Performance at month end

Impax Environmental Markets PLC
04 July 2003

IMPAX ENVIRONMENTAL MARKETS plc

All information is at 30 June 2003 and unaudited



DATA AND PERFORMANCE


Data                                      Pricing & Performance

Price (pence)                       45.25                         IEM            MSCI         Impax
                                                            Net Asset Value      World         ET50
Total Fund Size (m)                  28.1  Pence (30/06/03)       56.2            n/a          n/a
Management fee                       1.0%
Established              22 February 2002       Performance
Fund structure           Investment Trust       1 month (%)       +2.4%          +0.8%         -0.1%
Number of stocks                       51      3 Months (%)      +19.6%         +11.5%        +15.3%
held
Exchange                           London        1 year (%)      -30.6%         -11.4%        -32.0%
Currency                              GBP  Year to date (%)       +2.8%          +7.3%         +4.0%
ISIN Number                  GB0031232498
Sedol                             3123249
Reuters RIC Code                    IEM.L
Bloomberg Code                     IEM LN



TOP TEN HOLDINGS


Company                        Holding %      Description                  Country
Veolia Environnement                 5.3      Water & waste                France
RPS Group                            5.2      Environmental consulting     UK
Vestas Wind Systems                  4.3      Wind                         Denmark
Ionics                               3.6      Water                        US
Casella Waste                        3.4      Waste disposal & recycling   US
Kurita Water                         3.4      Water treatment              Japan
BWT                                  3.3      Water                        Austria
Insituform                           3.1      Sewer repair                 US
Shanks                               3.1      Waste disposal & recycling   UK
Impco Technologies                   3.0      Clean engines                US
                 Total              37.7



PORTFOLIO ANALYSIS*


Geographical                         Company Size
North America             47%        >£500m                  23%
Europe                    48%        £100-500m               54%
Rest of the World          5%        <£100m                  23%

Sectoral                             Profitability
Energy                    27%        Profitable              88%
Water                     36%        Pre-Profitable          12%
Waste                     32%
Cash                       5%
* of funds invested as of 30 June 2003



MANAGER'S COMMENTARY


The Company NAV increased 2.4% during the month compared with the MSCI World Index which rose 0.8% and a fall of
0.1% in the Impax ET50. There was a broad advance of the market across most sectors with energy and utilities
lagging. Specific developments in Environmental Markets during the month are set out below.



In the alternative energy sector, the hydrogen and fuel cells industry was in focus in the 'Towards a Greener
World' conference in Vancouver. Impax attended the conference as participants in the DTI-sponsored UK Fuel Cell
Mission to North America which had well over 1,000 attendants. The central message was that, while many
challenges remain, the economic and environmental benefits of hydrogen and fuel cells are clear and governments
as well as large automotive and energy companies are committed to the sector for the long-term. With gas prices
in the US rising last month and concern about power outages, there was an increased focus on renewable energy,
distributed generation and power quality. Amongst the alternative energy companies, Impco Technologies (clean
engines, US) signed an agreement with the Ministry of Transportation in the State of Mexico to develop and
implement public transportation vehicles to run on alternative fuels. The company also announced during the
month that it has successfully refinanced its credit facilities. The merger between Quantum Technologies (fuel
cells, US) and Global Thermoelectric (fuel cells, US) looks set to complete following settlement of a dispute
with Enbridge Inc. Ricardo (clean engines, UK) acquired the German-based automotive engineering group IFT during
the month, thereby increasing its presence in the European automotive market.



In the wind sector, two of the newer wind markets were in focus as Vestas Wind Systems' (wind turbines, Denmark)
Australian subsidiary announced that it has received a turnkey contract for a 80.5 MW onshore project in South
Australia. The project is due to become operational in early 2005. In France, Nordex (wind turbines, Germany)
completed the construction of the Vendee - Pays de la Loire 10.5 MW wind farm. Meanwhile NEG Micon (wind
turbines, Denmark) also received an order (worth €48 million) to supply turbines with a combined capacity of 68
MW to the Spanish market.



In the water sector, there was more news from the UV technology companies during the month with Wedeco AG (UV
systems, Germany) announcing that its North American subsidiary has been awarded a contract for the supply and
installation of UV systems in South Carolina, US. Meanwhile Trojan Technologies (UV systems, Canada) announced
the resignation of its CEO Allan Bulckaert. Insituform Technologies (sewer repair, US) announced that the
company has completed the acquisition of Sewer Services Ltd., a small United Kingdom based contractor
specialising in piping rehabilitation. The company also announced that together with its Kinsel Industries
subsidiary, the companies have won new sewer repair contracts for the city of Jacksonville in Florida. In New
Orleans, US Filter, a subsidiary of Veolia Environnement (water & waste, France) is strategically positioned in
the bidding process for the 20 year, US$1.5 billion contract to upgrade the city's water infrastructure
following the withdrawal of United Water, a subsidiary of Suez (water & waste, France).



Acquisitions were in focus in the waste sector during the month with Biffa (waste disposal, UK) announcing that
is has successfully acquired Hales Waste Control from RMC (UK) for a consideration of £141m. Meanwhile the
acquisition of Waste Recycling Group (waste, UK) by Guy Hands' Terra Firma Group looks set to complete following
board approvals from both companies. These acquisitions have demonstrated the period of consolidation in the UK
waste market as the industry enters a new phase of growth. Energy Developments Ltd (waste treatment & disposal,
Australia) signed a memorandum of understanding to develop a 32 MW waste coal seam methane power plant north
west of Brisbane in Australia. The project represents a return to the company's core competence of developing
power projects.



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



4 July 2003


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