Performance at month end

Impax Environmental Markets PLC
04 June 2003

IMPAX ENVIRONMENTAL MARKETS plc

All information is at 31 May 2003 and unaudited

DATA AND PERFORMANCE

Data                                      Pricing & Performance

Price (pence)                          43                         IEM            MSCI         Impax
                                                            Net Asset Value      World         ET50
Total Fund Size (m)              GBP 27.5  Pence (31/05/03)       54.9            n/a          n/a
Management fee                       1.0%
Established              22 February 2002       Performance
Fund structure           Investment Trust       1 month (%)      +4.2%           +2.9%        +4.0%
Number of stocks                       51      3 Months (%)      +12.0%          +9.5%        +14.6%
held
Exchange                           London        1 year (%)      -41.0%         -20.9%        -39.6%
Currency                              GBP  Year to date (%)      +0.4%           +6.4%        +4.2%
ISIN Number                  GB0031232498
Sedol                             3123249
Reuters RIC Code                    IEM.L
Bloomberg Code                     IEM LN


TOP TEN HOLDINGS

Company                        Holding %      Description                  Country
Veolia Environnement                 5.9      Water & Waste                France
RPS Group                            4.7      Environmental Consulting     UK
Vestas Wind Systems                  3.6      Wind                         Denmark
Casella Waste                        3.5      Waste Disposal & Recycling   US
Ionics                               3.4      Water                        Austria
Kurita Water                         3.3      Water                        US
BWT                                  3.2      Water Treatment              Japan
Insituform                           2.9      Sewer repair                 US
Shanks                               2.9      Waste                        UK
Tomra                                2.8      Recycling                    Norway
                 Total              36.2

PORTFOLIO ANALYSIS*

Geographical                         Company Size
North America             46%        >£500m                  25%
Europe                    49%        £100-500m               53%
Rest of the World          5%        <£100m                  22%

Sectoral                             Profitability
Energy                    27%        Profitable              87%
Water                     35%        Pre-Profitable          13%
Waste                     33%
Cash                       5%
* of funds invested as of 31 May 2003


MANAGER'S COMMENTARY

The Company NAV increased 4.2% during the month compared with the MSCI World Index which rose 2.9% and an
increase of 4.0% in the Impax ET50. A key theme was the strengthening Euro and concerns for the economic outlook
in Europe. US and UK stocks outperformed during the month with sectors related to Environmental Markets (such as
energy equipment, technology and utilities) performing well. The key developments in Environmental Markets are
shown below.

In the alternative energy sector, Proton Energy Systems (fuel cells, US) announced its intention to acquire
Northern Power Systems, a manufacturer and installer of integrated power systems for stationary applications in
a cash and shares deal. In another example of cash-rich alternative energy companies seeking to realise
shareholder value, Proton also announced its intention to distribute a cash dividend of $1 per share. During the
month Energy Conversion Devices (solar systems, US) agreed to acquire all of the Bekaert Group's interests in
their Uni-Solar joint venture. The announcement was followed by news that the U.S. Air Force Research Laboratory
has awarded Uni-Solar a $11.5 million, 18-month contract to develop new solar cell technology to be used in
space and airship vehicles.

There was more mixed news from the wind sector during the month with LM Glasfiber (blade manufacturer, Denmark)
and Nordex (wind turbines, Germany) both announcing profit warnings citing weak markets and poor visibility. On
a more positive note, Vestas Wind Systems (wind turbines, Denmark) reaffirmed revenue expectations for 2003 and
announced a $US100m order from the US. GE Wind and NEG Micon (wind turbines, Denmark) also reported US orders
during the month.

In the water sector, ultraviolet technology (UV) was in focus as merger talks between Wedeco (UV, Germany) and
Trojan Technologies (UV, Canada) fell through. Both companies reported exceptional items in their quarterly
accounts in relation to the activity. Nevertheless the potential applications for UV continue to expand as
demonstrated by the integration of UV technology into the Stamford Water Pollution Control Facility in
Connecticut, US. UV technology was selected to meet the requirements of the local Environmental Protection
agency. Zenon Environmental (membranes, Canada) reported strong results for the first quarter of 2003 and at the
end of the month Veolia Environnement (water & waste, France) joined the MSCI World index.

In the waste sector, Tomra Systems (reverse vending, Norway) signed a letter of intent with a Scandinavian
retailer to supply and upgrade reverse vending machines. The contract has a value of approximately NOK100m and
is due to be finalised during the second half of 2003. There was more activity in the UK during the month as the
Government officially responded to the Waste Strategy Unit's 'Waste Not, Want Not' strategy review. The
Government accepted a number of the recommendations including further landfill tax increases and the allocation
of more funds to promote recycling. Meanwhile, the French recycling federation, Federec, announced that the
market for collecting, recycling and marketing recycled wastes increased 7% amidst a 5% increase in waste
arisings.

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

4 June 2003


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