<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>3
<FILENAME>e15437ex99_1.txt
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
FOR IMMEDIATE RELEASE:

                        SERVICE CORPORATION INTERNATIONAL

            REVISES PREVIOUSLY RELEASED SECOND QUARTER 2003 EARNINGS

--------------------------------------------------------------------------------

                        SERVICE CORPORATION INTERNATIONAL
        ANNOUNCES SECOND QUARTER 2003 EARNINGS OF $.05 PER DILUTED SHARE

HOUSTON,  TEXAS, August 6, 2003 . . . Service Corporation  International  (NYSE:
SRV),  the world's  largest  funeral and  cemetery  company,  announced  revised
results  for the  second  quarter  of  2003  as a  result  of a  decision  in an
arbitration  matter received by the Company after the Company  earlier  released
its second quarter 2003 earnings. As a result of this decision,  the Company has
recognized  $15.0 million in general and  administrative  expenses in the second
quarter of 2003 described later in this press release.

Highlights of Quarterly Results

<TABLE>
<CAPTION>
                                                              Three Months Ended               Six Months Ended
(In millions, except per share amounts)                            June 30,                        June 30,
                                                           -------------------------       --------------------------
                                                              2003          2002     (A)      2003           2002     (A)
                                                           -----------    ----------       -----------    -----------
<S>                                                            <C>          <C>              <C>           <C>
Total Revenues........................................         $586.2       $583.4           $1,166.3      $1,184.7
Total Gross Profits...................................          $94.4        $91.3             $207.0        $210.4
Net Income / (Loss)...................................          $14.4      $(143.0)             $56.6       $(231.7)
Diluted Earnings / (Loss) Per Share...................           $.05        $(.49)              $.18         $(.79)
Cash Flows from Operating Activities..................          $60.4        $75.6             $243.7        $158.4
Capital Expenditures..................................          $26.4        $21.7              $47.7         $40.0
Cash and Cash Equivalents.............................              -            -             $158.0        $200.6   (B)
Total Debt............................................              -            -           $1,735.8      $1,984.8   (B)
</TABLE>

(A)   The Company has reclassified certain prior year amounts throughout this
      press release to conform to the current period financial presentation with
      no effect on previously reported results of operations, financial
      condition or cash flows.

(B)   Prior period amounts as of December 31, 2002.

o     Revenues increased in the second quarter of 2003 compared to the second
      quarter of 2002. Favorable currency effects in the Company's French
      funeral operations helped to offset the negative impact from asset
      dispositions and decreases in the Company's North American cemetery
      revenues.

o     Gross profits for the second quarter of 2003 increased $3.1 million or
      3.4%, led by significant profit improvements in the Company's North
      America cemetery and French funeral businesses.

o     Cash flows from operating activities decreased $15.2 million or 20.1% in
      the second quarter of 2003 over the prior period primarily reflecting
      higher foreign cash taxes paid and lower cash receipts from fewer funeral
      services performed during March, April and May of 2003.


                                     Page 1
<PAGE>

o     Capital expenditures increased $4.7 million or 21.7% in the second quarter
      of 2003 compared to 2002 due to a greater emphasis on maintenance capital
      spending. The Company anticipates spending $110 to $130 million in total
      capital expenditures in 2003, of which $75 to $85 million is estimated to
      be expenditures deemed reasonably necessary to maintain the Company's
      facilities.

o     The Company continued to improve its financial condition in the second
      quarter of 2003. Since the beginning of the year, the Company has reduced
      its total debt, less cash and cash equivalents, by $206.4 million or
      11.6%.

Commenting on the 2003 financial results, Robert L. Waltrip, Chairman and Chief
Executive Officer, stated:
"During the first six months of 2003, SCI delivered solid results in a difficult
industry environment. In the face of volume declines experienced by the industry
in North America,  we generated  significant cash flow  improvement.  It is also
satisfying  to see  our  focus  on cost  reduction  and  operating  efficiencies
translate  into  improved  financial  performance,  particularly  in  our  North
American cemetery business."

Detailed Comparable Operating Results

The following  table and segment  analysis  summarizes the Company's  comparable
results  for the  second  quarters  and  first  six  months  of 2003  and  2002.
Comparable financial  information excludes operations that have been acquired or
constructed  after  January 1, 2002 and  operations  that have been  divested or
joint  ventured  by the Company  prior to June 30,  2003.  Comparable  financial
results are meant to be  reflective  of the  Company's  "same store"  results of
operations.

<TABLE>
<CAPTION>
(Dollars in millions, except funeral
services performed and average revenue                  Three Months Ended                         Six Months Ended
per funeral service)                                         June 30,                                  June 30,
                                                ------------------------------------    ---------------------------------------
                                                  2003              2002                  2003                2002
                                                ---------         ---------             ----------          ----------
<S>                                               <C>     <C>       <C>      <C>           <C>      <C>           <C>
North America Funeral Revenues............        $282.1            $282.9                 $580.3              $590.1
International Funeral Revenues............        $144.3            $115.6                 $283.0              $230.3
                                                ---------         ---------             ----------          ----------
    Funeral Revenues......................        $426.4            $398.5                 $863.3              $820.4

North America Funeral Gross Profits.......         $51.7  18.3%      $54.6   19.3%         $120.4   20.7%      $135.2   22.9%
International Funeral Gross Profits.......         $16.9  11.7%      $12.2   10.6%          $36.4   12.9%       $29.0   12.6%
                                                ---------         ---------             ----------          ----------
    Funeral Gross Profits.................         $68.6  16.1%      $66.8   16.8%         $156.8   18.2%      $164.2   20.0%

North America Funeral Services

    Performed.............................        65,352            66,402                135,114             139,958
France Funeral Services Performed.........        32,604            32,549                 68,208              69,729
North America Average Revenue Per
    Funeral Service.......................        $4,151            $4,060                 $4,131              $4,035
France Average Revenue Per Funeral
    Service, Excluding Currency Effect....        $2,510            $2,379                 $2,422              $2,313

North America Cemetery Revenues...........        $150.3            $163.8                 $283.1              $302.1
International Cemetery Revenues...........          $8.7              $7.7                  $15.7               $15.4
                                                ---------         ---------             ----------          ----------
    Cemetery Revenues.....................        $159.0            $171.5                 $298.8              $317.5

North America Cemetery Gross Profits......         $25.3  16.8%      $21.8   13.3%          $49.8   17.6%       $37.7   12.5%
International Cemetery Gross Profits......          $2.3  26.4%       $2.1   27.3%           $3.6   22.9%        $3.4   22.1%
                                                ---------         ---------             ----------          ----------
    Cemetery Gross Profits................         $27.6  17.4%      $23.9   13.9%          $53.4   17.9%       $41.1   12.9%
</TABLE>


                                     Page 2
<PAGE>

Comparable Funeral Segment Analysis - Second Quarter 2003

o     Although the number of funeral services performed in North America
      declined 1.6%, funeral revenues remained flat quarter over quarter. A 2.2%
      increase in the average revenue per funeral service helped to offset the
      decline in funeral services performed and lower levels of general agency
      revenues associated with insurance funded prearranged funeral sales. This
      increase in average revenue per funeral service was achieved despite an
      increase in cremation services during the quarter, which typically carry a
      lower average revenue.

o     The North America funeral gross margin was 18.3% versus 19.3% in the prior
      year quarter. The gross margin decline was primarily a result of fewer
      than expected funeral services performed on a predominantly fixed cost
      structure, particularly as it relates to personnel costs.

o     North America funeral locations had an average cremation rate of 39.3%
      compared to 37.9% in the prior year quarter. The average revenue per
      cremation service increased 2.7% over the prior year quarter due to
      increased sales of Dignity Memorial(R) packaged cremation plans, which
      offer consumers a broad array of unique cremation products and services.

o     In North America, 31.6% of funeral services performed were previously
      prearranged compared to 31.3% in the prior year quarter. Revenues from the
      performance of prearranged funeral contracts had an average revenue per
      funeral service of $4,021 in the second quarter of 2003 compared to $3,948
      in the second quarter of 2002.

o     Revenues and gross profits from funeral operations in France were $140.2
      million and $15.8 million in the second quarter of 2003 compared to $112.1
      million and $11.6 million in 2002. Included in 2003 results are positive
      effects of foreign currency translation of $26.8 million in revenues and
      $3.1 million in gross profits compared to 2002. Excluding the favorable
      currency effect, France's funeral revenues grew by $1.3 million and gross
      margin improved to 11.3% versus 10.4% in the prior year quarter.

Comparable Cemetery Segment Analysis - Second Quarter 2003

o     North America cemetery revenues decreased by $13.5 million or 8.2%
      compared to the prior year quarter. The decline in revenues is primarily
      attributable to fewer cemetery property development projects completed in
      the second quarter of 2003 compared to the second quarter of 2002 and
      lower levels of cemetery merchandise delivered during the quarter.

o     Although cemetery revenues declined, the North America cemetery gross
      margin improved to 16.8% compared to 13.3% in the prior year quarter. The
      gross margin increase was primarily due to a reduction in selling costs as
      a result of significant changes to the Company's preneed sales structure
      and processes.

o     Revenues and gross profits from cemetery operations in South America were
      $8.7 million and $2.3 million in the second quarter of 2003 compared to
      $7.7 million and $2.1 in 2002. Included in 2003 results are negative
      effects of foreign currency translation of $0.3 million in revenues and
      $0.1 million in gross profits compared to 2002. Excluding the unfavorable
      currency effect, South America's cemetery revenues and gross profits
      increased 16.4% and 18.2%, respectively, compared to the prior year
      quarter.

Commenting on the Company's second quarter 2003 operating results, SCI President
and Chief  Operating  Officer,  Tom Ryan,  said:
"We remain encouraged by the progress of our North American cemetery operations
where cost reduction efforts and cemetery property sales initiatives are driving
significant margin improvement. In the funeral segment, lower funeral volumes
continued to impact results in the second quarter. We experienced lower death
trends in April and May similar to first quarter levels with a moderate
turnaround in June. Despite this challenging environment, our funeral revenues
remained flat quarter over quarter primarily fueled by the success of our
Dignity Memorial(R) packaged funeral plan sales initiative."


                                     Page 3
<PAGE>

Other Costs and Expenses

The Company  recognized a net loss of $1.5 million  during the second quarter of
2003 in the  income  statement  line  item  Gains  and  impairment  (losses)  on
dispositions, net. As dispositions occur in the normal course of business, gains
or  losses  on the  sales  of such  businesses  are  recognized  in this  income
statement  line  item.  Additionally,  as  dispositions  occur  related  to  the
Company's ongoing asset sale programs,  adjustments are made through this income
statement line item to reflect the difference  between actual proceeds  received
from the sale compared to the original estimates.

During the  second  quarter  of 2003,  the  Company  sold its  remaining  equity
investment in its operations in Spain for net cash proceeds of $26.0 million and
recognized a gain of $8.1 million  included in Gains and impairment  (losses) on
dispositions,  net.  This  gain was  offset by  impairment  losses  for  several
dispositions in North America during the quarter.

The Company has three components of overhead costs in North America: general and
administrative  expenses,  home office overhead and field overhead.  Home office
and field  overhead  costs are  allocated to funeral and cemetery  operations in
North  America  while  general and  administrative  expenses are  disclosed in a
separate line item on the income statement. Home office and field overhead costs
totaled $38.5 million in the second quarter of 2003 compared to $39.7 million in
the same  period  of 2002.  Reductions  in costs as a result of  changes  to the
compensation  structure  and  processes of the  Company's  preneed sales efforts
helped to offset initial start up costs  associated  with the outsourcing of its
accounts payable, payroll and trust administration functions.  These outsourcing
programs are expected to meaningfully reduce overhead costs beginning in 2004.

In the second quarter of 2003,  general and  administrative  expenses were $36.3
million  compared  to $19.6  million  in  2002.  The  increase  in  general  and
administrative  expenses primarily resulted from $15.0 million recognized during
the quarter related to a decision in an arbitration  matter.  The recognition of
this amount was necessary because one of the Company's  insurance  carriers that
would  have  covered  a portion  of this  decision  is  insolvent.  General  and
administrative  expenses was also  impacted by increased  professional  fees and
other costs associated with cash flow and profit improvement initiatives.

The Company recognized $2.4 million of Other income during the second quarter of
2003  compared  to an expense of $2.0  million in the prior year  quarter.  This
variance is a result of losses on early  extinguishments of debt of $4.4 million
on a pretax basis recognized in the second quarter of 2002.

Interest  expense  decreased $5.3 million or 12.8% in the second quarter of 2003
compared  to  the  prior  year  quarter  as a  result  of the  significant  debt
reductions by the Company in the last twelve months.

The  Company's  consolidated  effective  tax rate was 32.1%  during the  quarter
compared to 28.6% in the prior year  quarter.  The increase in the effective tax
rate is due to the  utilization in previous years of the Company's net operating
loss carry-forwards related to its French operations.

Free Cash Flow

The  Company  defines  free cash flow as cash  flows from  operating  activities
(adjusted  for certain  unusual  items) less  maintenance  capital  expenditures
(which are expenditures for capital  improvements deemed reasonably necessary to
maintain  the  Company's  facilities  in a  condition  consistent  with  Company
standards). The Company believes that free cash flow provides useful information
to investors  regarding  its  financial  condition  and liquidity as well as its
ability to generate  cash for  purposes  such as reducing  debt,  expanding  its
business  through  strategic   investments  and  repurchasing  stock  or  paying
dividends  (subject to  restrictions in its debt  agreements).  In the Company's
definition,  free cash flow is not reduced by capital  expenditures  intended to
grow revenues and profits such as the acquisition of funeral  service  locations
or  cemeteries  in large or strategic  North America  markets,  construction  of
high-end  cemetery  property  inventory  or the  construction  of  funeral  home
facilities  on  Company-owned  cemeteries.  In  2003,  the  Company  anticipates
spending $35 to $45 million on such growth-related  capital  investments.


                                     Page 4
<PAGE>

While the Company believes free cash flow, as defined, is helpful in managing
its business and provides useful information to investors, certain events may
arise, financial or otherwise, which could require the use of free cash flow so
that it would not be available for the purposes described above. Furthermore,
free cash flow should be reviewed in addition to, but not as a substitute for,
the data provided in the Company's Consolidated Statement of Cash Flows.

The following table provides a reconciliation between Cash flows from operations
and free cash flow.

<TABLE>
<CAPTION>
                                                                           Three Months Ended              Six Months Ended
(In millions)                                                                   June 30,                       June 30,
                                                                       ---------------------------     --------------------------
                                                                          2003           2002             2003           2002
                                                                       -----------    ------------     -----------    -----------
<S>                                                                        <C>             <C>            <C>            <C>
Cash Flows From Operations.......................................          $60.4           $75.6          $243.7         $158.4
Less:  Unusual Tax Refunds.......................................              -               -          $(94.5)        $(22.0)
Add:  Settlement Of Significant Legal Matters....................           $4.0               -            $4.0              -
                                                                       -----------    ------------     -----------    -----------
Adjusted Cash Flows From Operations..............................          $64.4           $75.6          $153.2         $136.4

Less:  Maintenance Capital Expenditures..........................         $(18.9)         $(14.9)         $(36.0)        $(28.1)
                                                                       -----------    ------------     -----------    -----------
Free Cash Flow...................................................          $45.5           $60.7          $117.2         $108.3
                                                                       ===========    ============     ===========    ===========
</TABLE>

Free cash flow  decreased  $15.2  million or 25.0% during the second  quarter of
2003  primarily  reflecting  lower cash  receipts  from fewer  funeral  services
performed  during  March,  April  and May of  2003,  higher  levels  of  capital
improvements  made to the  Company's  facilities  and higher  foreign cash taxes
paid.  This  activity  in the second  quarter of 2003  compares  to very  strong
working capital improvement in the second quarter of 2002.

In the first six months of 2003,  free cash flow  increased $8.9 million or 8.2%
compared to 2002. This increase  resulted from cemetery  operating  improvements
and working capital  improvements,  and were offset to a lesser extent by higher
levels of maintenance capital spending, higher foreign cash taxes paid and lower
cash receipts from fewer funeral services performed during 2003.

Commenting  on the  Company's  free cash flow in 2003,  SCI  President and Chief
Operating Officer, Tom Ryan, said:
"The  growth of more than 8% in free cash flow  during  the first six  months of
2003  demonstrates  the  strength  and  stability  of our  business.  Even  more
impressive,  this growth was  achieved  despite the  industry  wide  weakness in
funeral  volumes during the period.  We continue to believe that our strong cash
flows  distinguish  SCI  from  others  in this  industry  and  allow  us  unique
opportunities to grow shareholder value."

Accounting Changes

In January  2003,  the FASB  issued  FASB  Interpretation  No. 46 (FIN No.  46),
"Consolidation  of Variable Interest  Entities,  an Interpretation of Accounting
Research  Bulletin  (ARB) No.  51." FIN No. 46 is  required to be adopted by the
Company in the third quarter of 2003. As a result of the adoption of FIN No. 46,
the Company  believes it will be required to consolidate as of July 1, 2003, its
prearranged funeral,  cemetery merchandise and services and endowment care trust
funds, as well as certain cemeteries managed, but not owned, by the Company. The
Company is currently assessing the impact, if any, on its results of operations,
financial condition or cash flows as a result of potentially  consolidating such
trust funds. The Company believes, however, it will recognize a pretax charge of
$20 to $30 million representing the cumulative effect of an accounting change in
the  third  quarter  of 2003,  primarily  as a result of  consolidating  certain
cemeteries not owned by the Company.


                                     Page 5
<PAGE>

Conference Call

The Company will host a conference  call on  Thursday,  August 7, 2003,  at 9:00
a.m.   Central  time.  A  question  and  answer  session  will  follow  a  brief
presentation  made by the Company.  The conference  call dial-in number is (913)
981-5509.  The conference  call will also be broadcast live via the Internet and
can be accessed through the Company's website at http://www.sci-corp.com.  After
the completion of the live conference call, a replay of the conference call will
be available  through August 21, 2003 and can be accessed at (719) 457-0820 with
the confirmation code of 471464.  Additionally,  a replay of the conference call
will be available on the Company's website at http:// www.sci-corp.com under the
Investor section titled  "Conference  Calls",  and this earnings release will be
available under the section entitled "In the News".

Cautionary Statement on Forward-Looking Statements

The   statements   in  this  document   that  are  not   historical   facts  are
forward-looking  statements  made in reliance on the "safe  harbor"  protections
provided  under the  Private  Securities  Litigation  Reform Act of 1995.  These
statements may be accompanied by words such as "believe," "estimate," "project,"
"expect,"  "may",  "anticipate",  "forecast",  "predict"  and  words of  similar
meaning  that  convey  the  uncertainty  of  future  events or  outcomes.  These
statements are based on assumptions  that the Company  believes are  reasonable;
however,  many important factors could cause the Company's actual results in the
future to differ materially from the forward-looking  statements made herein and
in any other  documents  or oral  presentations  made by, or on behalf  of,  the
Company.  Important  factors which could cause actual  results of the Company to
differ  materially  from  those in  forward-looking  statements  include,  among
others, the following:

1)    Changes in general economic conditions, both domestically and
      internationally, impacting financial markets (e.g., marketable security
      values, as well as currency and interest rate fluctuations) that could
      negatively affect the Company, particularly, but not limited to, levels of
      trust fund income, interest expense and negative currency translation
      effects.

2)    The outcomes of pending lawsuits and proceedings against the Company
      involving alleged violations of securities laws.

3)    The outcomes of pending lawsuits in Florida involving certain cemetery
      locations, including criminal charges or other civil claims being filed
      against the Company, its subsidiaries or its employees.

4)    The Company's ability to successfully implement its strategic plan related
      to producing operating improvements, strong cash flows and further
      deleveraging as discussed herein and in the Company's Form 10-K for the
      year ended December 31, 2002.

5)    The Company's ability to successfully implement its plan to reduce costs
      and increase cash flows associated with significant changes being made to
      the Company's organization structure, process and quality of its sales
      efforts.

6)    Changes in consumer demand and/or pricing for the Company's products and
      services due to several factors, such as changes in local number of
      deaths, cremation rates, competitive pressures and local economic
      conditions.

7)    Changes in domestic and international political and/or regulatory
      environments in which the Company operates, including potential changes in
      tax, accounting and trusting policies.

8)    Changes in credit relationships impacting the availability of credit and
      the general availability of credit in the marketplace.

9)    The Company's ability to successfully complete its ongoing process
      improvement and system implementation projects, including the Company's
      replacement of its North America point-of-sale information technology
      systems.

10)   The Company's ability to successfully access surety and insurance markets
      at a reasonable cost.

11)   The Company's ability to successfully exploit its substantial purchasing
      power with certain of the Company's vendors.


                                     Page 6
<PAGE>

For  further  information  on these and other risks and  uncertainties,  see the
Company's  Securities and Exchange Commission  filings,  including the Company's
2002 Annual Report on Form 10-K.  The Company  assumes no obligation to publicly
update  or  revise  any  forward-looking  statements  made  herein  or any other
forward-looking  statements  made by the  Company,  whether  as a result  of new
information, future events or otherwise.

Service Corporation  International (NYSE: SRV), headquartered in Houston, Texas,
is the  world's  largest  funeral  and  cemetery  company.  The  Company  has an
extensive network of providers,  including 2,259 funeral service locations,  431
cemeteries  and 188  crematoria  providing  funeral and  cemetery  services in 8
countries as of June 30, 2003. For more  information  about Service  Corporation
International, please visit our website at www.sci-corp.com

For additional information contact:

Investors:  Debbie Young - Director of Investor Relations         (713) 525-9088

Media:      Terry Hemeyer - Managing Director / Corporate
            Communications                                        (713) 525-5497


                                     Page 7
<PAGE>

                        SERVICE CORPORATION INTERNATIONAL
                      CONSOLIDATED STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
(In thousands, except per share amounts)                            Three Months Ended                 Six Months Ended
                                                                         June 30,                          June 30,
                                                               -----------------------------     ------------------------------
                                                                  2003             2002             2003              2002
                                                               ------------    -------------     ------------     -------------
<S>                                                             <C>               <C>              <C>              <C>
Revenues:
     Funeral.................................................    $427,567        $ 406,806       $  866,854        $  855,147
     Cemetery................................................     158,675          176,617          299,481           329,542
                                                               ------------    -------------     ------------     -------------
                                                                  586,242          583,423        1,166,335         1,184,689
Gross profits:
     Funeral.................................................      67,576           65,762          154,825           166,547
     Cemetery................................................      26,842           25,511           52,148            43,890
                                                               ------------    -------------     ------------     -------------
                                                                   94,418           91,273          206,973           210,437
                                                               ------------    -------------     ------------     -------------
General and administrative expenses..........................     (36,268)         (19,592)         (57,679)          (35,323)
Gains and impairment (losses) on dispositions, net...........      (1,519)        (187,709)           7,815          (190,621)
Other operating expenses.....................................      (1,724)         (40,807)          (1,724)          (40,807)
                                                               ------------    -------------     ------------     -------------
     Operating income (loss).................................      54,907         (156,835)         155,385           (56,314)
                                                               ------------    -------------     ------------     -------------
Interest expense.............................................     (36,121)         (41,406)         (73,517)          (84,792)
Other income (expense), net..................................       2,398           (1,984)           6,410             6,200
                                                               ------------    -------------     ------------     -------------
     Income (loss) before income taxes and cumulative
          effect of accounting change........................      21,184         (200,225)          88,278          (134,906)
(Provision) benefit for income taxes.........................      (6,805)          57,210          (31,630)           38,740
                                                               ------------    -------------     ------------     -------------
     Income (loss) before cumulative effect of accounting
          change.............................................      14,379         (143,015)          56,648           (96,166)
Cumulative effect of accounting change (net of income tax
     benefit of $11,234).....................................           -                -                -          (135,560)
                                                               ------------    -------------     ------------     -------------
          Net income (loss)..................................    $ 14,379        $(143,015)      $   56,648        $ (231,726)
                                                               ============    =============     ============     =============
Basic earnings (loss) per share:
     Income (loss) before cumulative effect of accounting
          change.............................................    $   0.05        $  ( 0.49)      $     0.19        $    (0.33)
     Cumulative effect of accounting change..................           -                -                -             (0.46)
                                                               ------------    -------------     ------------     -------------
          Net income (loss)..................................    $   0.05        $   (0.49)      $     0.19        $    (0.79)
                                                               ============    =============     ============     =============
Diluted earnings (loss) per share:
     Income (loss) before cumulative effect of accounting
          change.............................................    $   0.05        $   (0.49)      $     0.18        $    (0.33)
     Cumulative effect of accounting change..................           -                -                -             (0.46)
                                                               ------------    -------------     ------------     -------------
          Net income (loss)..................................    $   0.05        $   (0.49)      $     0.18        $    (0.79)
                                                               ============    =============     ============     =============
Basic weighted average number of shares......................     299,351          293,872          298,563           293,263
                                                               ============    =============     ============     =============
Diluted weighted average number of shares....................     299,844          293,872          344,139           293,263
                                                               ============    =============     ============     =============
</TABLE>


                                     Page 8
<PAGE>

                        SERVICE CORPORATION INTERNATIONAL
                           CONSOLIDATED BALANCE SHEET

<TABLE>
<CAPTION>
                                                                                        June 30,           December 31,
(In thousands, except per share amounts)                                                  2003                 2002
                                                                                     ----------------    -----------------
<S>                                                                                      <C>                 <C>
Assets
Current assets:
     Cash and cash equivalents.....................................................    $    157,988         $    200,625
     Receivables, net of allowances................................................         261,829              291,765
     Inventories...................................................................         130,976              135,529
     Other.........................................................................          44,909              126,980
                                                                                     ----------------    -----------------
          Total current assets.....................................................         595,702              754,899
                                                                                     ----------------    -----------------
Prearranged funeral contracts......................................................       4,528,000            4,273,790
Long-term receivables, net of allowances...........................................       1,124,239            1,156,458
Cemetery property, at cost.........................................................       1,551,912            1,567,584
Property, plant and equipment, at cost (net).......................................       1,207,931            1,188,340
Deferred charges and other assets..................................................         608,071              598,536
Goodwill...........................................................................       1,198,195            1,184,178
                                                                                     ----------------    -----------------
                                                                                       $ 10,814,050         $ 10,723,785
                                                                                     ================    =================
Liabilities and Stockholders' Equity
Current liabilities:
     Accounts payable and accrued liabilities......................................    $    335,990         $    361,910
     Current maturities of long-term debt..........................................         130,897              100,330
     Income taxes..................................................................          11,140                2,043
                                                                                     ----------------    -----------------
          Total current liabilities................................................         478,027              464,283
                                                                                     ----------------    -----------------
Long-term debt.....................................................................       1,604,920            1,884,508
Deferred prearranged funeral contract revenues.....................................       4,907,234            4,659,994
Deferred preneed cemetery contract revenues........................................       1,646,513            1,672,661
Deferred income taxes..............................................................         540,478              522,453
Other liabilities..................................................................         220,900              216,115
Stockholders' equity:
     Common stock,  $1 per  share  par  value,  500,000,000  shares  authorized,
          299,987,535 and 297,010,237,  issued and outstanding (net of 2,469,445
          and 2,516,396 treasury shares, at par)...................................         299,988              297,010
     Capital in excess of par value................................................       2,266,955            2,259,936
     Accumulated deficit...........................................................        (989,381)          (1,046,029)
     Accumulated other comprehensive loss..........................................        (161,584)            (207,146)
                                                                                     ----------------    -----------------
          Total stockholders' equity...............................................       1,415,978            1,303,771
                                                                                     ----------------    -----------------
                                                                                       $ 10,814,050         $ 10,723,785
                                                                                     ================    =================
</TABLE>


                                     Page 9
<PAGE>

                        SERVICE CORPORATION INTERNATIONAL
                      CONSOLIDATED STATEMENT OF CASH FLOWS

<TABLE>
<CAPTION>
(In thousands)                                                                                     Six Months Ended
                                                                                                       June 30,
                                                                                            -------------------------------
                                                                                                2003             2002
                                                                                           -------------    --------------
<S>                                                                                            <C>             <C>
Cash flows from operating activities:
Net income (loss).......................................................................       $ 56,648        $ (231,726)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
    Cumulative effect of accounting change, net of tax..................................              -           135,560
    Depreciation and amortization.......................................................         84,357            87,453
    Provision (benefit) for deferred income taxes.......................................         19,675           (50,902)
    (Gains) and impairment losses on dispositions, net..................................         (7,815)          190,621
    Other operating expenses............................................................          1,724            40,807
    Payments on restructuring and non-recurring charges.................................         (6,332)           (5,807)
    (Gains) losses on early extinguishments of debt.....................................         (1,903)            3,423
    Changes in assets and liabilities, net of effects from acquisitions and dispositions:
        Decrease in receivables.........................................................         56,167            13,445
        Decrease in other assets........................................................         43,149            16,137
        Increase (decrease) in payables and other liabilities...........................          2,644           (50,120)
        Other...........................................................................          8,149            (3,545)
    Net effect of prearranged funeral production and maturities.........................        (12,813)           13,029
                                                                                            -------------    --------------
Net cash provided by operating activities...............................................        243,650           158,375
Cash flows from investing activities:
    Capital expenditures................................................................        (47,678)          (39,999)
    Proceeds from divestitures and sales of property and equipment......................         34,232            34,724
    Proceeds from joint ventures and sales of equity investments, net of cash retained..         30,802           266,704
    Net deposits of restricted funds....................................................        (37,336)          (34,188)
    Other...............................................................................              -               848
                                                                                            -------------    --------------
Net cash (used in) provided by investing activities.....................................        (19,980)          228,089
Cash flows from financing activities:
    Net decrease in borrowings under credit agreements..................................               -          (29,061)
    Payments of debt....................................................................        (83,469)          (67,549)
    Early extinguishments of debt.......................................................       (175,515)         (156,308)
    Bank overdrafts and other...........................................................        (11,201)              204
                                                                                            -------------    --------------
Net cash used in financing activities...................................................       (270,185)         (252,714)
Effect of foreign currency..............................................................          3,878              (613)
                                                                                            -------------    --------------
Net (decrease) increase in cash and cash equivalents....................................        (42,637)          133,137
Cash and cash equivalents at beginning of period........................................        200,625            29,292
                                                                                            -------------    --------------
Cash and cash equivalents at end of period..............................................      $ 157,988         $ 162,429
                                                                                            =============    ==============
</TABLE>


                                    Page 10

</TEXT>
</DOCUMENT>
