Performance at month end

IMPAX ENVIRONMENTAL MARKETS plc

All information is at 31 October 2007 and unaudited.

DATA AND PERFORMANCE


Data                          Pricing & Performance
                                                   IEM   MSCI  Impax
                                                   Net   World  ET50
Share price                                       Asset
(pence)                 133.0                     Value
Warrants (pence)         44.3
Total fund size     GBP 289.3 Diluted NAV (pence) 132.7   n/a   n/a
(m)
Market              GBP 289.2    Premium/discount  +2.6
capitalisation                                (%)
(m)
Management fee            1.0       Undiluted NAV 129.6
(%)                                       (pence)
Established       22 February        Performance*
                         2002
Fund structure     Investment         1 month (%)  +5.7  +1.0   +8.5
                        Trust
Number of stocks           86        3 months (%)  +4.4  +5.1  +17.1
held
Exchange               London          1 year (%) +27.3  +8.6  +65.5
Currency                  GBP         3 years (%) +87.2  +38.3 +142.9
ISIN number      GB0031232498         5 years (%) +140.7 +60.0 +168.0
Sedol                 3123249        Since launch +35.1  +22.4 +63.1
                                 (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
Chloride Group            2.8   UPS systems               UK
Itron                     2.6   Meters & software         US
Ormat                     2.6   Geothermal                Israel / US
Vestas Wind Systems       2.5   Wind                      Denmark
Gamesa                    2.4   Wind                      Spain
                                High efficiency electric
Regal Beloit              2.2   motors                    US
Stantec                   2.2   Environmental consulting  Canada
Mayr Melnhof Karton       2.1   Recycled packaging        Austria
Vacon                     2.0   Power electronics         Finland
Canadian Hydro
Developers                2.0   Renewable energy IPP      Canada

Total                    23.3


PORTFOLIO ANALYSIS*


Geographical           Company Size
North America      43% >£1bn          43%
Europe             49% £100-1bn       44%
Rest of the World  8%  <£100m         13%

Sectoral               Profitability
Energy             42% Profitable     92%
Water              27% Pre-Profitable 8%
Waste              31%
* of funds invested as of 31 October 2007













MANAGER'S COMMENTARY (October 2007)


The Company NAV was up 5.7% over the month compared with the MSCI
World, which rose by 1.0%, and the Impax ET50 which rose by 8.5% over
the same period. In the broader markets Energy Equipment & Services
remained the strongest performing sector as crude oil edged towards
US$100 per b.b.l.  The MSCI World Small Cap rallied over the month,
rising 2.8% and contributing to the Company's improved performance in
comparison to September.

During the month, a US House of Representatives committee signed-off
on two bills allocating $1.5 billion for investment in energy storage
and energy efficiency research, while the full House passed a
resolution setting a goal to expand renewable energy production in
the US to 25% by 2025.  Elsewhere, the New Zealand government
published proposals to raise renewable generation to 90% of the
overall electricity mix by 2030.  In France, President Sarkozy
promised a 'green revolution', committing ¤1bn in funding for clean
energy over the next four years, with a view to reaching 20%
renewables by 2020.

In the water treatment and pollution control sector, the EU
Integrated Pollution Prevention Control Directive entered into full
force at the end of the month. The Directive aims to reduce emissions
to air, water and land from industrial installations - including
metals, minerals, chemicals, paper, textiles, farming, oil
refineries, and waste management. It is estimated that thousands of
installations have yet to comply with legislation, underscoring the
large investment requirement and business opportunity for monitoring
and treatment technologies within the EU.

In the waste sector, the UK saw two new rules come into force at the
end of the month in line with EU landfill requirements. Liquid wastes
have been banned from landfill, and solid, non-hazardous wastes now
have to be treated before disposal. Plans to give councils powers to
introduce financial incentives for recycling were also confirmed.

October was another good month for alternative energy and energy
efficiency stocks. Wind companies continued to perform on strong
outlook for volume growth, with Gamesa rising more than 20%.  LED
companies also performed well, with Aixtron (Germany) gaining 18% on
the back of strong results, significant new orders and acquisition
activity.  On the downside, the continued negative outlook for the US
housing and construction sector affected stocks with exposure to
water infrastructure such as Mueller Water (water treatment, US).


Latest information available at:


http://www.impax.co.uk/impax/funds/listed_funds/environmental_plc/

26 November 2007

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