Performance at month end

IMPAX ENVIRONMENTAL MARKETS plc

All information is at 29 February 2008 (unless otherwise stated) and
unaudited.

DATA AND PERFORMANCE


Data                          Pricing & Performance
                                                   IEM   MSCI  Impax
                                                   Net   World  ET50
Share price                                       Asset
(pence)                 121.3                     Value
Warrants (pence)         43.0
Total fund size     GBP 365.3 Diluted NAV (pence) 119.2   n/a   n/a
(m)
Market              GBP 367.1    Premium/discount  +1.8
capitalisation                                (%)
(m)
Management fee            1.0       Undiluted NAV 120.7
(%)                                       (pence)
Established       22 February        Performance*
                         2002
Fund structure     Investment         1 month (%)  +5.8  -0.8   +1.2
                        Trust
Number of stocks           94        3 months (%)  -2.6  -6.6  -11.9
held
Exchange               London          1 year (%)  +4.4  -3.8  +30.2
Currency                  GBP         3 years (%) +55.8  +19.7 +97.9
ISIN number      GB0031232498         5 years (%) +148.3 +53.1 +172.9
Sedol                 3123249        Since launch +22.9  +10.6 +44.1
                                 (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
Itron                     2.4   Meters & software         US
Ormat                     2.2   Geothermal                Israel / US
Clean Harbors             2.2   Hazardous waste           US
                                High efficiency electric
Regal Beloit              2.2   motors                    US
Transpacific              2.1   Waste management          Australia
Abengoa                   2.1   Bioethanol & recycling    Spain
Gamesa                    2.0   Wind                      Spain
Mayr Melnhof Karton       2.0   Recycled packaging        Austria
Pall Corp                 2.0   Filtration                US
                                Waste to energy
Covanta                   2.0   incineration              US

Total                    21.2


PORTFOLIO ANALYSIS*


+------------------------------------------------+
| Geographical            | Company Size         |
|-------------------------+----------------------|
| North America     | 45% | >£1bn          | 38% |
|-------------------+-----+----------------+-----|
| Europe            | 46% | £100-1bn       | 51% |
|-------------------+-----+----------------+-----|
| Rest of the World | 9%  | <£100m         | 11% |
|-------------------------+----------------+-----|
|                         |                |     |
|-------------------------+----------------------|
| Sectoral                | Profitability        |
|-------------------------+----------------------|
| Energy            | 41% | Profitable     | 95% |
|-------------------+-----+----------------+-----|
| Water             | 27% | Pre-Profitable | 5%  |
|-------------------+-----+----------------+-----|
| Waste             | 32% |                |     |
|------------------------------------------------|
| * of funds invested as of 29 February 2008     |
+------------------------------------------------+













MANAGER'S COMMENTARY (February 2008)


+-------------------------------------------------------------------+
| The Company NAV was up 5.8% over the month compared with the MSCI |
| World, which declined by 0.8%, and the Impax ET50 which rose by   |
| 1.2% over the same period.  February continued to be a turbulent  |
| month in financial markets and the wider global economy. The US   |
| Dollar hit a new low against the Euro, and the Bank of England    |
| slashed rates to 5.25% - its second cut in nine weeks. Commodity  |
| markets continued to soar, for example coal prices rose as        |
| snowstorms in China cut exports.                                  |
|                                                                   |
| In alternative energy and energy efficiency, favourable momentum  |
| for renewables and cap-and-trade legislation continued to grow in |
| the US as the last major candidate to oppose a mandatory GHG      |
| cap-and-trade bill suspended his campaign. All remaining          |
| candidates on both sides of the political fence endorse such a    |
| mechanism, and are positive on renewable energy. Also in the US,  |
| attention remained focused on the issue of tax credits for        |
| renewable energy, with renewed efforts to pass legislation.       |
| Although these efforts failed to garner support in the Senate,    |
| due to the issue of rescinding tax breaks for the oil and gas     |
| industry to pay for the credits, the continuing focus on the      |
| debate is encouraging and it remains highly likely that the       |
| credits will be renewed in 1H2008.                                |
|                                                                   |
| In water treatment and pollution control, the UK government       |
| announced plans for a review into domestic water charging, which  |
| could lead to compulsory meters in areas of 'serious water        |
| stress' by 2030. Complimentary options to reduce water usage      |
| include efficiency technology and tariffs. Commitments were also  |
| made to remove harmful phosphate chemicals from domestic laundry  |
| cleaning products, with a phase-out target of 2015. In China, the |
| State Environmental Protection Agency announced aims to cut       |
| sulphur dioxide emissions by 6% in 2008, and upgrade wastewater   |
| treatment capacity by 12m tonnes.                                 |
|                                                                   |
| In waste technologies and resource management, the Spanish        |
| government approved a law introducing producer responsibility for |
| building and demolition waste in response to the recent           |
| construction boom. Currently only 5% of construction waste is     |
| recycled; under the new law contractors will have to make plans   |
| to minimise waste generation and separate waste to facilitate     |
| recycling.                                                        |
|                                                                   |
| Stocks that contributed to performance included Itron, up 16%     |
| following the announcement of solid results for 2007, and         |
| Transpacific Industries, up 32% on recovery from previous         |
| disappointing performance, and following strong results and a     |
| strong cash flow position. On the downside, in the waste sector,  |
| deratings hit both Stericycle (hazardous waste, US) and Seche     |
| (waste management, France), down 9% and 14% respectively.  Seche  |
| was also impacted upon by continuing uncertainty regarding the    |
| completion of an M&A deal.                                        |
+-------------------------------------------------------------------+


Latest information available at:


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

28 March 2008

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