Interim Results

Impax Environmental Markets PLC
10 September 2004


Impax Environmental Markets plc

Preliminary announcement of interim results for the six months ended 30 June
2004

CHAIRMAN'S STATEMENT

I am pleased to report that Impax Environmental Markets plc ('IEM' or 'the
Company') has had a solid start to 2004. During a period when global equity
markets have lacked direction, Environmental Markets ('EM') companies have
generally produced good results and share prices have improved in line.

Over the interim period from 1 January until 30 June 2004, the MSCI World Index
(priced in Pounds Sterling) rose 1.2%. The Company's net asset value ('NAV')
increased from 66.29p to 69.09p, an overall rise of 4.2%. The share price rose
8.6% from 55.50p at the start of the year to 60.25p on 30 June 2004 representing
a narrowing of the discount from 16% to 13%.  After a difficult start in 2002, I
am encouraged that the Company's share price (+33.2%) has outperformed the MSCI
World Index (+11.0%) over the twelve months ending 30 June 2004, reflecting a
combination of good NAV growth and a substantial narrowing of the discount.

There has been positive news from environmental markets this year.  In
particular, the high prices of oil and gas have improved the relative economics
of businesses that develop or deploy alternative energy technologies. 
Meanwhile, the recent storms and flooding in Europe and the US are likely to
strengthen the resolve of policy makers intent on mitigating climate change
while at the same time improving prospects for companies selling engineering
solutions to manage storm water.  Most companies in the portfolio have reported
earnings in line with or ahead of expectations and many confirm that capital
expenditure in the EM sub-sectors has picked up substantially.  Against this
backdrop, corporate activity has continued to deliver benefits to investors in
EM companies.

Looking forward to the remainder of 2004, the likelihood of rising interest
rates, the growing US budget deficit and the ongoing uncertainty in Iraq are
adding to concern over the health of the wider economy in general and the stock
market in particular.  At the time of writing the NAV is lower at 66.81p while
the share price has risen slightly to 60.50p.  With a steady flow of positive
news in the sector, the directors believe that selective environmental markets
stocks offer good value for money and that the Company's prospects remain
relatively attractive.

Richard Bernays
10 September 2004


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


                                        6 months     6 months  to 6 months  to 6 months  to 6 months to 6 months
                                              to           to           to           to           to          to
                                         30 June      30 June      30 June      30 June      30 June     30 June
                                            2004         2004         2004         2003         2003        2003
                                         Revenue      Capital        Total      Revenue      Capital       Total
                                           £'000        £'000        £'000        £'000        £'000       £'000

Gains / (losses) on investments                -        1,543        1,543            -          969         969

Income                                       200            -          200          247            -         247

Investment management fees                  (49)        (149)        (198)         (38)        (114)       (152)
Other expenses                             (131)            -        (131)        (133)            -       (133)

Return on ordinary
activities before tax                         20        1,394        1,414           76          855         931

Taxation                                    (16)            -         (16)         (19)            -        (19)
                                               
Return after taxation                          4        1,394        1,398           57          855         912        
                          
Dividends                                      -            -            -            -            -           -        
                               
Transfers to reserves                          4        1,394        1,398           57          855         912        
                           
Return per Ordinary Share                  0.01p        2.79p        2.80p        0.11p        1.71p       1.82p        
                           

* 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
                                                                   2004         2003         2003
                                                                  £'000        £'000        £'000

    Fixed assets
    Investments at market value                                  33,407       26,824       32,892

    Current assets
    Sales for future settlement                                     509            -           94
    Other debtors                                                    35           44           49
    Cash at bank and in hand                                      1,101        1,328          319
                                                                  1,645        1,372          462

    Current liabilities
    Purchases for future settlement                               (414)            -         (88)
    Accrued liabilities                                            (94)         (84)        (120)
                                                                  (508)         (84)        (208)


    Net current assets                                            1,137        1,288          254

    Total net assets                                             34,544       28,112       33,146

    Capital and reserves
    Share capital                                                 5,000        5,000        5,000
    Share purchase reserve                                       44,125       44,125       44,125
    Capital reserves                                           (14,595)     (21,055)     (15,989)
    Revenue reserve                                                  14           42           10
    Equity shareholders' funds                                   34,544       28,112       33,146



    Net asset value per share including current period           69.09p       56.22p       66.29p             
    revenue reserves
                                                                              
    Net asset value per share excluding current period           69.08p       56.11p       66.27p
    revenue reserves

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


CASH FLOW STATEMENT
                                                                                  6 months     6 months
                                                                                to 30 June   to 30 June
                                                                                      2004         2003
                                                                                     £'000        £'000
Operating activities
Net cash flow from operating  activities                                             (157)         (87)

Financial investment
Payments to acquire fixed asset investments                                        (5,830)      (2,480)
Receipts on disposal of fixed asset investments                                      6,778        3,351
Exchange gains & losses                                                                (9)         (16)
                                                                                       
Net cash flow from investing activities                                                939          855         

Net cash flow before financing                                                         782          768

Increase in cash                                                                       782          768


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.

Interim report

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 year ended 31 December 2003 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


10 September 2004


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