Performance at month end

IMPAX ENVIRONMENTAL MARKETS plc

All information is at 30 November 2007 and unaudited.

DATA AND PERFORMANCE


Data                          Pricing & Performance
                                                   IEM   MSCI  Impax
                                                   Net   World  ET50
Share price                                       Asset
(pence)                 121.3                     Value
Warrants (pence)         45.0
Total fund size     GBP 265.8 Diluted NAV (pence) 121.6   n/a   n/a
(m)
Market              GBP 263.6    Premium/discount -0.3%
capitalisation                                (%)
(m)
Management fee            1.0       Undiluted NAV 124.0
(%)                                       (pence)
Established       22 February        Performance*
                         2002
Fund structure     Investment         1 month (%)  -6.6  -3.3   +0.3
                        Trust
Number of stocks           91        3 months (%)  +0.0  +1.2  +19.7
held
Exchange               London          1 year (%) +16.5  +5.9  +59.7
Currency                  GBP         3 years (%) +66.7  +32.8 +135.9
ISIN number      GB0031232498         5 years (%) +109.1 +46.3 +149.7
Sedol                 3123249        Since launch +26.2  +18.4 +63.6
                                 (22/02/2002) (%)
Reuters RIC code        IEM.L
                              * Performance data is for undiluted
Bloomberg code         IEM LN NAV.


TOP TEN HOLDINGS


Company             Holding %   Description               Country
Ormat               2.6         Geothermal                Israel / US
Vestas Wind Systems 2.4         Wind                      Denmark
Chloride Group      2.3         UPS systems               UK
                                High efficiency electric
Regal Beloit        2.3         motors                    US
Gamesa              2.2         Wind                      Spain
Stericycle          2.1         Clinical waste            US
Itron               2.0         Meters & software         US
Mayr Melnhof Karton 2.0         Recycled packaging        Austria
Stantec             2.0         Environmental consulting  Canada
LKQ Corp            2.0         Automotive recycling      US

Total               22.0


PORTFOLIO ANALYSIS*


Geographical            Company Size
North America      43%  >£1bn          41%
Europe             49%  £100-1bn       44%
Rest of the World   8%  <£100m         15%

Sectoral                Profitability
Energy             43%  Profitable     94%
Water              26%  Pre-Profitable 6%
Waste              31%
* of funds invested as of 30 November 2007













MANAGER'S COMMENTARY (November 2007)


November was a difficult month in the market driven by concerns of
slowing global growth and ongoing sub-prime and credit issues.
Defensive sectors such as consumer staples, healthcare and utilities
made the only gains at the expense of financials and small caps in
particular. The Company NAV was down 6.6% over the month compared
with the MSCI World Index, which lost 3.3%, and the Impax ET50 which
rose 0.3% over the same period.

In alternative energy and energy efficiency, the German cabinet
agreed to amend the Renewable Energy Act (EEG) and cut carbon
emissions by 40% by 2020 compared to 1990 levels. The proposals
include a goal of 25-30% power generation from renewables by 2020.
Speculation earlier in the month that German solar feed-in tariffs
would fall 8% in 2009 impacted upon solar names; however, stocks
recovered on news that the feed-in tariff reduction will be 7% in
2010 and 8% from 2011, compared to the current annual decline rate of
5%. Elsewhere, the environment was a key battleground in the
Australian elections, culminating in new Prime Minister Kevin Rudd
ratifying the Kyoto Protocol and outlining proposals for 20%
renewable power generation by 2020.

In water treatment and pollution control, the US Congress overrode
the President's veto of the Water Resources Development Act (WRDA).
Both chambers voted to authorise $23.2bn for projects such as
restoration and hurricane prevention in coastal areas, replacement of
locks, dredging and other waterway projects. This was the first time
that a presidential veto has been overridden, and represented a
significant win for protection of US waterways. In Europe, the
Spanish parliament approved wide-reaching legislation to cut
greenhouse gas emissions and reduce air pollution in an attempt to
improve some of the worst air quality standards in the EU. The new
Air Quality and Atmospheric Protection law will reform vehicle
purchase taxes and impose new air quality obligations on local
authorities.

In waste technologies and resource management, two major studies were
published by the European Commission as part of a revision of the
Waste Electrical and Electronic Equipment (WEEE) Directive proposed
for 2008. Recommendations include ways to increase cost-effectiveness
and efficiency, a proposal to harmonise requirements for take-back
systems to improve the law's implementation across the EU, and
stricter targets for high-impact products such as fridges containing
CFCs and mercury-based liquid crystal display monitors.

Stocks that contributed to the decline in the Company NAV included
environmental consultancies Grontmij  (Netherlands) and RPS (UK), due
to their perceived exposure to the construction sector, and Camco,
(carbon trading, UK), due to uncertainty in the carbon markets after
competitor Ecosecurities announced delays to carbon credits caused by
the UN certification process.  On the upside Active Power (flywheels,
US) gained 20% following new orders and industry recognition, and
Clean Harbors (hazardous waste, US) increased by 9% following record
sales in Q3.


Latest information available at:


http://www.impax.co.uk/impax/funds/listed_funds/environmental_plc/

24 December 2007

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