                                                                    Exhibit 99.2

Company & Investment Profile                                      September 2003
                                     [LOGO]
                                    CARRIAGE
                                    SERVICES

                                    NYSE: CSV

              1900 St. James Place o 4th Floor o Houston, TX 77056
       Phone: 713-332-8400 o Fax: 713-332-8401 o www.carriageservices.com

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

KEY INVESTMENT POINTS

o     Carriage's  successful  "Fresh  Start  Program" is largely  complete,  but
      various  Fresh  Start  initiatives  are  expected  to  continue to improve
      operating results gradually over time.

o     After a period of rapid growth through acquisitions, Carriage Services has
      improved  its  financial  position.  Future  results will be driven by its
      culture of service and leadership excellence toward the goal of building a
      lasting enterprise.

o     CSV's ability to generate free cash flow and reduce debt offers the unique
      investment  characteristics of an LBO structure. Under multiple scenarios,
      presented  herein,  CSV could offer a 12% to 27%  five-year IRR based upon
      current  valuation  using   assumptions   believed  to  be  reasonable  by
      management.

o     The Long-Term Base Case scenario presented herein is based only on organic
      growth  assumptions  and does not  consider  any  incremental  growth  via
      selective acquisitions, market share gains, etc.

SHARE STATISTICS

Price (August 29, 2003)                                                    $3.19
52 Wk. High/Low                                                      $4.65/$2.91
Shares Outstanding (In Mill.)                                               17.5
Equity Market Capitalization (In Mill.)                                    $55.7
Enterprise Value                                                          $287.9
Enterprise Value / EBITDA*                                                   7.2
Price / 2003(E) EPS Multiple                                                 8.4
Book Value Per Share                                                       $5.91
Total Debt / EBITDA*                                                         3.5
Debt / Capitalization                                                      42.1%

LONG-TERM BASE CASE ESTIMATES

5-Yr. Compound Annual  Revenue Growth                                       1.5%
5-Yr. Compound Annual  EBITDA Growth                                        1.0%
5-Yr. Compound Annual  EPS Growth                                           5.0%
5-Yr. Compound Annual  Free Cash Flow Growth                               12.6%
5-Yr. Compound Annual  Pre-Tax Free Cash Flow Growth                       21.5%
5-Yr. Compound Annual Reduction in Debt                                   -20.1%

Balance sheet  data as of June 30, 2003
*Trailing four quarters.

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

MISSION STATEMENT: We are committed to being the most professional, ethical, and
highest quality funeral and cemetery service organization in our industry.

GUIDING PRINCIPLES: Honesty, integrity and quality in all that we do. Hard work,
pride of accomplishment and shared success through employee ownership. Belief in
the power of people  through  individual  initiative  and teamwork.  Outstanding
service and  profitability go  hand-in-hand.  Growth of the Company is driven by
decentralization and partnership.

SUMMARY

Founded in 1991 with an IPO in 1996,  Carriage Services is a leading provider of
Death Care services and products in the United States and is the fourth  largest
publicly traded Death Care company.  Carriage  Services' shares trade on the New
York Stock Exchange under the symbol CSV. As of June 30, 2003, Carriage operated
141 funeral  homes and 30 cemeteries  in 29 states.  Carriage's  business can be
characterized as one of relative stability, reflected by predictable revenue and
cash flow, with incremental growth opportunities via selective acquisitions.

With its success in the  implementation and execution of Carriage's "Fresh Start
Program",  the Company has  stabilized and improved its operations and financial
position.  Management is focused on continually  improving the customer  funeral
experience, upgrading operational leadership, increasing market share, operating
margins, free cash flow, and reducing debt. Carriage believes the improvement in
its operations and capital structure positions the Company well for the future.

While  Carriage  Services has succeeded in improving  operations and the quality
and  depth of its  management,  increasing  free  cash  flow  and  substantially
decreasing debt levels,  the Company  believes the current equity valuation does
not  accurately  reflect  these  achievements  and  offers a  unique  investment
opportunity.  As discussed later in this report,  Carriage  believes its current
capital  structure  coupled with its strong cash flow  profile,  will enable the
Company to continue to meaningfully pay down debt, offering investors the unique
investment characteristics of an LBO (leveraged buy out) structure,  without the
often high  promotional  fees because CSV shares are publicly  traded.  Assuming
stable to modest growth in revenue and EBITDA,  modest growth in free cash flow,
selective asset dispositions, and continued reduction in debt, Carriage believes
such a scenario could offer investors an 12% to 27% five year IRR (internal rate
of return), assuming a narrow range of enterprise value-to-EBITDA multiples over
the same period.

================================================================================
Carriage Services  (C)2003 Carriage Services, Inc. All rights reserved.   Page 1
NYSE: CSV

  Forward-looking statements contained herein are subject to certain risks and
   uncertainties as further described at the end of this Company & Investment
 Profile. Please refer to the Appendix on page 24 that discusses and reconciles
            non-GAAP financial measures to GAAP financial measures.
<PAGE>

Company & Investment Profile                                      September 2003

Noteworthy New or Updated Information in This Company & Investment Profile
Versus the Previous Edition:

o Updated discussion and charts on "Re-access the capital markets"
  and "Reduce Debt".................................................. Pages 4&5

o Updated "Historical Earnings & Operating Data" table............... Page 6

o Updated and revised "Long-Term Base Case Scenario" table........... Page 7

o Updated and revised "Base Case Enterprise Valuation
  "LBO" Structure"................................................... Pages 8-10

o Updated "Carriage Services Financial Outlook & Recent Results"..... Page 11

o Updated U.S. map of Carriage's funeral home and cemetery
  locations.......................................................... Page 14

o Updated Income Statement........................................... Page 21

o Updated Balance Sheet.............................................. Page 22

o Updated Cash Flow Statement........................................ Page 23

================================================================================
Carriage Services  (C)2003 Carriage Services, Inc. All rights reserved.   Page 2
NYSE: CSV

  Forward-looking statements contained herein are subject to certain risks and
   uncertainties as further described at the end of this Company & Investment
 Profile. Please refer to the Appendix on page 24 that discusses and reconciles
            non-GAAP financial measures to GAAP financial measures.
<PAGE>

- --------------------------------------------------------------------------------
*     This report is being published by Carriage Services in continuation of the
      Company's  stated goal to provide more disclosure and  transparency to the
      investment  community regarding  Carriage's  operations,  goals,  industry
      dynamics and conditions. Given structural and regulatory changes impacting
      the brokerage industry, challenging capital market conditions, and reduced
      sell side  analyst  coverage of  Carriage  Services,  it is the  Company's
      intent  to  take  greater  responsibility  and a more  proactive  role  in
      communicating with investors.
- --------------------------------------------------------------------------------

SUCCESSFUL FRESH START PROGRAM LARGELY COMPLETE

In  response  to its  leveraged  balance  sheet  resulting  from its past active
acquisition  program,   deteriorating   operating  results,  and  a  challenging
operating  environment,  Carriage  implemented  its  multi-faceted  Fresh  Start
Program in the fourth  quarter of 2000.  The five Fresh Start goals Carriage set
out to achieve were:

1.    Restore credibility to its operating and consolidation model;

2.    Increase and better align its earnings and free cash flow;

3.    Restore market value credibility to its balance sheet;

4.    Reduce debt; and

5.    Re-access the capital markets.

The program  began with a review of the funeral  home and  cemetery  portfolios,
operating strategies,  organizational  structure,  and financial covenants under
Carriage's  credit  agreements.  The key  elements  required to achieve the five
Fresh Start goals are as follows:

o     Downsize its corporate organization

o     Strengthen its corporate and operating leadership

o     Change its preneed funeral marketing strategy

o     Stratify its funeral home portfolio

o     Improve or dispose of under  performing  businesses

o     Adjust the carrying value of remaining assets

o     Modify debt covenants

Carriage  is  pleased  to report  that it has met four of its five  Fresh  Start
goals.  However,  with its common shares  currently valued at 54% of book value,
Carriage  will  continue  to  focus  on  the  goal  of  restoring  market  value
credibility to its balance sheet.  Carriage is committed to continue operating a
lean  corporate  organization,  strengthening  its corporate and local  business
leadership,  and  improving or selling  underperforming  businesses.  Carriage's
progress in achieving  each of the five Fresh Start goals,  together  with their
continued relevance to future results, is as follows:

1.    Restore credibility to its operating and consolidation model - Carriage is
      committed to becoming the best, not the biggest,  company in its industry.
      This  commitment is driven by a strong  culture of service and  leadership
      excellence  whose  goal is to build a  lasting  enterprise.  As a  result,
      Carriage has raised performance standards and increased accountability for
      all employees throughout the organization. In Carriage's view, the benefit
      of integrating  acquired businesses is to introduce its innovative service
      and sales strategies to provide the highest quality funeral  experience to
      client families and to introduce its operating model to improve  long-term
      performance.  Carriage continues to invest heavily in employee training in
      order to enable its field operations to better serve families,  especially
      training on  personalization  of the funeral ritual to create a unique and
      emotional  experience.  The result of successful  execution of its service
      and sales strategies will be to increase  customer  satisfaction,  revenue
      per  experience,   and  market  share.   Carriage  has  experienced   some
      deterioration in market share in a small minority of its businesses and is
      diligently working to remedy market share losses. Nevertheless, Carriage's
      portfolio of businesses is stable,  and future  performance  is relatively
      visible and predictable.

================================================================================
Carriage Services  (C)2003 Carriage Services, Inc. All rights reserved.   Page 3
NYSE: CSV

  Forward-looking statements contained herein are subject to certain risks and
   uncertainties as further described at the end of this Company & Investment
 Profile. Please refer to the Appendix on page 24 that discusses and reconciles
            non-GAAP financial measures to GAAP financial measures.
<PAGE>

Company & Investment Profile                                      September 2003

2.    Increase and better align earnings and free cash flow - Since implementing
      Fresh Start,  Carriage has implemented more disciplined  controls over its
      capital  expenditures and shifted its preneed funeral  marketing  strategy
      from a national  to a local  focus.  These two  factors  have been the key
      drivers to better align earnings and free cash flow. In  conjunction  with
      the operating model described above, Carriage believes it will continue to
      improve and maintain the alignment of earnings and free cash flow. In 2002
      Carriage  reported net income of $7.7 million  (before  special items) and
      free cash flow of $12.9 million,  greatly  improved versus 2000 net income
      of $1 million  (before special charges and other items) and free cash flow
      of $6.4 million.  The free cash flow for 2001 was  positively  impacted by
      tax refunds totaling $4.5 million and out of period trust fund withdrawals
      totaling  $4.1  million.  In 2003  Carriage  expects  full year EPS before
      special  charges  to be  between  $0.35  and $0.40 and free cash flow from
      operations  to be between $8 million and $11  million.  Free cash flow for
      years beginning in 2004 includes the assumption that the Company will have
      utilized its tax loss  carryforwards  and will begin paying Federal income
      taxes.

[The following information was depicted as line charts in the printed material.]

                               Net Income
                              (In Millions)
                            2000       $ 1.0  Fresh Start
                            2001         9.0
                            2002         7.7
                           2003E         6.8
                           2004E         7.3
                           2005E         8.1
                           2006E         9.1
                           2007E        10.0

         Before special charges and other items.

                              Free Cash Flow
                              (In Millions)
                            2000       $ 6.4  Fresh Start
                            2001        22.7
                            2002        12.9
                           2003E        10.3
                           2004E        15.7
                           2005E        18.3
                           2006E        21.2
                           2007E        23.3

3.    Restore market value credibility to its balance sheet - The large non-cash
      charges  Carriage  incurred  in 2000 to initiate  its Fresh Start  Program
      substantially  reduced the Company's book value per share, which was $5.91
      as of June  30,  2003.  As  Carriage  executes  its  operating  model  and
      successfully improves long-term profitability, Carriage should continue to
      increase book value per share. Based on its Base Case scenario and implied
      share prices presented herein, Carriage believes it will achieve alignment
      of its book value and  market  value per share  during the next  three- to
      five-years.

4.    Re-access  the capital  markets - Subsequent  to June 30,  2003,  Carriage
      refinanced its $75 million bank revolving  credit  facility with a new $40
      million  unsecured  revolving  credit  facility that matures in March 2006
      with Bank of America and Wells Fargo. The new credit facility will provide
      sufficient  borrowings  to meet the Company's  current and future  working
      capital needs as well as to retire the $22.5 million balance of its Series
      A Senior Notes in July 2004, thereby eliminating any near-term refinancing
      concerns.  The remaining $75 million  balance of the Series B and Series C
      senior notes matures July 2006 and July 2008 in the amounts of $53 million
      and $22 million, respectively, and carries an approximate weighted average
      rate  of 8%.  As a  result,  the  Company  expects  that  additional  debt
      financing or equity will be necessary in future  years.  The  availability
      and terms of such capital will depend on prevailing  market conditions and
      the then existing financial conditions of the Company.

      The fact that  Carriage  was able to place its bank  facility in what is a
      very challenging  bank market is significant.  It is also significant that
      Carriage  was able to obtain an unsecured  facility.  Carriage is the only
      public death care company in the industry with an unsecured revolving bank
      credit facility. This is a testament to the Company's success in executing
      on its Fresh Start program and its consistent track record of consistently
      paying  down  debt.  More

================================================================================
Carriage Services  (C)2003 Carriage Services, Inc. All rights reserved.   Page 4
NYSE: CSV

  Forward-looking statements contained herein are subject to certain risks and
   uncertainties as further described at the end of this Company & Investment
 Profile. Please refer to the Appendix on page 24 that discusses and reconciles
            non-GAAP financial measures to GAAP financial measures.
<PAGE>

Company & Investment Profile                                      September 2003

      importantly, by having an unsecured credit facility, it allows Carriage to
      retain  full  control  of its  capital  structure,  which  will  allow its
      favorable  terms  to  remain  intact  and  provides  additional  financial
      flexibility to optimize the Company's balance sheet in future years.

      Interest on the facility is payable at the initial  floating rate of LIBOR
      plus  300  basis  points  and  subsequently  may  decline  with  estimated
      reductions in Carriage's debt to EBITDA ratio. The new facility reduces by
      $7.5 million in March 2005 and by an additional  $7.5 million in September
      2005.  In  addition,  the  commitment  reduces by up to $5 million for the
      bank's pro-rata share of proceeds from disposition of assets.

5.    Reduce debt - In complying with the conditions of the new credit facility,
      Carriage  began on September 1, 2003  deferring  interest  payments on its
      subordinated debentures held by the Company's affiliated trust. Thus, cash
      distributions  on TIDES  convertible  trust  preferred  securities will be
      deferred for at least the term of the new credit facility. These deferrals
      should ensure  sufficient  borrowing  capacity and  financial  flexibility
      under  the  credit  facility  through  March  2006,   notwithstanding  the
      commitment reductions in 2005.

      As a result of deferring  the TIDES  distribution  payments,  Carriage has
      accelerated its senior debt repayment forecasts through 2007. Carriage now
      forecasts  that it will pay down  senior  debt at a 20.1%  CARR  (compound
      annual  reduction  rate)  through 2007 versus its previous  forecast of an
      11.9% CARR.

      Due to the conditions of the new credit facility,  beginning  September 1,
      2003, Carriage will defer the TIDES distribution  payments for the term of
      the new credit facility,  and may defer TIDES distribution payments for up
      to twenty quarters. During the period in which TIDES distribution payments
      are deferred,  distributions  will continue to accumulate at the 7% annual
      rate.  Also,  the  deferred   distributions  will  themselves   accumulate
      distributions  at the annual rate of 7%.  Assuming  Carriage were to defer
      TIDES  distribution  payments  for the full  twenty  quarter  period,  the
      Company estimates that it would have accrued  approximately $40 million of
      deferred TIDES distribution payments that would be payable on September 1,
      2008. During the period in which the distributions are deferred,  Carriage
      is prohibited  from paying  dividends on its common stock or  repurchasing
      its common stock, with limited exceptions.

[The following information was depicted as line charts in the printed material.]

                   Accelerated Senior Debt Reduction Forecast
                                 (In Millions)

                                  Current
                                    Debt            Old Debt
                                   Balance           Balance
                                  Forecast          Forecast
                                  --------          --------
                    2003E           131.4             127.5
                    2004E           111.9             118.4
                    2005E            93.4             107.3
                    2006E            72.0                94
                    2007E            48.5              79.1
                      ------------------------------------
                      20.1% CARR vs. 11.9% CARR Previously
                      ------------------------------------

                     CARR = Compound Annual Reduction Rate


                       Substantial Senior Debt Reduction
                  (Estimated Senior Debt Balance in Millions)

                           11/8/00             205
                              2001             163
                              2002             149
                             2003E             131
                             2004E             112
                             2005E              93
                             2006E              72
                             2007E              49

* Includes contingent acquisition obligations.

================================================================================
Carriage Services  (C)2003 Carriage Services, Inc. All rights reserved.   Page 5
NYSE: CSV

  Forward-looking statements contained herein are subject to certain risks and
   uncertainties as further described at the end of this Company & Investment
 Profile. Please refer to the Appendix on page 24 that discusses and reconciles
            non-GAAP financial measures to GAAP financial measures.
<PAGE>

Company & Investment Profile                                      September 2003

<TABLE>
<CAPTION>
Carriage Services, Inc.
Historical Earnings & Operating Data
(In Thousands $, Except Per Share & Margin Analysis Data)

                                                      2001      Mar-02    Jun-02    Sep-02     Dec-02     2002      Mar-03   Jun-03
                                                    --------- --------------------------------------------------  ------------------
<S>                                                  <C>        <C>       <C>       <C>        <C>      <C>         <C>      <C>
Revenues:
Funeral                                              124,284    32,707    28,832    27,521     30,239   119,299     30,354   28,702
Cemetery                                              38,209     8,215     9,018     8,601      9,043    34,877      8,352    9,165
                                                    --------- --------------------------------------------------  ------------------
     Total Revenues                                  162,493    40,922    37,850    36,122     39,282   154,176     38,706   37,867

Gross Profit:
Funeral                                               31,470    11,683     7,288     7,170      8,234    34,374      8,632    7,112
Cemetery                                               8,825     1,701     2,400     2,070      2,542     8,714      2,468    2,556
                                                    --------- --------------------------------------------------  ------------------
     Total Gross Profit                               40,295    13,384     9,688     9,240     10,776    43,088     11,100    9,668

Selling, General & Admin. Expense                      8,698     2,506     2,328     3,615      2,392    10,841      2,612    2,476
Special & Other Charges                                    0         0         0         0        335       335        588     (896)
                                                    --------- --------------------------------------------------  ------------------
Operating Income                                      31,597    10,878     7,360     5,625      8,049    31,912      7,900    8,088

Interest Expense, Net                                (13,579)   (3,124)   (3,247)   (3,105)    (3,577)  (13,053)    (2,936)  (2,741)
Financing Costs of Preferred Securities               (6,765)   (1,674)   (1,674)   (1,675)    (1,674)   (6,697)    (1,674)  (1,674)
                                                    --------- --------------------------------------------------  ------------------
Income Before Income Taxes                            11,253     6,080     2,439       845      2,798    12,162      3,290    3,673

Provision (Benefit) for Income Taxes                   2,251   (10,480)      962       325      1,077    (8,116)     1,234    1,377
                                                    --------- --------------------------------------------------  ------------------
Net Income                                             9,002    16,560     1,477       520      1,721    20,278      2,056    2,296

Special Charges & Other Items                              -   (12,800)        0         0        206   (12,594)       368     (560)
                                                    --------- --------------------------------------------------  ------------------
Net Income Before Special Charges
  & Other Items                                        9,002     3,760     1,477       520      1,927     7,684      2,424    1,736
                                                    ========= ==================================================  ==================

Basic EPS                                              $0.54     $0.98     $0.09     $0.03      $0.10     $1.20      $0.12    $0.13
                                                    --------- --------------------------------------------------  ------------------
Diluted EPS                                            $0.51     $0.95     $0.08     $0.03      $0.10     $1.16      $0.12    $0.13
Diluted EPS Excluding Special Charges
  & Other Items                                        $0.51     $0.22     $0.08     $0.03      $0.11     $0.44      $0.14    $0.10
                                                    --------- --------------------------------------------------  ------------------
Weighted Average Shares Outstanding:
     Basic                                            16,696    16,894    16,942    16,978     17,073    16,973     17,320   17,411
     Diluted                                          17,492    17,429    17,458    17,367     17,450    17,433     17,714   17,788

Margin Analysis                                        2001     Mar-02    Jun-02    Sep-02     Dec-02     2002      Mar-03   Jun-03
                                                    --------- --------------------------------------------------  ------------------
Revenues:
Funeral                                                76.5%     79.9%     76.2%     76.2%      77.0%     77.4%      78.4%    75.8%
Cemetery                                               23.5%     20.1%     23.8%     23.8%      23.0%     22.6%      21.6%    24.2%
                                                    --------- --------------------------------------------------  ------------------
     Total Revenues                                   100.0%    100.0%    100.0%    100.0%     100.0%    100.0%     100.0%   100.0%

Gross Profit:
Funeral                                                25.3%     35.7%     25.3%     26.1%      27.2%     28.8%      28.4%    24.8%
Cemetery                                               23.1%     20.7%     26.6%     24.1%      28.1%     25.0%      29.5%    27.9%
                                                    --------- --------------------------------------------------  ------------------
     Total Gross Profit                                24.8%     32.7%     25.6%     25.6%      27.4%     27.9%      28.7%    25.5%

Selling, General & Admin. Expense                       5.4%      6.1%      6.2%     10.0%       6.1%      7.0%       6.7%     6.5%
Special & Other Charges                                 0.0%      0.0%      0.0%      0.0%       0.9%      0.2%       1.5%    -2.4%
                                                    --------- --------------------------------------------------  ------------------
Operating Income                                       19.4%     26.6%     19.4%     15.6%      20.5%     20.7%      20.4%    21.4%

Interest Expense, Net                                  -8.4%     -7.6%     -8.6%     -8.6%      -9.1%     -8.5%      -7.6%    -7.2%
Financing Costs of Preferred Securities                -4.2%     -4.1%     -4.4%     -4.6%      -4.3%     -4.3%      -4.3%    -4.4%
                                                    --------- --------------------------------------------------  ------------------
Income Before Income Taxes                              6.9%     14.9%      6.4%      2.3%       7.1%      7.9%       8.5%     9.7%

Provision (Benefit) for Income Taxes                    1.4%    -25.6%      2.5%      0.9%       2.7%     -5.3%       3.2%     3.6%
                                                    --------- --------------------------------------------------  ------------------
Net Income                                              5.5%     40.5%      3.9%      1.4%       4.4%     13.2%       5.3%     6.1%

Special Charges & Other Items                           0.0%    -31.3%      0.0%      0.0%       0.5%     -8.2%       1.0%    -1.5%
                                                    --------- --------------------------------------------------  ------------------
Net Income Before Special Charges &
  Other Items                                           5.5%      9.2%      3.9%      1.4%       4.9%      5.0%       6.3%     4.6%

- ------------------------------------------------------------------------------------------------------------------------------------
Year-Over-Year Percentage Change
- ------------------------------------------------------------------------------------------------------------------------------------
Funeral Revenues                                       -2.3%     -6.2%     -7.4%     -2.6%       0.8%     -4.0%      -7.2%    -0.5%
- ------------------------------------------------------------------------------------------------------------------------------------
Cemetery Revenues                                       8.1%     -8.5%     -8.7%     -8.6%      -9.1%     -8.7%       1.7%     1.6%
- ------------------------------------------------------------------------------------------------------------------------------------
Total Revenues                                         -0.1%     -6.7%     -7.7%     -4.1%      -1.6%     -5.1%      -5.4%     0.0%
- ------------------------------------------------------------------------------------------------------------------------------------
Selling, General & Admin. Expense                     -15.2%     22.2%      6.8%     46.2%      19.8%     24.6%       4.2%     6.4%
- ------------------------------------------------------------------------------------------------------------------------------------
Operating Income                                     -139.3%      7.8%     -2.9%     -2.5%      -1.3%      1.0%     -27.4%     9.9%
- ------------------------------------------------------------------------------------------------------------------------------------
Income Before Income Taxes                           -111.1%     28.1%     -8.2%     24.5%     -11.8%      8.1%     -45.9%    50.6%
- ------------------------------------------------------------------------------------------------------------------------------------
Net Income Before Special Charges & Other Items      -106.8%     -0.5%    -30.1%     -3.7%     -24.0%    -14.6%     -35.5%    17.5%
- ------------------------------------------------------------------------------------------------------------------------------------
Diluted EPS Excluding Special Charges & Other Items  -108.9%     -0.8%    -29.3%     -1.0%     -23.1%    -14.4%     -36.6%    25.0%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

================================================================================
Carriage Services  (C)2003 Carriage Services, Inc. All rights reserved.   Page 6
NYSE: CSV

  Forward-looking statements contained herein are subject to certain risks and
   uncertainties as further described at the end of this Company & Investment
 Profile. Please refer to the Appendix on page 24 that discusses and reconciles
            non-GAAP financial measures to GAAP financial measures.
<PAGE>

Company & Investment Profile                                      September 2003

CSV: A UNIQUE INVESTMENT OPPORTUNITY

Carriage   Services  has   stabilized,   improved   operational   and  financial
performance,  and reduced debt. With the implementation and demonstrated success
of its Fresh  Start  Program,  Carriage  Services  has  turned the corner and is
repositioning for future growth.  Carriage's improved operations has enabled the
Company to generate  meaningful  amounts of free cash flow, which,  coupled with
dispositions,  and tax savings,  has allowed it to  substantially  pay down debt
without using external  financing  sources.  Based on Carriage's  current equity
valuation  and,  relative  to its peers,  Carriage  does not  believe the equity
market has truly recognized its accomplishments,  nor the opportunities Carriage
has for the future.

Carriage  believes its current  capital  structure,  coupled with the ability to
generate free cash flow supplemented with cash from dispositions,  enables it to
meaningfully   pay  down  debt,   offering   investors  the  unique   investment
characteristics  of a LBO  structure,  without the often high  promotional  fees
because CSV shares are publicly traded.  We examine several possible  Enterprise
Value-to-EBITDA multiple scenarios that yield an implied five-year IRR (internal
rate of return)  range of 12% to 27%. We provide  these three  scenarios to give
investors the opportunity to consider a range of possible outcomes.  Scenario #1
assumes that  Carriage's  Enterprise  Value-to-EBITDA  Multiple  declines by one
multiple  point over the next five years.  Scenario #2 assumes  that  Carriage's
Enterprise  Value-to-EBITDA  multiple  remains flat over the next five years and
Scenario  #3  assumes  that  Carriage's  Enterprise   Value-to-EBITDA   multiple
gradually increases by one multiple point over the next five years.

Carriage  stresses  that this  scenario  analysis is only one  possible  outcome
within  a range  of  possible  outcomes.  While  Carriage  believes  it is using
reasonable  assumptions to model operating results,  cash flow, and the possible
effect on  Carriage's  per share price,  there can be no  assurance  that actual
results and  Carriage's  share price would be consistent  with these  scenarios.
Subsequent  management  decisions and other factors  (including  those discussed
under  "Cautionary  Statements") may materially alter those  assumptions and the
effect on actual  results.  The  Long-Term  Base Case  Scenario is adjusted  for
divestitures  and is based on no  growth  in same  store  funeral  call  volumes
between 2003 and 2007,  and modest  increases in average  revenue per funeral of
1.5% per year,  which assumes an increasing  proportion of cremations.  Further,
this scenario does not reflect Carriage's  financial  flexibility,  which allows
for  alternative  uses for free cash flow,  such as  acquisitions  or  selective
expansion of its existing portfolio of businesses.

<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Long-Term Base Case Scenario
(Revised as of August 5, 2003)
(In Millions $, Except Per Share Data)
                                                    Actual                                                                     5-Yr.
                                                   12/31/02    12/31/03       12/31/04    12/31/05    12/31/06    12/31/07     CAGR
                                                   --------    --------       --------    --------    --------    --------     ----
<S>                                                 <C>          <C>            <C>         <C>         <C>         <C>         <C>
Revenue                                             154.2        151.3          154.9       158.7       162.5       166.5       1.5%

Income Before Taxes                                  12.2         10.2           11.8        13.1        14.6        16.2       5.8%
Interest                                             19.8         18.2           16.6        16.3        15.9        15.3      -5.0%
Depreciation & Amortization                          10.5         11.6           12.0        12.4        12.7        13.1       4.5%
                                                   ------       ------         ------      ------      ------      ------      ----
EBITDA                                               42.5         40.0           40.4        41.8        43.2        44.6       1.0%

EPS, Diluted                                         0.43         0.38(1)        0.41        0.45        0.50        0.55       5.0%

Diluted Shares Outstanding                           17.5         17.9           17.9        18.1        18.2        18.2       0.8%

Cash Flow from Operations Before TIDES Deferral      18.9         12.8           15.4        17.0        18.9        20.3       1.4%

Cash Flow from Deferral of TIDES                      0.0          3.5            6.8         7.3         7.8         8.5        NM

Cashflow from Operations & TIDES Deferral            18.9         16.3           22.2        24.3        26.7        28.8       8.8%

Less Capital Expenditures                             6.0          6.0            6.5         6.0         5.5         5.5      -1.7%
                                                   ------       ------         ------      ------      ------      ------      ----
Free Cash Flow                                       12.9         10.3           15.7        18.3        21.2        23.3      12.6%

Plus/Minus Net Cash Taxes                            (1.7)         0.2            4.0         4.7         5.5         6.4        NM
                                                   ------       ------         ------      ------      ------      ------      ----
Pre-Tax Free Cash Flow                               11.2         10.5           19.7        23.0        26.7        29.7      21.5%

Divestitures & Other                                 (4.5)         7.5            3.8         0.2         0.2         0.2        NM

Cumulative Deferral of TIDES                          0.0          3.5           10.8        18.6        27.0        36.0        NM

Total Debt                                          149.1        131.4          111.9        93.4        72.0        48.5     -20.1%

Total Debt / EBITDA                                   3.5          3.3            2.8         2.2         1.7         1.1     -20.9%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

(1)   Excludes the effect of $0.01 benefit  recorded in 2003 as special  charges
      and other items.
                                                             NM = Not meaningful

================================================================================
Carriage Services  (C)2003 Carriage Services, Inc. All rights reserved.   Page 7
NYSE: CSV

  Forward-looking statements contained herein are subject to certain risks and
   uncertainties as further described at the end of this Company & Investment
 Profile. Please refer to the Appendix on page 24 that discusses and reconciles
            non-GAAP financial measures to GAAP financial measures.
<PAGE>

Company & Investment Profile                                      September 2003

In this scenario,  we assume that revenues grow at a 1.5% compound annual growth
rate (CAGR) over the next five years and assume that EBITDA grows at a 1.0% CAGR
over the same  period.  The Company  estimates it could grow free cash flow at a
12.6% CAGR,  which could allow it to reduce debt from $149.1  million at the end
of 2002 to $48.5 million at the end of 2007, an 20.1% five-year  compound annual
reduction in debt. The Company  estimates that over one-half of the 5.0% CAGR in
EPS would  result  from  interest  savings  related to debt  reduction.  The key
elements  driving the substantial  debt reduction over the five-year  period are
gradual field level  operating  margin  improvement,  selective  dispositions of
underperforming  assets and cash tax savings in 2003. Due to the  utilization of
the Company's net tax loss carry forward,  Carriage does not expect to pay taxes
until 2004.  Notwithstanding  the  assumptions  regarding  cash  taxes,  assumed
operating  leverage and debt  reduction  could  generate  attractive IRR results
throughout the five-year period.

BASE CASE ENTERPRISE VALUATION "LBO" STRUCTURE

We use the  financial  assumptions  in the  Long-Term  Base Case Scenario as the
foundation for the Base Case Enterprise  Valuation analysis scenario.  We assume
that CSV shares  trade for $3.19 per share with a total  equity  market value of
roughly $56.7 million,  which,  when combined with its debt and the par value of
the preferred stock plus accrued  distributions,  yields an enterprise  value of
approximately $287.9 million.

<TABLE>
<CAPTION>
=================================================================================================================================
Long-Term Base Case Scenario
(In Millions $, Except Multiples & Per Share Data)

SCENARIO #1: 1 Point Multiple Decrease

                                            6/30/2003      12/31/03      12/31/04       12/31/05       12/31/06         12/31/07
=================================================================================================================================
<S>                                             <C>           <C>           <C>             <C>            <C>              <C>
Implied Enterprise Value (EV):
     Total Debt                                 140.9         131.4         111.9           93.4           72.0             48.5
     Preferred Securities                        90.3          93.8         101.1          108.9          117.3            126.3
- ---------------------------------------------------------------------------------------------------------------------------------
     Implied Mkt. Value Equity                   56.7          53.3          60.2           72.0           85.6            100.1
                                      -------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
          Total                                 287.9         278.5         273.2          274.3          274.9            274.9
                                      ===========================================================================================
EBITDA*                                          40.2          40.0          40.4           41.8           43.2             44.6

Diluted Shares Out.                              17.8          17.9          17.9           18.1           18.2             18.2
- ---------------------------------------------------------------------------------------------------------------------------------

=================================================================================================================================
SCENARIO #1: 1 Point Multiple Decrease
=================================================================================================================================
EV/EBITDA Multiple                               7.2X          7.0X          6.8X           6.6X           6.4X             6.2X
- ---------------------------------------------------------------------------------------------------------------------------------
Implied Stock Price                             $3.19         $2.98         $3.36          $3.99          $4.72            $5.50
- ---------------------------------------------------------------------------------------------------------------------------------
Annual % Increase                                               -7%           13%            19%            18%              17%
                                                                \                                                             /
                                                                 -------------------------------------------------------------
                                                                                             \/
=================================================================================================================================
5 - Year Compound IRR                                                                        12%
=================================================================================================================================
</TABLE>

* Trailing four quarter EBITDA as of 6/30/03.

Scenario #1: One Point Multiple Decrease - We assume that Carriage's  Enterprise
Value-to-EBITDA  multiple  declines  by one  multiple  point  over the next five
years.  Over that same period of time,  Carriage's free cash flow generation and
business dispositions in 2003 allows it to substantially reduce its debt levels,
which,  in turn,  benefits CSV equity  investors.  Based on the  assumption of a
declining Enterprise  Value-to-EBITDA  multiple but a rising implied share price
based on a per share debt  reduction,  the per share price  increases from $3.19
currently to an implied share price of $5.50 at the end of 2007, a five-year IRR
in CSV share price of approximately  12%. Over this same time frame,  Carriage's
absolute  Enterprise  Value-to- EBITDA multiple would decline by a full multiple
point from 7.2X currently to 6.2X at the end of 2007.

================================================================================
Carriage Services  (C)2003 Carriage Services, Inc. All rights reserved.   Page 8
NYSE: CSV

  Forward-looking statements contained herein are subject to certain risks and
   uncertainties as further described at the end of this Company & Investment
 Profile. Please refer to the Appendix on page 24 that discusses and reconciles
            non-GAAP financial measures to GAAP financial measures.
<PAGE>

Company & Investment Profile                                      September 2003

<TABLE>
<CAPTION>
=================================================================================================================================
Long-Term Base Case Scenario
(In Millions $, Except Multiples & Per Share Data)

SCENARIO #2: Flat Multiple

                                            6/30/2003      12/31/03      12/31/04       12/31/05        2/31/06         12/31/07
=================================================================================================================================
<S>                                             <C>           <C>           <C>             <C>            <C>              <C>
Implied Enterprise Value (EV):
     Total Debt                                 140.9         131.4         111.9           93.4           72.0             48.5
     Preferred Securities                        90.3          93.8         101.1          108.9          117.3            126.3
- ---------------------------------------------------------------------------------------------------------------------------------
     Implied Mkt. Value Equity                   56.7          61.3          76.4           97.1          120.1            144.7
                                      -------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
          Total                                 287.9         286.5         289.4          299.4          309.4            319.5
                                      ===========================================================================================
EBITDA*                                          40.2          40.0          40.4           41.8           43.2             44.6

Diluted Shares Out.                              17.8          17.9          17.9           18.1           18.2             18.2
- ---------------------------------------------------------------------------------------------------------------------------------

=================================================================================================================================
SCENARIO #2: Flat Multiple
=================================================================================================================================
EV/EBITDA Multiple                               7.2X          7.2X          7.2X           7.2X           7.2X             7.2X
- ---------------------------------------------------------------------------------------------------------------------------------
Implied Stock Price                             $3.19         $3.43         $4.27          $5.38          $6.62            $7.95
- ---------------------------------------------------------------------------------------------------------------------------------
Annual % Increase                                                7%           25%            26%            23%              20%
                                                                \                                                             /
                                                                 -------------------------------------------------------------
                                                                                             \/
=================================================================================================================================
5 - Year Compound IRR                                                                        20%
=================================================================================================================================
</TABLE>

* Trailing four quarter EBITDA as of 6/30/03.

Scenario   #2:   Flat   Multiple  -  We  assume   that   Carriage's   Enterprise
Value-to-EBITDA  multiple remains flat at 7.2X over the next five years.  Though
we assume the multiple  remains flat,  Carriage's  estimated 1.0% CAGR in EBITDA
and an  estimated  20.1%  CAGR  in debt  reduction  due to  approximately  12.6%
anticipated  compounded annual growth in free cash flow over the next five years
implies  an  increase  in share  price  from  $3.19  currently  to $7.95,  a 20%
five-year IRR.

================================================================================
Carriage Services  (C)2003 Carriage Services, Inc. All rights reserved.   Page 9
NYSE: CSV

  Forward-looking statements contained herein are subject to certain risks and
   uncertainties as further described at the end of this Company & Investment
 Profile. Please refer to the Appendix on page 24 that discusses and reconciles
            non-GAAP financial measures to GAAP financial measures.
<PAGE>

Company & Investment Profile                                      September 2003

<TABLE>
<CAPTION>
=================================================================================================================================
Long-Term Base Case Scenario
(In Millions $, Except Multiples & Per Share Data)

SCENARIO #3: 1 Point Multiple Increase

                                            6/30/2003      12/31/03      12/31/04       12/31/05         12/31/06       12/31/07
=================================================================================================================================
<S>                                             <C>           <C>           <C>             <C>              <C>            <C>
Implied Enterprise Value (EV):
     Total Debt                                 140.9         131.4         111.9           93.4             72.0           48.5
     Preferred Securities                        90.3          93.8         101.1          108.9            117.3          126.3
- ---------------------------------------------------------------------------------------------------------------------------------
     Implied Mkt. Value Equity                   56.7          69.3          92.5          122.2            154.7          189.3
                                      -------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
          Total                                 287.9         294.5         305.5          324.5            344.0          364.1
                                      ===========================================================================================
EBITDA*                                          40.2          40.0          40.4           41.8             43.2           44.6

Diluted Shares Out.                              17.8          17.9          17.9           18.1             18.2           18.2

=================================================================================================================================
SCENARIO #3: 1 Point Multiple Increase
=================================================================================================================================
EV/EBITDA Multiple                               7.2X          7.4X          7.6X           7.8X             8.0X           8.2X
- ---------------------------------------------------------------------------------------------------------------------------------
Implied Stock Price                             $3.19         $3.87         $5.17          $6.77            $8.52         $10.40
- ---------------------------------------------------------------------------------------------------------------------------------
Annual % Increase                                               21%           34%            31%              26%            22%
                                                                \                                                             /
                                                                 -------------------------------------------------------------
                                                                                             \/
=================================================================================================================================
5 - Year Compound IRR                                                                        27%
=================================================================================================================================
</TABLE>
* Trailing four quarter EBITDA as of 6/30/03.

Scenario #3: One Point Multiple Increase - We assume that Carriage's  Enterprise
Value-to-EBITDA  multiple  gradually  increases  over the next five years by one
multiple  point to 8.2X.  This scenario  implies an increase in share price from
$3.19 currently to $10.40, a 27% five-year IRR.

================================================================================
Carriage Services  (C)2003 Carriage Services, Inc. All rights reserved.  Page 10
NYSE: CSV

  Forward-looking statements contained herein are subject to certain risks and
   uncertainties as further described at the end of this Company & Investment
 Profile. Please refer to the Appendix on page 24 that discusses and reconciles
            non-GAAP financial measures to GAAP financial measures.
<PAGE>

Company & Investment Profile                                      September 2003

CARRIAGE SERVICES FINANCIAL OUTLOOK & RECENT RESULTS

Carriage  Services  reported 2Q03 financial results that were within or slightly
better  than  the  Company's  estimates   previously  released  to  the  public.
Generally,  the Company's  2Q03 results were  comparable to the same period last
year and its funeral  segment  results were  significantly  improved versus 1Q03
results.

Results for 2Q03 versus guidance were as follows:

o     Total revenue of $37.9 million versus guidance of $36 to $39 million.

o     EBITDA of $9.9 million  versus  guidance of $8 to $10  million.  EBITDA is
      comprised  of  pre-tax   earnings  of  $2.8  million  plus   interest  and
      depreciation and  amortization  expenses of $4.4 million and $2.7 million,
      respectively.

o     Diluted  EPS before  special  items of $0.10  versus  guidance of $0.06 to
      $0.08. EPS after special items was $0.13.

In 2Q03,  Carriage generated $1.9 million of free cash flow,  consisting of cash
flow provided by operations of $3.9 million,  less capital  expenditures of $2.0
million.  Despite the continuation of soft death rates, market share and general
economic  challenges,  Carriage's  free cash flow  generation,  cash on hand and
proceeds from sales of businesses  and other  properties  allowed the Company to
reduce debt in the second  quarter by $7.3  million to $140.9  million.  Special
items totaling  $896,000 before taxes were recorded in 2Q03,  equal to a benefit
of $0.03 per diluted  share,  and  consisted  primarily  of gains on the sale of
businesses.

Carriage's 2003 Financial Outlook takes into account the lower number of funeral
calls  performed  during  the  first  half of  2003  relative  to the  Company's
expectations.

- --------------------------------------------------------------------------------
Carriage Services Financial Outlook
* $ Estimates in Millions Except Per Share Data

                                                                     Full Year
                                               3Q03                    2003
                                           ------------            -------------
Revenue                                        $34 - $37             $149 - $154

EBITDA                                           $7 - $8               $38 - $40

EPS (Before special charges)               $0.02 - $0.03           $0.35 - $0.40

FCF from Operations                        Not Estimated                $8 - $11

Debt                                       Not Estimated             $130 - $132
- --------------------------------------------------------------------------------

Funeral Operations - Key Financial & Operating Data Comparison vs. 2Q02

o     Funeral revenues were $28.7 million versus $28.8 million

o     Same store  funeral  revenue  increased  0.4% to $28.0  million from $27.9
      million

o     Same store funeral calls decreased 0.5% to 4,846 from 4,868

o     Same store average revenue per call increased 0.9% to $5,771 from $5,722

o     Funeral field EBITDA margin increased to 33.6% from 32.9% of revenue

o     The average price of Carriage's cremation services increased 4.5%

o     Carriage's cremation rate was 29.0% in 2Q03, down slightly versus 29.2% in
      2Q02

Three months ago Carriage  identified  approximately 12% of its funeral business
that was experiencing  market share declines in 1Q03 compared to the same period
in 2002. These businesses  represented  approximately 15% of the Company's total
funeral revenue and field EBITDA during 1Q03 and  approximately 55% of the total
same-store sales decline in the Company's funeral portfolio in 1Q03.

During 2Q03  Carriage made several  management  changes and  implemented  market
share initiatives in this underperforming  group and approximately half of these
businesses have responded  positively.  This group performed much better in 2Q03
relative  to  the  rest  of  the  Company's  portfolio,  as  indicated  by  flat
year-over-year  same store sales volumes,  lower revenues of only 2.5% and lower
EBITDA of only 3.3%.  Most  significantly,  this group's 1Q03 EBITDA  margin was
down 1160 basis  points  versus  1Q02 and was down only 30 basis  points in 2Q03
versus 2Q02.

================================================================================
Carriage Services  (C)2003 Carriage Services, Inc. All rights reserved.  Page 11
NYSE: CSV

  Forward-looking statements contained herein are subject to certain risks and
   uncertainties as further described at the end of this Company & Investment
 Profile. Please refer to the Appendix on page 24 that discusses and reconciles
            non-GAAP financial measures to GAAP financial measures.
<PAGE>

Company & Investment Profile                                      September 2003

Carriage  defines  funeral field EBITDA as funeral  gross profit,  which totaled
$7.1 million in 2Q03, adjusted for depreciation and amortization expense of $1.8
million,  overhead charges of $1.1 million,  and excludes  commission  income of
$0.5 million earned on the sale of preneed insurance policies. The funeral field
EBITDA  margin is  derived  by  dividing  the  funeral  field  EBITDA by funeral
revenues,  excluding  commission  income.  The measures the Company's ability to
control cash costs at the field level as revenues fluctuate.

Cemetery Operations - Key Financial & Operating Data Comparison vs. 2Q02

o     Cemetery revenues increased 1.6%, to $9.2 million from $9.0 million

o     Same store cemetery revenue increased 1.6%

o     Cemetery field EBITDA margin increased to 40.8% from 37.9%

For the second consecutive  quarter,  Carriage's  cemetery gross margin of 27.9%
exceeded funeral gross margins. Total cemetery revenues were positively impacted
by a $0.2  million  increase  in preneed  sales of  interment  rights and a $0.2
million  increase  in  at-need  revenues  compared  to the  prior  year  period.
Financial  revenues  (trust  earnings  and  finance  charges on the  installment
contracts) and deliveries of preneed merchandise and services each declined $0.1
million versus the second quarter of last year. Cemetery costs and expenses were
comparable to the same period last year.

COMPANY BACKGROUND

Founded in 1991 with an IPO in 1996,  Carriage Services is a leading provider of
Death Care services and products in the United States and is the fourth  largest
publicly traded Death Care Company.  As of June 30, 2003,  Carriage operated 141
funeral homes and 30 cemeteries in 29 states. Carriage provides a complete range
of  funeral  and  cremation   services   including   planning  and  coordinating
personalized  funerals,   conducting  memorial  services,   performing  cemetery
interment  services,  and  managing and  maintaining  cemetery  properties.  The
Company also sells products and  merchandise  including  caskets,  urns,  burial
vaults,  garments,   cemetery  interment  rights,  and  monuments  and  markers.
Carriage's business can be characterized as one of relative stability, recurring
revenue and cash flow,  with  incremental  growth  opportunities  via  selective
acquisitions.

Since the  formation  of Carriage  Services in 1991,  the Company has focused on
distinguishing  itself from its peers by operating a people development  company
that emphasizes:

1.    providing the highest level of personalized service to client families;

2.    comprehensive employee training;

3.    accountability to customers and each other; and

4.    incentive  compensation  that shares the  benefits of  profitability  with
      responsible employees.

The Death Care industry experienced a period of rapid growth through acquisition
from 1996 through 1999,  which took the industry's  eye off the operating  ball,
Carriage included. At the crescendo of 1999, balance sheets were over leveraged,
acquisition  multiples  revealed  they were too high,  and  industry  conditions
became  challenging.  In response,  Carriage and its public peers  significantly
curtailed  their  acquisition  activity,  focused on  operations to improve cash
flow,  and began  culling  through  their  property  portfolios to find non-core
and/or  under  performing  assets that could be sold to generate  cash to reduce
debt.

Thus,  2000 was a  transitional  year for Carriage  Services as it developed and
began implementing its two-year  multi-element Fresh Start Program in the fourth
quarter of 2000 to address  its poor  operating  performance  and a  challenging
operating  environment.   Due  largely  to  the  successful  implementation  and
execution  of  Fresh  Start,  Carriage  Services  has  recovered  from a  highly
leveraged  balance sheet and sub-par operating  performance,  resulting from the
rapid consolidation  period the Death Care industry  experienced in 1996 through
1999.

Beginning  with the  implementation  of the Fresh Start program and through June
30, 2003, the Company has sold 34 funeral homes, 12 cemeteries and 11 parcels of
excess real estate for approximately $19.5 million of net proceeds.  While

================================================================================
Carriage Services  (C)2003 Carriage Services, Inc. All rights reserved.  Page 12
NYSE: CSV

  Forward-looking statements contained herein are subject to certain risks and
   uncertainties as further described at the end of this Company & Investment
 Profile. Please refer to the Appendix on page 24 that discusses and reconciles
            non-GAAP financial measures to GAAP financial measures.
<PAGE>

Company & Investment Profile                                      September 2003

these  transactions  taken together  represent a decline of approximately 20% of
the  number  of  business  locations,  total  revenues  have  only  declined  by
approximately  5% and total gross profit has  increased by 34%,  when  comparing
2000 operating results to 2002 operating results.

In addition to making  operational  and financial  improvements as part of Fresh
Start,  Carriage reduced its corporate overhead and increased the quality of its
leadership. Carriage has turned to new leadership at substantially all levels of
the Company to focus on operations and to reposition Carriage for future growth.
Carriage will continue to improve its  organizational  leadership and quality of
personnel going forward.

[The following information was depicted as a line chart in the printed material]

                              Acquisition Spending
                                 ($ In Millions)
                               1995           12
                               1996           68
                               1997          118
                               1998          159
                               1999           44
                               2000*           5  Fresh Start
                               2001*           0
                               2002*           1

         * Excludes payments of contingent acquisition obligations.

- --------------------------------------------------------------------------------
Carriage Services
Funeral Home & Cemetery Count

                                                Year Ending December 31,
                                              2000        2001        2002
                                         -------------------------------------
Beginning Funeral Homes                        182         172         148
Acquisitions or Openings                         1           2           2
Divestitures, Mergers or Closures               11          26           6
Ending Funeral Homes                           172         148         144

Beginning Cemeteries                            41          38          30
Acquisitions                                     1           0           0
Divestitures                                     4           8           0
Ending Cemeteries                               38          30          30
- --------------------------------------------------------------------------------

OPERATIONS OVERVIEW

Carriage's  local  funeral home  operations,  cemetery  operations,  and preneed
programs are managed by individuals  with extensive death care  experience.  The
local operators continue to have responsibility for day-to-day  operations,  but
are  required  to follow  centralized  service  and  financial  standards.  This
strategy  allows each local  business to maintain  its unique style of operation
and to  capitalize  on its  reputation  and heritage  while  Carriage  maintains
centralized  supervisory  controls  and  provides  specialized  services  at the
corporate level.

Carriage is committed to a strong information systems program and has all of its
funeral homes  connected to information  systems to monitor and assess  critical
operating and financial  data in order to analyze the  performance of individual
homes on a timely basis.  Management is able to access customer transaction data
and other  operating  information  from its Houston support center to ensure the
quality of operating  performance  and to  implement  any  necessary  corrective
actions.

Funeral Home Operations

As of June 30, 2003,  Carriage operated 141 funeral homes in 29 states.  Funeral
home revenues  accounted for approximately 77% and 78% of total revenues for the
six months ending June 30, 2003 and 2002, respectively.  Carriage's funeral home
operations   are  managed  by  a  team  of   experienced   death  care  industry
professionals  as well  as  selected  region-level  personnel  with  substantial
experience in other service  industries.  These  individuals were recruited from
outside the industry  bringing with them proven  leadership and financial skills
together  with best  operating  practices  that are  relevant  to the death care
industry and have proven successful in other service industries.

Carriage's  funeral homes offer a complete  suite of services to meet  families'
funeral needs, including  consultation,  removal and preparation of remains, the
sale of caskets and related  funeral  merchandise,  the use of funeral homes for
visitation  and  religious  services,  and  transportation   services.  Most  of
Carriage's  funeral homes have a  non-denominational

================================================================================
Carriage Services  (C)2003 Carriage Services, Inc. All rights reserved.  Page 13
NYSE: CSV

  Forward-looking statements contained herein are subject to certain risks and
   uncertainties as further described at the end of this Company & Investment
 Profile. Please refer to the Appendix on page 24 that discusses and reconciles
            non-GAAP financial measures to GAAP financial measures.
<PAGE>

Company & Investment Profile                                      September 2003

chapel on premises,  which permits family  visitation and religious  services to
take place on location, reducing inconvenience to the family.

Cemetery Operations

As of June 30, 2003,  Carriage  operated 30  cemeteries  in 12 states.  Cemetery
revenue  accounted for  approximately  23% and 22% of total revenues for the six
months ending June 30, 2003 and 2002, respectively. Carriage's cemetery products
and services include interment services,  the rights to interment cemetery sites
(including  grave  sites,  mausoleum  crypts and niches)  and  related  cemetery
merchandise such as memorials and vaults.  Cemetery operations generate revenues
through  sales  of  interment  rights,  memorials  and  installations,  fees for
interment and cremation  services,  finance  charges from sales  contracts,  and
investment income from preneed cemetery merchandise and perpetual care trusts.

                               [GRAPHIC OMITTED]

Preneed Programs

In addition to the sales of funeral merchandise and services, cemetery interment
rights and cemetery merchandise, and services at the time of need, Carriage also
markets funeral and cemetery  services and products on a preneed basis.  Preneed
funeral and cemetery  contracts  enable families to establish,  in advance,  the
type of service to be performed,  the products to be used and the costs for such
products and  services,  in  accordance  with prices  prevailing at the time the
contract is signed,  rather than when the products  and services are  delivered.
Preneed  contracts  permit families to eliminate the emotional  strain of making
death care plans at the time of need and enable  Carriage to establish a portion
of its future  market  share.  Proceeds  of preneed  funeral  contracts  are not
recognized as revenue until the time the funeral service is performed.

Preneed  funeral  contracts  are  usually  paid  on an  installment  basis.  The
performance of preneed funeral contracts is usually secured by placing the funds
collected  in trust for the behalf of the  customer or by the purchase of a life
insurance policy, the proceeds of which will pay for the services at the time of
need. Insurance policies,  intended to fund preneed funeral contracts, cover the
original  contract  price and  generally  include  built-in  escalation  clauses
designed to offset future inflationary cost increases.  During the early part of
2000, Carriage shifted its focus from the sale of trust-funded  contracts to the
sale of insurance funded  contracts.  The shift towards  insurance  products has
improved  the  Company's  cash flow and  reduced the costs  associated  with the
administration of trust accounts.

In addition to preneed funeral  contracts,  we also offer  "preplanned"  funeral
arrangements  whereby the client determines in advance  substantially all of the
details  of  a  funeral  service  without  any  financial  commitment  or  other
obligation  on the

================================================================================
Carriage Services  (C)2003 Carriage Services, Inc. All rights reserved.  Page 14
NYSE: CSV

  Forward-looking statements contained herein are subject to certain risks and
   uncertainties as further described at the end of this Company & Investment
 Profile. Please refer to the Appendix on page 24 that discusses and reconciles
            non-GAAP financial measures to GAAP financial measures.
<PAGE>

Company & Investment Profile                                      September 2003

part  of  the  client  until  the  actual  time  of  need.   Preplanned  funeral
arrangements  permit a family to avoid the emotional strain of making death care
plans at the time of need and enable a funeral home to  establish  relationships
with a client that may eventually lead to an at-need sale.

Preneed cemetery sales are usually financed through interest bearing installment
sales  contracts,  generally  with  terms of up to five  years.  Interest  rates
generally  range from 9%-14%.  Preneed  sales of cemetery  interment  rights are
recorded  as  revenue  when  10% of the  contract  amount  has  been  collected.
Merchandise and services  revenue is recorded when delivery has occurred.  Costs
related to cemetery  preneed  contracts and delivery of products and services is
recorded  concurrent with related  revenue.  Carriage always receives an initial
payment at the time the contract is signed.

================================================================================
Carriage Services  (C)2003 Carriage Services, Inc. All rights reserved.  Page 15
NYSE: CSV

  Forward-looking statements contained herein are subject to certain risks and
   uncertainties as further described at the end of this Company & Investment
 Profile. Please refer to the Appendix on page 24 that discusses and reconciles
            non-GAAP financial measures to GAAP financial measures.
<PAGE>

Company & Investment Profile                                      September 2003

OPERATING STRATEGY

While  Carriage's  strategies  have changed  since the Company has turned from a
company focused on acquisitions to a company focused on operations,  its mission
to become the best  funeral and cemetery  organization  in the industry has not.
Carriage's   operating   strategies  focus  on  increasing  the  cash  flow  and
profitability  of its properties  significantly  above the level that could have
been achieved had their properties been operating as a stand alone,  independent
business. The key elements of Carriage's operating strategies include:

Personalized  Service - Carriage  believes that providing  personalized  service
results  in  increased  customer  satisfaction,  increased  market  share,  more
motivated  employees,  a higher average sales price per service and consistently
higher levels of profitability.  The Company has placed a great deal of emphasis
upon  recruiting  new leaders and  communicating  to its  employees  the linkage
between personalized service, customer satisfaction,  market share increases and
profitability throughout the organization.

Employee Training - Carriage has made a significant  commitment of financial and
human resources to a company-wide  training effort. This training is designed to
improve the leadership,  management and communication skills among employees and
to  improve  the  execution  of  Carriage's  "Cycle of  Service"  that  includes
providing  personalized  service  that  clients  will  value.  In its  training,
Carriage  emphasizes  listening and communication  skills in working towards the
goal of  uniquely  memorializing  the  life  of an  individual.  This  long-term
investment in its employees,  we believe,  will lead to increased  market share,
higher cash flow, and profitability.

Enhanced  Systems - As mentioned,  Carriage uses a computer system linked to all
of its funeral  homes that monitor and access  critical  operating and financial
data in order to analyze the  performance  of  individual  locations on a timely
basis and institute  corrective action if necessary.  Carriage uses the Internet
as a medium to internally disseminate certain information to regional management
and locations. The Company is investing part of its cash flow to implement a new
cemetery system in 2003,  which should improve its efficiency and  effectiveness
in the future.

High Standards of  Performance - Carriage  continuously  establishes  targets to
emphasize and enhance customer service,  operational, and financial performance.
These  standards  are designed to identify  management's  expectations  for high
achievement  in these  three  key  performance  areas  and are  communicated  to
employees  through  Carriage's  extensive  training  programs  and  monitored by
executive leadership. Carriage believes its investment in recruiting top quality
regional and location  leaders and managers  will result in a higher  performing
and more  profitable  funeral  portfolio  in 2003 and beyond.  The Company  also
expects  local and regional  cemetery  leadership to achieve  greater  portfolio
sales and profits.

Quality  Review  Management  Systems -  Carriage  has  developed  quality  based
management systems that operate within its decentralized  management  structure.
The  systems  involve   quantifiable   customer  survey  input  in  addition  to
operational  and  financial  measures of  performance.  These  systems are being
implemented  at the locations  under the  direction of Carriage's  regional vice
presidents and regional managers.

Incentive Compensation - Carriage has developed a compensation structure that is
designed  to  create  and  maintain  an  ownership  mentality  to align  overall
compensation  to the  Company's  performance  objectives.  Local  management  is
awarded  meaningful  profit  sharing cash bonuses or other rewards for achieving
specified service,  operational, and financial performance objectives.  Carriage
also has stock based  programs  for  corporate  personnel,  which award stock or
options to certain  employees based upon their  performance.  As a result,  most
management  personnel,  whether field or corporate,  and key employees  have the
opportunity  to increase  their  compensation  and  personal  net worth  through
performance aligned with increasing shareholder value.

Cost Savings & Operating  Efficiencies  - Carriage's  larger size,  versus local
operators, allows favorable pricing an terms to be achieved from vendors through
volume discounts on significant  expenditures,  such as caskets,  urns,  vaults,
monuments,  and  markers.   Further,  certain  financial,   accounting,   legal,
administrative, and employee benefit functions are centralized to allow for more
efficient and cost effective support operations.

================================================================================
Carriage Services  (C)2003 Carriage Services, Inc. All rights reserved.  Page 16
NYSE: CSV

  Forward-looking statements contained herein are subject to certain risks and
   uncertainties as further described at the end of this Company & Investment
 Profile. Please refer to the Appendix on page 24 that discusses and reconciles
            non-GAAP financial measures to GAAP financial measures.
<PAGE>

Company & Investment Profile                                      September 2003

INDUSTRY OVERVIEW

The national death rate in the United States has grown at a compound annual rate
of approximately  1% since 1980, with annual  variation of 1%-2%.  However death
rates were down  approximately 1% in 2001 and 2% in 2002, the first back-to-back
decline since the mid 1970's.  Year to date in 2003,  death rates have continued
to lag and it is unclear when death rates will return to a normalized level.

National  government  statistics  are  predicting an annual  compounded  rate of
growth in the number of deaths of .75%  through  2010,  after  which the rate of
growth is expected to gradually increase due to the aging population.  While the
number of deaths typically  varies from year to year,  industry studies indicate
that major medical  advances in treating heart,  cancer and other major diseases
that  cause  death  are  resulting  in an  increase  in the  average  age of the
population.  This trend is calling into question  various  death rate  forecasts
calling for an increase in the number of deaths each year.

The Death Care industry tends to experience  some seasonal  biases in the winter
months due to increases in cold  weather  induced  deaths,  or  occasionally  in
extreme heat conditions in the summer.  Despite a period of unusual back to back
decreases in death rates, the Death Care business can generally be characterized
as one of relative stability, reliability, and a very low failure rate. Carriage
views the  long-term  stability  and  reliability  of the Death  Care  business,
through good times and bad, as an attractive  investment  attribute,  especially
given today's uncertain economic and capital markets environment.

Despite a period of rapid consolidation of smaller, private funeral and cemetery
businesses by the public Death Care companies in 1996 through 1999, the industry
remains  fragmented.  Carriage  estimates  that there are  approximately  22,000
funeral homes and 10,000 commercial cemeteries (as opposed to religious, family,
fraternal, military, or municipal) in the United States, with private businesses
comprising  roughly  80% of the total.  Carriage  Services  and the three  other
largest publicly traded domestic Death Care companies represented  approximately
20% of the 2002 domestic Death Care industry  revenues.  Though Carriage and the
rest of its public  peers have  significantly  reduced or  eliminated  an active
acquisition  campaign,  there  remains  the  opportunity  for  consolidation  of
smaller, privately held businesses to supplement internal growth.

The aging of the large  number of Baby Boomers over the next ten to twenty years
could raise the national  mortality  rate slightly  above its historic  average,
generating enhanced growth opportunities for the Death Care industry. However, a
rising trend in cremations  poses some risk for the Death Care industry to fully
realize the  benefit  from the shift in the  population  to the +65 years of age
category.  It is estimated that cremations  accounted for 10% of the U.S. burial
market in 1980 and has grown to 28% in 2002. The cremation  trend is expected to
increase to 39% of the U.S. burial market in 2010. While cremation  services and
products  are  higher  margin  than  traditional  burial  proceedings,  they are
typically less in absolute dollar terms. To mitigate this and to even capitalize
on the growing cremation trend, Carriage has developed innovative,  high quality
funeral and  memorializing  services  and  additional  products to increase  its
cremation revenue per funeral.

While it is by no means  impossible to enter the Death Care industry,  there are
barriers to entry that have kept the number of funeral and  cemetery  businesses
in the United States fairly constant. Since approximately 80% of the funeral and
cemetery  business remain  privately held, these businesses are typically passed
on and  operated  by the  same  family  for  generations.  In most  cases  these
businesses  have  developed a local heritage and tradition that act as a barrier
to insurgents in a given market. These established local businesses often have a
backlog of preneed, prefunded funerals or presold cemetery and mausoleum spaces,
making  it  difficult  for new  entrants  to gain  entry  into the  marketplace.
Additional   barriers  to  entry   include  the   difficulty   of  local  zoning
restrictions,  increasing  regulatory burdens,  and scarcity of cemetery land in
certain urban areas.

================================================================================
Carriage Services  (C)2003 Carriage Services, Inc. All rights reserved.  Page 17
NYSE: CSV

  Forward-looking statements contained herein are subject to certain risks and
   uncertainties as further described at the end of this Company & Investment
 Profile. Please refer to the Appendix on page 24 that discusses and reconciles
            non-GAAP financial measures to GAAP financial measures.
<PAGE>

Company & Investment Profile                                      September 2003

MANAGEMENT BIOS

Melvin C. Payne,  a  management  founder of Carriage,  has been  Chairman of the
Board and Chief  Executive  Officer since December  1996.  Prior to then, he had
been the President, Chief Executive Officer and a director of Carriage since its
inception in 1991.  Mr. Payne  resumed the  additional  position of President in
December 2000. Mr. Payne serves on the Board of Directors of Sovereign  Business
Forms, Inc., a private company in the business forms manufacturing industry.

Joseph  Saporito has been Senior Vice  President,  Chief  Financial  Officer and
Secretary of Carriage since September  2002. Mr.  Saporito,  a certified  public
accountant, has responsibility for the financial and administrative functions of
Carriage.  Prior  to  joining  Carriage,  he  served  as  Division  Head  of the
Commercial Audit Division of the Houston office of Arthur Andersen LLP, where he
was a partner for 15 years.

Jay D. Dodds has been the  Senior  Vice  President  of  Funeral  Operations  for
Carriage since October 2000. Mr. Dodds joined  Carriage in 1994 as an operations
Vice President.  He has over 20 years of professional  funeral home and cemetery
experience.   Prior  to  joining  Carriage,   he  was  affiliated  with  Stewart
Enterprises in its Southwest region,  operating funeral homes and cemeteries for
13 years, most recently serving as Senior Vice President.  Mr. Dodds is a member
of the  National  Funeral  Directors  Association  and  serves  on its  Advocacy
Committee.

James J. Benard has been Senior Vice President of Sales and Cemetery  Operations
for Carriage  since  November  2001.  Mr.  Benard  joined  Carriage in 1998 as a
Regional Vice President of Sales. He has over 22 years of  professional  funeral
home and cemetery experience.  Prior to joining Carriage, he was affiliated with
Service Corporation  International in various roles for ten years. Mr. Benard is
a member of the International Cemetery and Funeral Association.

George Klug has been Senior Vice President and Chief  Information  Officer since
May of  2002.  He  joined  Carriage  in July of 2001  to  align  the  technology
functions with the company's  business plan. Before joining  Carriage,  Mr. Klug
served from 1997 to 2000 as Vice President of Information Technology at Allright
Corporation,   an  owner  operator  of  parking  facilities  both  national  and
international.  Prior  to  Allright,  Mr.  Klug  served  as  Vice  President  of
Information   Technology  for  various  retail  companies   including   Oshmans,
Sportstown,  and Zaks. He also has a background in operations and accounting and
has been in management positions for 30 years.

Mark  Groeneman  has been Senior Vice  President of Human  Resources  since July
2001.  He joined  Carriage in January 2000 to formalize  and develop  Carriage's
human resources  functions.  Before joining Carriage,  Mr. Groeneman served from
1998 to 2000 as Vice President of Human  Resources at Allright  Corporation,  an
owner and operator of parking facilities across the country.  Prior to Allright,
Mr.  Groeneman  served as Vice President - Human  Resources from 1994 to 1998 at
Oshman's  Sporting  Goods,  a nation-wide  major  retailer of sporting goods and
apparel.  Mr. Groeneman has over 22 years of human resources related  experience
in the retail, service and manufacturing industries.

BOARD OF DIRECTORS & CORPORATE GOVERNANCE

Carriage's  Board of  Directors  consists  of six  members,  of  which  four are
independent.  This board  composition  complies with Board  provisions under the
Sarbanes-Oxley Act.

Melvin C. Payne,  a  management  founder of Carriage,  has been  Chairman of the
Board and Chief  Executive  Officer since December  1996.  Prior to then, he had
been the President, Chief Executive Officer and a director of Carriage since its
inception in 1991.  Mr. Payne  resumed the  additional  position of President in
December 2000. Mr. Payne serves on the Board of Directors of Sovereign  Business
Forms, Inc., a private company in the business forms manufacturing industry.

Joe R. Davis became a director of Carriage Services in May 2003. He has been the
Chief Executive Officer and Chairman of the Board of Consolidated  Graphics Inc.
("CGX") since he founded it in 1985. Mr. Davis serves on the Executive Committee
of CGX's Board of Directors.

================================================================================
Carriage Services  (C)2003 Carriage Services, Inc. All rights reserved.  Page 18
NYSE: CSV

  Forward-looking statements contained herein are subject to certain risks and
   uncertainties as further described at the end of this Company & Investment
 Profile. Please refer to the Appendix on page 24 that discusses and reconciles
            non-GAAP financial measures to GAAP financial measures.
<PAGE>

Company & Investment Profile                                      September 2003

Vincent D. Foster became a director of Carriage in November  1999. Mr. Foster is
a Senior Managing  Director of Main Street Mezzanine Fund, LLC, a licensed small
business investment corporation,  and served as Senior Managing Director of Main
Street Equity  Ventures II, L.P. (and its  predecessor  firm),  a private equity
firm, from 1997 through 2002. Mr. Foster is a director of Quanta Services, Inc.,
and served as its nonexecutive  Chairman of the Board of Directors from February
1998 through May 2002. Mr. Foster is also a director of U.S. Concrete,  Inc. and
serves as its  nonexecutive  Chairman of the Board.  From September 1988 through
October 1997, Mr. Foster was a partner of Andersen Worldwide and Arthur Andersen
LLP, where he served as the director of the corporate  finance  practice and the
mergers and acquisitions practice in the southwestern United States.

Greg M.  Brudnicki  became a director of  Carriage in November  1997 when Forest
Lawn/Evergreen  Management  Corp.  merged with a  subsidiary  of  Carriage.  Mr.
Brudnicki  served as the  President and Chief  Executive  Officer of Forest Lawn
until the merger,  when he became the  Co-Manager of the Forest Lawn  cemeteries
and funeral  homes  operated by Carriage.  Mr.  Brudnicki  served as Senior Vice
President  of  Cemetery  Operations  from  November  2000 until  November  2001,
whereupon  Mr.  Brudnicki  resumed  his  previous  role with our  operations  in
Northwest  Florida.  Mr. Brudnicki serves as a director of Peoples 1st Community
Bank, and as Chairman of the Florida Board of Funeral and Cemetery Services.

Stuart W. Stedman has been a director of Carriage since it went public in August
1996.  For the past 18 years,  Mr.  Stedman  has been  President  of Wesley West
Interests,  Inc., a management company  responsible for various family holdings,
including marketable securities,  oil, gas and coal properties,  ranch lands and
urban real  estate.  Mr.  Stedman  also  serves as a Manager and a member of the
compensation  committee of Strand  Energy,  L.L.C.,  a private  exploration  and
production company.

Ronald A.  Erickson  has been a director  of  Carriage  since it went  public in
August  1996.  Mr.  Erickson is Chief  Executive  Officer of Holiday  Companies,
Minneapolis,  Minnesota,  a family business consisting  primarily of convenience
stores and sporting goods stores. Mr. Erickson is also a director (and member of
the board's compensation  committee) of Andersen  Corporation,  a privately held
manufacturer of windows and patio doors.

Audit Committee - Is comprised of Erickson, Foster, and Stedman, all independent
board members.

Corporate Governance Committee - Is comprised of Erickson,  Foster, and Stedman,
all independent board members.

Compensation  Committee - Is comprised of Foster, Stedman and Davis, all of whom
are  independent  board  members.  The  compensation  committee is the body that
reviews and approves the compensation of the senior officers of the Company.

================================================================================
Carriage Services  (C)2003 Carriage Services, Inc. All rights reserved.  Page 19
NYSE: CSV

  Forward-looking statements contained herein are subject to certain risks and
   uncertainties as further described at the end of this Company & Investment
 Profile. Please refer to the Appendix on page 24 that discusses and reconciles
            non-GAAP financial measures to GAAP financial measures.
<PAGE>

Company & Investment Profile                                      September 2003

RECAP

Founded in 1991 with an IPO in 1996,  Carriage Services is a leading provider of
Death Care services and products in the United States and is the fourth  largest
publicly traded Death Care company.  Carriage  Services' shares trade on the New
York Stock Exchange under the symbol CSV. As of June 30, 2003, Carriage operated
141 funeral  homes and 30 cemeteries  in 29 states.  Carriage's  business can be
characterized as one of relative stability, reflected by predictable revenue and
cash flow, with incremental growth opportunities via selective acquisitions.

With its success in the  implementation and execution of Carriage's "Fresh Start
Program",  the Company has  stabilized and improved its operations and financial
position.  Management is focused on continually  improving the customer  funeral
experience, upgrading operational leadership, increasing market share, operating
margins, free cash flow, and reducing debt. Carriage believes the improvement in
its operations and capital structure positions the Company well for the future.

While  Carriage  Services has succeeded in improving  operations and the quality
and  depth of its  management,  increasing  free  cash  flow  and  substantially
decreasing debt levels,  the Company  believes the current equity valuation does
not  accurately  reflect  these  achievements  and  offers a  unique  investment
opportunity.  As discussed later in this report,  Carriage  believes its current
capital  structure  coupled with its strong cash flow  profile,  will enable the
Company to continue to meaningfully pay down debt, offering investors the unique
investment characteristics of an LBO (leveraged buy out) structure,  without the
often high  promotional  fees because CSV shares are publicly  traded.  Assuming
stable to modest growth in revenue and EBITDA,  modest growth in free cash flow,
selective asset dispositions, and continued reduction in debt, Carriage believes
such a scenario could offer investors an 12% to 27% five year IRR (internal rate
of return), assuming a narrow range of enterprise value-to-EBITDA multiples over
the same period.

================================================================================
Carriage Services  (C)2003 Carriage Services, Inc. All rights reserved.  Page 20
NYSE: CSV

  Forward-looking statements contained herein are subject to certain risks and
   uncertainties as further described at the end of this Company & Investment
 Profile. Please refer to the Appendix on page 24 that discusses and reconciles
            non-GAAP financial measures to GAAP financial measures.
<PAGE>

Company & Investment Profile                                      September 2003

Carriage Services, Inc.
Consolidated Statement of Operations
(Unaudited & In Thousands, Except Per Share Data)

<TABLE>
<CAPTION>
                                                                          For the Three Months               For the Six Months
                                                                             Ended June 30,                    Ended June 30,
                                                                          2002            2003             2002             2003
                                                                        -------         --------          -------         --------
<S>                                                                     <C>             <C>               <C>             <C>
Revenues, Net
     Funeral                                                            $28,832         $ 28,702          $61,539         $ 59,056
     Cemetery                                                             9,018            9,165           17,233           17,517
                                                                        -------         --------          -------         --------
                                                                         37,850           37,867           78,772           76,573
Costs & Expenses
     Funeral                                                             21,544           21,590           42,568           43,312
     Cemetery                                                             6,618            6,609           13,132           12,493
                                                                        -------         --------          -------         --------
                                                                         28,162           28,199           55,700           55,805
Gross Profit
     Funeral                                                              7,288            7,112           18,971           15,744
     Cemetery                                                             2,400            2,556            4,101            5,024
                                                                        -------         --------          -------         --------
     Gross Profit                                                         9,688            9,668           23,072           20,768
Gross Profit Margin                                                        25.6%            25.5%            29.3%            27.1%

General & Admin. Expenses                                                 2,329            2,476            4,856            5,088
Special Charges & Other                                                      --             (896)              --             (308)
                                                                        -------         --------          -------         --------
     Operating Income                                                     7,359            8,088           18,216           15,988

Interest Expense, Net                                                     3,246            2,741            6,349            5,677
Financing Costs of Preferred Securities                                   1,674            1,674            3,348            3,348
                                                                        -------         --------          -------         --------
     Total Interest & Financing Costs                                     4,920            4,415            9,697            9,025

Income Before Taxes                                                       2,439            3,673            8,519            6,963
Provision (Benefit) for Income Taxes before Reduction
  of Deferred Tax Asset Valuation Allowance                                 962            1,377            3,282            2,611
                                                                        -------         --------          -------         --------
Net Income before Reduction of Deferred Tax
  Asset Valuation Allowance                                               1,477            2,296            5,237            4,352
Reduction of Deferred Tax Asset Valuation Allowance                          --               --           12,800               --
                                                                        -------         --------          -------         --------
Net Income for Common Stockholders                                      $ 1,477         $  2,296          $18,037         $  4,352
                                                                        =======         ========          =======         ========
Basic EPS:
     Earnings before Reduction of Deferred Tax
       Valuation Allowance                                              $  0.09         $   0.13          $  0.31         $   0.25
     Reduction of Deferred Tax Asset Valuation
       Allowance                                                           0.00             0.00             0.76             0.00
                                                                        -------         --------          -------         --------
          EPS                                                           $  0.09         $   0.13          $  1.07         $   0.25
                                                                        =======         ========          =======         ========
Diluted EPS:
     Earnings before Reduction of Deferred Tax
       Valuation Allowance                                              $  0.08         $   0.13          $  0.30         $   0.25
     Reduction of Deferred Tax Asset Valuation
       Allowance                                                           0.00             0.00             0.73             0.00
                                                                        -------         --------          -------         --------
          EPS                                                           $  0.08         $   0.13          $  1.03         $   0.25
                                                                        =======         ========          =======         ========

Weighted Avg. Basic Shares Outstanding:                                  16,942           17,411           16,918           17,365
Weighted Avg. Diluted Shares Outstanding:                                17,458           17,788           17,458           17,740
</TABLE>

================================================================================
Carriage Services  (C)2003 Carriage Services, Inc. All rights reserved.  Page 21
NYSE: CSV

  Forward-looking statements contained herein are subject to certain risks and
   uncertainties as further described at the end of this Company & Investment
 Profile. Please refer to the Appendix on page 24 that discusses and reconciles
            non-GAAP financial measures to GAAP financial measures.
<PAGE>

Company & Investment Profile                                      September 2003

Carriage Services, Inc.
Consolidated Balance Sheets
(In Thousands)                                                        Unaudited
                                                       December 31,   June 30,
                                                          2002          2003
                                                       ------------   ---------
                                 ASSETS
Current Assets:
  Cash & Cash Equivalents                               $   2,702     $   2,020
  Accounts Receivable --
    Trade, Net of Allowance for
    Doubtful Accounts                                      14,640        12,914
  Other                                                       746           542
                                                        ---------     ---------
                                                           15,386        13,456

  Inventories & Other Current Assets                        8,777         8,834
                                                        ---------     ---------
         Total Current Assets                              26,865        24,310

Property, Plant & Equip. at Cost,
  Net of Accum. Dep                                       113,967       113,592
Cemetery Property at Cost                                  64,570        64,173
Goodwill                                                  158,696       159,668
Deferred Charges & Other Non-Current
  Assets                                                   60,344        56,058
Preneed Funeral Contracts                                 235,347       235,985
Preneed Cemetery Merchandise &
  Service Trust Funds                                      43,965        45,050
                                                        ---------     ---------
         Total Assets                                   $ 703,754     $ 698,836
                                                        =========     =========

                  LIABILITIES & STOCKHOLDERS' EQUITY
Current Liabilities:
  Accounts Payable & Accrued Liabilities                $  26,097     $  22,706
  Current Portion of Long-Term Debt &
    Obligations Under Capital Leases                        2,348         2,159
                                                        ---------     ---------
         Total Current Liabilities                         28,445        24,865

Deferred Cemetery Revenue & Preneed
  Liabilities                                              96,812        98,121
Deferred Preneed Funeral Contracts Revenue                243,067       243,519
Long-Term Debt, Net of Current Portion                    141,207       133,266
Obligations Under Capital Leases,
  Net of Current Portion                                    5,539         5,521
                                                        ---------     ---------
         Total Liabilities                                515,070       505,292
                                                        =========     =========

Minority Interest in Consolidated Subsidiary                  400            --
Carriage Services Capital Trust Redeemable
  Conv. Pref                                               90,193        90,260
Stockholders' Equity:
  Common Stock                                                171           176
  Contributed Capital                                     185,100       186,491
  Retained Deficit                                        (86,915)      (82,563)
  Deferred Compensation                                        --          (820)
  Unrealized Loss on Interest Rate Swaps,
  Net of Tax Benefits                                        (265)           --
                                                        ---------     ---------
         Total Stockholders' Equity                        98,091       103,284

  Total Liabilities & Stockholders' Equity              $ 703,754     $ 698,836
                                                        =========     =========

================================================================================
Carriage Services  (C)2003 Carriage Services, Inc. All rights reserved.  Page 22
NYSE: CSV

  Forward-looking statements contained herein are subject to certain risks and
   uncertainties as further described at the end of this Company & Investment
 Profile. Please refer to the Appendix on page 24 that discusses and reconciles
            non-GAAP financial measures to GAAP financial measures.
<PAGE>

Company & Investment Profile                                      September 2003

Carriage Services, Inc.
Consolidated Statement of Cash Flows
(Unaudited & In Thousands)
                                                             For the Six Months
                                                               Ended June 30,
                                                              2002       2003
                                                            --------    -------
Cash Flows from Operating Activities:
  Net Income                                                $ 18,037    $ 4,352
Adjustments to Reconcile Net Income to Net
 Cash Provided By Operating Activities:
  Depreciation & Amortization                                  5,329      5,349
  Provision for Losses on Accounts Receivable                    765        569
  Net Gain on Sale of Business Assets                             --       (706)
  Stock Related Compensation                                      --        169
  Deferred Income Taxes (Benefit)                             (9,957)     2,611
  Other                                                          120       (145)
Changes in Assets & Liabilities, Net of
 Effect from Acquisitions & Dispositions:
   Decrease in Accounts Receivable                             2,060      1,475
  (Increase) Decrease in Inventories & Other
    Current Assets                                               593       (150)
  (Increase) in Deferred Charges & Other                        (201)       (86)
  (Increase) in Preened Funeral & Cemetery Costs              (1,844)    (2,065)
  (Increase) in Preneed Cemetery Trust Funds                  (1,325)    (2,417)
  (Decrease) in Accounts Payable & Accrued Liabilities        (2,992)    (2,534)
  Income Tax (Payments) Refunds, Net                             (71)        20
  Increase in Deferred Revenue & Preneed Liabilities           1,539      1,218
                                                            --------    -------
       Net Cash Provided by Operating Activities              12,053      7,660

Cash Flows from Investing Activities:
  Net Proceeds from Sales of Businesses & Other Assets           107      1,512
  Sale of Minority Interest In Subsidiary                        200         --
  Acquisitions & Cost Adjustments Related to
    Acquisitions                                              (2,159)     1,500
  Capital Expenditures                                        (3,483)    (3,707)
                                                            --------    -------
       Net Cash Provided by (Used In) Investing
         Activities                                           (5,335)      (695)

Cash Flows from Financing Activities:
  Proceeds (Payments) Under Bank Line of Credit                2,300     (3,000)
  Payments on Long-Term Debt & Obligations Under
    Capital Leases                                            (4,202)    (5,023)
  Proceeds from Issuance of Common Stock                         319        376
  Payments of Contingent Stock Price Guarantees               (5,289)        --
                                                            --------    -------
       Net Cash Used in Financing Activities                  (6,872)    (7,647)

Net Decrease in Cash & Cash Equivalents                         (154)      (682)
Cash & Cash Equivalents at Beginning of Period                 2,744      2,702
                                                            --------    -------
Cash & Cash Equivalents at End of Period                    $  2,590    $ 2,020
                                                            ========    =======
Supplemental Disclosure of Cash Flow Information:
  Cash Paid for Interest & Financing Costs                  $  9,476    $ 9,249
  Cash Paid for Income Taxes                                $    198    $    35

================================================================================
Carriage Services  (C)2003 Carriage Services, Inc. All rights reserved.  Page 23
NYSE: CSV

  Forward-looking statements contained herein are subject to certain risks and
   uncertainties as further described at the end of this Company & Investment
 Profile. Please refer to the Appendix on page 24 that discusses and reconciles
            non-GAAP financial measures to GAAP financial measures.
<PAGE>

Company & Investment Profile                                      September 2003

Forward-Looking Statements

In  addition  to  historical  information,  this  Company &  Investment  Profile
contains  forward-looking  statements  within the safe harbor  provisions of the
Private  Securities  Litigation Reform Act of 1995. These statements include any
projections of earnings,  revenues, asset sales, cash flow, debt levels or other
financial  items;  any  statements of the plans,  strategies  and  objectives of
management  for future  operation;  any  statements  regarding  future  economic
conditions  or  performance;  any  statements of belief;  and any  statements of
assumptions  underlying  any of the  foregoing.  Forward-looking  statements may
include the words "may",  "will",  "estimate",  "intend",  "believe",  "expect",
"project",  "forecast",  "plan", "anticipate" and other similar words. . Readers
should  carefully review the Cautionary  Statements  described in this and other
documents we file from time to time with the Securities and Exchange Commission,
including  Annual Reports on Form 10-K and Current  Reports on Form 8-K filed by
Carriage in the future.

Cautionary Statements

The Company cautions readers that the following important factors, among others,
in some cases have  affected,  and in the future  could  affect,  the  Company's
actual  consolidated  results and could cause the Company's actual  consolidated
results  in the  future to  differ  materially  from the goals and  expectations
expressed  herein  and in any  other  forward-looking  statements  made by or on
behalf of the Company.

Risks related to our business

(1) Earnings from and principal of trust funds and insurance  contracts could be
reduced by changes in stock and bond prices and interest and dividend rates.

(2) Increased costs may have a negative impact on earnings and cash flows.

(3) Our ability to achieve our debt reduction targets and to service our debt in
the future depends upon our ability to generate  sufficient  cash, which depends
on many factors, some of which are beyond our control.

(4) We may  experience  declines  in  preneed  sales  due  to  numerous  factors
including  changes  made to contract  terms and sales force  compensation,  or a
weakening  economy.  Declines  in preneed  sales  would  reduce our  backlog and
revenue and could reduce our future market share.

(5) Increased preneed sales may have a negative impact on cash flow.

(6) Price  competition could reduce market share or cause us to reduce prices to
retain or recapture  market  share,  either of which could  reduce  revenues and
margins.

(7)  Increased  advertising  or better  marketing by  competitors,  or increased
activity by competitors  offering products or services over the Internet,  could
cause us to lose market share and revenues or cause us to incur  increased costs
in order to retain or recapture our market share.

(8)  Increases  in  interest  rates  would   increase   interest  costs  on  our
variable-rate long-term debt and could have a material adverse effect on our net
income and earnings per share.

(9) Covenant  restrictions  under our revolving credit facility and senior notes
limit our flexibility in operating our business.

(10) Our  projections  for 2003 and later years include  adjustments to earnings
and cash flow for estimated  disposition  activity.  Several important  factors,
among others, may affect our ability to consummate  dispositions,  including our
ability to identify  buyers for the  businesses  and assets we expect to sell at
acceptable prices.

================================================================================
Carriage Services  (C)2003 Carriage Services, Inc. All rights reserved.  Page 24
NYSE: CSV

  Forward-looking statements contained herein are subject to certain risks and
   uncertainties as further described at the end of this Company & Investment
 Profile. Please refer to the Appendix on page 24 that discusses and reconciles
            non-GAAP financial measures to GAAP financial measures.
<PAGE>

Company & Investment Profile                                      September 2003

Risks related to the death care industry

(1)  Declines  in the number of deaths in our  markets  can cause a decrease  in
revenues.  Changes in the number of deaths are not  predictable  from  market to
market or over the short term.

(2) The  increasing  number of  cremations  in the  United  States  could  cause
revenues to decline because we could lose market share to firms  specializing in
cremations.  In  addition,  basic  cremations  produce no revenues  for cemetery
operations  and lesser  funeral  revenues and, in certain  cases,  lesser profit
margins than traditional funerals.

(3) If we are not able to respond effectively to changing consumer  preferences,
our market share, revenues and profitability could decrease.

(4) Because the funeral and cemetery businesses are high fixed-cost  businesses,
positive or  negative  changes in revenue  can have a  disproportionately  large
effect on cash flow and profits.

(5) Changes or increases in, or failure to comply with,  regulations  applicable
to our business could increase costs or decrease cash flows.

Appendix: Disclosure of Non-GAAP Performance Measures

We report our financial results in accordance with generally accepted accounting
principles  ("GAAP").  However,  our management  believes that certain  non-GAAP
performance  measures  and ratios,  which our  management  uses in managing  our
business,  may provide users of this financial information additional meaningful
comparisons  between  results in  historical  periods and  projected  results in
future periods. Non-GAAP financial measures should be viewed in addition to, and
not as an  alternative  for,  our reported  operating  results or cash flow from
operations or any other measure of performance prepared in accordance with GAAP.
In  addition,  our  presentation  of non-GAAP  performance  measures  may not be
comparable to similarly titled measures other companies report.

We  define  Free  Cash  Flow  as  cash  provided  by  operations   less  capital
expenditures for property, plant and equipment. We consider Free Cash Flow to be
an important  indicator of our ability to pay down our debt.  Reconciliations of
cash  provided  by  operations  to Free  Cash  Flow  are  provided  for 2002 and
estimates for the future periods in the preceding tables.

A  reconciliation  of cash  provided  by  operations  to Free  Cash Flow for the
periods 2000 and 2001 are as follows (in 000s):

                                                    2000           2001
                                                  --------       --------
      Cash Provided by Operations                 $ 16,926       $ 27,749
      Capital Expenditures                         (10,547)        (5,046)
                                                  ========       ========
      Free Cash Flow                              $  6,379       $ 22,703
                                                  --------       --------

We  define  EBITDA  as  our  pre-tax  earnings  (loss)  plus  interest  expense,
depreciation  and amortization  expenses.  We have included EBITDA because it is
widely used by analysts and investors for valuation  purposes and because we use
EBITDA to monitor and  compare  the  financial  performance  of our  businesses.
EBITDA does not give effect to the cash we must use to service our debt, pay our
income taxes or provide for capital expenditures.  We have provided the ratio of
our debt to EBITDA  because the  financial  institutions  that  provide our debt
monitor our reliance on debt by periodically  measuring the ratio of our debt to
EBITDA.  Reconciliations  of pre-tax  income to EBITDA are provided for 2002 and
estimates for the future periods in the preceding tables.

We define  Capitalization  as the sum of the carrying values (GAAP) of our debt,
preferred securities and stockholders'  equity. We have included  Capitalization
and the  ratio of our  total  debt to  capitalization  because  we  measure  our
reliance on debt by monitoring the debt to capitalization ratio.

================================================================================
Carriage Services  (C)2003 Carriage Services, Inc. All rights reserved.  Page 25
NYSE: CSV

  Forward-looking statements contained herein are subject to certain risks and
   uncertainties as further described at the end of this Company & Investment
 Profile. Please refer to the Appendix on page 24 that discusses and reconciles
            non-GAAP financial measures to GAAP financial measures.
<PAGE>

Company & Investment Profile                                      September 2003

We define  Enterprise Value as the sum of the carrying values (GAAP) of our debt
and preferred  securities and the estimated market value of our common stock. We
have  included  Enterprise  Value  and the ratio of  Enterprise  Value to EBITDA
because it is widely used by analysts and investors to measure the total capital
capacity  of  companies  for  valuation   purposes.   Enterprise  Value  is  not
representative  of the market or fair value of the Company's debt and equity. It
differs with  Capitalization  by the difference  between the market value of the
Company's  common  stock and the total of the  Company's  stockholders'  equity.
Enterprise  Value is calculated as of December 31, 2002 and estimates for future
dates in the preceding tables.

In cases where we have presented earning (loss) or earnings (loss) per share for
years  1997 to  1999,  we have  adjusted  those  results  to  conform  with  the
Securities and Exchange  Commission's  Staff  Accounting  Bulletin No. 101 ("SAB
101") which  substantially  changed,  among other things, the timing of when our
cemetery  revenues are recognized and was effective  beginning  January 1, 2000.
The accounting guidance did not provide the ability to restate operating results
prior to 2000 to show what the impact would have been had SAB 101 been in effect
in the prior  years.  This  presentation  was  provided so that  management  can
monitor and compare operating results using consistent  methods of accounting in
all periods.

In cases where we have presented  historical  earnings (loss),  certain of those
periods  have  been  adjusted  to  exclude  special  charges  and  other  items.
Management  monitors and compares  the  operating  results on this basis so that
these particular items do not affect the comparability of its operating results.
Analysts and investors find this to be a meaningful  presentation to compare the
operating results of our core operations.  The adjusted results do not represent
a better indicator of earnings  (loss).  A reconciliation  of earnings (loss) in
accordance  with GAAP to earnings  before special  charges and other items is as
follows (in 000s):

                                                     2000          2001
                                                  ---------      --------
      Net earnings (loss)                         $(131,996)     $ 20,278
      Fresh Start restructuring charges,
        net of tax benefit of $8,275                 93,975
      Cumulative effect of change in
        accounting method (SAB 101),
        net of tax benefit of $20,755                38,993
      Recognition of deferred tax
        valuation allowances                                      (12,800)
      Asset writedowns, net of gains,
        net of tax benefit of $129                                    206
                                                  ---------      --------
      Net earnings, as adjusted for
        SAB 101, before special charges
        and other items                           $     972      $  7,684
                                                  ---------      --------

================================================================================
Carriage Services  (C)2003 Carriage Services, Inc. All rights reserved.  Page 26
NYSE: CSV

  Forward-looking statements contained herein are subject to certain risks and
   uncertainties as further described at the end of this Company & Investment
 Profile. Please refer to the Appendix on page 24 that discusses and reconciles
            non-GAAP financial measures to GAAP financial measures.

