Performance at month end

Impax Environmental Markets PLC
05 December 2002

IMPAX ENVIRONMENTAL MARKETS plc



All information is at 30 November 2002 and unaudited



DATA AND PERFORMANCE


Data                                      Pricing & Performance
Price (pence)                          46                         IEM            MSCI         Impax
                                                            Net Asset Value      World         ET50
Total Fund Size (m)               GBP29.7  Pence (30/11/02)       59.3            n/a          n/a
Management fee                       1.0%
Established              22 February 2002       Performance
Fund structure           Investment Trust       1 month (%)      +7.5%           +5.8%        +7.6%
Number of stocks                       49      3 Months (%)      -5.9%           -0.2%        -4.6%
held
Exchange                           London        1 year (%)        na           -16.5%        -39.2%
Currency                              GBP  Since launch (%)      -39.6%         -19.0%        -34.5%
ISIN Number                  GB0031232498
Sedol                             3123249
Reuters RIC Code                    IEM.L
Bloomberg Code                     IEM LN



TOP TEN HOLDINGS


Company                         Holding %     Description                Country
Vivendi Environnement                 6.7     Water & Waste              France
Tomra Systems                         4.9     Recycling                  Norway
RPS Group                             4.4     Environmental Consulting   Denmark
Ionics                                3.6     Water                      US
Wedeco                                3.5     Water                      Germany
Insituform                            3.4     Sewer Repair               US
Technologies
Vestas Windsystems                    3.2     Wind                       Denmark
Nordex                                3.2     Wind                       Germany
Westport Innovations                  3.0     Clean Engines              Canada
Kurita Water                          3.0     Water                      Japan
                 Total               38.9



PORTFOLIO ANALYSIS*


Geographical                         Company Size
North America             47%        >£500m                  22%
Europe                    48%        £100-500m               56%
Rest of the World          5%        <£100m                  22%

Sectoral                             Profitability
Energy                    33%        Profitable              84%
Water                     34%        Pre-Profitable          16%
Waste                     29%
Cash                       4%
* of funds invested as of 30 November 2002



MANAGER'S COMMENTARY


The Company NAV increased 7.5% during the month of November compared with an increase in the MSCI World Index of
5.8% and the Impax ET50 which rose 7.6%.  With technology stocks strong during the month, the Company has been
helped by the strong technology element to some of the Environmental Markets Companies; in addition, there have
been a number of important developments in the sector during the month and some of the highlights are shown
below.



There was corporate activity in the alternative energy sector as General Electric made an offer for Jenbacher AG
(clean stationary engines, Austria) at a 30% premium to the share price, while Plug Power (stationary fuel
cells, US) bought H Power (stationary fuel cells, US) in an all share deal.  There was also positive news in the
automotive arena as Toyota gave details of the leasing arrangements for the first commercial fuel cell vehicle
(FCV) to be launched in 2003; Ballard (fuel cells, Canada) announced an order with a new (unspecified) OEM
client; and Westport Innovations (clean engines, Canada), announced that Isuzu will be integrating a Westport
cycle engine into one of its best selling mid-duty truck platforms, the ELF.

It was a more difficult month for the renewable energy sector as the 5-year extension of the Production Tax
Credits (PTC) was not included in the lame duck US Energy Bill. Uncertainty will continue to surround the US
renewable markets until Federal renewable energy policy is clarified in a final-version of the bill, now due be
finalised in the second half of next year. The month also saw a profits warning from Vestas Windsystems (wind
turbines, Denmark) and weak results from Astropower (solar energy, US).  Despite the short-term policy
uncertainties, the renewable energy markets are still expected to grow at 15-20% to 2005 and at a CAGR of 10% to
2010.



There was also corporate activity in the water and pollution control sector last month with General Electric
announcing the acquisition of Osmonics (water, US) for a price of $17.00 per share. Following the completion of
the transaction, which is expected in the first quarter of 2003, Osmonics will be integrated with GE Water, a
unit of GE Power Systems. There were further developments at Vivendi Environnement (water & waste, France)
during the month with the overhang issues finally nearing resolution. The Company's parent, Vivendi Universal,
has agreed to sell 20.4% of VIE's share capital to a consortium of French investors in a share and warrants
deal. There are also rumours that the Company will shortly change its name. Meanwhile in Singapore, Zenon
Environmental (membranes, Canada) announced that the Company has agreed to supply its membranes to a 72 million
gallon per day drinking water facility which will be one of the largest membrane-based drinking water facilities
in the world.



In the UK, the Chancellor announced an acceleration in landfill tax increases in his pre-budget speech.
Starting in 2005/2006 the tax will increase at £3 p.a., compared with the current £1 p.a., with a ceiling of £35
per tonne by 2012/2013.  This will reduce the relative attractiveness of landfill in the long-term and drive the
introduction of integrated waste management solutions. This trend was also confirmed in a working paper of the
Government's new waste strategy 'Waste Not Want Not - A Strategy for Tackling the Waste Problem', also published
last month. This could prove to be positive for the UK waste companies, such as Shanks and Waste Recycling Group
and has also prompted interest in the UK waste sector from larger utilities such as RWE. Also in Germany, the
High Administrative Court in Munster ruled that the Government was fully entitled to implement the proposed
deposit scheme for non-refillable containers, which should be positive for Tomra Systems (recycling, Norway).
Discussions are still underway on the timing of implementation, with the market expecting a 6-month delay to
June 2003.



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



5 December 2002


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