Performance at month end

IMPAX ENVIRONMENTAL MARKETS plc

All information is at 30 November 2006, unaudited, and includes the
Impax Environmental Markets
C Share which converted on 6 October 2006.

DATA AND PERFORMANCE


Data                              Pricing & Performance
                                                     IEM  MSCI  Impax
                                                     Net  World ET50
                                                    Asset
Share Price (pence)           110                   Value
Warrants (pence)               39
Total Fund Size (m)     GBP 213.4       Diluted NAV 105.5  n/a   n/a
                                            (pence)
Market                  GBP 220.4  Premium/discount +4.3
Capitalisation (m)                              (%)
Management fee (%)            1.0     Undiluted NAV 106.4
                                            (pence)
Established           22 February      Performance*
                             2002
Fund structure         Investment       1 month (%) +2.0  -0.8  +3.9
                            Trust
Number of stocks               79      3 Months (%) +6.6  +3.6  +8.3
held
Exchange                   London        1 year (%) +17.2 +4.0  +19.9
Currency                      GBP        3 year (%) +62.2 +30.4 +52.3
ISIN Number          GB0031232498  Year to date (%) +15.0 +1.0  +15.2
Sedol                     3123249
Reuters RIC Code            IEM.L
                                  * Performance data is for undiluted
Bloomberg Code             IEM LN NAV.


TOP TEN HOLDINGS


Company             Holding %   Description                   Country
                                High efficiency electric
Regal Beloit              2.8   motors                        US
Chloride Group            2.7   UPS systems                   UK
LKQ Corp                  2.7   Automotive recycling          US
Tomra                     2.5   Reverse vending machines      Norway
Itron Inc                 2.3   Meters & software             US
Gamesa                    2.2   Wind                          Spain
Horiba                    2.2   Environmental testing         Japan
Vestas Wind Systems       2.1   Wind                          Denmark
Dionex                    2.1   Testing & monitoring          US
Abengoa                   2.0   Bioethanol & recycling        Spain

Total                    23.5


PORTFOLIO ANALYSIS*


+------------------------------------------------+
| Geographical            | Company Size         |
|-------------------------+----------------------|
| North America     | 43% | >£500m         | 52% |
|-------------------+-----+----------------+-----|
| Europe            | 50% | £100-500m      | 34% |
|-------------------+-----+----------------+-----|
| Rest of the World | 8%  | <£100m         | 13% |
|-------------------------+----------------+-----|
|                         |                |     |
|-------------------------+----------------------|
| Sectoral                | Profitability        |
|-------------------------+----------------------|
| Energy            | 42% | Profitable     | 91% |
|-------------------+-----+----------------+-----|
| Water             | 30% | Pre-Profitable | 9%  |
|-------------------+-----+----------------+-----|
| Waste             | 30% |                |     |
|------------------------------------------------|
| * of funds invested as of 30 November 2006     |
+------------------------------------------------+













MANAGER'S COMMENTARY (November 2006)


The Company NAV was up 2.0% over the month compared with the MSCI
World, which declined by 0.8%, and the Impax ET50, which increased by
3.9% over the same period.  In the broader markets, energy equipment
& services and utilities were the best performing sectors, with
health care and consumer staples underperforming.

The Democrat victory in the US midterm elections at the start of the
month was seen as positive for environmental markets.  Democrats will
head all committees and have the power to set an environmental
agenda.  For example Barbara Boxer, who voted against the Bush
administration energy policy, is expected to chair the Environment
and Public Works Committee, replacing climate change sceptic James
Inhofe.  Numerous states including California, Connecticut, New
Mexico and Texas have already committed to significant expenditure on
flood control and infrastructure upgrades, which will benefit
companies with exposure to municipal water infrastructure
investment.  In the UK, following the Stern Review the Queen's Speech
included a statement that the Government will publish a bill on
climate change as part of the goal to reduce carbon emissions by 60%
by 2050.  Elsewhere in Europe, France and Germany suffered the worst
power outage in 30 years, which left millions of households without
power, reiterating the need for fault current limiters and
uninterruptible power supply. In other markets several governments
announced ambitious targets for the use of biofuels, aimed at
reducing pollution and their dependence on oil.  Both India and Japan
revealed plans to introduce the mandatory blending of 10 percent
ethanol into gasoline, whilst China aims to use 6.7 million tonnes of
ethanol and 11 million tonnes of biodiesel by 2010, also to meet a 10
percent target.

Stocks that contributed to the increase in the company's NAV during
November included Fuel System Solutions (clean engine tier 1
supplier, US) and Power Integrations (power conversion electronics,
US), which climbed 45% and 27% respectively on strong results, and
Vestas (wind, Denmark), which gained 32% on earnings upgrades.  On
the downside, Turbo Genset (distributed power generation, Canada)
declined 17% following fund raising at a discount to share price.

During the month the Company made its fourth pre-IPO venture capital
investment in Sterecycle Limited.  Headquartered in London, the
company intends to set up a number of waste treatment plants in the
UK to handle municipal solid waste using an established autoclave
technology.


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

19 December 2006

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