7 million after
tax, or $. Data collected by
the Company indicates increases in its market share in some markets
and decreases in others, resulting in a slight decrease overall. The Company would
have achieved an overall increase of 8 percent in cemetery property
sales during the quarter were it not for weakness in Puerto Rican
cemetery property sales.3 percent
compared to 25.3
million to $4.
Stewart Enterprises, Inc.
Central Standard Time. Additional investor information is available at
http://www.

-- Gains or losses associated with early extinguishments of debt and
changes in capital structure, including the effects described in
Item 5 below.

(5) As a result of refinancing the Company's senior secured credit
facility in November 2004 and of refinancing substantially all of
its 10 3/4% notes in February 2005, combined with continued debt
reduction, interest expense is expected to decrease significantly
for fiscal year 2005. During the first quarter of fiscal year
2005, the Company recorded a charge for early extinguishment of
debt of $2.

(6) Cash flow for fiscal year 2005 is expected to be consistent with
fiscal year 2004 with the exception of unusual items, such as the
tax refund of $33.1 million during the
second quarter of fiscal year 2005.

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(Nasdaq NMS:STEI) reported today its results for the first
quarter of fiscal year 2005.
For the quarter ended January 31, 2005, the Company reported net
earnings and earnings from continuing operations of $9.7 million ($1.02 per diluted share) for early extinguishment of debt, and
gains on dispositions , net of impairment losses, of $0.08 $11.3 percent increase in the average revenue per
traditional funeral service and a 6.0 percent for the first quarter of 2005 compared to 36.stewartenterprises.com

STEWART ENTERPRISES, INC. In the
first quarter of 2005, the Company recorded a loss on the early
extinguishment of debt of $2.3 million, which are
included in EBITDA from continuing operations presented below.7
Add: Interest expense 10. The Company's adjusted earnings per share forecasts
do not include either of these charges for early extinguishment of
debt, but do include the expected interest savings related to both
of these refinancings.
Teatro Sunil offers a unique perspective on the clowning world through dance
and tragicomedy. After winning over the public and the critics during
its six-week run on Broadway in New York last spring and its four-week run in
San Francisco, Rain recently started a three-month U.

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0 million ($1. Excluding these
charges, earnings from continuing operations would have been $10.
A reconciliation of the Company's net earnings to adjusted
earnings from continuing operations is provided in the following
table.
Cash flow from operations for the first quarter of 2005 was
negative $1.

Gross profit decreased $5. This decrease in cash flow from
operations is due primarily to a decrease in accrued expenses
due to the timing of vendor payments, combined with a
reduction in earnings.")

-- As of January 31, 2005, the Company had outstanding debt of
$402. The teleconference dial-in number is
800-811-8824.5
Add: Depreciation and amortization from
continuing operations 11.9) $36.

(7) The Company expects to use cash flow from operations to maintain
its facilities at a level comparable to 2004, for stock
repurchases, to further reduce debt or for growth initiatives as
appropriate .48 (1)

Adjusted Net Earnings $49 - $53 (1)
Add: Depreciation and amortization $48 - $55
Add: Interest expense $31 - $39
Add: Income taxes $30 - $33
-----------
Adjusted EBITDA $158 - $180 (1)
============

Cash Flow Items
---------------
Net cash provided by operating activities $50 - $60
Less: Maintenance capital expenditures $16 - $18
-----------
Free Cash Flow $34 - $42
===========

(1) Excludes any gains or losses associated with asset dispositions,
and excludes charges for early extinguishments of debt of $2. Created
in 2002, Nomade has enjoyed resounding success in Montreal , Paris, London,
Vienna, Athens, Rotterdam, Beirut, Jerusalem, Hong Kong, and more than 70
cities in the United States.S.

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In fact, due to the timing of vendor payments and interest payments,
the Company has historically had negative to slightly positive cash
flow in the first quarter while generating greater amounts of cash in
later quarters.

The cremation rate for the Company's same-store businesses was
37.

The Company realized an annual average return of 3.0 million
seven-year Term Loan B and recorded a charge for early
extinguishment of debt of $2.1 million in the
first quarter of 2004, which resulted from the write-down of
certain marketable securities during the first quarter of
2004.0 million in the first quarter of
2004. (See table under "Reconciliation of
Non-GAAP Financial Measures.

Founded in 1910 , Stewart Enterprises is the third largest provider
of products and services in the death care industry in the United
States, currently owning and operating 236 funeral homes and 147
cemeteries.com . In the
first quarter of 2004, the Company recorded a charge for separation
pay of $2.48,
which excludes unusual items. Finzi Pasca will collaborate on this project with Lugano's Teatro Sunil, a
company he founded, and Montreal's Cirque Eloize.
Daniele Finzi Pasca founded Teatro Sunil in 1983 in Lugano, Switzerland.
Although his company may be based in Lugano, Finzi Pasca's productions
regularly grace worldwide stages.
Daniele Finzi Pasca will share his great Olympic adventure and invite us
behind the scenes during his preparations on his blog:
http://danielefinzipasca-torino.com .

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3 million for the
first quarter of 2005, due primarily to the decline in the number of
families served by same-store funeral homes during the first quarter.
(See tables under "Reconciliation of Non-GAAP Financial Measures.2 million and cash of $19. As of March 1, 2005, the Company had received
$25.2
million of its outstanding 10 3/4% Senior Subordinated Notes due in
2008, and to pay related tender premiums, fees, expenses and accrued
interest of about $29 million."

First Quarter Results From Continuing Operations

Funeral revenue decreased $3.0 percent per cremation service for the quarter, partially
offset by a year-over-year reduction in funeral trust earnings
and an increase in the proportion of non-traditional funerals,
including cremations, resulting in an overall increase of 1.1 million in the first quarter
of 2005, compared to negative $1. 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. EBITDA margins are calculated by dividing adjusted
EBITDA from continuing operations by revenue from continuing
operations.7
Add: Separation charges -- 2.
AND SUBSIDIARIES

COMPANY FORECASTS FOR CONTINUING OPERATIONS IN FISCAL YEAR 2005

Certain statements made herein or elsewhere by , or on behalf of, the
Company that are not historical facts are intended to be
forward-looking statements within the meaning of the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. In 2000, he wrote and directed Visitatio, a
joint production between Teatro Sunil and Carbone 14 in Quebec.

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Adjusted Earnings from Continuing Operations
(reconciliation of non-GAAP financial measure)

(all items are net of income Three Months Ended
taxes ) January 31,
----------------- -----------------------
2005 2004
------------------- -------------------
millions per share millions per share
Consolidated net earnings $9. Budde commented, "Notwithstanding the decline in events, our
funeral businesses have done an excellent job of achieving a higher
average revenue per funeral service through improved marketing, and
achieved increases during the quarter that were in line with our goal
of 2 to 3 percent, excluding the contribution from trust earnings .7 million.44 to
$.1 million during the second quarter,
and excludes any potential gains or losses associated with impairment
adjustments or asset dispositions.

Cemetery revenue decreased $1.

Funeral margins were 28.9 million, compared to net cash
provided by operating activities of $2.m.08 $ 0.7
Add (Subtract): Loss (earnings) from
discontinued operations 0.

For these reasons, the forecasts should not be regarded as an accurate
prediction of future results, but only of results that may be obtained
if substantially all of management's principal forecasts and
assumptions are realized.
AND SUBSIDIARIES

COMPANY FORECASTS FOR CONTINUING OPERATIONS IN FISCAL YEAR 2005
(Unaudited)

Adjusted diluted earnings per share from continuing operations for
fiscal year 2005 are expected to be in the range of $. The upper end
of the forecast range assumes that these businesses will serve the
same number of families during fiscal year 2005 as in 2004, and
the lower end assumes a possible reduction in the number of
families served of up to 3 percent.2 million of its 10 3/4% notes
and will incur a charge for early extinguishment of debt of
approximately $30.7 million to
write-off the remaining unamortized book value of fees on the
prior notes. Original costumes from Fellini's film "The
Clowns," (designed by Oscar winner Danilo Donati) along with new
circus-inspired costumes, will contribute to the Carnevale theme of the
program. A worldwide television audience of more than 2 billion people will
watch this splendid display where fireflies will be transformed into stars,
men will become kites and heroes will be portrayed not as warriors, but as
athletes and champions. The Company has produced some 20 shows that have been
performed on stages in many countries.

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48, including the interest savings from the refinancing transactions
completed in February 2005, and continues to expect to generate $50 to
$60 million in cash flow from operations.2 million to $71.7
percent in average revenue per funeral service performed. To participate, please call the
number or go to the website at least 15 minutes prior to the call.
AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
FOR THE PERIODS ENDED JANUARY 31, 2005 AND 2004
(Unaudited)

The Company uses adjusted EBITDA from continuing operations and free
cash flow as financial measures. The reconciliation of these non-GAAP financial measures to the
most directly comparable GAAP financial measure is presented below and
is also available through Stewart Enterprises' website at
www. Due to the Company's significant
cash investment in preneed activity, management does not view adjusted
EBITDA as a measure of the Company's cash flow. The Company cautions
readers that it assumes no obligation to update or publicly release
any revisions to the forecasts made herein and, except to the extent
required by applicable law, does not intend to update or otherwise
revise the forecasts more frequently than quarterly. Factors that could cause actual results to
differ materially from the forecasts are more fully described in Item
7 of the Company's Form 10-K for the year ended October 31, 2004. The Company does not represent or warrant,
and assumes no responsibility for, the completeness, accuracy or
reliability of the forecasts. Finzi Pasca With Teatro Sunil to Collaborate With Cirque Eloize

'Carnevale ' Theme Includes Masks, Clowns, Circus Arts and Fellini Costumes

NEW YORK, Executive producer Marco Balich of
K2006/FilmMaster (the company in charge of developing and producing the
Olympic Ceremonies) has chosen Daniele Finzi Pasca to create, write and direct
the entertainment for the closing ceremonies of the XX Olympic Winter Games in
Torino, Italy, which will take place at the Olympic Stadium on February 26th. While he was
in Montreal, Finzi Pasca met Jeannot Painchaud and Julie Hamelin, which led to
Finzi Pasca becoming a driving force behind the production of Nomade -- At
night, the sky is endless and Rain -- Comme une pluie dans tes yeux.

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11 per diluted share and $11.11
per diluted share, respectively, which included a severance charge of
$2.6 million ($0 .5 $.4) (.10 $12.0 million for the first quarter of 2004.
During the first quarter of 2005, the Company's preneed funeral
sales were flat compared to the first quarter of 2004, and cemetery
property sales increased 2 percent, which were below the Company's
forecasts of 4 to 8 percent .1 million. It has 9 additional businesses it will
continue to market.6 million,
principally due to a 5.2 million due in large measure to an increase in
legal and professional fees.

5 million and cash of $12.

-- In June 2003, the Company announced a $25 million stock
repurchase program, which was subsequently increased by $3
million to a total of $28 million.11
Earnings from discontinued operations -- --
--------- ---------
Net earnings $ 0.

STEWART ENTERPRISES, INC. The following tables provide
reconciliations between net earnings (the GAAP financial measure that
the Company believes is most directly comparable to adjusted EBITDA)
and adjusted EBITDA from continuing operations for the three months
ended January 31, 2005 and 2004:

Adjusted EBITDA from Continuing Operations Three Months Ended
January 31,
---------------------
(Dollars in millions) 2005 2004
---------- ----------
Consolidated net earnings $9.2)
---------- ----------
Earnings from continuing operations 9.

STEWART ENTERPRISES, INC. Guidance for adjusted
diluted earnings per share and all other forecasted operating measures
specifically exclude the following:

-- Gains or losses associated with asset dispositions.
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.

This grand finale of fire and colors, masks and acrobats, games and
rituals will take place live in front of 35,000 spectators in the Olympic
Stadium.

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9
million, or $.10 per diluted share in the first quarter of 2005
compared to $12.3 $.3 $.6 million for the first quarter of 2005
compared to $74 . Cemetery
revenue was $54. With the
dedication and commitment of our entire team, we expect strong results
during the remainder of this year, and we are committed to achieving
the goals we have previously set.7 percent in the comparable period of 2004.1 million to $31.2 million to
repurchase 0.11
========= =========

Weighted average common shares outstanding (in
thousands):
Basic 109,087 107,878
========= =========
Diluted 109,450 108,098
========= =========

Certain reclassifications have been made to the 2004 consolidated
statement of earnings in order for these periods to be comparable. Investors should be
aware that adjusted EBITDA may not be comparable to similarly titled
measures presented by other companies.1 (0.1
========= ==========

(1) Includes a cash inflow of $33. Increases in
average revenue per funeral service performed may be partially
offset by a decrease in the number of families served by
continuing operations in 2005 as compared to 2004.
Mr. tour) and Nomade (now on an international tour). tour.

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3 million , or $.5 million, or $. At this time, the Company continues to believe that it will
achieve its goal of increasing preneed sales by 4 to 8 percent for
fiscal year 2005.7 million
during the first quarter and $30.7
million in the first quarter of 2004.

-- Depreciation and amortization from total operations was $11.7 million.
AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
FOR THE PERIODS ENDED JANUARY 31 , 2005 AND 2004
(Unaudited)

Free cash flow is defined as net cash provided by operating activities
less maintenance capital expenditures.

(2) Cemetery property sales are expected to increase by 4 to 8
percent.

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3 million ($0.11
Add: Separation charges -- -- 1.1) -- (0.9 million for the first quarter of 2005 compared to
$56.2 percent for the same period in 2004.

Cash Flow Results and Debt for Total Operations

-- Net cash used in operating activities for the quarter ended
January 31, 2005 was $1.
Including the tax refund, free cash flow was $32. Based on current interest rates,
the Company will realize a pre-tax reduction of annual
interest expense of approximately $14 million , or
approximately $1.08 $ 0.

The forecasts included herein were prepared by the Company 's
management for the purpose of providing all investors with
forward-looking financial information frequently sought by the
investment community.

The Company's 2005 forecast from continuing operations is intended
to reflect forecasted same-store results. Negotiations are
currently underway with Broadway producers to bring the show back to New York.

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Budde, Chief Executive Officer, stated, "Our operating
results during the first quarter were impacted by a decline in the
number of funeral and cemetery events performed by our businesses,
particularly during December and January, which we believe to be
consistent with a decline in the number of deaths in our markets. The Company believes that adjusted earnings from continuing
operations is a useful measure for providing additional insight into
the Company's operating performance as it eliminates the effects of
certain items that are not comparable from one period to the next.2 $. The contribution
of trust earnings recognized as revenue upon the delivery of preneed
funerals was lower in the first quarter of fiscal year 2005 than in
the first quarter of fiscal year 2004 due to lower investment returns
realized in the Company's preneed funeral trust funds during previous
years.2 percent compared to 30.

Interest expense decreased $2.9 million
in the first quarter of 2004.

-- As of March 1, 2005, the Company had outstanding debt of
$434. In total, the Company has
invested $25. Interested parties may also listen to the live
conference call via the Internet through Stewart Enterprises' website
at http://www.08 $ 0.7 $45.1) $32.4 million for the
tender premium, related fees and expenses, and $4.7
million during the first quarter and $30. NBC will broadcast the Closing Ceremonies in
primetime on Sunday, February 26th, 7 - 11 P.

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2 . Revenue related to the sale of cemetery property prior to its
construction is recognized on a percentage of completion method of
accounting as construction occurs.
During February 2005, the Company completed a private offering of
$200 million of 6 1/4% Senior Notes due in 2013, and borrowed $130
million in additional term loan debt under its senior secured credit
facility.
Mr.3
percent for the first quarter of 2004.6 million in the first quarter of 2005 compared to $12.

-- The Company's cash flow does not come in evenly throughout the
year.1 million in the first
quarter of 2004, excluding the tax refund mentioned above. Accordingly, there can
be no assurance that the assumptions made in preparing the forecasts
will prove accurate, and actual results may vary materially from those
contained in the forecasts.M.

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2 million, or
$.1
million after tax). In the first quarter of fiscal year 2004 , the
Company reported net earnings and earnings from continuing operations
of $11.7 million, or $.01
Subtract: Gains on
dispositions, net of
impairment losses (0.0 percent increase in the average
revenue per cremation service.9 million, and free cash flow was negative $5.1 million in
the first quarter of 2004.
AND SUBSIDIARIES

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

Three Months Ended
January 31,
-------------------
2005 2004
--------- ---------
Revenues:
Funeral $ 71,623 $ 74,774
Cemetery 54,856 56,015
--------- ---------
Total revenues 126,479 130,789
--------- ------ ---
Costs and expenses:
Funeral 51,413 51,936
Cemetery 43,172 41,848
--------- ---------
Total costs and expenses 94 ,585 93,784
--------- ---------
Gross profit 31,894 37,005
Corporate general and administrative expenses (4,216) (3,913)
Separation charges -- (1,993)
Gains on dispositions, net of impairment losses 331 603
Other operating income, net 244 439
-------- - ---------
Operating earnings 28,253 32,141
Interest expense (10,376) (12,521)
Loss on early extinguishment of debt (2,651) --
Investment and other income (expense), net 108 (1,125 )
--------- ---------
Earnings from continuing operations before
income taxes 15,334 18,495
Income taxes 5,989 7,028
--------- ---------
Earnings from continuing operations 9,345 11 ,467
Discontinued operations:
Earnings from discontinued operations before
income taxes 3 420
Income taxes 138 159
--------- ----- ----
Earnings (loss) from discontinued
operations (135) 261
--------- ---------

Net earnings $ 9,210 $ 11,728
========= =========

Basic earnings per common share:
Earnings from continuing operations $ 0.
These reclassifications had no effect on net earnings .0 7.0
---------- ----------
EBITDA from continuing operations 37.2 3.

Principal Assumptions

The Company's 2005 forecast from continuing operations is based on
the following principal assumptions:

(1) The average revenue per traditional and cremation funeral service
performed is expected to increase by about 2 to 3 percent,
excluding any impact from funeral trust earnings .7 million.44 - $.blogs.

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3 million, or $. Due to the long-term heritage associated
with cemeteries , fluctuations in cemetery events generally are linked
more to fluctuations in the overall number of deaths than to shifts in
market share.01)
Add: Loss on early
extinguishment of debt 1.7 .1 million. Market share continues to
be one of the most important performance measures we use.8 million in the first
quarter of 2004, which excludes a tax refund of $33.

-- Free cash flow was negative $5. During February
2005, the Company completed a private offering of $200 million
of its 6 1/4% Senior Notes due in 2013 and borrowed $130
million in additional term loan debt under its senior secured
credit facility. The Company used the net proceeds, together
with a portion of its available cash, to repurchase $298.stewartenterprises.11
Earnings from discontinued operations -- --
--------- ---------
Net earnings $ 0.com in the investor information section.

STEWART ENTERPRISES, INC.1 million representing $25. Icaro, a magnificent monologue written
and interpreted by Finzi Pasca himself, has been seen in 25 countries and
translated into six languages.

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01 per diluted share).11
========= ========= ========= =========

Revenue from continuing operations decreased $4.
Funeral revenue was $71.")
The Company's cash flow does not come in evenly throughout the year.
The Company continues to expect fiscal year 2005 adjusted earnings
per share from continuing operations to be in the range of $. Adjusted earnings per share
excludes charges for early extinguishments of debt of $2.6 percent for
the same period in 2004. Cemetery margins were 21.4 million in the first quarter
of 2004, which primarily consists of net gains on the sale of
assets that were not included in businesses classified as
held-for-sale.1 million to $10 .1 million.

(4) While the Company intends to control costs, it does not anticipate
further significant cost cuts as those implemented during fiscal
year 2004. He is also the
creator and director of the new Cirque du Soleil show "Corteo," which is
presently on a U.

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4
million after tax, or $. The
timing and severity of the flu season, which fluctuates from year to
year, can have a considerable impact on our business, and this year we
seem to be experiencing a milder and later flu season than we
experienced last year.4 percent, and
that decline was mirrored by a reduction in the number of families
served in its cemeteries.2) --
--------- --------- --------- ---------
Earnings from continuing
operations $9.
The Company's divestiture of non-performing businesses is
proceeding as planned.7 million from the sale of 62 businesses and had entered into
preliminary agreements to sell an additional 8 businesses for
approximately $2. Budde concluded, "The first quarter of fiscal year 2005 was
challenging for us, marked not only by a decline in the number of
deaths in our markets, but also by a slow start on our anticipated
preneed sales growth for the year.1 million in the first
quarter of 2005 compared to an expense of $1.2 million
received during the first quarter of fiscal year 2004
resulting from a change in tax accounting methods for cemetery
merchandise revenue.5 million shares . A
replay of the call will be available on the Company's website until
March 22, 2005.5
Add: Income taxes from continuing operations 6.7 --
---------- ----------
Adjusted EBITDA from continuing operations $39.2 million for tax refunds received. The Company expects to generate $50 to
$60 million in cash flow from operations.

STEWART ENTERPRISES, INC. These risks
and uncertainties include, but are not limited to:

-- effects of changes in the number of deaths in our markets on
revenues;

-- 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;

-- our ability to respond effectively to changing consumer
preferences;

-- effects of increasing numbers of cremations on our revenues and
market share;

-- changes in economic conditions and consumer confidence levels;

-- effects on our trust fund and escrow accounts of changes in stock
and bond prices and interest and dividend rates;

-- effects on earnings and cash flow of increased costs;

-- effects on preneed sales of changes made to contract terms, sales
force compensation, or a weakening economy;

-- our ability to sell certain under-performing operations;

-- impairment charges due to changes in expected asset sale prices;

-- our ability to generate sufficient cash to service our debt;

-- effects on cash flow as a result of preneed sales;

-- effects of increases in interest rates on our variable-rate
long -term debt;

-- effects of covenant restrictions under our senior secured credit
facility on our flexibility in operating our business;

-- our ability to consummate acquisitions;

-- impact of our initiatives;

-- effects of changes in revenue on our cash flow and profits;

-- effects of regulatory and legal changes on our costs and cash
flow;

-- effects of changes in accounting principles on our reported
results;

and other risks and uncertainties described in our Form 10-K for the
year ended October 31, 2004 and our other filings with the SEC .S.

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That fact, coupled with the Company's monitoring of
funeral market share, suggests that the lower events in the first
quarter were primarily related to a decrease in deaths and are not
indicative of a substantial loss in market share.1 -- (0.9 $. The Company used the net proceeds of those transactions,
together with a portion of its available cash, to repurchase $298. Due to
the fixed cost nature of the business, the significant decline
in funeral and cemetery events had a disproportionate impact
on margins.4 million
during the first quarter of 2005 due to a $72. Including the tax refund, cash flow
from operations was $36.7 million and recorded gains on
dispositions, net of impairment losses, of $0.0 million and recorded gains on dispositions, net of
impairment losses, of $0. Adjusted EBITDA from continuing
operations , which excludes the charges discussed above, is also
provided below.

STEWART ENTERPRISES, INC.

Daniele Finzi Pasca Is Chosen to Create the Closing Ceremonies at Torino 's XX Winter Olympics

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2 million after tax, or $.7 percent increase in the
average revenue per funeral service for the quarter."
Information regarding the Company's earnings and cash flow
forecasts and the principal assumptions used in those forecasts can be
found in this release under the heading "Company Forecasts for
Continuing Operations in Fiscal Year 2005.4 million
decrease in the average debt outstanding during the quarter
and a 27 basis-point decrease in the average interest rate for
the period.

On November 19, 2004, the Company completed the refinancing of
its senior secured credit facility with a $125. From outside the continental United States , call
913-981-4903. These financial measures are not in
accordance with accounting principles generally accepted in the United
States of America ("GAAP") and are intended to supplement, rather than
replace or supersede, any information presented in accordance with
GAAP.4 12.0
Subtract: Gains on dispositions, net of
impairment losses (0. 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).

Accuracy of the forecasts is dependent upon assumptions about events
that change over time and is thus susceptible to periodic change based
on actual experience and new developments. The Company believes it is
appropriate to use the range of diluted earnings per share provided
herein because of the uncertainty of possible developments described
below under "Principal Assumptions. Although the increase in cemetery property sales was
below this range during the first quarter of fiscal year 2005, at
this time the Company believes the increase of 4 to 8 percent is
achievable for the fiscal year.14 (1)

Adjusted Net Earnings $13 - $15 (1)
Add: Depreciation and amortization $12 - $14
Add: Interest expense $7 - $9
Add: Income taxes $8 - $9
----------
Adjusted EBITDA $40 - $47 (1)
==========

Fiscal Year 2005 Forecast
-------------------------

Income Statement Items
----------------------
Revenue $500 - $530
Gross profit $125 - $145
Operating earnings $108 - $125
Interest expense $31 - $39

Adjusted Earnings per share (diluted ) $. 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.
As Mr. Finzi Pasca is a highly esteemed talent best known internationally
for shows based on the circus world, the closing ceremonies in Torino will be
a Commedia dell'Arte-style marriage of Italy's masked celebration of Carnevale
and the sounds, colors and visuals typical of the Circus.

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08 per diluted share and $9.01 per diluted share) and
gains on dispositions, net of impairment losses, of $0.02 -- - -
--------- --------- --------- ---------
Adjusted earnings from
continuing operations $10."
For the first quarter of 2005, the Company's same-store funeral
operations achieved a 2.9 million due
primarily to a decrease in perpetual care trust earnings and a
decline in events, which was partially offset by an increase
in revenue associated with the construction of cemetery
projects during the quarter and cemetery property sales.

Corporate general and administrative expenses increased $0.

Other operating income, net was $0.0 million
five-year revolving credit facility and a $100.

Depreciation and Amortization

-- Depreciation and amortization from continuing operations was
$11.2 million and cash of $19.

afterwards cremation

"
The Company's same-store funeral events were down 5.08 $11.7 $. We are intently focused on not only
retaining, but increasing our market share over the long-term, and
this represents a real opportunity for us.1 million to $54.08 $ 0.stewartenterprises .6 12.3 43. The forecasts have not been audited or otherwise
approved by the Company's independent registered public accounting
firm or by any regulatory authority. 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.

estonians khants

08 per diluted share,
respectively, including a charge of $2.
Kenneth C.11
Add (Subtract): Loss
(earnings) from
discontinued operations 0. These gains were partially offset by a
year-over-year reduction in funeral trust earnings and an increase in
the proportion of non-traditional funeral services, including
cremations , resulting in an overall 1. As of March 1, 2005, the Company had outstanding debt
of $434.

The Company's same-store businesses achieved average revenue
increases of 2.7 million to write off the
remaining unamortized fees related to the prior agreement.

Investment and other income, net was $0.7
million in the first quarter of 2005 compared to $12.2 million per month . During the second quarter,
through March 4, 2005, the Company invested $3.0 million shares since
inception of the program.6)
Add: Loss on early extinguishment of debt 2.2 million received during fiscal year 2004.S.

iconography burial

8 million for the first quarter of 2004. Preneed funeral sales increased 17
percent during the first quarter of 2004, and although the Company's
sales team produced strong preneed funeral results during the first
quarter of 2005, the comparison to last year resulted in net preneed
funeral sales being flat compared to the prior year.3 percent per traditional funeral service and
6.3 million in the first
quarter of 2005 compared to $0. In fact, due to the timing of vendor payments and
interest payments, the Company has historically had negative
to slightly positive cash flow in the first quarter while
generating greater amounts of cash in later quarters.5 million to repurchase 4. will host its quarterly conference call
for investors to discuss first quarter results today at 10 a.11
========= =========

Diluted earnings per common share:
Earnings from continuing operations $ 0.

Management believes that adjusted EBITDA is a useful measure for
providing additional insight into the Company's operating performance
as it eliminates the effects of certain items that are not comparable
from one period to the next. Management believes that adjusted EBITDA
is used by investors and lenders to compare the Company's performance
with prior periods; the Company's presentation of adjusted EBITDA
herein is consistent with the calculation of adjusted EBITDA as
presented by the Company in the past.3) (0.1
========== ==========

STEWART ENTERPRISES, INC.9
--------- ----------
Free cash flow $(5.

The forecasts are based on a variety of estimates and assumptions made
by management of the Company with respect to, among other things,
industry performance; general economic, market, industry and interest
rate conditions; preneed and at-need sales activities and trends;
fluctuations in cost of goods sold and other expenses; capital
expenditures; the anticipated impact of the Company's initiatives;
success and timing of selling certain under-performing operations; and
other matters that cannot be accurately predicted, may not be realized
and are subject to significant business, economic and competitive
uncertainties, all of which are difficult to predict and many of which
are beyond the Company's influence or control."

For a further discussion of risks related to the Company's
business that could affect this outlook, please refer to "Cautionary
Statements" included in this press release and in Item 7 of the
Company's Form 10-K for the year ended October 31, 2004. Although the number of
families served during the first quarter of fiscal year 2005 was
below the lower end of the forecast range, the Company continues
to believe that deaths will be in line with its forecasts for the
full year. During the second quarter of fiscal year
2005, the Company repurchased $298.
AND SUBSIDIARIES

COMPANY FORECASTS FOR CONTINUING OPERATIONS IN FISCAL YEAR 2005
(Unaudited)

(Dollars in millions, except per share amounts)

Second Quarter 2005 Forecast
----------------------------

Income Statement Items
----------------------
Revenue $125 - $140
Gross profit $30 - $40
Operating earnings $26 - $35
Interest expense $7 - $9

Adjusted Earnings per share (diluted) $. Finzi Pasca is the noted
creator , director and writer of numerous shows including two acclaimed Cirque
Eloize shows: Rain (which played in New York this past summer and is currently
on a U.

symbolism funerary

Business Editors

NEW ORLEANS ----Stewart Enterprises,
Inc.11 per diluted share in the first
quarter of 2004. The Company's
227 same-store funeral homes experienced a total decrease of 904
events out of the 16,633 total same -store events performed. The decrease in cemetery
revenue was due primarily to a decrease in perpetual care trust
earnings and a decline in events, which was partially offset by an
increase in revenue associated with the construction of cemetery
projects during the quarter and an increase in cemetery property
sales.
Mr. The Company has restructured its sales
organization in Puerto Rico and expects cemetery property sales to
improve.8 percent
in its perpetual care trust funds during the first quarter of
2005 compared to 4.9 million due
primarily to the decrease in funeral and cemetery revenue as
discussed above.2
million in aggregate principal amount of its outstanding 10
3/4% Senior Subordinated Notes due in 2008, and to pay related
tender premiums, fees, expenses and accrued interest of
approximately $29 million.

EBITDA is defined as earnings plus depreciation, amortization,
interest expense and income taxes from continuing operations .6 million, which are included in EBITDA from
continuing operations presented below.2 $11. The following table
provides a reconciliation between net cash provided by (used in)
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 months ended January 31, 2005 and 2004:

Free Cash Flow Three Months Ended
January 31,
--------------------
(Dollars in millions) 2005 2004(1)
--------- ----------
Net cash provided by (used in) operating
activities $(1. tour. The creative team
for this project includes Maria Bonzanigo, Antonio Vergamini, Hugo Gargiulo
and Marco Finzi Pasca of Teatro Sunil along with Julie Hamelin and Jeannot
Painchaud of Cirque Eloize. Rain was recently ranked among the top ten
productions of 2005 in San Francisco, and was a nominee for the "Best Touring
Production of the Year" Award by the Theatrical Management Association (TMA)
in the United Kingdom.

iconography monstrous

Stewart Enterprises Reports Results for First Fiscal Quarter of 2005

4 percent decrease in the number of
same -store funeral services performed.3 11.0
Less: Maintenance capital expenditures 3.44 to $.

(3) Total revenue from trust earnings, including earnings recognition
from funeral, cemetery and perpetual care trust funds, is expected
to be slightly down from that recognized in 2004.12 - $.