1. ® 1 Service Corporation International Merrill Lynch Health Services Investor Conference New York, NY November 28, 2006

2. Service Corporation International ® Tom Ryan President and CEO

3. ® 3 SCI strengths and investment considerations Market leader in the death care industry further strengthened by pending acquisition of Alderwoods. Combined company will have Pro forma revenues of $2.3 billion Pro forma adjusted EBITDA of $465 million, including estimated synergies of $65M More than 2,000 funeral homes & cemeteries Competitive advantage due to size, unparalleled network and national brand strategy Diverse geographic exposure Reputation and service excellence Strong industry fundamentals Attractive financial profile

4. ® 4 Today SCI is well-positioned for profitable growth LEVERAGE scale and drive operating discipline APPROACH business by customer segment MANAGE footprint of businesses Profitable growth Profitable growth

5. ® 5 Approach the business by customer segment Consumer landscape is changing From products to experience/value Segment our consumers based upon their needs Tailor our business operating strategies to consumer segments Drop our one-size-fits-all approach Focus resources on most profitable segments Respond better to changing demographic trends FuneralCemetery Quality/PrestigePremium/Prestige Customs ConsciousStandard Convenience/Location Price Manage footprint Leverage scale Customer segmentation

6. ® 6 Leverage scale & drive operating discipline Align pricing strategies with customer segments; centralize and simplify pricing process Focus pricing on service and cemetery property, our competitive advantages Implement operating standards Develop clear yet flexible benchmarks and shared best practices for increased productivity Focus preneed efforts on right product for right customer Align incentives with product value to SCI; reward incrementality Pursue affinity opportunities and more fully utilize our purchasing power Manage footprint Leverage scale Customer segmentation

7. ® 7 Manage the footprint Categorize our current footprint based on customer segmentation model Target expansion growth differentially focusing on highest return segments FUNERAL: Target segments that value high quality service/memorialization, our core competency CEMETERY: Target combos and attractive stand-alones Prioritize capital spending according to consumer model Proactive funeral home facility capex to ensure facilities meet consumer expectations Cemetery maintenance standards based on revenue, life-cycle stage and endowment care trust fund levels Manage footprint Leverage scale Customer segmentation

8. ® 8 Alderwoods Acquisition Compelling transaction Two largest companies in the North American deathcare industry – 14% market share Fully consistent with SCI’s long-term strategy Significant synergies of $60 - $70 million within 18 months Investment returns meaningfully exceed SCI’s weighted average cost of capital Accretive to operating cash flow and earnings per share excluding one- time costs Strong cash flow generation and planned divestitures reduce financial risk Increased preneed backlog to almost $7 billion enhances long-term revenue stability Expect to be within desired leveraged ratios by 2008

9. ® 9 Alderwoods Acquisition Strong North American presence 3 1 Pro forma Revenues and Adj. EBITDA reflects pro forma results for LTM June 30, 2006; includes impact of expected acquisition and divestitures 2 PF LTM Adjusted EBITDA of $399.6mm plus $65mm of synergies Combined company: 46 States, 8 Canadian provinces, District of Columbia and Puerto Rico

10. ® 10 Alderwoods Acquisition Significant synergy opportunities We expect to realize $60 to $70 million within 18 months Duplicate systems and infrastructure Management structure duplication Senior executive and public company costs Increased purchasing scale One-time costs to achieve synergies of approximately $60 million $30-35 million in 2006 and the remainder in 2007 Other one-time costs (financing and other deal costs, legal and accounting costs) of approx $75 million Includes $25 million of tender fees for SCI and Alderwoods debt Detailed integration plan in place and integration teams have been very active

11. ® 11 SCI Q3 06 highlights Q3 06Q3 05Change Comparable North America Funeral Revenues$258.8$248.84.0% Gross margin percentage 20.6%14.5% Total funeral services performed51,55654,791-5.9% Average revenue per funeral service$4,848$4,31712.3% Cemetery Revenues $135.3$138.9-2.6% Gross margin percentage 14.3%17.1% Cash Flow and Capital Expenditures Cash flow from operations (1) $113.7$68.167.0% Total capital expenditures$22.7$28.4-20.1% (In millions, except funeral services performed, average revenue per funeral service and gross margin percentage) (1) Includes the receipt and recognition of $10.9M of interest income in Q3 06 from the redemption of convertible preferred equity certificates received in connection with the original disposition of our operations in France. Also there was one additional payroll period (~$18M) in Q3 05 compared to Q3 06.

12. ® 12 Near term expectations Significant focus on integration of Alderwoods Volume and revenue loss due to planned asset sales, but not expected to impact EBITDA materially Continued volume loss associated with low priced immediate cremation activities in certain markets Continued strong increases in funeral averages due to strategic pricing initiatives Favorable impact from operating staffing metrics Improvements in cemetery sales production and efficiencies in selling cost metrics

13. Service Corporation International ® Eric Tanzberger Senior VP and CFO

14. ® 14 Strong financial position Expect to be at high end or exceed our guidance ranges for EPS and cash flow from operations Guidance for EPS of $.30 - $.34 ($.32 - $.36 revised for France distribution) Guidance for cash flow from operations of $295 - $315 million Cash on hand at 11/8/06 of approximately $635 million Debt at 9/30/06 stable at $1.3 billion, with only $30M of current maturities Build up of net cash balances in near term due to asset sales and cash flows FTC mandated and other SCI divestitures are anticipated to generate $200 million of proceeds in the near future Comprehensive review of combined properties after close expected to result in additional divestitures Quarterly cash dividend increased 20% to $.03 from $.025

15. ® 15 Financing in place for Alderwoods transaction Existing Maturity schedule ($ in mm) Pro Forma Maturity schedule ($ in mm) 1 Term loan anticipated to be retired with asset sales proceeds and free cash flow Note: Schedules exclude approx. $21mm in convertible debentures maturing through 2013 and approx. $121mm of other debt consisting primarily of capital leases, mortgage notes and unamortized discounts

16. ® 16 Combined company pro forma overview 1 See definition and calculation of adjusted EBITDA at the end of this presentation. Initial Leverage Ratio Debt at 9/30/06$1,296 New debt from Alderwoods850 Tender offer for 2009 notes(145) Pro forma debt$2,001 Pro forma Debt/Adjusted EBITDA4.3x

17. ® 17 Target2008E Target Ratios Operating cash flow less certain capex 1 /Interest Expense >1.5x2.2x Net Debt 2 /Operating cash flow less certain capex 5x to 7x3.6x Net Debt/Total Net Capital 3 40% to 45%38% Note: 2008E assumes no share repurchases or debt re-financings Target Ratios 1 Cash flows from operations (excluding unusual items) less capital expenditures (excluding expenditures to construct new funeral home facilities and other growth capital) 2 Total debt less cash on hand 3 Net debt (as defined above) plus stockholders’ equity

18. ® 18 A bright future ahead Predominant leader in a stable industry Significant cash flows, liquidity and financial flexibility Short-term growth opportunity Successfully integrating the Alderwoods acquisition Utilizing more centralization and standardization to take advantage of our scale Aligning preneed and pricing strategies with customer segments and our competitive advantages Long-term differential growth opportunity Tailoring our business approach by customer segment Footprint expansion in customer segments that we excel

19. ® 19 Service Corporation International Merrill Lynch Health Services Investor Conference New York, NY November 28, 2006

20. ® 20 Non-GAAP financial terms: EBITDA, Adjusted EBITDA “EBITDA” presented in this table represents income from continuing operations plus (i) provision for income taxes, (ii) interest expense, and (iii) depreciation and amortization less (iv) interest income. “Adjusted EBITDA” presented in this table represents EBITDA further adjusted to reflect the impact of (i) gains and losses on dispositions and impairment charges, (ii) an adjustment for capital leases (described in note (a) below), and (iii) legal expenses related to the acquisition. We believe EBITDA and Adjusted EBITDA facilitate company to company performance comparisons by removing potential differences caused by variations in capital structure (affecting interest expense), taxation and the age and book depreciation of facilities and equipment (affecting relative depreciation expense), which may vary for different companies for reasons unrelated to general performance or liquidity. Our calculations of EBITDA and Adjusted EBITDA are not necessarily comparable to other similarly titled measures of other companies. EBITDA and Adjusted EBITDA are not measures of performance or liquidity under GAAP and should not be used in isolation or as a substitute for net income (loss), cash flows from operating activities or other income or cash flow statement data prepared in accordance with GAAP or as a measure of profitability or liquidity. We have included information concerning EBITDA and Adjusted EBITDA as performance-based analytical tools and you should not consider these measures in isolation, or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are: EBITDA and Adjusted EBITDA do not reflect our current cash expenditure requirements, or future requirements, for capital expenditures or contractual commitments; EBITDA and Adjusted EBITDA do not reflect the changes in, or cash requirements for, our working capital needs; EBITDA and Adjusted EBITDA do not reflect the interest expense, or the cash requirements necessary to service interest or principal payments, on our debt; Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized often will have to be replaced in the future, and EBITDA does not reflect any cash requirements for such replacement; and Our measure of EBITDA is not necessarily comparable to other similarly titled captions of other companies due to potential inconsistencies in the methods of calculation. Because of these limitations, EBITDA should not be considered as discretionary cash available to us to reinvest in the growth of our business or as a measure of cash that will be available to us to meet our obligations. You should compensate for these limitations by relying primarily on our GAAP results and using EBITDA only supplementally.

21. ® 21 SCI EBITDA reconciliation The following table provides a reconciliation from income from continuing operations before cumulative effect of accounting changes to EBITDA and Adjusted EBITDA for the periods indicated: 1 Adjustment for capital leases represents the operating lease expense for certain leased transportation equipment. The terms of these leases were amended in 2006 and, based on these amendments, the leases are now classified as capital leases. 2 Effective January 1, 2005, SCI changed its method of accounting for direct selling costs related to the acquisition of preneed funeral and preneed cemetery contracts. The adjustment for preneed selling costs in the respective periods represents the selling costs previously deferred but which are now expensed under SCI’s current accounting policy.

22. ® 22 Alderwoods EBITDA reconciliation The following table provides a reconciliation from net income (loss) from continuing operations to EBITDA and Adjusted EBITDA for the periods indicated: 1 Gain or loss on dispositions is included in other (expense) income — net. 2 One-time gains in general and administrative expenses primarily relate to the recovery of a corporate receivable that was previously fully reserved.

23. ® 23 Pro forma EBITDA reconciliation 1 Adjustment for leases represents the operating lease expense for certain leased transportation equipment. The terms of these leases were amended in 2006 and, based on these amendments, the leases are now classified as capital leases. The following table provides a reconciliation from income from continuing operations to EBITDA and Adjusted EBITDA: