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SRV Report, 1/00

Report on Service Corporation International (NYSE: SRV)
As January 9,2000
Sean G. Thomas

Last Trade: $6 9/16
Shares Owned: 112
Market Price: $735.00
Cost Basis: $2584.88
Total Loss: $ $2,230.79
Percent Loss: 75.22%

Broker Recommendations:
Hold  12
Other  0


Thursday, November 18: Service Corporation International Announces
Management Change

George R. Champagne, the Company's Chief Financial Officer, is leaving
the Company. Mr. Champagne will remain associated with the Company in a
consulting capacity. The Company also announced that Todd A. Matherne,
the Company's Senior Vice President and Treasurer, has been appointed
the Company's Chief Financial Officer on an interim basis.

Tuesday November 23: Service Corporation International Forms Special
Committee of the Board And Announces Factors Impacting Outlook for 2000

Board of Directors has formed a Special Committee of the Board to
expedite the Company's cost reduction, cash flow enhancement and debt
reduction initiatives. The Committee is chaired by an outside director,
Mr. B. D. Hunter, and includes two additional outside directors and one
inside director. As a result of this increased focus, the Company
expects to identify additional cost reduction initiatives and other
items that will result in charges to earnings during the fourth quarter
of 1999.

Related story from TheStreet.com:

Service Corporation International (SRV:NYSE), the world's largest
funeral and cemetery company, issued its latest bit of bad news Tuesday,
warning that its profits will come under pressure in both its fourth
quarter and fiscal 2000.

The company said a multiplicity of factors would hurt fiscal 2000
earnings, while a new cost-cutting initiative will result in a
fourth-quarter charge. The details will be released when a review is
completed by a newly formed special committee of its board. The
committee will also formulate cost-cutting measures.

Service Corp. expects fiscal 2000 earnings to be hurt by a potential $25
million decline in cemetery trust and a loss of gains from sales of
businesses and undeveloped cemetery property, as well as a $30 million
increase in interest expense because of higher borrowing costs.

Wednesday December 22: Service Corp taps Jeffrey Curtiss CFO

SRV named Jeffrey Curtiss senior vice president and chief financial
officer, effective Jan. 3. Curtiss replaces George Champagne who stepped
down as CFO in November. Previously, Curtiss was senior vice president
and CFO at Browning-Ferris Industries until that company was sold in

Other than that, both the Motley Fool and CBS MarketWatch picked Service
Corp as one of 1999s biggest losers (along, unfortunately, with
McKesson HBOC)