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SRV Report, 3/00



Report on Service Corporation International (NYSE: SRV)
As of March 26, 2000
Sean G. Thomas

Last Trade: $3 1/16
Shares Owned: 112
Market Price: $350.00
Cost Basis: $2584.88
Total Loss: $ $2,615.79
Percent Loss: 88.20%

Broker Recommendations:
Moderate Buy: 1
Hold  10
Other  0

News:

December 31: Adding insult to injury, Service Corp gets named one of
1999ís biggest losers by the Motley Fool. Yessss!

January 12: Service Corporation International Announces Changes in
Management Team

Service Corporation International, announced today changes in the
Company's management team. Mr. B.D. Hunter was named Vice Chairman of
the Board of Directors and Jerald L. Pullins was named President and
Chief Operating Officer of the Company.

Mr. Hunter has been involved in various aspects of the funeral and
cemetery industry since the 1960s and brings a wealth of industry
knowledge to the Company. Mr. Hunter has been a member of the Board of
Directors of the Company since 1986.

Mr. Pullins has a long and successful history in various roles with the
Company and within the funeral service industry since the mid-1960s.
After being primarily responsible for the Company's European operations
since 1994, Mr. Pullins has most recently held the position of Chief
Operating Officer of the Company.

January 12: Service Corporation International Announces Restructuring
and Other Non-Recurring Charges of Approximately $312 Million and
Anticipated Future Annualized Savings of $60 to $65 Million

SRVannounced the results to date of its cost reduction, cash flow
enhancement and debt reduction initiatives expedited by the previously
announced Special Committee of the Board. In the fourth quarter of 1999,
the Company will record a restructuring charge of approximately $273
million and other non-recurring charges of approximately $39 million. As
a result of the restructuring charge and other related cost initiatives,
the Company anticipates savings on a pretax basis of $45 to $50 million
in the year 2000 and future annualized savings of $60 to $65 million.

January 18: SRV announced that Marcus Hillman-Eady has been appointed
Chief Executive Officer of its European Operations. In his new role,
Hillman-Eady will oversee approximately 2,000 businesses located in
twelve countries.

January 25: Service Corporation International Emphasizes Technology With
New Executive Appointment

SRV demonstrated a strong commitment to technology this month with the
election of Stephen J. Uthoff to the position of Vice President and
Chief Information Officer. A Certified Public Accountant, Mr. Uthoff was
most recently a vice president at Browning-Ferris Industries, Inc.
(BFI), the world's second largest waste services company, where he was
responsible for information systems and select change and improvement
initiatives relating to information technology, organizational design,
performance measurement, and business process design.

In his new position, Mr. Uthoff is charged with exploring and adopting
different processes and information systems that will bring greater
efficiency to Company operations. In addition to managing the Company's
information systems, he will also be responsible for SCI's trust
administration activities.

February 10: Service Corporation International Announces Results for the
Fourth Quarter Of 1999 and Outlook for 2000

Excluding the Company's fourth quarter restructuring charge of $273
million and $39 million of non-recurring charges related to reserves
established on certain loans held by the Company's lending subsidiary,
the Company reported diluted earnings per share of $.10 ($.10 basic) for
the three months ended December 31, 1999. Excluding the Company's first
and fourth quarter restructuring charges, the $39 million of
non-recurring charges and early extinguishment of debt, the Company
reported diluted earnings per share of $.86 ($.86 basic) for the twelve
months ended December 31, 1999.

Including all non-recurring charges in 1999 described above, the Company
reported a net loss of $184.2 million or $.68 per diluted share ($.68
basic) for the fourth quarter of 1999 compared to net income of $59.2
million or $.23 per diluted share ($.23 basic) for the fourth quarter of
1998. For the twelve months ended December 31, 1999, the Company
reported a net loss of $32.4 million or $.12 per diluted share ($.12
basic) compared to $342.1 million of net income or $1.31 per diluted
share ($1.34 basic) for the twelve months ended December 31, 1998.

The Company reported revenues of $810.7 million for the three months
ended December 31, 1999 compared to $773.5 million of revenues reported
for the same period of 1998. For the twelve months ended December 31,
1999, the Company reported revenues of $3,321.8 million compared to
revenues of $2,875.1 million for the twelve months ended December 31,
1998.

February 14: SRV announced today that its Board of Directors has elected
Victor L. Lund a Director of the Company effective February 10, 2000.
His election fills a vacancy in the class of directors whose terms
expire at the 2001 Annual Meeting of Shareholders of the Company. Mr.
Lund, age 52, is currently Vice Chairman of the Board of Albertsons,
Inc., the second largest supermarket company in the U.S.

February 22: SRV announced the appointment of Frank T. Hundley to the
position of Vice President- Treasurer, effective March 1. Mr. Hundley
brings to SCI 15 years of experience in the financial industry, having
previously served as a Managing Director with Banc of America
Securities.

February 23: Service Corporation International Comments on SEC Staff
Accounting Bulletin On Revenue Recognition in Financial Statements

SRV commented on the application of a recently published SEC staff
accounting bulletin. The Securities and Exchange Commission recently
published SEC Staff Accounting Bulletin No. 101 - Revenue Recognition in
Financial Statements summarizing certain of the staff's views in
applying generally accepted accounting principles to revenue recognition
in financial statements. The purpose of the bulletin is to provide
guidance relative to a large number of revenue recognition issues that
public registrants encounter.

The Company is currently in the process of examining the effect, if any,
of the application of this bulletin to the Company's accounting policies
and disclosure requirements under existing authoritative accounting
standards. The Company plans to finalize its examination of any effect
from the application of this bulletin before the filing of its Form 10-Q
with the SEC for the first quarter of 2000.

March 8: Standard & Poor's said on Wednesday it would add online travel
agent Sabre Holdings Corp. (NYSE:TSG - news) to its S&P 500 stock index,
replacing funeral and cemetery company Service Corp. International
(NYSE:SRV - news), effective March 15

March 8: SRV announced the appointment of Harry Loring as Managing
Director of Taxation. Mr. Loring brings to his position sixteen years of
leadership in the areas of international and domestic taxes with major
corporations such as Stone & Webster, Incorporated, Town & Country
Corporation, and Apollo Computer, Inc. At SCI, he will oversee tax
matters involving operations in North America, South America, Europe,
and the Pacific Rim.

March 23: Ladenburg Thalmann's High Yield Division issued a STRONG BUY
Recommendation on Service Corporation International's (NYSE: SRV - news)
senior notes on March 17, 2000.