Keystone North America Inc. Closes $40.3 Million Offering of Income Participating Securities

    TORONTO, March 13 /CNW/ - Keystone North America Inc. and Keystone
Newport ULC, (TSX:KNA.UN), the fourth largest operator of funeral homes in the
United States, with 171 funeral homes and ten cemeteries across the United
States and the Province of Ontario, announced today that it has closed its
offering of 4,945,000 income participating securities (IPS), including 645,000
IPSs issued on exercise of the over-allotment option, at a price of C$8.15 per
IPS for total gross proceeds of C$40.3 million. The offering was underwritten
by a syndicate of underwriters led by BMO Capital Markets and Scotia Capital
    Keystone used a portion of the proceeds today to complete two previously
announced transactions: (i) the acquisition three funeral homes in Michigan by
acquiring 100% of the shares of Fred H. Kaul Funeral Homes, Inc. and (ii) the
redemption of approximately 526,400 Class B Common Shares of Keystone Group
Holdings, Inc. Management expects the remainder of the proceeds to be used for
general corporate purposes and, subject to the approval of the U.S. Federal
Trade Commission, to finance the acquisition of 11 funeral homes and four
cemeteries from Service Corporation International.


    This press release contains certain statements that constitute
forward-looking statements within the meaning of applicable securities
legislation. Such forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause the results, performance or
achievements of Keystone or developments in the industry to differ materially
from anticipated results, performance, achievements or developments expressed
or implied by such forward-looking statements. Actual results may differ
materially from management expectations as projected in such forward-looking
statements for a variety of reasons, including market and general economic
conditions and the risks and uncertainties detailed from time to time in
Keystone's annual information form and quarterly financial reports filed with
the Canadian securities regulatory authorities. Due to the potential impact of
these factors, Keystone North America Inc. and Keystone Newport 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:

For further information: Keystone North America Inc., Robert G. Horn,
Chief Executive Officer, (813) 225-4652, Email:; or
Keystone North America Inc., Stephen Shaffer, Chief Financial Officer, (813)
225-4654, Email:; Visit our investor website at

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