Performance at month end

IMPAX ENVIRONMENTAL MARKETS plc

All information is at 30 April 2005 and unaudited

DATA AND PERFORMANCE


Data                            Pricing & Performance
                                                  IEM    MSCI  Impax
                                                  Net   World   ET50
Share Price                                      Asset
(pence)                   70.25                  Value
Total Fund Size        GBP 35.4 Pence (30.04.05)  70.8   n/a    n/a
(m)
Market                 GBP 35.1 Premium/discount  0.8%
Capitalisation
Management fee             1.0%
Established         22 February      Performance
                           2002
Fund structure       Investment      1 month (%) -6.3%  -3.4%  -4.6%
                          Trust
Number of stocks             63     3 Months (%) -6.8%  -2.9%  -6.1%
held
Exchange                 London       1 year (%) +4.1%  +0.7%  -0.3%
Currency                    GBP       2 year (%) +33.6% +15.6% +17.0%
ISIN Number        GB0031232498 Year to date (%) -7.4%  -3.4%  -5.6%
Sedol                   3123249
Reuters RIC Code          IEM.L
Bloomberg Code           IEM LN


TOP TEN HOLDINGS


Company             Holding %   Description                Country
Itron                     3.2   Meters & software          US
Kurita Water              3.2   Water treatment            Japan
RPS Group                 3.2   Environmental consulting   UK
Casella Waste             2.9   Waste disposal & recycling US
Vestas Wind Systems       2.6   Wind                       Denmark
Zenon Environmental       2.6   Membranes                  Canada
BWT                       2.4   Water treatment            Austria
Stericycle                2.2   Clinical waste             US
Pentair                   2.2   Water treatment            US
Horiba                    2.1   Env. testing & monitoring  Japan

              Total      26.6


PORTFOLIO ANALYSIS*


Geographical          Company Size
North America     50% >£500m         22%
Europe            41% £100-500m      56%
Rest of the World 9%  <£100m         22%

Sectoral              Profitability
Energy            34% Profitable     88%
Water             34% Pre-Profitable 12%
Waste             30%
Cash              2%
* of funds invested as of 30 April 2005














MANAGER'S COMMENTARY (April 2005)


The company NAV was down 6.3% during the month compared with the MSCI
World Index which fell 3.4% and the Impax ET50 which decreased by
4.6%.  These results reflect weakness in smaller companies (which is
the focus of the IEM portfolio) in general and the alternative energy
sector in particular. In the wider markets, sector performance was
variable with healthcare strongly ahead and technology and materials
substantially down.

During the month, the House of Representatives finally passed its
version of the energy bill.  The resulting tax incentives are smaller
than we might have hoped for, although there will be a requirement
for at least 5 billion gallons of bio ethanol to be used in US
gasoline by 2012, and additional funding to develop low-emission coal
and coal gasification plants.  Despite this, the American Wind Energy
Association has increased its forecast for new US wind farm
installations in 2005 from "over 2,000 megawatts" to "up to 2,500
megawatts".  The Senate Energy Committee will finish writing its own
energy bill next month, which must be voted in by the full Senate,
before both versions of the legislation can then be reconciled into a
final bill.  Corporate activity remained buoyant as Pacific Hydro,
Australia's largest listed renewable energy generator, was subject to
a bidding war between shareholder Industry Funds Management, and
Spanish builder and wind farm operator Acciona, parent of EHN.  The
takeover battle highlights the increasing demand for carbon credits,
which can be traded under the Kyoto Protocol.  In the UK, waste
management and recycling firm Cory Environmental was acquired by
Montagu Private Equity for £200m, which represents a valuation
multiple of 8x current EBITDA.  This coincides with a rise in
landfill taxes of £3 per annum and the new Landfill Allowance Trading
Scheme operated by waste collection and disposal authorities, both of
which should serve as a catalyst for service providers and processors
in the waste and recycling sector.

Declining sales and recent cuts to Ford and GM's debt ratings
continued to affect the shares of companies offering products and
services to the automotive industry.  Ballard (fuel cells, Canada)
and Impco (clean engines, US) fell 21% and 42% respectively, despite
an agreement between GM, DaimlerChrysler and the U.S. Department of
Energy to develop hydrogen fuel cell vehicles over the next five
years.  On the upside, Itron and Badger (water meters, US) recorded
gains of 22% and 28%, driven by strong first quarters.  PM Group
(weighing devices, UK) was up by 24%, reflecting developments in the
in UK waste sector.

In recent trades we have increased our exposure to Pentair, CDS Tech
(water treatment & stormwater management, Australia) and Cuno
(filtration, US), whilst taking further profits in Itron.


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

13 May 2005




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