Performance at month end

Impax Environmental Markets PLC
5 July 2002



IMPAX ENVIRONMENTAL MARKETS plc

All information is at 30 June 2002 and unaudited

DATA AND PERFORMANCE

Data                                            Pricing & Performance

Total Fund Size (m)                     GBP40.6                          Net Asset Value     Ord. Share Price
Management fee                             1.0%          Pence (30/6/02)        81.22               78.50
Established                    22 February 2002
Fund structure                 Investment Trust              Performance
Number of stocks held                        40              1 month (%)       -12.9%              -19.1%
Exchange                                 London             3 Months (%)       -22.8%              -24.3%
Currency                                    GBP               1 year (%)         na                  na
ISIN Number                        GB0031232498         Since launch (%)        -18%               -21.5%
Sedol                                   3123249
Reuters RIC Code                          IEM.L
Bloomberg Code                           IEM LN


TOP TEN HOLDINGS

Company                               Holding %        Description                         Country
Vestas Windsystems                          9.4        Wind                                Denmark
Vivendi Environnement                       7.8        Water & Waste                       France
Ballard Power                               4.7        Fuel Cells                          Canada
Astropower                                  4.4        Photovoltaics                       US
Tomra Systems                               4.3        Recycling                           Norway
Nordex                                      3.7        Wind                                Germany
BWT                                         3.6        Water                               Austria
RPS Group                                   3.6        Environmental Consulting            UK
NEG Micon                                   3.4        Wind                                Denmark
FuelCell Energy                             3.4        Fuel Cells                          US
                      Total                48.3

PORTFOLIO ANALYSIS

Portfolio Analysis- Geographical*       Portfolio Analysis- Company Size*        Portfolio Analysis - Sectoral
North America                 44%       >£500m                     37%           Energy                46%
Europe                        51%       £100-500m                  54%           Water                 30%
Rest of the World             5%        <£100m                     9%            Waste                 22%
                                                                                 Cash                  2%
* of funds invested as of 30 June 02

MANAGER'S COMMENTARY
During the month of June, the Company's NAV fell 12.9% compared with the MSCI
World Index which fell 10.0% and the Impax ET50 which fell 11.4%. In this
climate of weakening equity markets, non-profitable alternative energy companies
(which account for 18% of the IEM portfolio) have been particularly under
pressure while companies with strong earnings visibility and cashflow have been
the best performers. Nevertheless, we believe that the fundamentals for the
Environmental Markets investment hypothesis (tightening environmental policy,
market liberalisation and falling cost of technology) remain strong; some key
news items from the month of June 2002 are shown below.


Notwithstanding the weak share prices, the newsflow in the alternative energy
sector has been broadly positive. Toyota announced that it is planning to
release a low volume of fuel cell vehicles earlier than expected in December
2002 ; meanwhile, in Montreal, Ford demonstrated the Ford Focus Fuel Cell
Vehicle that it expects to start producing in 2004. In the wind sector, NEG
Micon (wind, Denmark) announced a $400 million framework agreement with the
leading US renewable energy utility FPL Energy as well as a cooperation
agreement with Siemens to develop projects in the US. In the solar sector,
Astropower (photovoltaics, US) announced another partnership with a US
homebuilder (Clarum Homes) and Unisolar, a joint venture between Energy
Conversion Devices (solar & advanced batteries, US) and Bekaert NV, inaugurated
the world's largest thin film manufacturing plant in Detroit.



In the water sector, Vivendi Universal (VU) has been selling part of its stake
in Vivendi Environnement (VE) (water & waste, France); this has dominated last
month's news and put pressure on the share price of the water company. Following
the placing and the associated rights issue, VU's stake in VE will be reduced to
41%. Other news in the sector included Trojan Technologies (UV disinfection,
Canada) announcing that it has received an order to supply ultraviolet equipment
to a municipal UV drinking water installation for the city of Seattle. The
facility will be designed to treat up to 180 million gallons of water a day when
it becomes operational in 2004 making it the largest facility of its type in the
world. Positive news also came from Ionics (membrane water treatment, US) with
the finalisation of equipment and service contracts worth US$320m for a
desalination plant in Kuwait.

In the waste & resource management sector last month, RPS Group (environmental
consultancy, UK) announced its latest and largest acquisition to date with the
purchase of MC O'Sullivan Ltd, a leading Irish environmental consultancy, for a
consideration of up to £22m (€34m). In Germany, the Environment Ministry
confirmed that the deposit scheme on refillable cans and bottles will be
introduced from January 1, 2003 following the rejection by the constitutional
court of a suit brought by the brewing industry - this is expected to benefit
suppliers of reverse vending machines such as Tomra (recycling systems, Norway).


Latest information available at: www.impax.co.uk/asset/iemper.htm

5 July 2002



                      This information is provided by RNS
            The company news service from the London Stock Exchange