Performance at month end

IMPAX ENVIRONMENTAL MARKETS plc

All information is at 31 August 2007 and unaudited.

DATA AND PERFORMANCE


Data                          Pricing & Performance
                                                    IEM  MSCI  Impax
                                                    Net  World  ET50
Share price                                        Asset
(pence)                 119.5                      Value
Warrants (pence)         42.5
Total fund size     GBP 269.4  Diluted NAV (pence) 121.6  n/a   n/a
(m)
Market              GBP 259.8 Premium/discount (%) -1.7
capitalisation
(m)
Management fee            1.0        Undiluted NAV 124.0
(%)                                        (pence)
Established       22 February         Performance*
                         2002
Fund structure     Investment          1 month (%) -2.5  +0.5   -1.9
                        Trust
Number of stocks           84         3 months (%) -3.1  -5.3   +2.4
held
Exchange               London           1 year (%) +24.2 +8.4  +44.5
Currency                  GBP          3 years (%) +88.8 +35.3 +110.5
ISIN number      GB0031232498          5 years (%) +97.6 +44.2 +98.9
Sedol                 3123249         Since launch +26.2 +17.0 +36.6
                                  (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                2.6   Meters & software              US
                           High efficiency electric
Regal Beloit         2.5   motors                         US
Ormat                2.3   Geothermal                     Israel / US
Kingspan             2.2   Insulation products            Ireland
Mayr Melnhof
Karton               2.2   Recycled packaging             Austria
Chloride Group       2.1   UPS systems                    UK
Vestas Wind
Systems              2.1   Wind                           Denmark
Gamesa               2.1   Wind                           Spain
Stantec              2.0   Environmental consulting       Canada
Vacon                2.0   Power electronics              Finland

Total               22.1


PORTFOLIO ANALYSIS*


Geographical          Company Size
North America     43% >£1bn          25%
Europe            49% £100-1bn       66%
Rest of the World 8%  <£100m         6%

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













MANAGER'S COMMENTARY (August 2007)


The Company's NAV was down 2.5% over the month compared with the MSCI
World, which rose by 0.5%, and the Impax ET50, which fell by 1.9%
over the same period.  In the broader markets financials was again
the worst performing sector, reflecting the concern over credit
markets, with consumer staples and utilities benefiting from investor
caution.

During the month, the U.S. House of Representatives passed the
Renewable Electricity Standard (RES) bill that requires
investor-owned utilities to generate at least 15% of electricity from
renewable sources by 2020.  The House also approved a tax provision
bill which will repeal $16 billion of tax breaks to US oil companies
and reallocate the funds to renewable sources.  The bill must now be
merged with the Senate energy bill from June, before passing through
Congress.  In Germany, the government agreed to implement up to 30
energy savings and efficiency measures over the next year, the
majority of which will come from buildings, transport and household
energy consumption.

In the water sector, the Geneva-based World Meteorological
Organization reported a record number of climate and weather extremes
around the world since the beginning of 2007.  These include more
than 70 serious floods and the first ever documented cyclone in the
Arabian Sea.  In the US, New York experienced a record three inches
of rain over three hours, bringing the subway to a standstill and
causing severe delays to thousands of commuters.  Governor Eliot
Spitzer responded by ordering a Metropolitan Transit Authority report
on stormwater management.  This coincided with an audit which found
that the city's drinking water system is losing 35 million gallons a
day through leaks, leading to a separate award of a US$239 million
contract to start the repair work.

In the waste sector, the UK's Local Government Association proposed a
pay-by-weight scheme for household waste, involving microchip-fitted
bins.  The LGA also floated the idea of charging households for bins
and pre-paid sacks, based on their size. The scheme follows a
national survey in which almost two-thirds of people supported being
charged under the "pay as you throw" system in return for council tax
rebates.  Local authorities are facing EU fines of up to £3 billion
if waste to landfill is not dramatically reduced.

Stocks that contributed to the decrease in the Company's NAV during
August included Mueller Water (water treatment, US) and Transpacific
(waste management, Australia), which were affected by weak US
residential construction and refinancing risks associated with the
current credit market respectively.  On the upside, RPS
(environmental consulting, UK) and Kingspan (insulation products,
Ireland) made advances following a good second quarter and on the
back of strong end markets respectively.


Latest information available at:


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

21 September 2007

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