Performance at Month End

Impax Environmental Markets PLC
10 September 2002


IMPAX ENVIRONMENTAL MARKETS plc

All information is at 31August 2002 and unaudited


DATA AND PERFORMANCE


Data                                         Pricing & Performance
Total Fund Size (m)                  GBP31.4                      Net Asset Value   Ord. Share Price
Management fee                          1.0%      Pence (31/8/02)       62.75             59.75
Established                 22 February 2002
Fund structure              Investment Trust          Performance
Number of stocks held                     45          1 month (%)       -4.1%             -5.2%
Exchange                              London         3 Months (%)      -32.7%            -38.4%
Currency                                 GBP           1 year (%)        na                na
ISIN Number                     GB0031232498     Since launch (%)      -36.1%            -40.2%
Sedol                                3123249
Reuters RIC Code                       IEM.L
Bloomberg Code                        IEM LN


TOP TEN HOLDINGS

Company                            Holding %       Description                        Country
Vivendi Environnement                    8.8       Water & Waste                      France
Vestas Windsystems                       4.8       Wind                               Denmark
Nordex                                   4.8       Wind                               Germany
Ballard Power                            4.5       Fuel Cells                         Canada
RPS Group                                4.4       Environmental Consulting           UK
Tomra Systems                            3.6       Recycling                          Norway
Kurita Water                             3.4       Water                              Japan
BWT                                      3.1       Water                              Austria
NEG Micon                                3.0       Wind                               Denmark
Insituform Technologies                  3.0       Sewer Repair                       US
                    Total               43.4



PORTFOLIO ANALYSIS


Portfolio Analysis- Geographical*   Portfolio Analysis- Company Size*   Portfolio Analysis -
                                                                        Sectoral
North America              43%      >£500m                  28%         Energy              36%
Europe                     51%      £100-500m               52%         Water               34%
Rest of the World          6%       <£100m                  20%         Waste               25%
                                                                        Cash                5%
* of funds invested as of 31 August
02


MANAGER'S COMMENTARY


During the month of August, the Company NAV fell 4% compared with the MSCI World Index which rose 1% and the
Impax ET50 which fell 6%.  As global equity markets stabilised, the period saw mixed performance by
Environmental Markets companies as many announced results for the first half of 2002.  While a number of
companies returned very positive results, there were some disappointments particularly from those companies
exposed to capital spending in the industrial and power sectors.  Some highlights for the month of August are
shown below.

All the leading independent wind companies reported during the month with the majority (Gamesa, Spain; NEG
Micon, Denmark; Nordex, Germany; and Repower, Germany) maintaining their forecasts for the rest of 2002 with
high expectations for the large European markets of Spain and Germany.  Vestas (Denmark) on the other hand was
forced to revise its 2002 expectations downwards following delays to projects in the US market - however, they
reconfirmed their growth forecasts for 2003.  In the solar industry, Astropower reported a weak quarter citing
delays in the US and pricing pressure in Germany neither of which are expected by the company to be long term
phenomena.  Meanwhile, world leaders at the Johannesburg summit highlighted the key role that renewable energy
technologies will have to play in meeting long-term environmental commitments.

There has been further news from the automotive fuel cell sector as General Motors announced the first prototype
vehicle using the Autonomy platform concept.  The Hy-wire fuel cell vehicle (FCV) is a 5 passenger vehicle and a
key part of GM's strategy to produce affordable customer-friendly fuel cell-powered vehicles by 2010 to be sold
profitably and in large numbers by 2020.  Hydrogenics (fuel cells, Canada) and Quantum Fuel (hydrogen storage,
US) are both suppliers to the GM fuel cell program while Ballard (fuel cells, Canada) supplies the technology to
many other automotive fuel cell programs including those of  Ford and DaimlerChrysler.  Progress in the
development of FCVs which will most likely use hydrogen as the main energy carrier begin to look more compelling
with oil prices approaching $30 per barrel this month.

There was mixed news in the water treatment technology sector during the month. Whilst discussions at the
international policy level have focused on securing sufficient standards and security of global water supply,
which should ultimately benefit the water treatment technology providers, the slowdown in the industrial sector
continues to stall capital spending on water treatment equipment. Nevertheless, there was positive news from
North America where Cuno (water filtration, US) announced results above expectations and Zenon Environmental
(membranes, Canada) announced a record backlog of orders for their proprietary water treatment technology.
Meanwhile, Vivendi Environnement (water & waste, France) continued to distance itself from its parent Vivendi
Universal through a successful restructuring of VEs bond arrangements.

There was also mixed news in the waste and resource management sectors this month.  On the positive side, Seche
Environnement (waste management, France) announced strong results for the second quarter ahead of expectations.
The outlook for Seche remains positive following the expiry in July of the grace period for closing down
sub-standard landfill sites in France.  Less positively, the political uncertainty surrounding the
implementation of a deposit scheme for non-refillable containers in Germany has increased, with the opposition
CDU/CSU coalition announcing that they would seek to replace the proposed deposit scheme with a 'more effective'
scheme if they win the elections on 22 September.  This development is key for Tomra Systems (recycling, Norway)
the Company which would supply the majority of the reverse vending machines necessary under the deposit scheme.
With opinion polls showing that the election will be a close run event, uncertainty is set to continue until 22
September.


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


September 2002


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