Guess How SCI is Funding Keystone Acquisition, You!

November 6, 2009
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image Service Corporation International

(NYSE: SCI) (“SCI”), which owns and operates funeral service locations and

cemeteries, announced today that it has priced an underwritten public offering

of $150.0 million of senior notes due 2021, which will bear interest at a rate

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of 8.00% per annum. The notes are being sold at 98.115% of par, which equates

to an effective yield to maturity of approximately 8.25%. SCI expects to

close the sale of the notes on November 10, 2009, subject to the satisfaction

of customary closing conditions.

SCI intends to use the net proceeds from the offering, together with available

cash, to fund SCI’s acquisition of Keystone North America Inc. The offering is

being made under SCI’s existing shelf registration statement previously filed

with the Securities and Exchange Commission (“SEC”).

Pending consummation of the Keystone acquisition, the net proceeds from the

offering will be held in an escrow account. In the event the acquisition is

not consummated on or prior to June 30, 2010, SCI will redeem the notes,

within five business days of such date, using the escrowed net proceeds from

the offering plus an amount of escrowed cash or treasury securities such that

the escrowed funds are sufficient to fund the redemption, at a redemption

price equal to 101% of the principal amount, plus accrued and unpaid interest

to, but not including, the date of redemption. The notes may also be redeemed

at SCI’s option, in whole, but not in part, at any time prior to June 30,

2010, if SCI believes, in its sole judgment, that the acquisition will not be

consummated by that date. Upon closing of the offering, SCI will deposit into

the escrow account cash or treasury securities sufficient to redeem all of the

notes, if required.

J.P. Morgan Securities Inc. is acting as the lead joint bookrunning manager

for the offering. The offering may be made only by means of a prospectus and

related prospectus supplement. The prospectus supplement will be filed with

the SEC and may be found on its website at www.sec.gov. Copies of the

prospectus supplement relating to the public offering may be obtained from:

J.P. Morgan Securities Inc.

270 Park Avenue, New York, NY 10017

Attention: Prospectus Department

Telephone: 212-270-3994

Source: SOURCE Service Corporation International

Investors, Debbie Young, Director, +1-713-525-9088, or media, Lisa Marshall,

Managing Director, Corporate Communications, +1-713-525-3066, both of Service

Corporation International

CDFuneralNews

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