Performance at month end

IMPAX ENVIRONMENTAL MARKETS plc

All information is at 30 September 2005 and unaudited

DATA AND PERFORMANCE


Data                            Pricing & Performance
                                                  IEM    MSCI  Impax
                                                  Net   World   ET50
Share Price                                      Asset
(pence)                    96.5                  Value
Total Fund Size        GBP 47.3 Pence (30.09.05)  94.5   n/a    n/a
(m)
Market                 GBP 48.3 Premium/discount +2.1%
Capitalisation (m)
Management fee             1.0%
Established         22 February      Performance
                           2002
Fund structure       Investment      1 month (%) +4.6%  +4.2%  +4.9%
                          Trust
Number of stocks             67     3 Months (%) +15.6% +8.0%  +14.9%
held
Exchange                 London       1 year (%) +39.0% +19.5% +35.0%
Currency                    GBP       2 year (%) +50.0% +26.4% +38.1%
ISIN Number        GB0031232498 Year to date (%) +23.5% +13.6% +25.5%
Sedol                   3123249
Reuters RIC Code          IEM.L
Bloomberg Code           IEM LN


TOP TEN HOLDINGS


Company             Holding %   Description                Country
Vestas Wind Systems       4.0   Wind                       Denmark
Kurita Water              3.2   Water treatment            Japan
Casella Waste             3.0   Waste disposal & recycling US
Itron                     2.7   Meters & software          US
RPS Group                 2.7   Environmental consulting   UK
Zenon Environmental       2.4   Membranes                  Canada
LKQ                       2.3   Automotive recycling       US
Stericycle                2.2   Clinical waste             US
Pentair                   2.2   Water Treatment            US
BWT                       2.2   Water treatment            Austria

              Total      26.7


PORTFOLIO ANALYSIS*


Geographical            Company Size
North America      49%  >£500m          36%
Europe             42%  £100-500m       47%
Rest of the World   9%  <£100m          17%

Sectoral                Profitability
Energy             41%  Profitable      86%
Water              28%  Pre-Profitable  14%
Waste              31%
Cash                0%
* of funds invested as of 30 September 2005














MANAGER'S COMMENTARY (September 2005)


The Company NAV was up 4.6% over the month compared to the MSCI World
which rose 4.2%, and the Impax ET50, which was up 4.9% over the same
period.  Within the broader equity markets, mining was the best
performing sector, followed by oil & gas.

In the aftermath of Hurricane Katrina, and with the International
Energy Agency forecasting the price of crude oil to average more than
$60 per bbl in 2006, President Bush asked US citizens to conserve
gasoline and to make sacrifices on fuel consumption.  During the
month Minnesota became the first US state to require the use of
biodiesel and New York State passed legislation that provides a
refundable tax credit to biofuel producers.  In Europe, Chancellor
Schroeder urged the EU to double the exisiting target for fuels to
contain 5.75% biofuel by 2010, and the French government announced a
target of 10% by 2015.  In Portugal plans were announced for the
world's largest solar energy station, which will produce enough
electricity to power 21,000 homes. The 62-MW plant will use 350,000
solar panels spread over an area the size of 150 football pitches,
and will be 12 times the size of the biggest solar power plant
currently in operation in Germany.  The solar market remains buoyant
with the IPO of Ersol Solar Energy and the announcement that Q-Cells,
another solar power cell manufacturer, will also seek a listing on
the Frankfurt Stock Exchange.  In the UK, it was announced that
nearly 23% of domestic waste in England was recycled in 2004/2005,
double the rate of four years ago, but still some way behind the EU
target of by 60% by 2008.  The European Commission continues to
propose legislation touching on all aspects of the environment, most
recently this month with a new "clean air strategy", that will seek
to bring the EU up to the standard of the US in capping emissions of
particulates, nitrogen oxide and ammonia to the air, from industries
such as transport, power, and agriculture.

The main contributors to performance were Xantrex (power electronics,
Canada, +35%), which won a contract to supply wind converter supply
equipment to US turbine manufacturer Clipper, and Questair (hydrogen
purification, Canada), which rose 26% after completing a review to
develop a large capacity hydrogen purifier for ExxonMobil.  In the
UK, Hamworthy (onboard pollution control) gained 25% after winning a
£25m LNG liquefaction contract.  On the downside, Insituform
(trenchless sewer repair, US) fell 16% on downgrades, following
disruption to business in the Gulf of Mexico region, whilst Quantum
(clean engine systems, US) fell 12% on further downgrades.

During the month we added to our position in Gamesa (wind turbines,
Spain), and increased our holding in Whatman (filtration, US).


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

4 October 2005




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