Keystone North America Inc. and Keystone Newport ULC announce April cash distribution

    /NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE
    SERVICES/

    TORONTO, April 21 /CNW/ - (TSX:KNA.UN) - Keystone North America Inc.
("KNA") and Keystone Newport ULC ("KNA ULC", and together with KNA, the
"Issuer") announced that a cash payment of C$0.08333333 per Income
Participating Security will be payable on May 15, 2008 to holders of record of
Income Participating Securities at the close of business on April 30, 2008.
    Each Income Participating Security issued by the Issuer currently
represents one common share of KNA and C$4.286 aggregate principal amount of
14.5% subordinated notes of KNA ULC, and following 5:00 p.m. on the record
date of April 23, 2008 for KNA's previously announced non-cash rights
offering, will also include one right to purchase additional common shares of
KNA. The total payment of C$0.08333333 per Income Participating Security
reflects: (i) a cash dividend of C$0.03154416 per common share for the period
beginning April 1, 2008 and ending April 30, 2008; and (ii) an interest
payment of C$0.05178917 per Income Participating Security for the period
beginning April 1, 2008 and ending April 30, 2008.
    The Issuer's policy is for unitholders of record on the last business day
of a calendar month to receive distributions on the fifteenth day (or the next
business day if such day is not a business day) of the next calendar month.
    In regards to the dividend portion of the distribution, KNA designates
this dividend to be an "eligible dividend" pursuant to subsection 89 (14) of
the Income Tax Act (Canada) and its equivalent in any provinces of Canada.
    The Issuer, through its subsidiary Keystone Group Holdings, Inc.
("Keystone"), is a leading owner and operator of funeral homes across the
United States. Keystone owns and operates funeral homes and cemeteries across
the United States and the province of Ontario, making it, in management's
estimate, the fifth largest funeral home operator in North America.

    Forward-Looking Statement

    This press release may contain forward-looking statements relating to
expected future events and financial and operating results of the KNA and KNA
ULC that involve risks and uncertainties. These forward looking statements
reflect management's current reasonable expectations regarding future events
and operating performance and speak only as of the date of this news release.
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 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 are incorporated herein by reference. However, the
risk factors set out therein 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 news release 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, interest rates, exchange rates, tax considerations and the
completion of the non-cash rights offering may prove to be incorrect. Further
information regarding these and other factors is included in the Company's
public filings with Canadian securities regulatory authorities. Due to the
potential impact of these factors, KNA and KNA ULC disclaim any intention or
obligation to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, unless required by
applicable law.

    %SEDAR: 00021578E

For further information: Steven Tidwell, Chief Executive Officer, (813)
225-4653 or [e-mail]; Stephen Shaffer, Chief Financial
Officer, [phone] or [e-mail] or visit our investor
website at www.keystonenorthamerica.ca