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Executive Management Team

Executive Management Team. Years with Company. Years in Industry. Steve Tidwell President & CEO. 11. 29. Steve Shaffer CFO. 11. 21. Jim Price COO. 11. 40. Company Highlights. Geographic Overview. 5th largest provider of funeral services in North America

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Executive Management Team

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  1. Executive Management Team Yearswith Company Yearsin Industry Steve TidwellPresident & CEO 11 29 Steve ShafferCFO 11 21 Jim PriceCOO 11 40

  2. Company Highlights

  3. Geographic Overview • 5th largest provider of funeral services in North America • 199 funeral homes and 16 cemeteries • Operations in 32 states and the province of Ontario • Focused on rural and suburban markets

  4. Significant Accomplishments • Revenue grew by more than 22% • Successfully integrated the 2007 acquisition class • Refreshed our Strategic Plan • Began developing 20 existing key leaders to manage geographic clusters of homes, further leveraging our scale and resources • Completion of our Non – Cash Rights offering and related transactions transforming Keystone to a common share company • Repurchase and cancellation of C$16 million of separate subordinated notes in July 2008

  5. Non-Cash Rights Offering Summary • Offering closed on May 16th, 2008 • 91% of subordinated notes exchanged for new common shares • $107 Million dollars of IPS debt was exchanged for common shares • Keystone is now a common share company trading under the symbol KNA • C$16 Million of separate subordinated notes repurchased and cancelled in July of 2008 • Total impact of all transactions is estimated to be $300,000 reduction in outflows monthly

  6. Benefits of the Offering • Reduced Exposure to Canadian Dollar Appreciation • Lower Payout Ratio While Preserving After Tax Income for Taxable Canadian Unitholders • Access Broader Market for Common Shares • Reduced Consolidated Indebtedness • Full Management and Director Participation

  7. Financial Highlights

  8. Stable and Consistent Performance Revenue and Operating Income Margin $35 $35 50% $32 $31 $27 $30 $26 $25 40% $23 $25 $21 $21 $21 $21 $20 $19 $20 US$MM 30% $15 22% 21% 21% 20% 20% 20% 19% 18% 15% $10 17% 17% 16% 20% 16% $5 $0 10% Q2 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2008 2005 2005 2005 2006 2006 2006 2006 2007 2007 2007 2007 2008 Revenue Operating Income Margin

  9. Strong Growth in Case Volume Case Count 5,917 6,000 5,443 5,500 5,034 5,000 4,682 4,392 4,359 4,500 4,186 3,979 4,000 3,800 3,807 3,500 3,000 Q3 2006 Q1 2008 Q2 2008 Q1 2006 Q4 2006 Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q2 2006

  10. Increasing Revenue Per Case Average Revenue Per Case $5,800 $5,519 $5,491 $5,600 $5,485 $5,308 $5,247 $5,274 $5,400 $5,226 US$ $5,122 $5,200 $5,059 $5,029 $5,000 $4,800 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2006 2006 2006 2006 2007 2007 2007 2007 2008 2008

  11. Strategic Plan Opportunities and Challenges

  12. Demographic Trends Projected US 65+ & 78+ Population 90 80 72 64 70 55 60 47 Population (in millions) 45 44 50 43 41 40 40 39 38 40 24.6 19.9 16.7 15.2 15.1 30 14.9 14 14.3 14.5 14.7 14.6 14.2 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2020 2025 2030 Projected population amounts extracted from the US Department Commerce, Bureau of the Census 65+ Population 78+ Population

  13. Growth of the Cremation Segment Percentage of Total Deaths Selecting Cremation 70% 65% 60% 40.5% 50% 57.3 40% Percentage 39.1 30% 32.2 29.4 30.8 26.2 20% 19.2 14.9 10% 9.0 1980 1985 1995 2000 2003 2004 2005 2010* 2025* * Historical & projected percentages extracted from the Cremation Association of North America (CANA) final statistics and projections report. Keystone’s Q1 2008 actual cremation percentage (40.5%) Keystone’s projected cremation percentage

  14. Commitment to Innovation

  15. Floral Partnerships • Organic revenue growth by partnering with local florists • Convenient way for family to select during funeral planning conference

  16. Specialized Veterans Care • Veterans Funeral Care initiative prepares Keystone professionals to provide specialized care to Veterans with confidence and high honor

  17. US Veteran Population Age 65+ Projected US Veterans Population 9.6 9.5 9.2 9.2 9.2 9 8.7 8.5 8.0 8 Population (in millions) 7.5 7.3 7 6.6 6.5 0 2008 2009 2010 2015 2020 2025 2030 2035 Projected populationamounts extracted from the US Department of Veteran Affairs Veterans Population

  18. Executor Assistance • Key Documents – providing client families with the tools and assistance required to help organize and settle the affairs or estate of their loved one

  19. Catering and Receptions • A natural extension to the service we provide • Convenient way for families to gather and commemorate the life of their loved one in a casual setting

  20. External Growth Opportunities 2007 Industry Revenues - $15 Billion • Highly fragmented ownership • Despite active consolidation in 1990’s - industry remains highly fragmented • Majority of homes are privately owned • Keystone focused on rural and suburban markets • Competes against other privately owned businesses • Other public companies primarily in urban markets • Further leveraging our infrastructure and operating synergies 21% 79% 5 Public Death Care Companies Small PrivatelyOwned Businesses 2007 # Funeral Homes - 21,080 10% 90%

  21. Business Highlights • Favourable demographic trends • Strong franchise value • Focus on stable funeral service business • Geographically diversified,quality assets • Significant opportunities for growth • Experienced management team • Capital Structure which supports our initiatives

  22. CAUTIONARY STATEMENT REGARDING FORWARD LOOKING STATEMENTS Certain statements in this presentation are “forward-looking statements”, which reflect the expectations of management regarding population demographic trends in the United States, preferences regarding mix of funeral services, and the Company's future growth, results of operations, performance and business prospects and opportunities. The Company uses words such as “may”, “would”, “could”, “will”, “likely”, “expect”, “anticipate”, “believe”, “intend”, “plan”, “forecast”, “project”, “estimate” and similar expressions to identify forward-looking statements. These forward-looking statements reflect management's current reasonable expectations regarding future events and operating performance and speak only as of the effective date of this presentation. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not or the times at or by which such performance or results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward looking statements including, among others, those factors discussed under those factors set out in the "Risk Factors" sections of the Company's annual information form dated March 27, 2008 and the final short form prospectus dated April 14, 2008, which risk factors are incorporated herein by reference. However, the risk factors are not exhaustive of the factors that may affect any of the Company's forward looking statements. Although the forward-looking statements contained in this presentation are based upon what management believes to be reasonable assumptions, investors cannot be assured that actual results will be consistent with these forward-looking statements, and the differences may be material. These assumptions, which include management’s current expectations, estimates and assumptions about the markets the Company operates in, mix of funeral services, interest rates, exchange rates, tax considerations, population demographics, and the Company’s ability to attract and retain customers and to manage its assets and operating costs, may prove to be incorrect. Further information regarding these and other factors are included in the Company’s public filings with Canadian securities regulatory authorities, which are available electronically at www.sedar.com. These forward-looking statements are made as of the date of the this presentation and the Company assumes no obligation to update or revise them to reflect new events or circumstances, except as required by applicable law.

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