Impax Group plc (IPX) announces first closing of €125 million fund and appointment of chief executive

Impax Group plc ("Impax" or the "Group"), the AIM quoted financial services business dedicated to the environmental markets sector, announced the successful launch and first closing of Impax New Energy Investors LP ("the New Energy Fund"), a private equity fund targeting investments in projects in the renewable energy and related sectors, predominantly in Western Europe.

The New Energy Fund, which will be managed by Impax Asset Management Ltd., aims to exploit the significant investment opportunities in Europe arising from the legally binding European targets for renewable energy supply. The fund's investment team will be led by Peter Rossbach, who has 18 years' experience financing projects in this sector. The team has already identified many attractive investment opportunities.

The New Energy Fund's first closing at €60 million has been supported by Dexia Crédit Local, the sponsoring investor and a leading provider of finance to the energy and infrastructure sectors in Western Europe, together with several other major financial institutions, including British Airways Pension Fund, Co-operative Insurance Society, Universities Superannuation Scheme, and South Yorkshire Pensions Authority. Impax, assisted by Dresdner Kleinwort Wasserstein, the lead placement agent, will continue to market the fund to new investors with the aim of reaching the target fund size of at least €125 million within twelve months.

The new fund takes Impax's funds under management and advisory to over £150 million.

The Group also announces the following senior management changes. Ian Simm, Managing Director of Impax Asset Management, has also been appointed Group Chief Executive. Nigel Taunt assumes full responsibility for Impax Capital, the Group's corporate finance business, while Melville Haggard has been seconded to the Department of Environment, Food and Rural Affairs (DEFRA) to assist the UK government in the implementation of its waste management policy. Melville will remain on the Group Board and continue as a member of the New Energy Fund's Investment Committee.

Keith Falconer, Chairman, said: "The launch of the New Energy Fund is a major step forward for the Group. Impax is now managing money for over fifty major institutional investors in an exciting growth market. With scaleable products such as the New Energy Fund and our openended fund, Impax Environmental Markets (Ireland), we are well positioned for expansion. I am delighted that the board has appointed Ian as Chief Executive, and look forward to working with him and other members of the senior management team to grow the company."

Ian Simm said: "This is an exciting time for investors in the renewable energy sector. I welcome the support of Dexia, our sponsoring investor, and all other investors in the New Energy Fund, and look forward to announcing the fund's first investments in due course."

For further information please contact:

Keith Falconer, Chairman 07747 066 637
Ian Simm, Chief Executive 020 7432 2619