Service Corp. International tenders for 7.2%, 6 7/8% notes

New York, May 26 - Service Corp. International said it has begun a cash tender offer for any and all of its $149 million of 7.2% notes due 2006 and $143.475 million of 6 7/8% notes due 2007.

Pricing in the tender will be set using a fixed spread over a reference Treasury.

For the 7.2% notes, the calculation will use 50 basis points over the 2.5% Treasury due May 31, 2006. For the 6 7/8% notes, it will be a 62.5 basis point spread over the 2.75% Treasury due Aug. 15, 2007.

Both prices include a $30.00 per $1,000 early participation payment that will only be paid to holders who tender by 5 p.m. ET on June 9.

The tender ends at 5 p.m. ET on June 24.

The Houston-based funeral home and cemetery operator said the tender for the 6 7/8% notes is subject to a financing condition. Both tenders have other general conditions but the offer for each series of notes is independent of the other.

Merrill Lynch & Co. (888 654-8637 or call collect 212 449-4914) and J.P. Morgan Securities Inc. (866 834-4666) are dealer managers. Global Bondholder Services Corp. is information agent (866 387-1500, banks and brokerages call 212 430-3774).

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