Final Results

Impax Environmental Markets PLC
25 March 2003


IMPAX ENVIRONMENTAL MARKETS PLC

Announcement of Preliminary Results for the period

from 7 January 2002 to 31 December 2002


CHAIRMAN'S STATEMENT


This is the first Annual Report of Impax Environmental Markets plc ('IEM') and I
would like to start by welcoming shareholders to the Company.

During the period the Company achieved its principal objective of creating a
Portfolio of investments in companies set to benefit from rapid and sustained
growth in cleaner or more efficient delivery of basic services of energy, water
and waste.  Although the collapse in equity markets in general and the prices of
growth-oriented stocks in particular have led to a substantial fall in the
Company's net asset value, the directors believe that the drivers of
Environmental Markets remain strong, and that the Portfolio is well positioned
for substantial long-term growth.

Performance and Current Status

During 2002, Environmental Markets companies typically reported solid financial
results and good prospects.  The average increase in the revenue of Portfolio
companies over the year was 18%, while the attractions of the sector for larger
companies were clearly demonstrated by the acquisition by General Electric of
two of the Portfolio's holdings.

Despite the favourable commercial environment, the Company's value has fallen. 
From the launch on 22 February 2002 until the end of the period, the net asset
value ('NAV') fell 44.6% from 98.25p to 54.40p, while IEM's share price fell
54.2% from 100p to 45.75p.  Although this result was in line with Environmental
Markets companies in general, the sector has clearly underperformed global
markets.  Over the same time period the MSCI World Index fell by 25.6%.

The weak performance of Environmental Markets stocks can be largely attributed
to a de-rating of the sector, as investors have been unwilling to pay a premium
for companies that are able to sustain above-average growth in revenues and
earnings.  In order to benefit from an eventual re-rating, the Portfolio is now
concentrated on profitable companies, particularly those in the water and waste
sectors, and has reduced its holdings in unprofitable companies, particularly
those in the alternative energy sector.

Financial results

In line with their focus on capturing growth opportunities, most companies in
the Portfolio are reinvesting free cash in the business and do not pay
substantial dividends.  As a consequence, the Company's revenue return for the
period was low and after expenses and tax represented a loss of 0.03p per share.
Therefore, the directors do not recommend payment of a dividend.

Outlook

The companies in which we have invested continue to report strong order books,
and the news from the Environmental Markets sector is generally positive.   Last
month, for example, the government published the Energy White Paper, which
reflected the Prime Minister's personal support for long-term goals for
renewable energy production as far out as 2050.  This followed the Chancellor's
pre-Budget statement last November, in which he indicated a commitment to
increase the UK Landfill Tax by more than 150% over the next ten years, thus
strengthening the economic incentives to recycle waste.


At the time of writing, the geopolitical situation is uncertain and there are
concerns about the prospects for the global economy.  In the short term, stock
markets around the world are suffering from a dearth of buyers, and the
Portfolio is unlikely to be immune from a downward drift in the price of
equities.  On 18 March 2003 the Company's NAV had fallen further to 47.36p while
the share price had dropped to 40.75p.  However, in the medium to long term, the
directors believe that prospects for the Company remain strong, and that current
valuations in the sector are attractive.

Richard Bernays
25 March 2003


STATEMENT OF TOTAL RETURN
For the period from 7 January 2002 to 31 December 2002
                                                                      2002
                                                           Revenue    Capital      Total
                                                             £'000      £'000      £'000
Loss on  investments

- realised                                                       -    (5,991)    (5,991)
- unrealised                                                     -   (15,642)   (15,642)
Income                                                         316          -        316
Investment management fee                                     (92)      (277)      (369)


Other expenses                                               (221)          -      (221)
Return on ordinary activities before                             3   (21,910)   (21,907)
taxation
Taxation                                                      (18)          -       (18)
Return on ordinary activities after                           (15)   (21,910)   (21,925)
taxation

Ordinary dividends payable                                       -          -          -
Transfer from reserves                                        (15)   (21,910)   (21,925)

Return per ordinary share                                  (0.03)p   (43.82)p   (43.85)p


BALANCE SHEET
At 31 December 2002
                                                                                  2002
                                                                                 £'000

FIXED ASSETS
Investments at market value                                                     26,710

CURRENT ASSETS
Income receivable                                                                   13
Taxation recoverable                                                                16
Other debtors                                                                        9
Cash at bank and in hand                                                           560
                                                                                   598

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Accrued liabilities                                                              (108)
                                                                                 (108)


NET CURRENT ASSETS                                                                 490


TOTAL NET ASSETS                                                                27,200


CAPITAL AND RESERVES


Share capital                                                                    5,000
Share premium account                                                                -
Share purchase reserve                                                          44,125
Realised capital reserve                                                       (6,268)
Unrealised capital reserve                                                    (15,642)
Revenue reserve                                                                   (15)
EQUITY SHAREHOLDERS' FUNDS                                                      27,200


Net assets per ordinary share                                                   54.40p


CASH FLOW STATEMENT
For the period from 7 January 2002 to 31 December 2002


                                                                                   2002
                                                                                  £'000

NET CASH INFLOW FROM OPERATING ACTIVITIES                                         (222)

FINANCIAL INVESTMENT
Payments to acquire fixed asset investments                                    (62,021)
Receipts on disposal of fixed asset investments                                  13,882
Exchange gains & losses                                                           (204)
NET CASH FLOW FROM INVESTING ACTIVITIES                                        (48,343)


NET CASH FLOW BEFORE FINANCING                                                 (48,565)

FINANCING
Issue of Share Capital (net of expenses)                                         49,125

NET CASH FLOW FROM FINANCING                                                     49,125


INCREASE IN CASH                                                                    560


NOTES

The revenue column on the Statement of Total Return is the profit and loss
account of the Company.

All revenue and capital items in the above statements derive from continuing
operations.

No operations were acquired or discontinued during the period.

There are no comparatives as this is the Company's first period of operations.

Returns per ordinary share are based on the weighted average of 50,000,000
ordinary shares in issue during the period from the commencement of the
Company's business operations on 22 February 2002 to 31 December 2002. Net
assets per ordinary share are based on 50,000,000 ordinary shares in issue at 31
December 2002.

The accounts have been prepared in accordance with the Statement of Recommended
Practice for the Financial Statements of Investment Trust Companies ('SORP').

Dividend

The Company's revenue loss after tax and appropriations for the period amounted
to £15,000. Therefore, the directors are not proposing that the Company will pay
a final dividend.

Financial information

The financial information set out above does not constitute the Company's
statutory accounts for the period ended 31 December 2002 as defined by section
240 of the Companies Act 1985.  The financial information for 2002 is derived
from the statutory accounts for 2002, which will be delivered to the registrar
of companies following the company's annual general meeting.


25 March 2003

Secretary and registered office:
Cavendish Administration Limited
Crusader House
145-157 St John Street
London
EC1V 4RU




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