Performance at month end

IMPAX ENVIRONMENTAL MARKETS plc

All information is at 31 March 2007 and unaudited.

DATA AND PERFORMANCE


Data                          Pricing & Performance
                                                    IEM   MSCI  Impax
                                                    Net   World ET50
Share price                                        Asset
(pence)                   119                      Value
Warrants (pence)         42.0
Total fund size     GBP 236.5  Diluted NAV (pence) 116.08  n/a   n/a
(m)
Market              GBP 238.4 Premium/discount (%)  +2.5
capitalisation
(m)
Management fee            1.0        Undiluted NAV 118.08
(%)                                        (pence)
Established       22 February         Performance*
                         2002
Fund structure     Investment          1 month (%)  +2.1  +1.5  +5.8
                        Trust
Number of stocks           82         3 months (%)  +5.6  +1.8  +10.7
held
Exchange               London           1 year (%)  +5.3  +0.3  +4.1
Currency                  GBP          3 years (%) +75.1  +34.0 +72.4
ISIN number      GB0031232498          5 years (%) +12.3  +9.5  +4.3
Sedol                 3123249         Since launch +20.2  +16.7 +17.0
                                  (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                     3.0   Meters & software             US
LKQ Corp                  2.7   Automotive recycling          US
Chloride Group            2.4   UPS systems                   UK
                                High efficiency electric
Regal Beloit              2.3   motors                        US
Vestas Wind Systems       2.3   Wind                          Denmark
Gamesa                    2.2   Wind                          Spain
Tomra                     2.1   Reverse vending machines      Norway
Abengoa                   2.1   Bioethanol & recycling        Spain
Vacon                     1.9   Power electronics             Finland
Kurita Water              1.9   Water treatment               Japan

Total                    22.9


PORTFOLIO ANALYSIS*


Geographical          Company Size
North America     41% >£500m         56%
Europe            52% £100-500m      30%
Rest of the World 9%  <£100m         13%

Sectoral              Profitability
Energy            40% Profitable     91%
Water             27% Pre-Profitable 9%
Waste             33%
* of funds invested as of 31 March 2007













MANAGER'S COMMENTARY (March 2007)


The Company NAV was up 2.1% over the month compared with the MSCI
World, which rose by 1.5%, and the Impax ET50, which increased by
5.8% over the same period.  In the broader markets, Autos and
Chemicals were the best performing sectors, with Healthcare and
Telecoms underperforming.

During the month, the UK government published a draft Climate Change
Bill, the first of its kind to limit greenhouse gases by law.  Under
the bill, the UK's targets of a 26-32% reduction by 2020 and a 60%
reduction by 2050 will become legally binding, with a series of five
year "carbon budgets" to provide short term targets and to ensure
that the government is held to account.  A new statutory body, the
Committee on Climate Change, will provide the UK government with
independent advice and guidance on achieving its targets and adhering
to carbon budgets.

In the water sector the US House of Representatives passed the Water
Quality Financing Act of 2007, which will authorize the Environmental
Protection Agency's Clean Water State Revolving Fund to the tune of
$14 billion for the next four years.  The bill is intended to improve
wastewater utility infrastructure, which the EPA, the Government
Accountability Office, and the Water Infrastructure Network estimate
will require funding of $300-$500 billion over 20 years.  Two other
bills, the $1.7 billion Water Quality Investment Act of 2007 and the
$125 million Healthy Communities Water Supply Act, were also passed
targeting improvements in combined sewer overflows and projects
designed to investigate alternative water sources.

In the waste sector the US EPA proposed to modify the definition of
solid waste rule to streamline regulation of hazardous secondary
materials.  The proposed rule would provide for the recycling of such
materials as solvents and metals, saving $107 million a year from the
reduced regulatory burden and increased level of recycling.  In the
UK, Chancellor Gordon Brown raised the standard rate of landfill tax
by £8 a tonne to £32 from April 2008.  The tax will continue to rise
by £8 a tonne each year to 2010-11, further encouraging the adoption
of advanced waste and recycling technologies.

Stocks that contributed to the increase in the Company's NAV during
March included wind turbine manufactures Gamesa (Spain) and Vestas
(Denmark), up 25% and 19% respectively on the back of the bidding war
between Suzlon and Areva for Repower.  Tanfield (electric vehicles
and powered access, UK) also gained 24% on anticipation of further
orders for its zero emission delivery vehicles.  On the downside,
Verbio (biofuels, Germany) underperformed following a profit warning
attributed to rising feedstock costs, the scrapping of a tax credit
on B100 biodiesel, and pricing pressure caused by cheap Brazilian
ethanol flows into Europe.


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

24 April 2007

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