Performance at month end

IMPAX ENVIRONMENTAL MARKETS plc

All information is at 31 March 2005 and unaudited

DATA AND PERFORMANCE


Data                            Pricing & Performance
                                                  IEM    MSCI  Impax
                                                  Net   World   ET50
Share Price                                      Asset
(pence)                    72.5                  Value
Total Fund Size        GBP 37.8 Pence (31.03.05)  75.6   n/a    n/a
(m)
Market                GBP 35.25 Premium/discount -4.1%
Capitalisation
Management fee             1.0%
Established         22 February      Performance
                           2002
Fund structure       Investment      1 month (%) -2.3%  -0.3%  -2.0%
                          Trust
Number of stocks             64     3 Months (%) -1.0%  +0.0%  -1.1%
held
Exchange                 London       1 year (%) +13.0% +5.7%  +5.1%
Currency                    GBP       2 year (%) +61.0% +28.6% +36.1%
ISIN Number        GB0031232498 Year to date (%) -1.0%  +0.0%  -1.1%
Sedol                   3123249
Reuters RIC Code          IEM.L
Bloomberg Code           IEM LN


TOP TEN HOLDINGS


Company             Holding %   Description                  Country
Itron                     4.3   Meters & software            US
Kurita Water              3.3   Water treatment              Japan
RPS Group                 3.2   Environmental consulting     UK
Casella Waste             3.1   Waste disposal & recycling   US
Vestas Wind Systems       2.9   Wind                         Denmark
BWT                       2.5   Water treatment              Austria
Quantum Fuel              2.5   Fuelcells & hydrogen         US
Zenon Environmental       2.5   Membranes                    Canada
Chloride                  2.1   Uninterruptible power supply UK
Horiba                    2.0   Env. testing & monitoring    Japan

              Total      28.4


PORTFOLIO ANALYSIS*


Geographical          Company Size
North America     50% >£500m         20%
Europe            41% £100-500m      60%
Rest of the World 9%  <£100m         20%

Sectoral              Profitability
Energy            38% Profitable     87%
Water             31% Pre-Profitable 13%
Waste             30%
Cash              1%
* of funds invested as of 31 March 2005














MANAGER'S COMMENTARY (March 2005)


The Company NAV was down 2.3% during the month compared with the MSCI
World Index which fell 0.3% and the Impax ET50, which decreased by
2.0%.  This reflected broad weakness in global stock markets due to
inflationary fears and concerns over interest rates.  The oil price
maintained its upward trend, with Brent Crude rising to over $55 per
barrel in the middle of the month.

Energy policy progressed in the US as the Senate passed a resolution
to allow drilling for oil in Alaska's Arctic National Wildlife
Reserve.  Paradoxically, this can be seen as positive news for the
alternative energy sector, as Alaska and MTBE have been the two major
sticking points in the passing of the Energy Bill, which includes
development funding and tax credits for the industry. In Europe, the
Gothenburg protocol on air pollution was ratified by Portugal, which
means that it will come into effect on 16 May.  The protocol sets
limits on noxious emissions and coincides with the publication of a
European Commission investigation, which finds that emerging
technologies may contribute to "more than a 5% reduction" in
emissions.  The interest in Environmental Markets IPOs remains strong
with the listing of Conergy (solar integrator and distributor) in
Frankfurt which raised EUR 243m and was 29 times oversubscribed - we
remain concerned about both the valuation of the company and its
dependence on the heavily-subsidised German market.  As expected,
2005 looks set to be a high growth year for the wind sector with both
Vestas and Gamesa receiving several large orders from North America,
UK and Japan - while growth remains strong, the main uncertainty
remains the margin level for the business.

Itron was once again one of the strongest performers (+11%) as
Progress Energy announced a deal to install $140m of automated
meters, consistent with the company's view that utility spending in
the US is increasing.  In Europe, Chloride's share price rose 12%
after a positive trading update and news that the company will focus
on the higher margin uninterruptible power supply (UPS) business.
Séché Environnement (waste management, France) also gained 12% after
raising margin guidance.  On the downside, the North American water
stocks (eg Cuno) have generally been weaker than the rest of the
market, which we believe presents a buying opportunity.  Also,
companies offering products to the automotive industry have
underperformed following a profit warning from General Motors -
Quantum Fuel fell 14% and First Technology (sensors, UK) was down
12%.  Cost cutting is undoubtedly ongoing in the North American
automotive sector but we believe that, in order to compete, spending
will be maintained in key areas of innovation such as clean engines,
power electronics, energy efficiency and emissions control which are
the focus of the IEM holdings exposed to this sector.  Finally,
Tetratech (environmental consulting, US) fell 24% after reporting a
larger than expected loss due to weakness in its non-core
communications arm.

During the month we have participated in the IPO of Fonebak (mobile
phone recycling, UK) and the issue of convertible securities in Turbo
Genset (distributed generation & power electronics, Canada).  We have
taken profits on Abengoa (biofuels, Spain).


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

13 April 2005


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