Performance at month end

Impax Environmental Markets PLC
03 December 2003

IMPAX ENVIRONMENTAL MARKETS plc

All information is at 30 November 2003 and unaudited

DATA AND PERFORMANCE


Data                                      Pricing & Performance
                                                                  IEM            MSCI         Impax
Price (pence)                        56.5                   Net Asset Value      World         ET50      
Total Fund Size (m)                  32.8  Pence (30/11/03)       65.6            n/a          n/a
Management fee                       1.0%
Established              22 February 2002       Performance
Fund structure           Investment Trust       1 month (%)      -2.6%            0%          -2.5%
Number of stocks                       53      3 Months (%)      +0.9%           -0.8%        -1.3%
held
Exchange                           London        1 year (%)      +11.2%          +5.9%        +2.6%
Currency                              GBP  Year to date (%)      +20.0%         +15.3%        +15.7%
ISIN Number                  GB0031232498
Sedol                             3123249
Reuters RIC Code                    IEM.L
Bloomberg Code                     IEM LN



TOP TEN HOLDINGS


Company                        Holding %      Description                  Country
RPS Group                            4.6      Environmental consulting     UK
Ionics                               4.2      Water treatment              US
Casella Waste                        4.2      Waste disposal & recycling   US
Tetra Tech                           3.7      Environmental consulting     US
Wedeco                               3.6      UV disinfection              Germany
BWT                                  3.2      Water treatment              Austria
Vestas Wind Systems                  3.2      Wind                         Denmark
Hydrogenics                          3.0      Fuel cells                   Canada
Kurita Water                         2.6      Water treatment              Japan
Tomra                                2.6      Recycling systems            Norway

                 Total              34.9



PORTFOLIO ANALYSIS*


Geographical                         Company Size
North America             54%        >£500m                  22%
Europe                    40%        £100-500m               58%
Rest of the World          6%        <£100m                  20%

Sectoral                             Profitability
Energy                    28%        Profitable              85%
Water                     37%        Pre-Profitable          15%
Waste                     32%
Cash                       3%
* of funds invested as of 30 November 2003







MANAGER'S COMMENTARY

The Company NAV decreased -2.6% during the month compared with the MSCI World Index which remained flat (0%) and
the Impax ET50 which fell  -2.5%.   The energy and energy equipment companies were weakest with materials and
telecoms both outperforming - these trends were reflected in the Environmental Markets ('EM') universe with
alternative energy being the weakest sub-sector. Specific developments in Environmental Markets during the month
are discussed below.

It has been a difficult month for the alternative energy and energy efficiency sector.   Despite considerable
political pressure from the White House and approval of a revised US Energy Bill by both Congress and the House
or Representatives, the Bill fell at the final hurdle due to a last minute filibuster by Democrats and a group
of Republicans that were unhappy about the 'exemption from prosecution' granted to producers of the fuel
additive MTBE.  The Bill included substantial funds and subsidies for renewable energy, fuel cells, hydrogen,
automated meter reading and bioethanol which would benefit a number of the Company's holdings - it is expected
to be revived in the first half of 2004.  In the wind sector during the month, the Danish companies NEG Micon
and Vestas both reduced their profit expectations for the current year while Gamesa (wind, Spain) and Repower
(wind, Germany) both announced commercial developments in China.  Meanwhile the solar industry in Germany
received a boost as new legislation was approved that will guarantee a price for solar power of €0.45/kWh which
will benefit Evergreen Solar (photovoltaics, US) that is selling into this market.

The water treatment and pollution control sector has seen a very positive quarter with corporate activity being
the ongoing theme.  Firstly we saw ITT Industries strengthening its technology position with the acquisition of
Wedeco AG at a 30% premium to the market.  In addition, Ionics utilised the cash on its balance sheet to acquire
Ecolochem (private water treatment, US) thus increasing its recurring revenue stream while Everpure (US Filter/
Veolia filtration asset) was sold to Pentair indicating the ongoing interest of US industrial companies in the
water technology sector.   There were further reports from companies that capital spending in the water sector
worldwide is slowly improving, particularly in Japan and the Far East where Horiba (environmental testing
equipment) and Kurita (water treatment) are both active.

The UK has been in focus in the waste technologies and resource management sector as Shanks (integrated waste
management, UK) reported that, while still tough, the trading environment and regulatory situation were
beginning to improve and the opportunities for growth in the UK were substantial.  Universal Salvage (vehicle
auctions & recycling) announced their first contract with an automotive OEM (Toyota) to handle the disposal of
end of life vehicles ('ELVs') for the next three years.  Meanwhile on the policy side, DEFRA announced the
recycling targets for packaging waste which are to increase to 70% by 2008 (current level 59%).  In
international markets, a number of waste, recycling and consultancy companies reported a positive outlook for
2004 including Mayr Melnhof (cartonboard recycling, Austria), TetraTech (environmental consulting, US), and
Seche Environnement (hazardous waste, France).

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

3 December 2003


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