Performance at month end

IMPAX ENVIRONMENTAL MARKETS plc

All information is at 30 April 2007 and unaudited.

DATA AND PERFORMANCE


Data                          Pricing & Performance
                                                     IEM  MSCI  Impax
                                                     Net  World ET50
Share price                                         Asset
(pence)                 126.3                       Value
Warrants (pence)         42.0
Total fund size     GBP 245.3   Diluted NAV (pence) 120.1  n/a   n/a
(m)
Market              GBP 252.9  Premium/discount (%) +5.1
capitalisation
(m)
Management fee            1.0 Undiluted NAV (pence) 122.5
(%)
Established       22 February          Performance*
                         2002
Fund structure     Investment           1 month (%) +3.7  +2.2  +7.0
                        Trust
Number of stocks           79          3 months (%) +7.0  +2.9  +14.3
held
Exchange               London            1 year (%) +6.5  +4.4  +11.0
Currency                  GBP           3 years (%) +80.0 +35.1 +83.5
ISIN number      GB0031232498           5 years (%) +21.7 +18.7 +18.4
Sedol                 3123249          Since launch +24.6 +19.2 +25.2
                                   (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                2.7   Meters & software              US
LKQ Corp             2.5   Automotive recycling           US
                           High efficiency electric
Regal Beloit         2.4   motors                         US
Tomra                2.3   Reverse vending machines       Norway
Chloride Group       2.3   UPS systems                    UK
Vestas Wind
Systems              2.2   Wind                           Denmark
Vacon                2.0   Power electronics              Finland
Mayr Melnhof
Karton               2.0   Recycled packaging             Austria
Grontmij             2.0   Environmental consulting       Netherlands
Stantec              2.0   Environmental consulting       US

Total               22.3


PORTFOLIO ANALYSIS*


Geographical          Company Size
North America     40% >£500m         56%
Europe            52% £100-500m      31%
Rest of the World 10% <£100m         13%

Sectoral              Profitability
Energy            41% Profitable     91%
Water             27% Pre-Profitable 9%
Waste             32%
* of funds invested as of 30 April 2007













MANAGER'S COMMENTARY (April 2007)


The Company NAV was up 3.7% over the month compared with the MSCI
World, which rose by 2.2%, and the Impax ET50, which increased by
7.0% over the same period.  Interestingly energy stocks now comprise
more than 65% of the ET50 Index, with wind and solar accounting for
more than 25% each.  In the broader markets, Energy Equipment &
Services and Healthcare were the best performing sectors, with
Consumer Discretionary Goods and Materials underperforming.

During the month, the Intergovernmental Panel on Climate Change
released its third report as part of "Climate Change 2007".
Following "The Physical Science Basis" and "Impacts, Adaptation and
Vulnerability", "Mitigation of Climate Change" highlights two
scenarios saying that the costs of limiting emissions of greenhouse
gases could mean a loss of just 0.2 or 0.6 percent of global GDP in
2030.  In Germany, environment minister Sigmar Gabriel announced an
eight-point plan targeting a 40% cut in GHGs by 2020 compared with
1990 levels.  Measures included energy efficiency improvements, and
combined heat and power (CHP), in addition to an increase in the use
of renewable energy.

In the water sector, following the passing of the Water Quality
Financing Act of 2007, the US Department of Agriculture announced
funding for 61 new rural water and wastewater community systems in 29
states, at a cost of $180 million.  Earlier in the month water
utility leaders met with more than 300 Congressional representatives
to stress the need to repair and replace the country's aging water
infrastructure, which the American Water Works Association (AWWA)
estimates will exceed $250 billion over the next thirty years.
Specifically, they are lobbying to increase the Drinking Water State
Revolving Loan Fund (DWSRF) program to a cumulative $14 billion
through 2011.

In the waste sector, the US Supreme Court ruled that local
governments can compel private waste haulers to use municipal owned
facilities, rejecting arguments that municipalities' "flow control"
laws discriminate against interstate commerce by barring shipments to
sites that charge lower fees.  The ruling is predicted to push up the
price of landfill waste disposal, which is likely to benefit
recycling and waste-to-energy projects.

Stocks that contributed to the increase in the Company NAV during
April included Bioteq (mining effluent treatment, Canada) which
climbed 31% on new contracts, Vestas (wind turbines, Denmark) which
gained 15% on strong outlook for the wind sector, and Transpacific
(waste management, Australia) which rose 15% on continued industry
consolidation.  On the downside Ormat (geothermal power, Israel/US)
retreated 13% on project delays and cost overruns.  The sale of
Cellex Power (fuel cells, Canada) to Plug Power was completed for
US$45m at the beginning of the month, marking a successful exit from
the fund's first pre-IPO investment, at between 1.6 and 1.8 times the
initial investment.


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

21 May 2007

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