1. ® 1 Service Corporation International JPMorgan 2007 High Yield Conference Miami, FL January 22, 2007

2. Service Corporation International ® Tom Ryan President and CEO

3. ® 3 SCI strengths and investment considerations Market leader in the death care industry Acquisition of Alderwoods is value-enhancing transaction Competitive advantage due to size, unparalleled network and national brand strategy Diverse geographic exposure Stable industry fundamentals Large backlog of preneed revenues Strong cash flow Attractive credit 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 Recently hired a Chief Marketing Officer who will help to further develop segmentation strategies 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 – approx 14% market share Fully consistent with SCI’s long-term strategy Significant cost saving and revenue synergy opportunities 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 Combined company: more than 2,000 funeral homes and cemeteries in 46 States, 8 Canadian provinces, District of Columbia and Puerto Rico

10. ® 10 Alderwoods Acquisition Significant synergy opportunities Original expectations of $60 to $70 million within 18 months Duplicate systems and infrastructure Management structure duplication Senior executive and public company costs Currently expect cost saving synergies to exceed this original range and to be realized quicker than 18 months Anticipate additional synergies primarily associated with purchasing power Anticipate revenue opportunities primarily due to pricing realignment from products to services

11. ® 11 Near term expectations Significant focus on integration of Alderwoods Build up of net cash balances due to asset sales and cash flows Continued volume loss associated with the exit from 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

12. Service Corporation International ® Eric Tanzberger Senior Vice President and CFO

13. ® 13 Strong financial position Cash on hand of approx $60 million Total debt of approx $2.0 billion Asset sales will expedite deleveraging FTC mandated and other SCI divestitures are anticipated to generate $200 million of proceeds in the near future, while not impacting EBITDA materially Expect to sell Mayflower (Alderwoods’ insurance company) for approx $65 million Comprehensive review of combined properties expected to result in additional divestitures With debt reduction in 2007 and full effect of anticipated synergies from the Alderwoods transaction, we expect Debt/EBITDA to range between 3.0 and 3.5

14. ® 14 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

15. ® 15 New maturity profile 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 Upcoming reporting schedule Expect to provide 2007 guidance/outlook on February 15 Expect to report Q4 and fiscal 2006 results on February 28 Expect to be at high end or exceed our 2006 guidance ranges for EPS and cash flow from operations EPS of $.30 - $.34 ($.32 - $.36 revised for France distribution) Cash flow from operations of $290 - $315 million

17. ® 17 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 pricing and preneed 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

18. ® 18 Service Corporation International JPMorgan 2007 High Yield Conference Miami, FL January 22, 2007