Arbor Memorial Services Inc.

    TSX ABO.A and ABO.B

    TORONTO, May 29 /CNW/ - Arbor Memorial Services Inc. announced today its
results for the three and six months ended April 30, 2007.Three months ended    Six months ended
                                           April 30            April 30
                                            ($000)              ($000)

                                          2007      2006      2007      2006
                                          ----      ----      ----      ----

    Revenue                             59,781    55,727   115,119   106,447
    Earnings before interest expense
     and income taxes                   11,634    10,850    21,172    18,595
    Net earnings                         6,952     6,412    12,363    10,842
    Earnings per share  -
     basic and diluted ($)                0.66      0.61      1.17      1.02Net earnings and earnings per share in the second quarter of 2007
increased by $0.5 million or 8% to $7.0 million and $0.66 per share,
respectively, compared to the second quarter of 2006. The increase was mainly
attributable to improved earnings in the funeral division as a result of
higher sales.
    Net earnings and earnings per share in the first six months of 2007
increased by $1.5 million or 14% to $12.4 million and $1.17 per share,
respectively, compared to the first six months of 2006. The increase was
mainly attributable to improved earnings in the funeral division as a result
of higher sales.

    Arbor Memorial Services Inc. owns 41 cemeteries, 27 crematoria,
3 reception centres located on cemetery premises and 93 funeral homes in eight
provinces of Canada.

    %SEDAR: 00007478E

For further information: R. D. Innes, President and Chief Executive
Officer; B. D. Snowdon, Vice-President and Chief Financial Officer, Phone:
[phone]