Stewart Enterprises Reports Results for the Second Fiscal Quarter of 2009

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| Source: Stewart Enterprises, Inc.

NEW ORLEANS, June 9, 2009 (GLOBE NEWSWIRE) -- Stewart Enterprises, Inc. (Nasdaq:STEI) reported today its results for the fiscal quarter ended April 30, 2009.

The Company reported net earnings for the quarter ended April 30, 2009 of $13.2 million, or $.14 per diluted share, compared to net earnings of $13.9 million, or $.15 per diluted share, for the quarter ended April 30, 2008. After adjusting net earnings for several unusual items in the second quarter of 2009, the Company reported adjusted earnings of $10.6 million, or $.11 per diluted share, for the quarter ended April 30, 2009, compared to adjusted earnings of $14.1 million, or $.15 per diluted share, for the quarter ended April 30, 2008. See table under "Reconciliation of Non-GAAP Financial Measures" for further information on adjusted diluted earnings per share and adjusted net earnings.

Thomas J. Crawford, President and Chief Executive Officer, stated, "Given the current economic environment and industry conditions, we are pleased with our operating performance for the quarter, which compares favorably to our first quarter 2009 results. Compared to the first quarter of 2009, our funeral and cemetery gross profit dollars and margins increased, as we grew revenue and continued to control our expenses during the second quarter of fiscal 2009. This resulted in net earnings and earnings per share in the second quarter of fiscal 2009 in excess of 50 percent greater than the first quarter of this fiscal year. Additionally, we took actions to strengthen our balance sheet and liquidity position by replacing our revolving credit facility and repurchasing debt."

Mr. Crawford continued, "We generated $21.8 million in operating cash flow for the quarter and $29.1 million year-to-date producing more cash in the first six months of 2009 than the first six months of 2008. During the second fiscal quarter, we repurchased approximately $23 million aggregate principal amount of our senior convertible notes on the open market for $14 million, realizing a net gain of approximately $9 million. Since quarter end, we have repurchased an additional $17 million of our senior convertible notes, realizing an additional net gain of approximately $4 million. In total, with our debt repurchases we have retired 9 percent, or $40 million, of our outstanding debt during this fiscal year and currently have $64 million of cash on hand. Finally, we successfully replaced our revolving credit facility with a new $95 million facility which will expire in June 2012. We are pleased with our new credit facility with stronger than anticipated response from lenders. With the flexible terms and conditions and borrowing availability in this new agreement, combined with strong cash on hand, we believe we are well positioned to execute our long-term strategic objectives. We believe the repurchase of our debt and the new debt agreement are important actions that will further benefit the Company's financial strength as the economy improves."

Second Quarter Results

FUNERAL



 * Funeral revenue decreased $5.6 million, or 7.3 percent, to $71.2
   million.

 * The Company's same-store funeral operations achieved a 2.4 percent
   increase in the same-store average revenue per funeral service,
   including trust earnings.

 * Same-store funeral services performed decreased 9.6 percent, or
   1,537 events. The decline is due to several factors. The Company
   experienced a 640 call decline, or 42 percent of the total decline,
   in its two West Coast regions, due in part to a decrease in low-end
   cremation events. In addition, the Company experienced a 222 call
   decline, or 14 percent of the total decline, in funeral services due
   to an additional day in the second quarter of 2008 due to leap
   year. Finally, the remaining decrease in funeral services is
   primarily due to a decrease in deaths in the Company's markets, when
   compared with the comparable prior year period.

 * In the second quarter of fiscal 2009, the Company realized a $2.1
   million or $0.01 per diluted share, decrease in earnings related to 
   trust activities, of which $0.8 million related to the funeral 
   segment and $1.3 million related to the cemetery segment. This 
   decrease is consistent with the Company's previously announced 
   expectations.

 * Funeral gross profit decreased $4.0 million to $18.5 million for the
   second quarter of 2009 compared to $22.5 million for the same period
   of fiscal 2008, primarily due to the decrease in revenue, as noted
   above, partially offset by a $1.6 million decrease in expenses. The
   decrease in expenses is primarily due to a decrease in salaries and
   wages due to effective labor management and an improvement in the
   Company's general liability claims experience.

 * The cremation rate for the Company's same-store operations was 41.4
   percent for the second quarter of 2009 compared to 39.9 percent for
   the second quarter of 2008.

 * Net preneed funeral sales decreased 1.3 percent during the second
   quarter of 2009 compared to the second quarter of 2008 due in part
   to current economic conditions. Preneed funeral sales are deferred
   until the underlying contracts are performed and have no impact on
   current revenue.

CEMETERY



 * Cemetery revenue decreased $4.6 million to $55.4 million for the
   second quarter of 2009. This decrease is due primarily to a $2.3
   million, or 9.0 percent, decrease in cemetery property sales, net of
   discounts, due to current economic conditions, a $2.2 million
   decrease in cemetery merchandise delivered and services performed
   and a $1.3 million decrease in earnings related to trust activities, 
   as noted above. These decreases were partially offset by a 
   $2.8 million increase in construction during the period on various 
   cemetery projects.

 * Cemetery gross profit decreased $6.0 million from $13.1 million in
   the second quarter of 2008 to $7.1 million for the second quarter of
   2009 due primarily to the decrease in cemetery revenue, as discussed
   above, coupled with a $1.4 million increase in expenses. The
   increase in expenses is primarily due to a $3.1 million charge
   recorded for the Company's estimated probable obligation to restore
   the net realized losses in certain of the Company's cemetery
   perpetual care trusts related to investments in General Motors. This
   increase is partially offset by a decrease in salaries and wages due
   to effective labor management and an improvement in the Company's
   general liability claims experience.

OTHER



 * Corporate general and administrative expenses decreased $0.8 million
   to $7.0 million for the second quarter of fiscal 2009 primarily due
   to a $1.2 million decrease in professional fees, partially offset by
   a $0.5 million increase in information technology costs primarily
   due to the implementation of a new business system in the current
   year.

 * The Company incurred $0.2 million in hurricane related charges in
   the second quarter of fiscal 2009 primarily due to litigation costs
   associated with the Company's Hurricane Katrina insurance claim,
   compared to $0.2 million in hurricane related charges during the
   second quarter of fiscal 2008 related to Hurricane Katrina.

 * Investment and other income, net decreased $0.4 million to less than
   $0.1 million due primarily to a decrease in the average rate earned
   on the Company's cash balances from 1.5 percent in the second
   quarter of 2008 to 0.2 percent in the second quarter of 2009.

 * The Company incurred separation charges of $0.3 million during the
   second quarter of fiscal 2009 due primarily to separation pay to a
   former officer who retired in the second quarter of 2009.

 * The effective tax rate for the quarter ended April 30, 2009 was 37.7
   percent compared to 36.7 percent for the same period in 2008. The
   increased rate in the current year is primarily due to a $0.6
   million increase in the Company's tax valuation allowance on its
   capital loss carryforward established in the fourth quarter of
   fiscal 2008. This increase was partially offset by reduced state
   income taxes attributable to the gain on early extinguishment of
   debt in the second quarter of fiscal year 2009.

 * The Company's weighted average diluted shares outstanding decreased
   to 91.9 million shares for the second quarter of fiscal year 2009
   compared to 94.6 million shares for the same period in 2008,
   yielding a positive impact on earnings per share.

 * In the second quarter of fiscal year 2009, the Company purchased
   $4.0 million aggregate principal amount of its 3.125 percent senior
   convertible notes due 2014 and $18.6 million aggregate principal
   amount of its 3.375 percent senior convertible notes due 2016 on the
   open market. As a result, the Company recorded an $8.7 million net
   gain on early extinguishment of debt during the quarter ended April
   30, 2009.

Year to Date Results

FUNERAL



 * Funeral revenue decreased $7.3 million, or 4.9 percent, to $143.0
   million.

 * The Company's same-store funeral operations achieved a 4.2 percent
   increase in the same-store average revenue per funeral service,
   including trust earnings.

 * Same-store funeral services performed decreased 8.0 percent, or
   2,516 events. The decline is due to several factors. The Company
   experienced a 1,071 call decline, or 43 percent of the total
   decline, in its two West Coast regions, due in part to a decrease in
   low-end cremation events. In addition, the Company experienced a 222
   call decline, or 9 percent of the total decline, in funeral services
   due to an additional day in the second quarter of 2008 due to leap
   year. Finally, the remaining decrease in funeral services is
   primarily due to a decrease in deaths in the Company's markets, when
   compared with the comparable prior year period.

 * For the first six months of fiscal 2009, the Company realized a $4.3
   million, or $.03 per diluted share, decrease in earnings related to
   trust activities, of which $1.7 million related to the funeral segment 
   and $2.6 million related to the cemetery segment. This decrease is 
   consistent with the Company's previously announced expectations.

 * Funeral gross profit decreased $3.8 million to $36.8 million for the
   first six months of 2009 compared to $40.6 million for the same
   period of fiscal 2008 primarily due to the decrease in revenue, as
   noted above, partially offset by a $3.5 million decrease in
   expenses. The decrease in expenses is primarily due to a decrease in
   salaries and wages due to effective labor management and an
   improvement in the Company's general liability claims experience.

 * The cremation rate for the Company's same-store operations was 40.9
   percent for the first six months of fiscal 2009 compared to 40.1
   percent for the same period of fiscal 2008.

 * Net preneed funeral sales decreased 8.0 percent during the first
   half of fiscal 2009 compared to the first half of fiscal 2008 due in
   part to current economic conditions. Preneed funeral sales are
   deferred until the underlying contracts are performed and have no
   impact on current revenue.

CEMETERY



 * Cemetery revenue decreased $13.8 million to $103.0 million for the
   first six months of fiscal 2009. This decrease is due primarily to a
   $9.5 million, or 18.5 percent, decrease in cemetery property sales,
   net of discounts, due to current economic conditions, a $3.0 million
   decrease in cemetery merchandise delivered and services performed
   and a $2.6 million decrease in earnings related to trust activities, 
   as noted above. These decreases were partially offset by a 
   $2.4 million increase in construction during the period on various 
   cemetery projects.

 * Cemetery gross profit decreased $10.2 million from $22.1 million in
   the first six months of 2008 to $11.9 million for the first six
   months of 2009 due primarily to the decrease in cemetery revenue, as
   discussed above, partially offset by a $3.6 million decrease in
   expenses. The decrease in expenses is primarily due to a decrease in
   salaries and wages due to effective labor management and an
   improvement in the Company's general liability claims experience.
   The decrease is partially offset by a $3.2 million charge recorded
   for the Company's estimated probable obligation to restore the net
   realized losses in certain of the Company's cemetery perpetual care
   trusts primarily related to investments in General Motors.

OTHER



 * Corporate general and administrative expenses decreased $1.5 million
   to $14.5 million for the first six month period of fiscal 2009
   primarily due to a $1.4 million decrease in professional fees.

 * The Company incurred $0.5 million in hurricane related charges in
   the first six months of fiscal 2009 primarily due to litigation
   costs associated with the Company's Hurricane Katrina insurance
   claim, compared to less than $0.1 million in hurricane related
   charges during the first six months of fiscal 2008 related to
   Hurricane Katrina.

 * Investment and other income, net decreased $1.0 million to $0.1
   million due primarily to a decrease in the average rate earned on
   the Company's cash balances from 2.6 percent in the first six months
   of fiscal year 2008 to 0.2 percent for the first six months of
   fiscal year 2009.

 * The Company incurred separation charges of $0.3 million during the
   first six months of fiscal 2009 due primarily to separation pay to a
   former officer who retired in the second quarter of 2009.

 * The effective tax rate for the six months ended April 30, 2009 was
   38.6 percent compared to 37.0 percent for the same period in 2008.
   The increased rate in the current year is primarily due to a $0.9
   million increase in the Company's tax valuation allowance on its
   capital loss carryforward established in the fourth quarter of
   fiscal 2008. This increase was partially offset by reduced state
   income taxes attributable to the gain on early extinguishment of
   debt in the second quarter of fiscal year 2009.

 * The Company's weighted average diluted shares outstanding decreased
   to 91.9 million shares for the six months ended April 30, 2009
   compared to 95.8 million shares for the same period in 2008,
   yielding a positive impact on earnings per share.

 * In the first six months of fiscal year 2009, the Company purchased
   $4.0 million aggregate principal amount of its 3.125 percent senior
   convertible notes due 2014 and $18.6 million aggregate principal
   amount of its 3.375 percent senior convertible notes due 2016 on the
   open market. As a result, the Company recorded an $8.7 million net
   gain on early extinguishment of debt during the six months ended
   April 30, 2009.

 * As of June 9, 2009, the Company has purchased an additional $17.5
   million aggregate principal amount of its senior convertible notes,
   resulting in an additional net gain on early extinguishment of debt
   of approximately $4.6 million, or a total of $40.1 million aggregate
   principal amount purchased and approximately $13.3 million net gain
   for fiscal year 2009.

Depreciation and Amortization



 * Depreciation and amortization was $7.4 million for the second
   quarter of 2009 compared to $7.0 million for the second quarter of
   2008.

 * Depreciation and amortization was $14.8 million for the first six
   months of 2009 compared to $14.0 million for the first six months of
   2008.

Cash Flow Results and Debt for Total Operations



 * Cash flow provided by operating activities for the second quarter of
   fiscal year 2009 was $21.8 million compared to $24.3 million for the
   same period of last year. The decrease in operating cash flow is
   primarily due to the timing of vendor payments, partially offset by
   a decrease in net tax payments in the current quarter. The Company
   paid $7.4 million in net tax payments in the second quarter of 2008
   compared to $2.5 million in the second quarter of 2009.

 * Cash flow provided by operating activities for the first six months
   of 2009 was $29.1 million compared to $28.4 million for the same
   period of last year. The increase in operating cash flow is
   primarily due to collections of prior period sales exceeding
   receivables for new sales. In addition, the Company paid $10.7
   million in net tax payments in the first half of 2008 compared to
   $3.4 million in the first half of 2009. These increases were
   partially offset by $1.3 million of cash outflows related to
   Hurricane Ike paid in the first six months of 2009, coupled with the
   timing of payments to vendors and the timing of payroll payments.

 * Recurring free cash flow was $18.4 million during the second quarter
   of 2009 compared to $20.3 million for the second quarter of 2008.

 * Recurring free cash flow was $22.6 million for the first six months
   of fiscal year 2009 compared to $21.2 million for the same period
   last year.

 * During the second quarter of 2009, the Company paid $2.3 million, or
   $.025 per share, in dividends compared to $2.4 million, or $.025 per
   share, paid in the second quarter of 2008.

 * As of April 30, 2009, the Company had outstanding debt of $427.5
   million and cash on hand of $71.8 million, or net debt of $355.7
   million.

 * The Company's revolving credit facility, which had no amounts drawn
   as of April 30, 2009, was set to mature on November 19, 2009. In
   June 2009, the Company entered into a new $95.0 million senior
   secured revolving credit facility with a maturity date of June 2,
   2012.

Trust Performance

The following returns include realized and unrealized gains and losses:



 * For the quarter ended April 30, 2009, the Company's preneed funeral
   and cemetery merchandise and services trusts experienced a total
   return of 5.0 percent, and its perpetual care trusts experienced a
   total return of 4.8 percent.

 * For the last three years ended April 30, 2009, the Company's preneed
   funeral and cemetery merchandise and services trusts experienced an
   annual total average decline in value of 7.2 percent, and its
   perpetual care trusts experienced an annual total average decline in
   value of 5.6 percent.

 * For the last five years ended April 30, 2009, the Company's preneed
   funeral and cemetery merchandise and services trusts experienced an
   annual total average decline in value of 1.8 percent, and its
   perpetual care trusts experienced an annual total average decline in
   value of 1.5 percent.

Founded in 1910, Stewart Enterprises is the second largest provider of products and services in the death care industry in the United States. The Company currently owns and operates 219 funeral homes and 140 cemeteries in the United States and Puerto Rico. Through its subsidiaries, the Company provides a complete range of funeral merchandise and services, along with cemetery property, merchandise and services, both at the time of need and on a preneed basis.

The Stewart Enterprises, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4456

Stewart Enterprises, Inc. will host its quarterly conference call for investors to discuss second quarter results on Wednesday, June 10, 2009 at 10 a.m. Central Daylight Time. The teleconference dial-in number is 888-213-3710. To participate, please call the number at least 15 minutes prior to the call. If you are calling from outside the United States, the dial-in number is 913-312-0646. A replay of the call will be available by dialing 888-203-1112 (from within the continental United States) or 719-457-0820 (from outside the continental United States), and using pass code 5487029 until June 17, 2009, at 10:59 p.m. Central Daylight Time. Interested parties will also have the opportunity to listen to the live conference call via the Internet through Stewart Enterprises' website http://www.stewartenterprises.com. To listen to the live call, please go to the website at least 15 minutes early to register, download and install any necessary audio software. A replay will be available at this website shortly following the conference call and will be available at the website until July 10, 2009.



                        STEWART ENTERPRISES, INC.
                           AND SUBSIDIARIES

             CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
                             (Unaudited)
           (Dollars in thousands, except per share amounts)

                                                Three Months Ended
                                                     April 30,
                                            --------------------------
                                                2009          2008
                                            ------------  ------------
 Revenues:
     Funeral                                $    71,240   $    76,855
     Cemetery                                    55,378        59,964
                                            ------------  ------------
                                                126,618       136,819
                                            ------------  ------------
 Costs and expenses:
     Funeral                                     52,715        54,289
     Cemetery                                    48,308        46,896
                                            ------------  ------------
                                                101,023       101,185
                                            ------------  ------------
     Gross profit                                25,595        35,634
 Corporate general and administrative
  expenses                                       (7,006)       (7,803)
 Hurricane related charges, net                    (205)         (169)
 Separation charges                                (275)           --
 Gain on dispositions and impairment
  (losses), net                                     (35)          (19)
 Other operating income, net                        304           104
                                            ------------  ------------
     Operating earnings                          18,378        27,747
 Interest expense                                (5,879)       (6,093)
 Gain on early extinguishment of debt             8,671            --
 Investment and other income, net                    32           357
                                            ------------  ------------
     Earnings before income taxes                21,202        22,011
     Income taxes                                 8,000         8,071
                                            ------------  ------------
        Net earnings                        $    13,202   $    13,940
                                            ============  ============

 Net earnings per common share:
     Basic                                  $       .14   $       .15
                                            ============  ============
     Diluted                                $       .14   $       .15
                                            ============  ============

 Weighted average common shares outstanding
  (in thousands):
     Basic                                       91,888        94,525
                                            ============  ============
     Diluted                                     91,921        94,635
                                            ============  ============

 Dividends declared per common share        $      .025   $      .025
                                            ============  ============


                       STEWART ENTERPRISES, INC.
                           AND SUBSIDIARIES

             CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
                              (Unaudited)
           (Dollars in thousands, except per share amounts)

                                                 Six Months Ended
                                                     April 30,
                                            --------------------------
                                                2009          2008
                                            ------------  ------------
 Revenues:
     Funeral                                $   142,990   $   150,304
     Cemetery                                   102,958       116,788
                                            ------------  ------------
                                                245,948       267,092
                                            ------------  ------------
 Costs and expenses:
     Funeral                                    106,210       109,736
     Cemetery                                    91,060        94,652
                                            ------------  ------------
                                                197,270       204,388
                                            ------------  ------------
     Gross profit                                48,678        62,704
 Corporate general and administrative
  expenses                                      (14,512)      (16,038)
 Hurricane related charges, net                    (520)          (10)
 Separation charges                                (275)           --
 Gain on dispositions and impairment
  (losses), net                                     (98)          128
 Other operating income, net                        563           346
                                            ------------  ------------
     Operating earnings                          33,836        47,130
 Interest expense                               (11,789)      (11,981)
 Gain on early extinguishment of debt             8,671            --
 Investment and other income, net                    73         1,077
                                            ------------  ------------
     Earnings before income taxes                30,791        36,226
     Income taxes                                11,873        13,401
                                            ------------  ------------

        Net earnings                        $    18,918   $    22,825
                                            ============  ============

 Net earnings per common share:
     Basic                                  $       .21   $       .24
                                            ============  ============
     Diluted                                $       .21   $       .24
                                            ============  ============

 Weighted average common shares outstanding
  (in thousands):
     Basic                                       91,856        95,667
                                            ============  ============
     Diluted                                     91,871        95,838
                                            ============  ============

 Dividends declared per common share        $       .05   $       .05
                                            ============  ============


                      STEWART ENTERPRISES, INC.
                           AND SUBSIDIARIES

                CONDENSED CONSOLIDATED BALANCE SHEETS
                             (Unaudited)
           (Dollars in thousands, except per share amounts)

                                              April 30,    October 31,
                  ASSETS                        2009          2008
                  ------                    ------------  ------------

 Current assets:
    Cash and cash equivalents               $    71,783   $    72,574
    Marketable securities                           150            55
    Receivables, net of allowances               54,956        59,129
    Inventories                                  36,517        35,870
    Prepaid expenses                             10,232         7,317
    Deferred income taxes, net                    8,942         8,798
                                            ------------  ------------
      Total current assets                      182,580       183,743
 Receivables due beyond one year, net of
  allowances                                     65,787        70,671
 Preneed funeral receivables and trust
  investments                                   344,005       368,412
 Preneed cemetery receivables and trust
  investments                                   174,322       182,141
 Goodwill                                       247,236       247,236
 Cemetery property, at cost                     384,121       375,832
 Property and equipment, at cost:
    Land                                         42,343        42,343
    Buildings                                   324,202       319,839
    Equipment and other                         183,140       178,589
                                            ------------  ------------
                                                549,685       540,771
    Less accumulated depreciation               248,567       236,243
                                            ------------  ------------
    Net property and equipment                  301,118       304,528
 Deferred income taxes, net                     174,107       179,515
 Cemetery perpetual care trust investments      172,544       173,090
 Non-current assets held for sale                 2,873         2,873
 Other assets                                    14,653        16,474
                                            ------------  ------------
      Total assets                          $ 2,063,346   $ 2,104,515
                                            ============  ============

     LIABILITIES AND SHAREHOLDERS' EQUITY
     ------------------------------------

 Current liabilities:
    Current maturities of long-term debt    $         4   $        20
    Accounts payable                             23,705        27,652
    Accrued payroll and other benefits           12,078        14,133
    Accrued insurance                            20,410        21,287
    Accrued interest                              5,032         5,864
    Estimated obligation to fund cemetery
     perpetual care trust                        14,725        13,281
    Other current liabilities                    12,179        16,198
    Income taxes payable                          5,044         2,061
                                            ------------  ------------
        Total current liabilities                93,177       100,496
 Long-term debt, less current maturities        427,447       450,095
 Deferred preneed funeral revenue               244,440       245,182
 Deferred preneed cemetery revenue              275,711       275,835
 Deferred preneed funeral and cemetery
  receipts held in trust                        448,222       475,420
 Perpetual care trusts' corpus                  171,129       171,371
 Other long-term liabilities                     22,397        20,479
                                            ------------  ------------
        Total liabilities                     1,682,523     1,738,878
                                            ------------  ------------
 Commitments and contingencies
                                            ------------  ------------

 Shareholders' equity:
    Preferred stock, $1.00 par value,
     5,000,000 shares authorized; no shares
     issued                                          --            --
    Common stock, $1.00 stated value:
        Class A authorized 200,000,000
         shares; issued and outstanding
         89,121,557 and 88,693,127 shares at
         April 30, 2009 and October 31,
         2008, respectively                      89,122        88,693
        Class B authorized 5,000,000 shares;
         issued and outstanding 3,555,020
         shares at April 30, 2009 and
         October 31, 2008; 10 votes per
         share convertible into an equal
         number of Class A shares                 3,555         3,555
    Additional paid-in capital                  532,744       536,902
    Accumulated deficit                        (244,632)     (263,550)
    Accumulated other comprehensive income:
        Unrealized appreciation of
         investments                                 34            37
                                            ------------  ------------
        Total accumulated other
         comprehensive income                        34            37
                                            ------------  ------------
               Total shareholders' equity       380,823       365,637
                                            ------------  ------------
        Total liabilities and shareholders'
         equity                             $ 2,063,346   $ 2,104,515
                                            ============  ============


                       STEWART ENTERPRISES, INC.
                           AND SUBSIDIARIES

            CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                              (Unaudited)
           (Dollars in thousands, except per share amounts)

                                                 Six Months Ended
                                                    April 30,
                                            --------------------------
                                                2009          2008
                                            ------------  ------------
 Cash flows from operating activities:
    Net earnings                            $    18,918   $    22,825
    Adjustments to reconcile net earnings
     to net cash provided by operating
     activities:
      (Gains) on dispositions and impairment
       losses, net                                   98          (128)
      Gain on early extinguishment of debt       (8,671)           --
      Depreciation and amortization              14,806        13,985
      Provision for doubtful accounts             4,344         3,638
      Share-based compensation                    1,259         1,851
      Excess tax benefits from share-based
       payment arrangements                          --          (165)
      Provision for deferred income taxes         4,764         2,594
      Estimated obligation to fund cemetery
       perpetual care trust                       3,200            --
      Other                                         157           217
      Changes in assets and liabilities:
        (Increase) decrease in receivables        5,175        (5,706)
        Increase in prepaid expenses             (2,915)       (3,933)
        Decrease in inventories and cemetery
         property                                  (515)       (4,368)
        Decrease in accounts payable and
         accrued expenses                       (10,382)       (1,644)
        Net effect of preneed funeral
         production and maturities:
          Decrease in preneed funeral
           receivables and trust investments     15,895         6,654
          Decrease in deferred preneed
           funeral revenue                         (743)       (5,070)
          Decrease in deferred preneed
           funeral receipts held in trust       (14,018)       (4,814)
        Net effect of preneed cemetery
         production and deliveries:
          Decrease in preneed cemetery
           receivables and trust investments      7,584         3,101
          Decrease in deferred preneed
           cemetery revenue                      (7,595)         (244)
          Increase (decrease) in deferred
           preneed cemetery receipts held in
           trust                                 (4,433)          453
        Increase (decrease) in other              2,156          (849)
                                            ------------  ------------
      Net cash provided by operating
       activities                                29,084        28,397
                                            ------------  ------------

 Cash flows from investing activities:
    Proceeds from sales of marketable
     securities                                      --        10,219
    Purchases of marketable securities              (99)      (19,897)
    Proceeds from sale of assets                    494           338
    Purchase of subsidiaries and other
     investments, net of cash acquired           (1,623)       (1,378)
    Additions to property and equipment         (10,729)      (13,385)
    Other                                            28            21
                                            ------------  ------------
      Net cash used in investing activities     (11,929)      (24,082)
                                            ------------  ------------

 Cash flows from financing activities:
    Repayments of long-term debt                (13,538)         (150)
    Issuance of common stock                        149         1,458
    Retirement of call options                    1,261            --
    Purchase and retirement of common stock          --       (37,320)
    Retirement of common stock warrants          (1,182)           --
    Dividends                                    (4,636)       (4,761)
    Excess tax benefits from share-based
     payment arrangements                            --           165
                                            ------------  ------------
      Net cash used in financing activities     (17,946)      (40,608)
                                            ------------  ------------

 Net decrease in cash                              (791)      (36,293)
 Cash and cash equivalents, beginning of
  period                                         72,574        71,545
                                            ------------  ------------
 Cash and cash equivalents, end of period   $    71,783   $    35,252
                                            ============  ============

 Supplemental cash flow information:
    Cash paid during the period for:
    Income taxes, net                       $     3,374   $    10,697
    Interest                                $    11,798   $    11,437

 Non-cash investing and financing
  activities:
    Issuance of common stock to executive
     officers and directors                 $       305   $       922
    Issuance of restricted stock, net of
     forfeitures                            $        52   $       236


                      STEWART ENTERPRISES, INC.
                          AND SUBSIDIARIES

            RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
            FOR THE PERIODS ENDED APRIL 30, 2009 AND 2008
                            (Unaudited)

The Company recorded several items during the three and six months ended April 30, 2009 and 2008 that impacted earnings including unusual items such as perpetual care funding obligations and tax valuation charges and non-recurring items such as gains on the early extinguishment of debt, hurricane related charges and separation pay. The Company is presenting adjusted earnings in the table below to eliminate the effects of the specified items, which are not comparable from one period to the next.



 Adjusted      Three Months Ended April 30, Six Months Ended April 30,
  Balances are --------------------------- ---------------------------
  Net of Tax       2009           2008         2009          2008
               ------------- ------------- ------------- -------------
              millions  per millions  per millions  per millions  per
                       share         share         share         share
 Consolidated
  net earnings $13.2  $ .14  $13.9  $ .15  $18.9  $ .21  $22.8  $ .24
  Subtract:
   Gain on
   early
   extinguish-
   ment of
   debt         (5.4)  (.06)    --     --   (5.3)  (.06)   --      --
  Add:
   Hurricane
   related
   charges, net  0.1     --    0.2     --    0.3     --    --      --
  Add:
   Perpetual
   care funding
   obligation    1.9    .02     --     --    2.0    .02    --      --
  Add:
   Separation
   charges       0.2     --     --     --    0.2     --    --      --
  Add: Tax
   valuation
   charge        0.6    .01     --     --    0.9    .01    --      --
               ====== ====== ====== ====== ====== ====== ====== ======
 Adjusted
  earnings     $10.6  $ .11  $14.1  $ .15  $17.0  $ .18  $22.8  $ .24
               ====== ====== ====== ====== ====== ====== ====== ======


                       STEWART ENTERPRISES, INC.
                           AND SUBSIDIARIES


             RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
             FOR THE PERIODS ENDED APRIL 30, 2009 AND 2008
                             (Unaudited)

Free cash flow is defined as net cash provided by operating activities less maintenance capital expenditures. Management believes that free cash flow is a useful measure of the Company's ability to repay debt, make strategic investments, repurchase stock or pay dividends (subject to the restrictions in its debt agreements). The following table provides a reconciliation between net cash provided by operating activities (the GAAP financial measure that the Company believes is most directly comparable to free cash flow) and free cash flow for the three and six months ended April 30, 2009 and 2008:



                                Three Months Ended   Six Months Ended
 Free Cash Flow                      April 30,           April 30,
 (Dollars in millions)         ------------------- -------------------
                                  2009      2008      2009      2008
                               --------- --------- --------- ---------
 Net cash provided by
  operating activities(1)      $   21.8  $   24.3  $   29.1  $   28.4
   Less: Maintenance capital
    expenditures                   (3.4)     (4.0)     (6.5)     (7.2)
                               --------- --------- --------- ---------
 Free cash flow                $   18.4  $   20.3  $   22.6  $   21.2
                               ========= ========= ========= =========

 (1) Cash flow provided by operating activities for the second quarter
     of fiscal year 2009 was $21.8 million compared to $24.3 million
     for the same period of last year. The decrease in operating cash
     flow is primarily due to the timing of vendor payments, partially
     offset by a decrease in net tax payments. Cash flow provided by
     operating activities for the first six months of 2009 was $29.1
     million compared to $28.4 million for the same period of last
     year. The increase in operating cash flow is primarily due to
     collections of prior period sales exceeding receivables for new
     sales and a decrease in net tax payments, partially offset by
     cash outflows related to Hurricane Ike paid in the first six
     months of 2009, coupled with the timing of payments to vendors
     and the timing of payroll payments.

                        STEWART ENTERPRISES, INC.
                            AND SUBSIDIARIES

                         CAUTIONARY STATEMENTS

This press release includes forward-looking statements that are generally identifiable through the use of words such as "believe," "expect," "intend," "plan," "estimate," "anticipate," "project," "will" and similar expressions. These forward-looking statements rely on assumptions, estimates and predictions that could be inaccurate and that are subject to risks and uncertainties that could cause actual results to differ materially from our goals or forecasts. These risks and uncertainties include, but are not limited to:



 * effects on our trusts and escrow accounts of changes in stock and
   bond prices and interest and dividend rates;

 * effects of the recent substantial decline in market value of our
   trust assets, including:

   -- decreased future cash flow and earnings as a result of reduced
      earnings from our trusts and trust fund management;

   -- the potential to realize additional losses and additional
      cemetery perpetual care funding obligations and tax valuation
      allowances;

 * effects on at-need and preneed sales of a weakening economy;

 * effects on revenue due to the changes in the number of deaths in our
   markets and decline in funeral call volume;

 * effects on cash flow and earnings as a result of increased costs,
   particularly supply costs related to increases in commodity prices;

 * effects on our market share, prices, revenues and margins of
   intensified price competition or improved advertising and marketing
   by competitors, including low-cost casket providers and increased
   offerings of products or services over the Internet;

 * effects on our revenue and earnings of the continuing national trend
   toward increased cremation and the increases in the percentage of
   cremations performed by us that are inexpensive direct cremations;

 * risk of loss due to hurricanes and other natural disasters;

 * effects of the call options the Company purchased and the warrants
   the Company sold on our Class A common stock and the effects of the
   outstanding warrants on the ownership interest of our current
   stockholders;

 * our ability to pay future dividends on and repurchase our common
   stock;

 * possible adverse outcomes of pending class action lawsuits and the
   continuing cost of defending against them;

 * our ability to consummate significant acquisitions of or investments
   in death care or related businesses successfully;

 * the effects on us as a result of our industry's complex accounting
   model;

 * the effect of the change in accounting method for our senior
   convertible notes;

and other risks and uncertainties described in our Form 10-K for the year ended October 31, 2008, filed with the SEC. We disclaim any obligation or intent to update or revise any forward-looking statements in order to reflect events or circumstances after the date of this release.

Stewart Enterprises, Inc.
Thomas M. Kitchen
504-729-1400
1333 S. Clearview Parkway
Jefferson, LA 70121