2

Executive Management TeamExecutive Management Team

1111

1111

2929

2121

Yearswith Company

Yearsin Industry

Steve TidwellPresident & CEO

Steve ShafferCFO

Jim Price

COO

1111 4040

3

Company HighlightsCompany Highlights

4

Geographic OverviewGeographic Overview

5th largest provider of funeral services in North America

199 funeral homes and 16 cemeteries

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

Operations in 32 states and the province of Ontario

Focused on rural and suburban markets

5

Significant Accomplishments 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

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

6

Non-Cash Rights Offering SummaryNon-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

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

7

Benefits of the OfferingBenefits 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

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

8

Financial HighlightsFinancial Highlights

9

Stable and Consistent PerformanceStable and Consistent Performance

Revenue and Operating Income Margin

RevenueRevenue Operating Income MarginOperating Income Margin

$21 $21 $21 $23$25 $26

$27

$32

$19$20$21

18%20% 21%

17% 17%20% 21%

16% 16%20%19%

$0

$5

$10

$15

$20

$25

$30

$35

Q22005

Q32005

Q42005

Q12006

Q22006

Q32006

Q42006

Q12007

Q22007

Q32007

Q42007

US

$M

M

10%

20%

30%

40%

50%$35

Q12008

22%

$31

15%

Q22008

10

Strong Growth in Case VolumeStrong Growth in Case Volume

Case Count

3,800

4,1864,359 4,392

4,682

5,443

3,8073,979

3,000

3,500

4,000

4,500

5,000

5,500

Q1 2006

Q2 2006

Q3 2006

Q4 2006

Q1 2007

Q2 2007

Q3 2007

Q4 2007

Q1 2008

5,9176,000

Q2 2008

5,034

11

Increasing Revenue Per CaseIncreasing Revenue Per Case

Average Revenue Per Case

$5,059

$5,226 $5,247 $5,308 $5,274

$5,519

$5,029

$5,122

$4,800

$5,000

$5,400

$5,800

Q12006

Q22006

Q32006

Q42006

Q12007

Q22007

Q32007

Q42007

US

$

$5,491

Q12008

$5,485

Q22008

$5,200

$5,600

12

Strategic PlanOpportunities and Challenges

Strategic PlanOpportunities and Challenges

13

Demographic TrendsDemographic Trends

Projected US 65+ & 78+ Population

65+ Population65+ Population 78+ Population78+ Population

4041 43 44

55

64

39 40

14.2 14.3 14.5 14.6 14.7 14.9 15.1 15.216.7 19.9

14

0

30

40

50

60

70

80

90

2007 2008 2009 2010 2011 2012 2013 2014 2015 2020 2025

Po

pu

latio

n (

in m

illio

ns) 72

2030

24.638

4547

Projected population amounts extracted from the US Department Commerce, Bureau of the Census

14

Growth of the Cremation SegmentGrowth of the Cremation Segment

Percentage of Total Deaths Selecting Cremation

14.9

26.229.4 30.8

32.2

39.1

9.0

19.210%

20%

40%

60%

1980 1985 1995 2000 2003 2004 2005 2010*

Pe

rce

nta

ge

2025*

30%

50%

* Historical & projected percentages extracted from the Cremation Association of North America (CANA) final statistics and projections report.

65%

70%

57.3

Keystone’s Q1 2008 actual cremation percentage (40.5%) Keystone’s projected cremation percentage

40.5%

15

Commitment to Innovation Commitment to Innovation

16

Floral Partnerships Floral Partnerships

Organic revenue growth by partnering with local florists

Convenient way for family to select during funeral planning conference

Organic revenue growth by partnering with local florists

Convenient way for family to select during funeral planning conference

17

Specialized Veterans CareSpecialized Veterans Care

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

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

18

US Veteran Population Age 65+US Veteran Population Age 65+

Projected US Veterans Population

Veterans PopulationVeterans Population

9.6

8.7

8.0

7.3

9.2 9.2

0

6.5

7

7.5

8

8.5

9

9.5

2008 2009 2010 2015 2020 2025 2030 2035

Po

pu

latio

n (

in m

illio

ns)

9.2

6.6

Projected population amounts extracted from the US Department of Veteran Affairs

19

Executor AssistanceExecutor 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

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

20

Catering and Receptions 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

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

21

2007 Industry Revenues - $15 Billion

External Growth Opportunities External Growth Opportunities

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

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%

2007 # Funeral Homes - 21,080

79%

10%

90%

5 Public Death Care Companies5 Public Death Care Companies

Small PrivatelyOwned BusinessesSmall PrivatelyOwned Businesses

22

Business Highlights 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

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

23

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.

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.

CAUTIONARY STATEMENT REGARDING FORWARD LOOKING STATEMENTS