
Management New Zealand at a 24% premium to create the biggest waste
disposal company in Australia and New Zealand.

The main contributors to performance were Biopetrol (biodiesel,
Germany), which gained 31% on German plans to increase volumes of
biofuel blended with conventional fuels, and Christ Water (water
treatment, Austria) and Amiad Filtration (water filtration, Israel),
which increased by 44% and 39% on the back of the Zenon takeover.
Quantum (hydrogen systems, US) fell 21% on disappointing results and
ongoing difficulties in the US automotive sector.

During the month we increased our exposure to Ballard (fuel cells,
Canada), Regal Beloit (high efficiency electric motors, US), and
Hamworthy (onboard pollution control, Canada).


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

10 April 2006




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