Final Results

Preliminary announcement of results of Impax Environmental Markets
plc for the year ended 31 December 2005


CHAIRMAN'S STATEMENT

I am pleased to  report another year of  solid performance for  Impax
Environmental Markets  plc  ("IEM"  or "the  Company").    As  sector
fundamentals  continued  to  strengthen,  companies  active  in   the
alternative energy, water  and waste sectors  were generally able  to
achieve their objectives in  2005.  Demand  for the Company's  shares
was also robust.

Performance and Current Status
During the  year, the  net  asset value  ("NAV") per  Ordinary  Share
(measured at "bid")  rose by  21.6% from  76.1p to  92.6p, while  the
Ordinary Share price (measured at "mid-market") rose 31.8% from 71.3p
to 94.0p.   This result  represents another  year of  out-performance
versus global markets.   Over  the same  time period  the MSCI  World
Index rose by 20.3%.

The year saw environmental  issues once again  taking centre stage.
Amid growing concerns  that climate  change could  impact the  global
economy, carbon  trading began  in earnest  in Europe  and the  Kyoto
Protocol finally came  into force.   Rising prices  for fossil  fuels
heightened concerns  over  energy  security  leading  to  new  policy
initiatives to promote alternative  energy.  Corporate activity  also
continued apace,  especially  in  the  water  and  pollution  control
sectors,  with  several   investee  companies   taken-over  at   high
valuations.  All these developments were positive for the Company.

Financial results
In line with their focus  on capturing growth opportunities, most  of
the companies within  IEM's portfolio  are reinvesting  free cash  in
their businesses  and  once  again  dividend  income  was  limited.
Consequently, the Company's revenue  for the year  was low and  after
expenses and tax,  there was  a small revenue  return of  0.07p   per
share.   The  directors  therefore  do not  recommend  payment  of  a
dividend.

Several new UK Financial Reporting Standards have been issued  during
the Company's financial year.  The main impact on the Company is  the
requirement to  value  investments  at bid  rather  than  mid  market
price.  As at the 31 December 2005 this change of basis resulted in a
reduction in net assets equivalent to 0.47p per Ordinary Share.

C Share Issue
Following my last statement as part  of the Interim Report 2005,  the
Company's shares continued to trade at a premium to NAV.  In October,
the directors announced proposals for the issue of C Shares by way of
a placing and offer for subscription sponsored by Dresdner  Kleinwort
Wasserstein, and the  Company was successful  in raising £60  million
before expenses, taking net assets to over £100 million for the first
time.   I believe  this  expansion is  a  major development  for  the
Company and  is  indicative of  the  emergence of  the  Environmental
Markets sector into the mainstream.

The C  Shares were  successfully converted  into ordinary  shares  in
December 2005, with shareholders also receiving one warrant for every
five ordinary shares held at that time.

Your Board believes that the C Share issue has provided the Company's
shareholders  with  several  benefits.     These  include   increased
liquidity of the  Company's Ordinary Shares  and increased size  over
which the Company can spread its fixed costs.

New Share Issue and Share Buy Backs
In January  and  February  2006,  strong  demand  for  the  Company's
Ordinary Shares  continued  and  during these  months  4,995,000  new
Ordinary Shares were issued.

On 20  February  2006, a  circular  was sent  to  shareholders  which
contained proposals  to  grant the  directors  authority to  allot  a
further 7,047,390 Ordinary Shares  and these proposals were  approved
by shareholders  on  15 March  2006.   On  17  March 2006  a  further
7,047,390 Ordinary Shares were issued at a price of 110p per Ordinary
Share.

At the Annual General Meeting to be held on 10 May 2006, the  Company
will seek approval  to allot  a further  12,746,425 Ordinary  Shares,
subject to a maximum of 9.99% of the Ordinary Shares in issue at  the
time of the AGM,  and to disapply  pre-emption rights when  allotting
those Ordinary Shares.   Any  new shares issued  from this  authority
will not be  issued at less  than NAV.   The Company  will also  seek
authority to buy back up to 14.99% of the Ordinary Shares in issue.
Shares will only be bought back at a discount to net asset value  and
will either be  cancelled or if  the directors so  determine held  in
Treasury.  Any Ordinary Shares held  in Treasury will not be sold  at
less than NAV.

Outlook
At the time of writing, equity markets have started the year well and
the Company's out-performance is continuing.   On 17  March 2006  the
Company's NAV had risen by  17%  since the  start of the year,  while
the share price had risen to 110.9p.

Governments around the world show no signs of reneging on commitments
to improve energy security, curb pollution and reduce waste  volumes,
and  Environmental  Markets  companies  continue  to  report   rising
earnings and  strong prospects  for  growth.   In this  context,  the
directors believe that the outlook for the Company remains good.


Richard Bernays
22  March 2006


UNAUDITED INCOME STATEMENT
(incorporating the profit and loss account*)
For the year ended 31 December 2005


                                                      2005                   2004
                                              Revenue Capital Total  Revenue Capital Total
                                              £'000   £'000   £'000  £'000   £'000   £'000
Gains / (losses) on
investments
- realised                                       -     2,147  2,147        -   1,009  1,009
- unrealised                                     -     7,862  7,862        -   4,366  4,366
Income                                          506      -     506       383       -    383
Investment management fee                      (134)   (404)  (538)     (78)   (231)  (309)
Other expenses                                 (306)     -    (306)    (235)       -  (235)
Return on ordinary activities before            66     9,605  9,671       70   5,144  5,214
taxation
Taxation                                       (24)      -     (24)     (24)       -   (24)
Return on ordinary activities after             42     9,605  9,647       46   5,144  5,190
taxation

Return per ordinary share                      0.07p  15.76p  15.83p   0.09p  10.29p 10.38p



* The total return 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.



UNAUDITED BALANCE SHEET
At 31 December 2005


                                                    2005         2004

                                                   £'000        £'000

FIXED ASSETS
Investments at market value                      104,241       37,774

CURRENT ASSETS
Income receivable                                     26           10
Sales - future settlements                           320            -
Taxation recoverable                                  12          139
Other debtors                                         31            8
Cash at bank and in hand                           4,135          641
                                                   4,524          798

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE
YEAR
Purchases - future settlements                   (1,580)         (94)
Accrued liabilities                                (242)        (132)
                                                 (1,822)        (226)


NET CURRENT ASSETS                                 2,702          572


TOTAL NET ASSETS                                 106,943       38,346

CAPITAL AND RESERVES

Share capital                                     11,555        5,000
Share premium account                             52,395            -
Share purchase reserve                            44,125       44,125
Realised capital reserve                         (9,288)     (11,031)
Unrealised capital reserve                         8,058          196
Revenue reserve                                       98           56
EQUITY SHAREHOLDERS' FUNDS                       106,943       38,346

Net assets per ordinary share                     92.55p       76.69p

Net assets per ordinary share on a                92.55p       76.10p
portfolio bid price valuation basis

Number of ordinary shares in issue           115,549,454   50,000,000



UNAUDITED CASH FLOW STATEMENT
For the year ended 31 December 2005




                                                      2005       2004
                                                     £'000      £'000

OPERATING ACTIVITIES

Cash inflow from investment income and bank            495        382
interest
Cash outflow from management expenses                (660)      (652)

Cash inflow from disposal of investments            51,793     12,508
Cash outflow from purchase of investments        (106,913)   (11,886)
Cash outflow from foreign exchange costs             (171)       (30)

NET CASH FLOW FROM OPERATING ACTIVITIES           (55,456)        322

FINANCING
Proceeds of share issue                             60,000          -
Expenses of share issue                            (1,050)          -
NET CASH INFLOW FROM FINANCING                      58,950          -


INCREASE IN CASH                                     3,494        322




NOTES
1. The preliminary announcement was approved by the Board on 22 March
2006.

2. These accounts have been prepared using the accounting standards
and policies of the previous year end except for the implementation
of FRS 25 and FRS 26 during the year.  The comparatives for the year
ended 31 December 2004 have not been restated but as a result of the
change in valuation method from mid market to bid price reserves
brought forward have been reduced by £294,000

The accounts have been presented in accordance with the Statement of
Recommended Practice "Financial Statements of Investment Trust
Companies" ("SORP") issued by the AITC issued in January 2003 except
where the SORP has been superseded by UK GAAP.

3. Return per ordinary share is based on the weighted average of
60,954,841 ordinary shares in issue during the year (2004:
50,000,000). Net assets per ordinary share is based on 115,549,454
ordinary shares in issue at 31 December 2005 (2004: 50,000,000).

4. Dividend
The Company's revenue return after tax for the year amounted to
£42,000.  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 2005 as
defined by section 240 of the Companies Act 1985.  The financial
information for 2005 is derived from the statutory accounts for 2005,
which will be delivered to the registrar of companies following the
company's annual general meeting.  The auditors have reported on the
2004 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 10 May 2006 at 3 p.m.
at the offices of Dresdner Kleinwort Wasserstein Securities Limited,
20 Fenchurch Street, London, EC3P 3DB.


22 March 2006

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




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