Performance at month end

IMPAX ENVIRONMENTAL MARKETS plc

All information is at 31 July 2005 and unaudited

DATA AND PERFORMANCE


Data                            Pricing & Performance
                                                  IEM    MSCI  Impax
                                                  Net   World   ET50
Share Price                                      Asset
(pence)                      91                  Value
Total Fund Size        GBP 44.1 Pence (31.07.05)  88.2   n/a    n/a
(m)
Market                 GBP 45.5 Premium/discount +3.2%
Capitalisation (m)
Management fee             1.0%
Established         22 February      Performance
                           2002
Fund structure       Investment      1 month (%) +7.7%  +5.3%  +8.9%
                          Trust
Number of stocks             64     3 Months (%) +24.2% +14.7% +25.9%
held
Exchange                 London       1 year (%) +33.6% +19.5% +38.1%
Currency                    GBP       2 year (%) +47.0% +22.2% +34.7%
ISIN Number        GB0031232498 Year to date (%) +15.3% +10.8% +18.9%
Sedol                   3123249
Reuters RIC Code          IEM.L
Bloomberg Code           IEM LN


TOP TEN HOLDINGS


Company             Holding %   Description                Country
Casella Waste             3.3   Waste disposal & recycling US
Vestas Wind Systems       3.2   Wind                       Denmark
RPS Group                 3.2   Environmental consulting   UK
Kurita Water              3.0   Water treatment            Japan
Zenon Environmental       2.9   Membranes                  Canada
Itron                     2.8   Meters & software          US
LKQ                       2.5   Automotive recycling       US
Pall Corp                 2.4   Filtration                 US
Pentair                   2.4   Water Treatment            US
Stericycle                2.4   Clinical waste             US

              Total      28.1


PORTFOLIO ANALYSIS*


Geographical          Company Size
North America     51% >£500m         32%
Europe            40% £100-500m      50%
Rest of the World 8%  <£100m         18%

Sectoral              Profitability
Energy            36% Profitable     88%
Water             34% Pre-Profitable 12%
Waste             31%
Cash              0%
* of funds invested as of 31 July 2005














MANAGER'S COMMENTARY (July 2005)


The fund was up +7.7% over the month compared to the MSCI World which
rose +5.3%, and the Impax ET50, which increased +8.9% over the same
period.  There was a broad advance across global equity markets, with
energy equipment and energy services companies again the strongest
performing sector, and with defensive utilities the weakest sector.

The month started with President Bush putting his name to an
acknowledgement by the Group of Eight nations that human activity is
a significant contributor to global warming.  There were no firm
commitments to reduce greenhouse gas emissions, although the
statement was welcomed as a major step towards a more global approach
to tackling climate change, and a dialogue will begin in November on
how to put the agreement into practice.  The US subsequently
announced a partnership with China, India and other Asian nations to
use cleaner energy technologies, which will operate alongside the
Kyoto Protocol.  The deal coincided with the long awaited passage of
the 2005 Energy Bill, the first major overhaul of US energy policy in
more than a decade, which President Bush is expected to sign into law
before the summer recess.  The bill offers an estimated $14.5 billion
in tax breaks and incentives over 10 years, some $2.7 billion of
which will extend the production tax credit (PTC) for wind projects,
with further credits for solar installations, fuel cell power plants
and alternative fueled vehicles.  The bill also requires the use of
7.5 billion gallons of bio-ethanol a year as a gasoline additive by
2012, almost double the current use.  Corporate activity continues
and companies within environmental markets remain a focus for M&A.

Several UK companies were among the month's top performers, including
Domnick Hunter (filtration), which rose 40% on news of a bid approach
that has since become a takeover battle between US engineer Parker
Hannifin and a second suitor.  Chloride (UPS systems) gained 28% on
earnings upgrades and a positive outlook, whilst Universal Salvage
(vehicle recycling & processing) increased by 25% after full year
results.  Turbo Genset (distributed generation) rose by 22% after
announcing a $20m contract with Boeing to supply the motor drive
systems for onboard fuel pumps on the 787 Dreamliner.  In Norway,
Tomra (reverse vending machines) gained 30% after better than
expected results.  On the downside Xantrex (power electronics,
Canada) fell by 18% after a poor second quarter in which margins
contracted under high operating expenses.

During the month we have participated in an IPO for Polyfuels (fuel
cell membranes, US), and increased our exposure to Pentair (water
treatment, US) and Hamworthy (onboard pollution control, UK).  We
have taken profits in Calgon Carbon (air & water treatment, US).


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

5 August 2005




---END OF MESSAGE---