Performance at month end

IMPAX ENVIRONMENTAL MARKETS plc

All information is at 31 January 2008 (unless otherwise stated) and
unaudited.

DATA AND PERFORMANCE


Data                          Pricing & Performance
                                                   IEM   MSCI  Impax
                                                   Net   World  ET50
Share price                                       Asset
(pence)                 115.0                     Value
Warrants (pence)         43.5
Total fund size     GBP 341.1 Diluted NAV (pence) 113.0   n/a   n/a
(m)
Market              GBP 346.4    Premium/discount  +1.8
capitalisation                                (%)
(m)
Management fee            1.0       Undiluted NAV 114.1
(%)                                       (pence)
Established       22 February        Performance*
                         2002
Fund structure     Investment         1 month (%) -12.3  -7.6  -20.0
                        Trust
Number of stocks           93        3 months (%) -14.0  -8.9  -12.7
held
Exchange               London          1 year (%)  -0.3  -3.8  +29.9
Currency                  GBP         3 years (%) +49.6  +21.8 +96.4
ISIN number      GB0031232498         5 years (%) +120.8 +58.0 +163.1
Sedol                 3123249        Since launch +16.1  +11.5 +42.3
                                 (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
Itron                     2.5   Meters & software         US
                                High efficiency electric
Regal Beloit              2.4   motors                    US
Clean Harbors             2.3   Hazardous waste           US
Gamesa                    2.3   Wind                      Spain
Ormat                     2.3   Geothermal                Israel / US
Vestas Wind Systems       2.2   Wind                      Denmark
Mayr Melnhof Karton       2.1   Recycled packaging        Austria
Chloride Group            2.0   UPS systems               UK
                                Waste disposal &
Lassila & Tikanoja        2.0   recycling                 Finland
Pall Corp                 2.0   Filtration                US

Total                    22.1


PORTFOLIO ANALYSIS*


Geographical           Company Size
North America      46% >£1bn          35%
Europe             46% £100-1bn       53%
Rest of the World  8%  <£100m         12%

Sectoral               Profitability
Energy             41% Profitable     95%
Water              27% Pre-Profitable 5%
Waste              32%
* of funds invested as of 31 January 2008













MANAGER'S COMMENTARY (January 2008)


January was a difficult month in financial markets, characterized by
volatility and disappointing stock market performance worldwide. The
Federal Reserve cut interest rates twice reflecting an economic
downturn in the US and concerns over recession. The Company NAV was
down 12.3%, compared with the MSCI World Index, which declined by
7.6% and the FTSE ET50, which fell 20.0% over the same period.

Against the background of a stock market sell-off, there were in fact
several positive developments for environmental markets during the
month. Within alternative energy and energy efficiency, the European
Commission published its proposals on achieving 20% of energy
production from renewable sources by 2020, up from 8.5% currently. It
is the first attempt to legislate with legally binding renewables
targets. A 10% biofuel target was also set for 2020, incorporating
sustainability criteria. Other announcements included the Emissions
Trading Scheme Phase III guidance, with stringent emissions
reductions and full auctioning of permits for the power sector. The
EU has committed to 20% greenhouse gas emission reduction in 2020
compared to 1990 levels and the package was a first step towards
achieving this.

In water treatment and pollution control, a report by the
Environmental Protection Agency estimated $202.5 billion of
investment is needed in the US to control wastewater pollution, in
order to meet Clean Water Act objectives. The findings represent an
8.6% increase on 2000 estimates, reflecting population growth, rising
standards and ageing infrastructure.

In waste technologies and resource management, China launched a
crackdown on plastic bags, with plans to ban free handouts from June
2008. Australia also announced a phase-out starting this year, and
New York mandated plastic bag recycling. In the EU a report suggested
that waste-to-energy capacity will increase by 13 million tonnes,
with 100 new plants coming on-line by 2012.

There was a broad sell-off across most stocks during the month, with
alternative energy stocks affected in particular, as evidenced by the
performance of the FTSE ET50 (75% of the index comprises energy
related stocks).  Stocks that contributed to the decrease in the
Company NAV included Transpacific (waste management, Australia) due
to concerns on the company's debt levels, and Novozymes (industrial
enzymes, Denmark), on disappointing results and rumours that its
biofuels business may be hit by unfavourable legislative developments
in the US.  On the upside, Whatman (filtration, UK) jumped 25% as
announcements of a takeover process were made to the market (at the
time of writing GE has been confirmed as the acquirer).


Latest information available at:


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

12 February 2008

---END OF MESSAGE---