Performance at month end

Impax Environmental Markets PLC
07 July 2004

IMPAX ENVIRONMENTAL MARKETS plc



All information is at 30 June 2004 and unaudited



DATA AND PERFORMANCE


Data                                      Pricing & Performance

Price (pence)                       60.25                         IEM            MSCI         Impax
                                                            Net Asset Value      World         ET50
Total Fund Size (m)                  34.5   Pence (30.6.04)       69.2            n/a          n/a
Management fee                       1.0%  Premium/discount      -13.5%
Established              22 February 2002
Fund structure           Investment Trust       Performance
Number of stocks                       59       1 month (%)      +4.7%           +3.0%        +5.2%
held
Exchange                           London      3 Months (%)      +3.3%           +1.7%        +2.4%
Currency                              GBP        1 year (%)      +23.6%         +11.0%        +15.0%
ISIN Number                  GB0031232498  Year to date (%)      +4.4%           +1.2%        +1.2%
Sedol                             3123249
Reuters RIC Code                    IEM.L
Bloomberg Code                     IEM LN




TOP TEN HOLDINGS


Company                        Holding %      Description                  Country
Vestas Wind Systems                  4.3      Wind                         Denmark
RPS Group                            3.6      Environmental consulting     UK
Itron                                3.5      Meters & software            US
Casella Waste                        3.5      Waste disposal & recycling   US
Ionics                               3.3      Water treatment              US
Trojan Tech                          3.2      UV disinfection              Canada
Kurita Water                         3.1      Water treatment              Japan
BWT                                  3.0      Water treatment              Austria
Shanks                               2.7      Waste management             UK
Zenon Environmental                  2.7      Membranes                    Canada

                 Total              32.9



PORTFOLIO ANALYSIS*


Geographical                         Company Size
North America             51%        >£500m                  20%
Europe                    40%        £100-500m               56%
Rest of the World          9%        <£100m                  24%

Sectoral                             Profitability
Energy                    33%        Profitable              88%
Water                     34%        Pre-Profitable          12%
Waste                     30%
Cash                       3%
* of funds invested as of 30 June 2004



MANAGER'S COMMENTARY (June 2004)


The Company NAV increased by +4.7% during the month compared with the MSCI World Index, which increased +1.3%
and the Impax ET50 which increased +5.2%.  The best performing equity sector (across all markets) was energy
equipment and this was reflected by strong performance from many of our holdings.  Specific developments in
Environmental Markets during the month are discussed below.



Although the alternative energy sector underperformed during the month, there was good news for several of our
holdings.  Itron (meters & utility software, US) announced that the Federal Trade Commission had approved its
merger with Schlumberger Electricity Metering ('SEM') for $248m but, given that the combined entity would have a
dominant position in the radio frequency automated meter reading ('AMR') market, the FTC insisted on a
technology licensing deal with Hunt Technologies.  The transaction is substantially accretive to Itron's
earnings and establishes the company as the clear leader in energy data collection and management for the US
utility sector.   There was positive news in alternative fuels as Westport (natural gas diesel engines, Canada)
announced the sale of 90 engines for the Paris refuse truck market through its Cummins Westport subsidiary; also
Impco Technologies (tier-1 clean engine supplier, US) reported that it will be selling products to Volkswagen
for the light natural gas automotive market in Brazil.



New products and markets have been the theme in the water sector during the month.  Trojan Technologies (UV
disinfection, Canada) confirmed the first order for its new UV-oxidation (UV and hydrogen peroxide) solution to
disinfect drinking water in Cornwall, Ontario and eliminate any taste and odour problems.  This unique product
removes the need (and the cost) of using activated carbon and/or ozone to control taste and odour.  Meanwhile, a
new study by the Association for Professionals in Infection Control and Epidemiology found that the Pall
(membranes & filtration, US) Aquasafe water filter completely and cost effectively eliminates legionella (and
other) bacteria from the water supply to public buildings, particularly hospitals.  Finally, Zenon Environmental
(membranes, Canada) has finalized an agreement with Maytag Corporation for the distribution and sale of the
Maytag Central Water Filtration System to the consumer residential market in the United States.   The system
uses Zenon's ultrafiltration membranes that effectively block out particulates and pathogens such as bacteria,
parasites and viruses, while allowing essential minerals to pass through; it is installed where the water enters
the house and delivers water throughout the home using the existing water line pressure.



The waste technologies and resource management sector saw a number of acquisitions during the month.  Stericycle
(hospital waste, US) made its first move into Europe with the purchase of White Rose Environmental (for $56m)
which is the largest medical waste handler in the UK.  Mayr Melnhof (cartonboard recycling, Austria) acquired a
cartonboard producer in St Petersburg, Russia and stated that at least three potential targets were in the
pipeline.   RPS Group (environmental consulting, UK) continues to play a key role in consolidating the UK
consultancy market, this time in the water services market with the acquisition of Flow Control. Finally, LKQ
(vehicle recycling, US) further expanded its recycled automotive parts network with the acquisition of a salvage
business in Minnesota.





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



07 July 2004


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