Investment Advisory Agreement

Impax Asset Management Group plc (the "Company") is pleased to announce that its subsidiary, Impax Asset Management Ireland Limited ("IAMI"), has entered into an investment advisory agreement with BNP Paribas Asset Management Europe ("BNPP AM Europe"), a subsidiary of BNP Paribas Asset Management Holding ("BNPP"), whereby IAMI will provide investment advisory services to BNPP AM Europe in relation to three investment funds. This is as part of the ongoing distribution arrangement between the Company and BNPP in a number of international markets. The investment advisory agreement provides inter alia for BNPP AM Europe to pay a fee to IAMI for this service (the "Transaction"). The fees payable by BNPP AM Europe to IAMI, to be paid quarterly, shall be calculated as a percentage of the assets under management.

BNPP AM Europe is an affiliate of BNPP. As BNPP is a substantial shareholder of the Company, as defined under the AIM Rules, and BNPP AM Europe is an associate of BNPP, as defined under the AIM Rules, the entry into this agreement constitutes a related party transaction under Rule 13 of the AIM Rules.

The independent directors of the Company, having consulted with Peel Hunt LLP in its capacity as the Company's nominated adviser for the purposes of the AIM Rules, consider the terms of the transaction to be fair and reasonable insofar as the Company's shareholders are concerned.

Independent directors in relation to the matter are all the directors of the Company except Arnaud de Servigny who is not considered independent because of his role as non-executive director at BNPP AM Europe.

1 Full-time equivalent.