StoneMor Partners L.P. (STON)

Pre-need Revenues

Cemetery revenues from pre-need sales, including interest income from pre-need installment contracts and investment income from trusts, were $19.0 million in the first quarter of 2009, a decrease of $1.5 million, or 7.3%, as compared to $20.5 million in the first quarter of 2008.

Cemetery revenues from pre-need sales are recognized when the underlying merchandise is delivered or service is performed. Periodic changes in pre-need revenues is not necessarily indicative of changes in either the volume or pricing on pre-need contracts originated during the period but rather changes in the timing of when merchandise is delivered or services are performed.

The following table reconciles the value of actual sales made plus interest income from pre-need installment contracts and investment income from trusts to cemetery revenues for the three months ended September 30, 2007 and 2008:

The total value of contracts written increased by $2.0 million, or 9.5%, to $23.1 million in the first quarter of 2009 as compared to $21.1 million during the same period last year. Major increases included grave openings and closings ($1.0 million), vaults ($0.8 million) and markers ($0.6 million). The increases were primarily related to an increase in the value of contracts written at cemeteries acquired in 2007 and 2008.

Interest income on pre-need sales increased $0.2 million, or 15.3%, to $1.5 million in the first quarter of 2009 as compared to $1.3 million during the same period last year. The increase was primarily due to the increased volume of sales and accounts receivable outstanding.

Investment income from the merchandise trust decreased by $0.4 million, or 17.4%, to $1.9 million in the first quarter of 2009 as compared to $2.3 million during the same period last year. The decrease was primarily due to a decrease in the average cost basis of trust assets during the three months ended March 31, 2009 as opposed to the same period last year.

Investment income from the perpetual care trust increased by $0.2 million, or 6.3%, to $3.4 million in the first quarter of 2009 as compared to $3.2 million during the same period last year. The increase was primarily due to a slight increase on the yield in average invested assets during the three months ended March 31, 2009 as compared to the same period last year.

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Pre-need Revenues

Cemetery revenues from pre-need sales, including interest income from pre-need installment contracts and investment income from trusts, were $19.0 million in the first quarter of 2009, a decrease of $1.5 million, or 7.3%, as compared to $20.5 million in the first quarter of 2008.

Cemetery revenues from pre-need sales are recognized when the underlying merchandise is delivered or service is performed. Periodic changes in pre-need revenues is not necessarily indicative of changes in either the volume or pricing on pre-need contracts originated during the period but rather changes in the timing of when merchandise is delivered or services are performed.

The following table reconciles the value of actual sales made plus interest income from pre-need installment contracts and investment income from trusts to cemetery revenues for the three months ended September 30, 2007 and 2008:

The total value of contracts written increased by $2.0 million, or 9.5%, to $23.1 million in the first quarter of 2009 as compared to $21.1 million during the same period last year. Major increases included grave openings and closings ($1.0 million), vaults ($0.8 million) and markers ($0.6 million). The increases were primarily related to an increase in the value of contracts written at cemeteries acquired in 2007 and 2008.

Interest income on pre-need sales increased $0.2 million, or 15.3%, to $1.5 million in the first quarter of 2009 as compared to $1.3 million during the same period last year. The increase was primarily due to the increased volume of sales and accounts receivable outstanding.

Investment income from the merchandise trust decreased by $0.4 million, or 17.4%, to $1.9 million in the first quarter of 2009 as compared to $2.3 million during the same period last year. The decrease was primarily due to a decrease in the average cost basis of trust assets during the three months ended March 31, 2009 as opposed to the same period last year.

Investment income from the perpetual care trust increased by $0.2 million, or 6.3%, to $3.4 million in the first quarter of 2009 as compared to $3.2 million during the same period last year. The increase was primarily due to a slight increase on the yield in average invested assets during the three months ended March 31, 2009 as compared to the same period last year.

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