Performance at month end

IMPAX ENVIRONMENTAL MARKETS plc

All information is at 28 February 2007 and unaudited.

DATA AND PERFORMANCE


Data                          Pricing & Performance
                                                     IEM  MSCI  Impax
                                                     Net  World ET50
Share price                                         Asset
(pence)                 120.4                       Value
Warrants (pence)         45.0
Total fund size     GBP 231.8   Diluted NAV (pence) 113.9  n/a   n/a
(m)
Market              GBP 241.2  Premium/discount (%) +5.6
capitalisation
(m)
Management fee            1.0 Undiluted NAV (pence) 115.7
(%)
Established       22 February          Performance*
                         2002
Fund structure     Investment           1 month (%) +1.1  -0.8  +1.0
                        Trust
Number of stocks           79          3 months (%) +8.7  +2.8  +8.0
held
Exchange               London            1 year (%) +8.4  +1.7  +3.9
Currency                  GBP           3 years (%) +69.5 +32.1 +57.4
ISIN number      GB0031232498          Since launch +17.8 +14.9 +10.7
                                   (22/02/2002) (%)
Sedol                 3123249
Reuters RIC code        IEM.L
                              * Performance data is for undiluted
Bloomberg code         IEM LN NAV.


TOP TEN HOLDINGS


Company             Holding %   Description                   Country
Itron                     3.0   Meters & software             US
LKQ Corp                  2.7   Automotive recycling          US
                                High efficiency electric
Regal Beloit              2.3   motors                        US
Chloride Group            2.3   UPS systems                   UK
Tomra                     2.3   Reverse vending machines      Norway
Vestas Wind Systems       2.1   Wind                          Denmark
Kingspan                  2.0   Insulation products           Ireland
Stantec                   1.9   Environmental consultancy     US
Gamesa                    1.9   Wind                          Spain
Abengoa                   1.9   Bioethanol & recycling        Spain

Total                    22.4


PORTFOLIO ANALYSIS*


Geographical            Company Size
North America      42%  >£500m         54%
Europe             51%  £100-500m      31%
Rest of the World   8%  <£100m         15%

Sectoral                Profitability
Energy             41%  Profitable     91%
Water              27%  Pre-Profitable 9%
Waste              32%
* of funds invested as of 28 February 2007













MANAGER'S COMMENTARY (February 2007)


The Company's NAV was up 1.1% over the month compared with the MSCI
World, which declined by 0.8%, and the Impax ET50, which increased by
1.0% over the same period.  In the broader markets, Materials and
Utilities were the best performing sectors, with Energy and
Financials underperforming.

During the month, EU energy ministers rejected the European
Commission's proposal to introduce a binding target for renewable
energy to represent 20% of the energy share by 2020.  However they
did win backing for the share of biofuels in the EU member states'
fuel mix to increase potentially to 10%, and to increase energy
efficiency by 20% by 2020.  The Spanish government showed its support
by announcing plans to cut energy consumption by at least 1% a year,
with measures including new efficiency standards for air conditioning
and compulsory solar panels on all new buildings.  In the US,
Minnesota became the 23rd state to adopt renewable energy standards,
with a requirement for 25% of electricity to come from renewable
sources by 2025, the most aggressive target to date.

In the water sector, China announced plans to cut the amount of water
needed per dollar of national income by 20% by the end of the
decade.  The government aims to reduce leaks from pipes and increase
the recycling of urban water, in addition to improving the efficiency
of agricultural irrigation systems.  This comes amidst a severe
drought in south western China, where six million people in Chongqing
face water shortages.  In the UK, the Environment Agency initiated a
consultation to determine if compulsory water metering should be
introduced in the South East of England.

Within waste, the European Commission proposed strict limits on
rubbish generation, with the aim of stabilising EU waste production
at 2008 levels by 2012.  The Commission wants to decouple the link
between waste generation and economic growth, and use waste as a
resource wherever possible.  Europeans throw away about 1.3 billion
tonnes of waste per year, about 500 kilos per person.

Stocks that contributed to the increase in the Company's NAV during
February included Aixtron (LED deposition equipment, Germany), which
increased by 29% on contract wins in China, and Itron (US, meters and
utility data), which gained 12% following the acquisition of the
French metering business Actaris.  BWT (water treatment, Austria)
also rose 12% on strength in the German water market and new
products.  On the downside Westport (clean diesel engines, Canada)
declined by 10% after strong gains at the start of the year.


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

26 March 2007

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