Performance at month end

IMPAX ENVIRONMENTAL MARKETS plc

All information is at 30 June 2007 and unaudited.

DATA AND PERFORMANCE


Data                          Pricing & Performance
                                                     IEM  MSCI  Impax
                                                     Net  World ET50
Share price                                         Asset
(pence)                 129.3                       Value
Warrants (pence)         48.0
Total fund size     GBP 281.3   Diluted NAV (pence) 126.6  n/a   n/a
(m)
Market              GBP 281.0  Premium/discount (%) +2.1
capitalisation
(m)
Management fee            1.0 Undiluted NAV (pence) 129.4
(%)
Established       22 February          Performance*
                         2002
Fund structure     Investment           1 month (%) +1.1  -2.3  +3.3
                        Trust
Number of stocks           83          3 months (%) +9.6  +3.5  +17.7
held
Exchange               London            1 year (%) +25.6 +11.9 +40.6
Currency                  GBP           3 years (%) +87.4 +36.3 +98.1
ISIN number      GB0031232498           5 years (%) +59.4 +34.1 +55.0
Sedol                 3123249          Since launch +31.7 +20.7 +37.7
                                   (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                2.5   Meters & software              US
LKQ Corp             2.3   Automotive recycling           US
Tomra                2.3   Reverse vending machines       Norway
                           High efficiency electric
Regal Beloit         2.2   motors                         US
Chloride Group       2.1   UPS systems                    UK
Grontmij             2.0   Environmental consulting       Netherlands
Ormat                2.0   Geothermal                     Israel / US
Mayr Melnhof
Karton               2.0   Recycled packaging             Austria
Kingspan             2.0   Insulation products            Ireland
Mueller Water        1.9   Water treatment                US

Total               21.5


PORTFOLIO ANALYSIS*


Geographical          Company Size
North America     41% >£1bn          25%
Europe            49% £100-1bn       66%
Rest of the World 10% <£100m         9%

Sectoral              Profitability
Energy            42% Profitable     92%
Water             26% Pre-Profitable 8%
Waste             32%
* of funds invested as of 30 June 2007













MANAGER'S COMMENTARY (June 2007)


The Company NAV was up 1.1% over the month compared with the MSCI
World, which fell 2.3%, and the Impax ET50, which increased by 3.3%
over the same period.  In the broader markets, Energy Equipment &
Services and Energy were the best performing sectors, the latter
driven by the oil price at a 10 month high.  Utilities and Healthcare
were the two worst performing sectors.

During the month, the leaders of G8 countries issued a 37 page
announcement on climate change, committing to "substantial"
greenhouse gas cuts.  Whilst failing to set mandatory cuts in
emissions, the announcement marks the first time that the United
States has agreed to the goal of developing a new global accord on
climate change by 2009, which will take place under the UN
framework.  Later in the month the US senate passed the Clean Energy
Act, which includes efficiency targets, in addition to increased
vehicle fuel efficiency requirements and increased biofuels targets
of 36 billon gallons in 2022.  Energy efficiency is a growing theme
in the Company's portfolio.

In the water sector, the Chinese government raised drinking water
standards and established a national inspection network to monitor
quality, in the wake of algae outbreaks that have cut off water
supplies to millions of people.  The measures came into effect at the
beginning of July, and include 71 new standards, including limits on
microbe content, organic matter and disinfectants.  Earlier in the
month, a report by the State Environmental Protection Agency found
that the quality water in major urban centres had dropped by 7%,
citing 200 cities that were still without a centralised sewage
management system, and 187 without waste disposal plants.

In the waste sector, EU member states reached agreement on a revised
Waste Framework Directive, which will replace the 1975 Waste
Framework Directive, as well as the Hazardous Waste and Waste Oils
Directives.  Under the new Directive, the most efficient waste
incinerators will be reclassified from "disposal" to "recovery"
facilities, an upward step in the five stage hierarchy of
"prevention", "reuse", "recycling/composting", "recovery of energy by
incineration", and "landfill disposal".  The decision was criticised
by green pressure groups, but will simplify waste legislation and
afford member states more flexibility in their efforts to divert
waste from landfill.

Stocks that contributed to the increase in the Company's NAV during
June included Westport Innovations (clean diesel engines, Canada),
which climbed 64% on delivery of first vehicles to the Port of Los
Angeles Authority.  TSO3 (pollution control, Canada) and Telvent
(automated meter reading, Spain) gained 22% and 20% respectively on
additional unit sales and new contracts.  On the downside Esco
(filtration & meters, US) retreated 28% on project delays and analyst
downgrades.


Latest information available at:


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

2 August 2007

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