Interim Results

Impax Environmental Markets PLC
08 September 2003

Impax Environmental Markets plc

Interim results for the six months to 30 June 2003

CHAIRMAN'S STATEMENT

I am pleased to report that, after the very difficult start last year, Impax Environmental Markets plc ('IEM' or 'the
Company') has so far shown better progress in 2003.  The year began with weakness in equity markets up until early
March as war in Iraq became inevitable; however, this was followed by a strong rebound in share prices in the second
quarter as geopolitical pressure eased and prospects for a global economic recovery improved.  Against this background,
environmental markets enjoyed their best performance since the first quarter of 2000.

Over the full interim period from 1 January until 30 June 2003, the MSCI World Index (priced in Pounds Sterling) rose
7.3%.  The Company's net asset value ('NAV') increased from 54.4p to 56.2p, an overall rise of 3.2%, while the discount
widened slightly as the share price fell from 45.8p at the start of the year to 45.3p on 30 June 2003.

The fundamental drivers of the environmental markets sector continue to develop, and we have seen a series of important
government policy initiatives on both sides of the Atlantic as well as increased competitiveness among cleaner, more
efficient products and services in key environmental markets.  In May, the Government published its response to the
Strategy Unit's report on the effectiveness of UK waste policy, recommending that funding to support the diversion of
municipal solid waste from landfill be increased significantly.   In July, the Department of Trade & Industry announced
concessions for up to 6,000MW of new offshore wind farms and commented that it expected this sector to make a major
contribution to meeting the UK's renewable energy generation targets for 2010.  More recently, in August, the failure
of the electricity grid in the northeast area of the US has increased the pressure on politicians to allocate funding
to the power sector and to finalise the Energy Bill.  The Company has benefited from these developments as a result of
higher share prices in these sectors.

At the time of writing, prospects for equity markets appear more favourable and environmental markets seem
well-positioned for growth.  Across all sectors, the announcements of earnings for the second quarter were broadly in
line with expectations, and many leading companies have raised their forecasts.  By 31 August, the Company's NAV had
risen further to 64.9p and the share price had increased to 52.5p.  The Directors believe that the Company is
well-positioned for the long-term and that valuations in the sector remain attractive.


Richard Bernays
8 September 2003


STATEMENT OF TOTAL RETURN
(incorporating the profit and loss account*)

                                    6 months      6 months     6 months    7 January    7 January    7 January
                                          to            to           to           to           to           to
                                30 June 2003  30 June 2003 30 June 2003 30 June 2002 30 June 2002 30 June 2002
                                     Revenue       Capital        Total      Revenue      Capital        Total
                                       £'000         £'000        £'000        £'000        £'000        £'000

Gains / (losses) on investments             -          969          969            -      (8,398)      (8,398)

Income                                    247            -          247          234            -          234

Investment management fees               (38)        (114)        (152)         (40)        (118)        (158)
Other expenses                          (133)            -        (133)         (87)            -         (87)

Return on ordinary
activities before tax                      76          855          931          107      (8,516)      (8,409)

Taxation                                 (19)            -         (19)         (13)            -         (13)

Return after taxation                      57          855          912           94      (8,516)      (8,422)

Dividends                                   -            -            -            -            -            -

Transfers to/(from) reserves               57          855          912           94      (8,516)      (8,422)

Return per Ordinary Share               0.11p        1.71p        1.82p        0.19p     (17.03)p     (16.84)p


* The revenue column of the statement of total return is the profit and loss account of the Company.

All capital and revenue items in the above statement derive from continuing operations.  No operations were acquired or
discontinued during the period.

Return per Ordinary Share is based on 50,000,000 Ordinary Shares in issue throughout the period.


BALANCE SHEET

                                                         At 30 June   At 30 June    At 31 Dec
                                                               2003         2002         2002
                                                              £'000        £'000        £'000                           
                                                              

Fixed assets
Investments at market value                                  26,824       39,905       26,710

Current assets
Sales for future settlement                                       -           82            -
Other debtors                                                    44           33           38
Cash at bank and in hand                                      1,328          726          560
                                                              1,372          841          598

Current liabilities
Accrued liabilities                                            (84)         (43)        (108)

Net current assets                                            1,288          798          490

Total net assets                                             28,112       40,703       27,200

Capital and reserves
Share capital                                                 5,000        5,000        5,000
Share premium                                                44,125       44,125       44,125
Capital reserves                                           (21,055)      (8,516)     (21,910)
Revenue reserve                                                  42           94         (15)
Equity shareholders' funds                                   28,112       40,703       27,200
Net asset value per share including current period
revenue profit                                               56.22p       81.41p       54.40p

Net asset value per share excluding current period
revenue profit                                               56.11p       81.22p       54.40p
                                                            

Number of Ordinary Shares in issue                       50,000,000   50,000,000   50,000,000


CASH FLOW STATEMENT

                                                                                  6 months  7 January to
                                                                                to 30 June  30 June 2002
                                                                                      2003
                                                                                     £'000         £'000

Operating activities
Net cash flow from operating  activities                                              (87)          (14)

Financial investment
Payments to acquire fixed asset investments                                        (2,480)      (52,706)
Receipts on disposal of fixed asset investments                                      3,351         4,482
Exchange gains & losses                                                               (16)         (161)


Net cash flow from investing activities                                                855      (48,385)

Net cash flow before financing                                                         768      (48,399)

Financing
Expenses of issue of share capital                                                       -         (875)
Share placement                                                                          -        50,000
Net cash inflow from financing                                                           -        49,125

Increase in cash                                                                       768           726



NOTES



Net assets per share

Net assets per share are based on the number of ordinary shares in issue at the end of the period.


Dividend

The directors do not recommend an interim dividend.


Investment company status

The Company has given notice of its intention to carry on business as an investment company and it manages its affairs
to enable it to qualify as an investment trust for taxation purposes under section 842 of the Income and Corporation
Taxes Act.  The Company therefore presents its accounts in accordance with the Statement of Recommended Practice for
Investment Trust Companies, with the Statement of Total Return as its first primary statement.


Status of this report

These financial statements are not the Company's statutory accounts for the purposes of section 240 of the Companies
Act 1985.  They are unaudited.  The interim report will be sent to shareholders and copies will be made available to
the public at the registered office of the Company.

The Company's statutory accounts for the period from incorporation on 7 January 2002 to 31 December 2002 received an
unqualified audit report and have been filed with the registrar of companies at Companies House.


SECRETARY, ADMINISTRATOR AND
REGISTERED OFFICE
Cavendish Administration Limited
Crusader House
145-157 St. John Street
London EC1V 4RU


8 September 2003


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