2. Keystone Today 173 homes in 27 U.S. States and Canada
No state more than 15% of revenue
Funeral Homes
Cemeteries
As of August 2006

4. Favourable Industry Dynamics
Predictable and stable demand
Inevitable and culturally essential service
Ageing demographic
U.S. Census Bureau projects a 23.2% increase in annual deaths from 2004 to 2025
Historical and Projected Deaths in the U.S.
Deaths (Millions)
3.0
2.5
2.0
1.5
1.0
Historical
Projected
1940
1950
1960
1970
1980
1990
2000
2010
2020

5. Favourable Industry Dynamics
Significant barriers to entry
Mature industry
Local heritage and tradition key factors in choice of funeral home
Regulatory restrictions
Reasons for Selecting a Funeral Home
% of Respondents 80 60 40 20
Location
Reputation
Previous Relationship
Pre- Arranged
Price
Recommended by Friend
Advertising

6. Favourable Industry Dynamics
Attractive margins
Largely fixed cost structure yields generous margins for incremental revenues
Customer focused on service vs. price
Average price of a funeral has risen steadily over last 20 years
Average Price of Regular Adult Funeral
Price (US$)
$6,000
$5,000
$4,000
$3,000
$2,000
1985
1990
1995
2000
2003

7. Favourable Industry Dynamics 2004 Industry Revenues - $15 Billion
Highly fragmented ownership
Despite active consolidation in 1990’s - industry remains highly fragmented
Majority of homes small, family owned
Significant opportunities for further consolidation and operating efficiencies
Keystone focused on rural and suburban markets
Competes against small privately owned businesses
Large public companies primarily in urban markets
20%
80%
4 Public Death Care Companies
Small Privately Owned Businesses
2004 # Funeral Homes - 22,000
11%
89%

9. Strong Franchise Value
Approximately 90% of funeral home businesses established before 1960
Year Businesses Established
# of Facilities 48 45 39 26 15 4
<1900
Date of Establishment

10. Strong Franchise Value
Former owners typically remain active in the daily operations
Former Owner Involvement Post Acquisition
18.9%
29.5%
Managed by Former Owner
Former Owner still active
No involvement of Former Owner
51.6%

11. Significant Consolidation Opportunities
Fifth largest player in highly fragmented industry
Significant acquisition opportunities exist at reasonable valuations
Shared resources among existing operations means lower costs
Focus on acquisitions with heritage and tradition with growth potential
High priority on firms within 30 miles of existing homes
Target firms with annual revenues between $800,000 and $2 million
Acquisitions program active in 2006

12. Acquisitions Closed Deals Pending Deals
Revenues of approximately US$7.0 million
EBITDA of approximately US$2.5 million
Financed with Cash and approximately $5 million draw on senior credit facility.
Pending Deals
39 candidates
US$45 million in revenues
5.5 X EBITDA Multiple
Anticipate US$10 to $15 million revenues acquired in 2006
Approximately 20% of purchase price in form of owner non-compete arrangement or other owner deferreds

13. New Credit Agreement
Provides for an additional $15 million in capacity
Reduces the interest rate by 200 basis points with an additional 50 basis point reduction contingent on achieving certain covenant levels
Extends the term from February 8, 2008 to February 8, 2011
Allows for favorable adjustments to certain debt covenant ratios
Based on current outstanding amounts, savings are estimated at approximately US$669,000 annually

14. Experienced Management Team
Years with Company
Years in Industry
Bob Horn Chairman and CEO 10 44
Steve Tidwell President 10 26
Jim Price COO 10 40
Steve Shaffer CFO 10 19

15. Seasonality

16. Stable and Consistent Performance
Combined Keystone Revenue
40%
30%
20%
10% 0%
$85.6
$88.2
$83.4
$85.7
$85.5
$86.4
$68.6
29.1%*
$ Millions
29.1%
28.4%
29.2%
28.2%
27.5%
24.3%
Revenue
EBITDA Margin
EBITDA % for 2005 represents actual results for Keystone and Hamilton for 327 days ended12/31/2005

17. Stable Financial Performance
Combined Keystone EBITDA Margin
29.1 %
29.2%
28.4%
28.2%
29.1%
28.3%
27.5%
24.3%
Combined results for Keystone and Hamilton

18. Capital Expenditures Maintenance CAPEX $3.0 $2.9 $2.9 $2.2 $2.0 $0.8
U.S.$ Millions
$0.8
Actual YTD
Projected 6/30/2006

19. Summary of Distributable Cash

20. Summary of Distributable Cash

21. Foreign Exchange
5 year hedge on 100% of current cash distributions of the company
Rolling hedge - quarterly
Weighted Average Rate $1.2007
As of June 30, 2006

22. Table of Comparables

23. Investment Highlights
Favourable industry dynamics
Strong franchise value
Focus on stable funeral service business
Geographically diversified, high quality assets
Significant opportunities for growth
Experienced management team
12.5% Yield (as of August 31, 2006)