Impax Group plc (IPX) announces Impax New Energy Fund increases to €97 million following susessful second closing

Impax Group plc ("Impax"), the AIM-quoted environmental investment specialist, today announced a 37 million euro second closing of its private equity fund, Impax New Energy Investors LP ("the New Energy Fund"). The fund aims to exploit the significant investment opportunities in Europe arising from the legally binding European targets for renewable energy supply. This second closing increases total commitments to the New Energy Fund to 97 million euros.

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 euros. A third and final closing for the fund is planned for summer 2006.

Ian Simm, Impax Founder and Chief Executive, commented: "The investment climate for renewable energy has never been more favourable and large institutional investors are increasingly seeking exposure to it. This expansion of our fund targeting renewable energy projects is a welcome endorsement of Impax and its investment team."

The New Energy Fund is supported by Dexia Crédit Local, the sponsoring investor and a leading provider of finance to the energy and infrastructure sectors in Western Europe. Other investors in the fund include British Airways Pension Fund, Co-operative Insurance Society, Universities Superannuation Scheme and South Yorkshire Pensions Authority.

The fund's investment team is led by Peter Rossbach, Director of Investments, who has 20 years' experience financing projects in this sector.

Peter Rossbach commented: "Our work with Dexia and with contacts on the Continent has produced a robust deal flow for the fund, particularly in the wind, solar and biomass sectors, and we have already pre-selected a significant number of projects for investment."

The New Energy Fund is managed by Impax Asset Management Ltd, a wholly-owned subsidiary of Impax Group plc.

The second closing of the New Energy Fund takes Impax's total funds under management and advisory to over £350 million.

For further information please contact:

Keith Falconer, Chairman 07747 066 637
Ian Simm, Founder and Chief Executive 020 7432 2619
Peter Rossbach, Director of Investments