Performance at month end

IMPAX ENVIRONMENTAL MARKETS plc

All information is at 31 August 2005 and unaudited

DATA AND PERFORMANCE


Data                            Pricing & Performance
                                                  IEM    MSCI  Impax
                                                  Net   World   ET50
Share Price                                      Asset
(pence)                      90                  Value
Total Fund Size        GBP 45.2 Pence (31.08.05)  90.4   n/a    n/a
(m)
Market                 GBP 45.0 Premium/discount  -0.4
Capitalisation (m)
Management fee             1.0%
Established         22 February      Performance
                           2002
Fund structure       Investment      1 month (%) +2.4%  -1.6%  +0.6%
                          Trust
Number of stocks             65     3 Months (%) +18.4% +6.1%  +15.4%
held
Exchange                 London       1 year (%) +36.9% +16.1% +32.9%
Currency                    GBP       2 year (%) +39.0% +16.1% +26.6%
ISIN Number        GB0031232498 Year to date (%) +17.8% +9.1%  +19.6%
Sedol                   3123249
Reuters RIC Code          IEM.L
Bloomberg Code           IEM LN


TOP TEN HOLDINGS


Company             Holding %   Description                Country
Vestas Wind Systems       3.5   Wind                       Denmark
RPS Group                 3.3   Environmental consulting   UK
Kurita Water              3.2   Water treatment            Japan
Casella Waste             3.1   Waste disposal & recycling US
Zenon Environmental       2.4   Membranes                  Canada
LKQ                       2.4   Automotive recycling       US
Pentair                   2.4   Water Treatment            US
Itron                     2.4   Meters & software          US
BWT                       2.3   Water treatment            Austria
Stericycle                2.3   Clinical waste             US

              Total      27.3


PORTFOLIO ANALYSIS*


Geographical          Company Size
North America     50% >£500m         32%
Europe            42% £100-500m      49%
Rest of the World 8%  <£100m         19%

Sectoral              Profitability
Energy            39% Profitable     88%
Water             29% Pre-Profitable 12%
Waste             32%
Cash              0%
* of funds invested as of 31 August 2005










MANAGER'S COMMENTARY (August 2005)


The Company NAV was up 2.4% over the month compared to the MSCI World
which fell 1.6%, and the Impax ET50, which was up 0.6% over the same
period.  Within the broader equity markets the oil & gas sector was
again the strongest performer, followed by energy equipment and
energy services.

Hurricane Katrina dominated the news, amid suggestions of a link
between climate change and the intensity of storms.  The hurricane
caused an estimated $30 billion in damage, with oil production and
refining affected, and the price of crude touching US$70 per bbl.
The long-term economic fallout is difficult to estimate, although
companies operating within environmental markets, notably water pumps
and pollution control, are likely to benefit.  Elsewhere in the US,
and following plans to explore a carbon emissions trading scheme, a
group of northeastern states challenged the Environmental Protection
Agency's refusal to regulate greenhouse gas emissions.  In Europe,
the Spanish cabinet approved a revised energy plan, which sets a
target for renewables to supply 12% of consumed power by 2010, up
from 6.9% at the end of 2004.  The $29 billion plan includes a target
for wind power capacity to reach 20 GW, taking electricity production
ahead of coal.  In China, the Xinhua News Agency reported on plans to
construct the first offshore wind power complex with a generating
capacity of 1000 MW, as part of a target to produce 20 MW from
renewable energy sources by 2020.  Finally, Toyota said it will
introduce 10 more gasoline-electric hybrid models by the early part
of the next decade, with target sales of a million vehicles a year.

The main contributors to performance were Impco (clean engine tier 1
supplier, US), which rose by 41% on strong Q2 results and an order in
China, and Tomra (reverse vending machines, Norway), which gained 16%
following an order from a German supermarket.  In the UK, Domnick
Hunter (filtration) increased by a further 37% after US manufacturer
Eaton topped a rival offer for the company by Parker Hannifin Corp,
and Ceres Power (fuel cells) rose by 29% after signing a commercial
development programme with British Gas.  On the downside, First
Technology (gas sensors and automotive safety, UK) fell 38% after
further weakness in the Automotive division.

During the month we participated in a placing for TEG Environmental
(composting, UK), and established a position in Regal Beloit (high
efficiency electric motors, US).


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

12 September 2005




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