Final Results

Preliminary announcement of results of Impax Environmental Markets
Trust plc for the year ended 31 December 2004


CHAIRMAN'S STATEMENT

Since my last statement as part of the Interim Report 2004, Impax
Environmental Markets plc ("IEM" or "the Company") has had a good
second half to the year.  A steady stream of positive developments in
Environmental Markets has reinforced the Company's prospects, while
recent share price rises have been underpinned by rising earnings and
substantial corporate activity.

Performance and Current Status
During the year, the net asset value ("NAV") rose 15.7% from 66.3p to
76.7p. The share price rose 28.4% from 55.5p to 71.3p and the
discount to NAV reduced from 16.3% to 7.0%.  This result represents a
considerable outperformance over global markets.  For example, over
the same time period the MSCI World Index rose by 5.1%.

As described further in the Manager's Report, Environmental Markets
developed significantly in 2004.  Whether concerned about climate
change or motivated to secure reliable energy supplies, governments
around the world are investing heavily and developing policies to
promote the use of alternative energy and energy efficiency.  At the
same time, we have seen Mediterranean and Middle Eastern countries
make commitments to  expand desalination capacity, while new
legislation to control hazardous and packaging waste is set to
increase the level of recycling worldwide.  These trends continue to
favour providers of new, innovative solutions in the energy, water
and waste sectors.  It is companies within these sectors in which IEM
is invested.

Financial results
In line with their focus on capturing growth opportunities, most
companies in the portfolio are reinvesting the majority of free cash
in the business and do not pay substantial dividends.  Therefore, as
expected, the Company's revenue for the year was low, which after
expenses and tax represented a small profit of 0.1p per share.  The
directors do not recommend payment of a dividend.

Outlook
With higher energy prices, mounting pressures on finite water
resources and a raft of environmental legislation controlling the
management of waste, the fundamental drivers of the Environmental
Markets are as strong as ever going into 2005.  The universe of
companies in the sector is expanding steadily and the quality of
management teams continues to improve.  The share prices of
Environmental Markets companies have recovered substantially since
the market lows of the first quarter of 2003.  However, the
valuations of companies in the sector still appear attractive when
compared with the growth prospects of the underlying businesses.

Global equity markets have generally risen in the first part of 2005
and IEM has also advanced.  On 11 March 2005 the Company's NAV had
risen to 78.1p while the share price had risen to 72.5p.

The directors continue to believe that the Company remains well
positioned to benefit from the substantial opportunities emerging in
the sector.


Richard Bernays
17 March 2005

                      STATEMENT OF TOTAL RETURN
            (incorporating the profit and loss account*)
                 For the year ended 31 December 2004


                                                    2004                   2003
                                            Revenue Capital  Total Revenue Capital   Total
                                              £'000   £'000  £'000   £'000   £'000   £'000
Gains / (losses) on
investments
- realised                                        -   1,009  1,009       - (5,295) (5,295)
- unrealised                                      -   4,366  4,366       -  11,472  11,472
Income                                          383       -    383     396       -     396
Investment management fee                      (78)   (231)  (309)    (86)   (256)   (342)
Other expenses                                (235)       -  (235)   (257)       -   (257)
Return on ordinary activities before
taxation                                         70   5,144  5,214      53   5,921   5,974
Taxation                                       (24)       -   (24)    (28)       -    (28)
Return on ordinary activities after
taxation                                         46   5,144  5,190      25   5,921   5,946
Ordinary dividends payable                        -       -      -       -       -       -
Transfer to  reserves                            46   5,144  5,190      25   5,921   5,946

Return per ordinary share                     0.09p  10.29p 10.38p   0.05p  11.84p  11.89p


* The revenue column of this statement 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.

                               BALANCE SHEET
                         At 31 December 2004


                                                     2004       2003

                                                    £'000      £'000

FIXED ASSETS
Investments at market value                        37,774     32,892

CURRENT ASSETS
Income receivable                                      10         24
Sales - future settlements                              -         94
Overseas tax recoverable                                5         16
VAT recoverable                                       134          -
Other debtors                                           8          9
Cash at bank and in hand                              641        319
                                                      798        462

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Purchases - future settlements                       (94)       (88)
Accrued liabilities                                 (132)      (120)
                                                    (226)      (208)


NET CURRENT ASSETS                                    572        254


TOTAL NET ASSETS                                   38,346     33,146

CAPITAL AND RESERVES

Share capital                                       5,000      5,000
Share premium account                                   -          -
Share purchase reserve                             44,125     44,125
Realised capital reserve                         (11,031)   (11,819)
Unrealised capital reserve                            196    (4,170)
Revenue reserve                                        56         10
EQUITY SHAREHOLDERS' FUNDS                         38,346     33,146

Net assets per ordinary share                      76.69p     66.29p




                     CASH FLOW STATEMENT
                 For the year ended 31 December 2004






                                                    2004      2003
                                                   £'000     £'000

NET CASH OUTFLOW FROM OPERATING ACTIVITIES         (270)     (231)

FINANCIAL INVESTMENT
Payments to acquire fixed asset investments     (11,886)   (9,211)
Receipts on disposal of fixed asset investments   12,508     9,239
Exchange losses                                     (30)      (38)
NET CASH FLOW FROM INVESTING ACTIVITIES              592      (10)


NET CASH FLOW AFTER FINANCING                        322     (241)


INCREASE / (DECREASE) IN CASH                        322     (241)





NOTES
1. The preliminary announcement was approved by the Board on 17 March
2005.

2. These accounts have been prepared using the accounting standards
and policies of the previous year end and in accordance with the
Statement of Recommended Practice "Financial Statements of Investment
Trust Companies" ("SORP") issued by the AITC in 2003.

3. Returns per ordinary share are based on the weighted average of
50,000,000 ordinary shares in issue during the year (2003:
50,000,000). Net assets per ordinary share are based on 50,000,000
ordinary shares in issue at 31 December 2004 (2003: 50,000,000).

4. Dividend
The Company's revenue profit after tax for the year amounted to
£46,000.  This is less than 15% of qualifying income for investment
trust purposes and therefore the directors do not propose that the
Company will pay a final dividend.

5. Financial information
The financial information set out above does not constitute the
Company's statutory accounts for the year ended 31 December 2004 as
defined by section 240 of the Companies Act 1985.  The financial
information for 2004 is derived from the statutory accounts for 2004,
which will be delivered to the registrar of companies following the
company's annual general meeting.  The auditors have reported on the
2003 accounts; their report was unqualified and did not include a
statement under Section 237(2) or (3) of the Companies Act 1985.

6. The Annual General Meeting will be held on 4 May 2005 at 4 p.m. at
the registered office of the Company.


17 March 2005

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


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