Performance at month end

IMPAX ENVIRONMENTAL MARKETS plc

All information is at 30 June 2005 and unaudited

DATA AND PERFORMANCE


Data                            Pricing & Performance
                                                  IEM    MSCI  Impax
                                                  Net   World   ET50
Share Price                                      Asset
(pence)                    78.5                  Value
Total Fund Size          GBP 41 Pence (30.06.05)  81.8   n/a    n/a
(m)
Market                 GBP 39.3 Premium/discount -4.0%
Capitalisation (m)
Management fee             1.0%
Established         22 February      Performance
                           2002
Fund structure       Investment      1 month (%) +7.2%  +2.4%  +5.4%
                          Trust
Number of stocks             63     3 Months (%) +7.6%  +5.2%  +10.4%
held
Exchange                 London       1 year (%) +18.6% +9.4%  +13.2%
Currency                    GBP       2 year (%) +46.1% +21.4% +30.3%
ISIN Number        GB0031232498 Year to date (%) +6.9%  +5.2%  +9.2%
Sedol                   3123249
Reuters RIC Code          IEM.L
Bloomberg Code           IEM LN


TOP TEN HOLDINGS


Company             Holding %   Description                 Country
RPS Group                 3.4   Environmental consulting    UK
Kurita Water              3.3   Water treatment             Japan
Casella Waste             3.3   Waste disposal & recycling  US
Vestas Wind Systems       3.3   Wind                        Denmark
Zenon Environmental       3.0   Membranes                   Canada
Itron                     2.9   Meters & software           US
Pall Corp                 2.7   Filtration                  US
Quantum                   2.6   Fuel & automotive suppliers US
LKQ                       2.5   Automotive recycling        US
Esco Tech                 2.3   AMR & filtration            US

              Total      29.3


PORTFOLIO ANALYSIS*


Geographical          Company Size
North America     53% >£500m         28%
Europe            39% £100-500m      52%
Rest of the World 9%  <£100m         20%

Sectoral              Profitability
Energy            35% Profitable     88%
Water             32% Pre-Profitable 12%
Waste             30%
Cash              3%
* of funds invested as of 30 June 2005







MANAGER'S COMMENTARY (June 2005)


The company NAV was up +7.2% over the month compared to the MSCI
World which rose +2.4%, and the Impax ET50, which increased +5.4%
over the same period.  Energy equipment and energy services companies
were the strongest performing sector, reflecting the strength of
energy stocks in general as oil prices moved towards US$60 per bbl.

Despite the US maintaining a stalemate on climate change in the
run-in to the G8 summit, the Senate passed a wide-ranging energy
bill, some of which is aimed at the renewables sector.  The bill
requires utilities to generate 10 percent of their electricity from
renewable energy sources by 2020, and offers $16 billion in tax
breaks to boost domestic energy production, including a 30 percent
tax credit for the purchase of solar and fuel cells for use in
residential applications.  President Bush has urged for the bill to
be reconciled with the House of Representatives' version, so that he
can receive the final copy before the August recess.  In the UK, the
opening of the 58.5-megawatt wind farm in Ceredigion in Wales raised
the country's total installed wind capacity to over a gigawatt,
marking a record year of growth for the U.K. wind industry.  A total
of 18 new projects totalling some 500 megawatts of capacity are
expected to be commissioned by year end.  This coincides with record
prices of ¤23 for European Union carbon emissions
allowances, as power generators continue to buy more allowances to
offset an increase in the use of coal.  In the water sector, BWT
(water treatment, Austria) announced the intention to spin off its
industrial and municipal water treatment businesses, to be listed as
Christ Water Technology, in order to focus on products for the
residential market.  The announcement follows last month's
acquisition of Cuno (filtration, US), at a time when the European
market for industrial water applications alone is expected to grow
from ¤500 million in 2004 to ¤700 million in 2007.
Elsewhere, the Xinhua news agency announced that Beijing plans to
invest 34 billion yuan ($4.1 billion) on improving water and air
quality, as part of a 320 billion yuan ($38.7 billion) infrastructure
project in the lead-in to the 2008 Olympics.

In North America, the strongest performers during the period included
Impco (clean engines, US), which recovered from share price weakness
earlier in the year to rise by 44%, and Ballard (fuelcells, Canada),
which increased by 27% on the sale of its German power plant
subsidiary to Ford and DaimlerChrysler.  FuelCell Energy (fuelcells,
US) gained 25% on the back of strong results, whilst in the UK,
Universal Salvage rose by 19% after announcing a contract to provide
recycling and disposal services to insurer Admiral Group.  On the
downside, Westport (clean diesel engines, Canada) fell by 9% on
disappointing quarterly results.

During the month we have increased our exposure to Xantrex (power
electronics, Canada) and Casella, and have taken profits in Stantec
(environmental consultancy, US), Global Power Equipment (emissions
controls for CCGT, US) and Itron.


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

12 July 2005




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