Performance at month end

Impax Environmental Markets PLC
07 October 2002

IMPAX ENVIRONMENTAL MARKETS plc



All information is at 30 September 2002 and unaudited



DATA AND PERFORMANCE


Data                                      Pricing & Performance
Total Fund Size (m)               GBP26.4                         IEM            MSCI         Impax

                                                            Net Asset Value      World         ET50
Management fee                       1.0%   Pence (30/9/02)      52.85            n/a          n/a
Established              22 February 2002
Fund structure           Investment Trust       Performance
Number of stocks                       46       1 month (%)      -15.8%         -12.6%        -17.0%
held
Exchange                           London      3 Months (%)      -34.9%         -21.2%        -35.8%
Currency                              GBP        1 year (%)        na           -25.5%        -41.7%
ISIN Number                  GB0031232498  Since launch (%)      -46.2%         -29.1%        -43.0%
Sedol                             3123249
Reuters RIC Code                    IEM.L
Bloomberg Code                     IEM LN




TOP TEN HOLDINGS


Company                            Holding %       Description                        Country
Vivendi Environnement                    8.4       Water & Waste                      France
Vestas Windsystems                       5.6       Wind                               Denmark
RPS Group                                5.0       Environmental Consulting           UK
Tomra Systems                            4.3       Recycling                          Norway
Nordex                                   3.8       Wind                               Germany
Ionics                                   3.5       Water                              US
Ballard Power                            3.4       Fuel Cells                         Canada
NEG Micon                                3.3       Wind                               Denmark
BWT                                      3.2       Water                              Austria
Kurita Water                             3.2       Water                              Japan
                    Total               43.7



PORTFOLIO ANALYSIS*


Geographical                          Company Size
North America              43%        >£500m                27%
Europe                     51%        £100-500m             52%
Rest of the World           6%        <£100m                21%

Sectoral                              Profitability
Energy                     33%        Profitable            84%
Water                      35%        Pre-Profitable        16%
Waste                      28%
Cash                        4%
* of funds invested as of 30 September 2002



MANAGER'S COMMENTARY

During the month of September, the Company NAV fell 16% compared with the MSCI
World Index which fell by 13% and the Impax ET50 which fell 17%.  The volatile
global equity markets continue to affect companies operating in Environmental
Markets but there were positive developments during the month and some of the
highlights are shown below.


In the alternative energy sector this month, Vestas Windsystems (wind, Denmark)
received orders for 63 of its flagship V80-2MW turbines. The news was
significant in light of the technical issues relating to the turbines which were
highlighted after the Company's Q2 results last month. Meanwhile Gamesa (wind
turbines, Spain) successfully disposed of its windfarm assets to Iberdrola, the
Spanish utility, to concentrate on wind turbine manufacturing and development.
In the US, California continues to lead the way on the implementation of
environmental policies with the signing of legislation that requires utilities
to supply 20% of their retail power sales from renewable energy sources by 2017.


Hybrid electric vehicles (HEVs) were also in focus during the month with two of
the Japanese automobile manufacturers Toyota Motor Corp and Nissan Motor Co
announcing a technology sharing agreement for hybrid system components. The
interest in this market is steadily increasing and is set to benefit HEV
component suppliers such as Energy Conversion Devices (energy technologies, US)
and specialist consultants such as Ricardo (energy consultants, UK). More
positive news is anticipated in the alternative energy sector soon with the US
Energy Bill currently being finalised by the Committee of Energy and Commerce in
Washington.


In the water treatment and pollution control sector the focus was on the
Netherlands with Vivendi Environnement (water & waste, France) announcing that a
consortium led by the Company has won a 30-year contract to construct and
operate wastewater treatment plants in The Hague. The contract is estimated to
be worth €1.5 billion and the plants will be designed to comply with new
European standards requiring reduced levels of nitrogen and phosphorus discharge
into the natural environment. Also in the Netherlands, Trojan Technologies (UV
water treatment, Canada) announced a new order to provide their UV treatment
technology to what will be the largest drinking water facility in Europe.
Meanwhile in Japan, Mitsubishi Chemical Corporation and Calgon Carbon
Corporation (activated carbon, US) finalised a joint venture partnership that
will produce and sell activated carbon and related services. The new joint
venture will begin operation in October 2002.


News in the waste and resource management sector has once again been mixed.  In
Germany, the SPD/Green coalition remained intact following the Federal elections
on 22 September. This removes some of the uncertainty concerning implementation
of environmental regulations in general, and the deposit scheme for non-
refillable containers highlighted in particular; the latter is positive for
Tomra Systems (reverse vending, Norway). In the UK, pricing pressure in the
waste management sector has affected the UK waste companies, Shanks and Waste
Recycling Group. Although this may lead to a challenging trading environment in
the short-term, the forthcoming report from the Prime Minister's Strategy Unit
on the state of the UK waste industry is expected to reiterate the long-term
requirement for the industry to invest in new, integrated waste management
solutions in order to meet requirements under the EU Landfill Directive.


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



7 October 2002


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