Performance at month end

Impax Environmental Markets PLC
03 November 2004

IMPAX ENVIRONMENTAL MARKETS plc



All information is at 31 October 2004 and unaudited



DATA AND PERFORMANCE


Data                                      Pricing & Performance

Share Price (pence)                  66.5                         IEM            MSCI         Impax
                                                            Net Asset Value      World         ET50
Total Fund Size (m)                  35.5  Pence (31.10.04)       70.9            n/a          n/a
Management fee                       1.0%  Premium/discount      -6.2%
Established              22 February 2002
Fund structure           Investment Trust       Performance
Number of stocks                       60       1 month (%)      +3.5%           +1.1%        +0.1%
held
Exchange                           London      3 Months (%)      +7.4%           -3.7%        +3.2%
Currency                              GBP        1 year (%)      +5.8%           +3.2%        +2.6%
ISIN Number                  GB0031232498        2 year (%)      +28.9%         +15.7%        +10.3%
Sedol                             3123249  Year to date (%)      +7.0%           +1.1%        -2.3%
Reuters RIC Code                    IEM.L
Bloomberg Code                     IEM LN




TOP TEN HOLDINGS


Company                        Holding %      Description                  Country

Itron                                3.5      Meters & software            US
RPS Group                            3.5      Environmental consulting     UK
Casella Waste                        3.3      Waste disposal & recycling   US
Ionics                               3.3      Water treatment              US
Vestas Wind Systems                  3.1      Wind                         Denmark
Kurita Water                         2.9      Water treatment              Japan
Zenon Environmental                  2.8      Membranes                    Canada
BWT                                  2.6      Water treatment              Austria
Shanks                               2.6      Waste management             UK
Quantum Fuel                         2.4      Fuel cells & hydrogen        US

                 Total              30.0



PORTFOLIO ANALYSIS*


Geographical                         Company Size
North America             52%        >£500m                  17%
Europe                    39%        £100-500m               61%
Rest of the World          9%        <£100m                  22%

Sectoral                             Profitability
Energy                    34%        Profitable              88%
Water                     34%        Pre-Profitable          12%
Waste                     31%
Cash                       1%
* of funds invested as of 31 October 2004




MANAGER'S COMMENTARY (October 2004)


The Company NAV was up +3.5% during the month compared with the MSCI World Index which increased +1.1% and the
Impax ET50, which increased +0.1%.  Markets were led by an unusual combination of utilities and technology while
healthcare continued to underperform.  The price of oil rose to another all-time high (Brent Crude $51.6 per
bbl) before falling back at the end of the month.  Specific developments in EM during the month are discussed
below.



It has been another positive month in the alternative energy sector. Companies operating in power electronics
and uninterruptible power supply (UPS) markets such as Active Power (flywheels, US), Chloride (UPS, UK) and
Vacon (frequency converters, Finland) all reported strong results with a favourable outlook.  Itron (meters &
utility software, US) upgraded its expectations and confirmed the ongoing success of integrating the
Schlumberger metering business, while Quantum Fuel (fuel cells & hydrogen, US) supplied a fuel cell vehicle to
the US Army and, together with GM, announced the successful adaption of the HUMMER to run on hydrogen fuel.  In
the wind sector, Siemens announced that it is to acquire the privately owned Danish turbine manufacturer Bonus
for an undisclosed sum (estimated as €200-300 million); the American Wind Energy Association reported that its
capacity estimates for 2004 were slightly ahead of many analysts' estimates (though down on 2003); and Vestas
(wind turbines, Denmark) announced several large orders in Spain and Italy but also that its CEO (Svend Sigaard)
will leave the company in June 2005.  Elsewhere, Impco Technologies (clean engines, US) announced that it is to
acquire the remaining 50% of BRC (clean engines, private, Italy) to create a fully integrated global offering to
its OEM customers.



Water treatment and pollution control markets continue to be strong.  In North America, Badger Meter (water
meters, US) reported strong results, the turnaround of Insituform Technologies (trenchless sewer repair, US)
continued with both margins and backlog both increasing, and Pure Technologies (infrastructure monitoring,
Canada) announced a large project for a water pipeline in Arizona.  In Europe, BWT (water treatment, Austria)
reported strong growth for all of its products and forecasted strong growth for the next twelve months.  Finally
in Asia, Horiba (environmental testing & monitoring, Japan) raised its forecast for the year and Global Power
Equipment (pollution control) reported an increased backlog with the bulk of the orders coming from the Asian
market.  In summary, the capital spending environment in the water and pollution control sector remains strong
and we expect this to continue into 2005.



The hazardous waste markets have been in focus during the month.  Stericycle's (clinical waste, US) results met
expectations despite the hurricanes in North America and rising energy prices, and Seche Environnement
(hazardous waste, France) reported good growth in the French market.  New legislation to promote the recycling
of waste electrical and electronic equipment (WEEE) is creating interesting market opportunities.  Citiraya
(WEEE recycling, Singapore) reported strong results and announced an investment in a new facility in South
Wales, while Sims Group (recycling, private, UK) acquired a WEEE recycling company, MIREC, with operations
across Europe.  Other news included the IPO of the Abengoa (EM conglomerate, Spain) subsidiary Telvent (utility
software, Spain) on Nasdaq, an increase in margins for Novozymes (industrial enzymes, Denmark) and a minor
profit warning followed by an acquisition from LKQ (vehicle recycling, US).





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



3 November 2004


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