Final Results

Preliminary announcement of audited results of Impax Environmental
Markets plc for the year ended 31 December 2007

CHAIRMAN'S STATEMENT

I am pleased to be able to report that, in spite of increased market
volatility and economic uncertainty, Impax Environmental Markets plc
("IEM", or the "Company") delivered another solid year's performance
in 2007.  The key drivers of the Environmental Markets sector (the
"Sector"), strengthening environmental legislation, market
liberalisation and falling costs of technology, continued to support
superior earnings growth in a majority of the Company's holdings.
Meanwhile, the Company continued to benefit from growing interest
among investors in the Sector, and was able to raise additional
capital.  With £392.7m of net assets, the Company was ranked as one
of the largest investment trusts listed on the London Stock Exchange
at the end of the year.

There were many positive developments for the Sector during 2007.  In
particular, the debate on global warming advanced significantly,
culminating in December with agreement, at the United Nations meeting
in Bali, on a roadmap for developing climate change policy beyond
2012.  The Manager and the Directors believe that such long term
commitment to addressing climate change will have a positive impact
on many of the Environmental Markets companies in which the Company
invests.

Performance and Current Status
During the year, the Company's net asset value ("NAV") per Ordinary
Share (excluding current year net revenue and taking into account the
dilution effect of the warrants in issue) rose by 15.9%, compared
with a 5.3% rise in the MSCI World Index and a fall of 2.2% in the
MSCI World Small Cap Index (both priced in sterling).  The shares,
which rose by 11.7% over the period, remained at a premium to NAV for
most of the year, while the price of the warrants in the Company
increased from 40p at the start of the year to 45p at year end.

The universe of Environmental Markets stocks continues to expand and
currently comprises over 700 companies with an aggregate market
capitalisation of more than £300 billion.  There are also a growing
number of attractive investment opportunities in unlisted companies
and we are expanding our activities in this area.

Dividend
A consistent theme in the Sector has been the decisions by the boards
of most portfolio companies to reinvest their free cash flow to  fund
further expansion.  Consequently,  the Company's dividend income  was
once again  low.   However,  owing to  the  higher than  normal  bank
interest and Treasury Bill income (earned while the cash proceeds  of
the C share issue were  awaiting investment), the Company earned  net
revenue after tax of £1,159,000.   In order to retain its  investment
trust status,  the Company  must therefore  pay a  small dividend  in
respect of the year ended 31  December 2007. It should not,  however,
be assumed that a dividend will be paid in future years.

The directors recommend a dividend of 0.3p per Ordinary Share, which,
if approved at the Company's Annual General Meeting, will be paid  to
shareholders on the register as at the close of business on 18  April
2008.

Share Issues
The Company raised net proceeds of £124 million from new share issues
during the year.  This was achieved through the issue of £21 million
of Ordinary Shares in the first half of the year followed by a
placing, open offer and offer for subscription of C Shares in
September which raised £103 million; the C Shares converted to
Ordinary Shares in December.  Your Board believes that this further
expansion has been beneficial to shareholders, particularly in
creating a larger base over which the Company can spread its fixed
costs, and there has been evidence that the liquidity of the
Company's shares has increased since the conversion.



Outlook
Equity markets were weak throughout the second half of 2007 and have
continued to fall since the year end. As at 20 March 2008, the
diluted NAV had fallen 8.9% (to 116.5p) since the start of the year,
while the share price had retreated by 9.0%.  The MSCI World Index
had fallen 11.7% over the same period.

Following these declines, the  weighted average price-earnings  ratio
of the portfolio is close to the  lowest level it has been since  the
Company's inception while significant earnings growth is  anticipated
for the  coming year.   The  drivers behind  the Sector  continue  to
strengthen, and in addition, the oil price remains close to US$100  a
barrel and commodity prices are reaching new highs.  The Manager  has
indicated that the management teams of most of the companies in which
we hold shares are cautiously optimistic about their prospects.
On this  basis,  the  Manager  and the  Directors  believe  that  the
Company's shares  continue to  offer  an attractive  opportunity  for
investors to gain exposure to the long term growth potential inherent
in Environmental Markets.

Richard Bernays
27 March 2008

INCOME STATEMENT
For the year ended 31 December 2007


                                   2007                    2006
                           Revenue Capital Total   Revenue Capital Total
                           £'000   £'000   £'000   £'000   £'000   £'000
  Gains on
  investments

  - realised                  -    20,202  20,202     -     9,074   9,074
  - unrealised                -    25,200  25,200     -    25,507  25,507
  Income                    2,933     -     2,933   1,427     -     1,427
  Investment management     (735)  (2,206) (2,941)  (439)  (1,321) (1,760)
  fee
  Other expenses            (855)     -     (855)   (554)     -     (554)
  Return on ordinary        1,343  43,196  44,539    434   33,260  33,694
  activities before
  taxation
  Taxation                  (184)     -     (184)   (78)      -     (78)
  Return on ordinary        1,159  43,196  44,355    356   33,260  33,616
  activities after
  taxation

  Return per ordinary       0.49p  18.39p  18.88p   0.23p  21.67p  21.90p
  share - undiluted
  Return per ordinary       0.49p  18.05p  18.54p   0.23p  21.37p  21.60p
  share - diluted


The total column is the profit and loss account of the Company.

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

No operations were acquired or discontinued during the year.

A Statement of Total Recognised Gains and Losses has not been
presented as all gains and losses are recognised in the Income
Statement.


BALANCE SHEET
At 31 December 2007


                                                   2007          2006

                                                  £'000         £'000

  FIXED ASSETS
  Investments at fair value through             381,703       219,994
  profit and loss

  CURRENT ASSETS
  Income receivable                                 101            68
  Sales - future settlements                      1,799         1,462
  Taxation recoverable                               17            56
  Other debtors                                      90            43
  Cash at bank and in hand                       12,476         4,066
                                                 14,483         5,695

  CREDITORS: AMOUNTS FALLING DUE WITHIN
  ONE YEAR
  Purchases - future settlements                (2,329)         (735)
  Accrued liabilities                           (1,145)         (513)
                                                (3,474)       (1,248)


  NET CURRENT ASSETS                             11,009         4,447


  TOTAL NET ASSETS                              392,712       224,441

  CAPITAL AND RESERVES: EQUITY

  Share capital                                  30,125        20,036
  Share premium account                         242,024       127,796
  Share purchase reserve                         44,125        44,125
  Realised capital reserve                       16,461       (1,535)
  Unrealised capital reserve                     58,765        33,565
  Revenue reserve                                 1,212           454
  SHAREHOLDERS' FUNDS                           392,712       224,441

  Net assets per Ordinary Share -               130.36p       112.02p
  undiluted

  Net assets per Ordinary Share - diluted       128.25p       110.58p

  Number of ordinary shares in issue        301,246,052   200,356,027









RECONCILIATION OF MOVEMENT IN SHAREHOLDERS' FUNDS
For the year ended 31 December 2007



                           Share    Share Realised Unrealised
                  Share  Premium Purchase  Capital    Capital Revenue
                Capital  Account  Reserve  Reserve    Reserve Reserve   Total
                  £'000    £'000    £'000    £'000      £'000   £'000   £'000

  Opening        20,036  127,796   44,125  (1,535)     33,565     454 224,441
  shareholders'
  funds
  as at 1
  January 2007
  Shares issued  10,084  116,251        -        -          -       - 126,335
  during the
  year
  Exercise of         5       44        -        -          -       -      49
  warrants
  Share issue            (2,067)        -        -          -       - (2,067)
  expenses
  Dividend paid       -        -        -        -          -   (401)   (401)
  (May 2007)
  Profit for          -        -        -   17,996     25,200   1,159  44,355
  the year
  Closing        30,125  242,024   44,125   16,461     58,765   1,212 392,712
  shareholders'
  funds
  as at 31
  December 2007


For the year ended 31 December 2006


                           Share    Share Realised Unrealised
                  Share  Premium Purchase  Capital    Capital Revenue
                Capital  Account  Reserve  Reserve    Reserve Reserve   Total
                  £'000    £'000    £'000    £'000      £'000   £'000   £'000

  Opening        11,555   52,395   44,125  (9,288)      8,058      98 106,943
  shareholders'
  funds
  as at 1
  January 2006
  Shares issued   8,151   73,754        -        -          -       -  81,905
  during the
  year
  Exercise of       330    2,834        -        -          -       -   3,164
  warrants
  Share issue         -  (1,187)        -        -          -       - (1,187)
  expenses
  Profit for          -        -        -    7,753     25,507     356  33,616
  the year
  Closing        20,036  127,796   44,125  (1,535)     33,565     454 224,441
  shareholders'
  funds
  as at 31
  December 2006


CASH FLOW STATEMENT
For the year ended 31 December 2007

                                                     2007        2006
                                                    £'000       £'000

  OPERATING ACTIVITIES

  Cash inflow from investment income and bank       2,892       1,397
  interest
  Cash outflow from management expenses           (3,164)     (2,188)
  Cash inflow from disposal of investments        166,084      52,504
  Cash outflow from purchase of investments     (281,091)   (135,531)
  Cash outflow from foreign exchange costs           (43)       (132)
  Cash outflow from taxation                        (184)           -
  NET CASH FLOW FROM OPERATING ACTIVITIES       (115,506)    (83,950)

  EQUITY DIVIDENDS PAID                             (401)           -

  FINANCING
  Proceeds of share issues                        126,384      85,068
  Expenses of share issues                        (2,067)     (1,187)
  NET CASH INFLOW FROM FINANCING                  124,317      83,881


  INCREASE/(DECREASE) IN CASH                       8,410        (69)


                                                     2007        2006
                                                    £'000       £'000
  Opening balance                                   4,066       4,135
  Cash  inflow/(outflow)                            8,410        (69)
  Balance at 31 December 2007                      12,476       4,066



NOTES
1. The preliminary announcement was approved by the Board on 27 March
2008 and is prepared on the same basis as set out in the previous
year's annual accounts.

2. These accounts have been prepared in accordance with applicable UK
accounting standards and policies.

The accounts have been presented in accordance with UK Generally
Accepted Accounting Practice ("GAAP") and the Statement of
Recommended Practice "Financial Statements of investment trust
companies" ("SORP") issued by the Association of Investment Companies
in December 2005.

3. Return per share
Undiluted return per  share is based  on the net  return on  ordinary
activities after taxation of £44,355,000,  based on a revenue  return
of £1,159,000 and capital  return of £43,196,000 (2006:  £33,616,000,
based  on  revenue   return  of  £356,000   and  capital  return   of
£33,260,000) attributable  to  the weighted  average  of  234,933,122
(2006 153,477,613) Ordinary Shares of 10p in issue during the year.
The weighted average takes account of  the C share issue and  warrant
conversion during the year.

Diluted returns per share  are based on the  net returns on  ordinary
activities after taxation above attributable to the diluted  weighted
average of 239,287,904 (2006:  155,607,810) Ordinary Shares in  issue
during the year.

4. Net asset value per share
Undiluted net assets  per Ordinary Share  is based on  net assets  of
£392,712,000  (2006:  £224,441,000)  divided  by  301,246,052  (2006:
200,356,027) Ordinary Shares in issue at the Balance Sheet date.

Diluted net  assets per  Ordinary Share  is based  on net  assets  of
£411,685,000  (2006:  £243,463,000)  divided  by  321,009,373  (2006:
220,170,409) diluted Ordinary  Shares in issue  at the Balance  Sheet
date. The diluted figures are  based on all warrants being  converted
in to Ordinary Shares at a price £0.96 per share.

5. Dividend
The directors propose that the Company will pay a final dividend for
the year ended 31 December 2007 of 0.3p per Ordinary Share.  If
approved at the Annual General Meeting the dividend will be paid on
14 May 2008 to shareholders on the register at the close of business
on 18 April 2008.

6. Financial information
The financial information set out above does not constitute the
Company's statutory accounts for the year ended 31 December 2007 as
defined by section 240 of the Companies Act 1985.  The financial
information for 2007 is derived from the statutory accounts for 2007,
which will be delivered to the registrar of companies following the
company's Annual General Meeting.  The statutory accounts for 2006
have been delivered to the registrar of companies.  The auditors have
reported on the 2006 and 2007 accounts; their reports were
unqualified and did not include a statement under Section 237(2) or
(3) of the Companies Act 1985.

The Annual Report for the year ended 31 December 2007 will be posted
to shareholders and will be made available on the Manager's website
at www.impax.co.uk

7. The Annual General Meeting will be held on 7 May 2008 at 3.00 p.m.
at 145-157 St. John Street, London, EC1V 4RU.

27 March 2008

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

Tel: [phone]

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