Performance at month end

Impax Environmental Markets PLC
05 August 2003

IMPAX ENVIRONMENTAL MARKETS plc



All information is at 31 July 2003 and unaudited



DATA AND PERFORMANCE


Data                                      Pricing & Performance
Price (pence)                        47.5                         IEM            MSCI         Impax

                                                            Net Asset Value      World         ET50
Total Fund Size (m)                  29.8  Pence (31/07/03)       59.5            n/a          n/a
Management fee                       1.0%
Established              22 February 2002       Performance
Fund structure           Investment Trust       1 month (%)      +5.9%           +4.6%        +5.3%
Number of stocks                       53      3 Months (%)      +12.3%          +8.5%        +9.4%
held
Exchange                           London        1 year (%)      -8.4%           +3.9%        -12.8%
Currency                              GBP  Year to date (%)      +8.9%          +12.2%        +9.5%
ISIN Number                  GB0031232498
Sedol                             3123249
Reuters RIC Code                    IEM.L
Bloomberg Code                     IEM LN



TOP TEN HOLDINGS


Company                        Holding %      Description                  Country
RPS Group                            4.8      Environmental consulting     UK
Veolia Environnement                 4.7      Water & waste                France
Casella Waste                        4.4      Waste disposal & recycling   US
Vestas Wind Systems                  4.0      Wind                         Denmark
Ionics                               3.4      Water treatment              US
Kurita Water                         3.0      Water treatment              Japan
Tomra                                2.9      Recycling                    Norway
Wedeco                               2.7      UV disinfection              Germany
BWT                                  2.7      Water treatment              Austria
Insituform                           2.7      Sewer repair                 US

                 Total              35.3



PORTFOLIO ANALYSIS*


Geographical                         Company Size
North America             48%        >£500m                  24%
Europe                    46%        £100-500m               53%
Rest of the World          6%        <£100m                  23%

Sectoral                             Profitability
Energy                    27%        Profitable              88%
Water                     35%        Pre-Profitable          12%
Waste                     33%
Cash                       5%
* of funds invested as of 31 July 2003



MANAGER'S COMMENTARY


The Company NAV increased 5.9% during the month slightly outperforming both the MSCI World Index and the Impax
ET50 which rose 4.6% and 5.3% respectively.  The general market performance was mixed with Industrials and
Technology leading while Energy and Utilities were again weaker.  Specific developments in Environmental Markets
during the month are discussed below.



In the alternative energy sector, the Federal Reserve Chairman Alan Greenspan highlighted rising natural gas
prices and the impact that depleted gas reserves are likely to have on future pricing. The rising cost of fossil
fuel-based generation increases the viability of alternative forms of generation such as wind and hydroelectric
power. There were positive developments in renewable energy during the month as Vestas Wind Systems (wind
turbines, Denmark) announced that Florida Power & Light increased its order for the High Winds Energy Center
project in California, and Nordex (wind turbines, Germany) announced that it has been awarded contracts for the
construction and operation of wind farms in France and Portugal with a total installed capacity of 90 MW.
Meanwhile the UK Government invited developers to tender for the latest round of offshore wind sites. The sites
are in three coastal areas: the Wash, the Thames Estuary and the north-west coast of England and Wales, and
could lead to 6,000 MW of new capacity. Amongst the fuel cell companies Global Thermoelectric (fuel cells,
Canada) announced that it has been approached by another potential acquirer following Quantum Technologies'
(fuel cells, US) approach earlier this year. Also, the first commercial fuel cell vehicle was introduced in
Japan during the month - GM' HydrogenGen3 vehicle will be used by FedEx to deliver packages in Tokyo. The
Japanese Government has set a target of 5 million fuel cell vehicles on the road by 2020.



New water technologies continued to make progress as Zenon Environmental (membranes, Canada) announced the
company's largest wastewater treatment project to date with the expansion of a Water Resources Centre in the
state of Georgia. Trojan Technologies (UV systems, Canada) reported that it has finalised a purchase order for
ultraviolet water treatment equipment for a drinking water facility in the Netherlands - the plant will be the
first of its kind in Europe and will use UV-oxidation to treat both waterborne microorganisms and
micropollutants.  The delayed pickup in the semiconductor industry effected the ultrapure water providers
particularly Ionics (membranes, US) and BWT (water treatment, Austria), which both announced weaker than
expected results. Badger Meter (water meters, US) reported a strong quarter for water meters and confirmed the
restart of its important project in Houston, while its partner on that project, Itron (automated meter reading,
US) announced that it has agreed to acquire Schlumberger's North American electricity metering unit for $255
million.



In the waste and resource management sector, the environmental consulting companies were in focus with RPS
(environmental consulting, UK), Tetra Tech (environmental consulting, US) and Stantec (environmental consulting,
Canada) all reporting strong results for the first half. Energy Developments (waste, Australia) announced that
the company is to cease development of its SWERF plant in New South Wales citing the high development costs
associated with the project - the company will continue to focus on its core business of generating power from
landfill gas and coal seam methane. Meanwhile Casella Waste (waste disposal & recycling, US) and Lassila &
Tikanoja (waste & recycling, Finland) both reported strong results for the Quarter and provided a positive
outlook with good growth prospects.



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



5 August 2003


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