September 25, 2007

            LANSING - Attorney General Mike Cox today announced that court-appointed conservator Mark J. Zausmer has reached an agreement to sell the 28 cemeteries that were allegedly raided by Clayton Smart.

            "Today's purchase of the cemeteries is a big step in resolving a very difficult problem," said Cox. "I want to thank Mark Zausmer and Keith Cooley [Director of Department of Labor and Economic Growth] for their hard work and diligence."

            Mr. Zausmer has filed a petition with the Ingham County Circuit Court seeking approval to sell the cemeteries for $32 million to the Detroit Memorial Group. The sale price includes $21.9 million to replenish funds that were missing from certain trust accounts at the 28 cemeteries when the State assumed control last December. The transaction will transfer ownership to an experienced cemetery operator and third generation cemetery professional, David Shipper, of Ewing, New Jersey. Mr. Shipper currently owns 12 cemeteries in Indiana and two cemeteries in New York and will form Detroit Memorial Group to acquire and operate the 28 Michigan cemeteries. He is the past president of the International Cemetery and Funeral Home Association and former vice-chairman of the New Jersey Cemetery Board. The deal is expected to close on November 1, 2007.

            Director Cooley stated, "I am confident that the new owner will operate the cemeteries in accordance with the cemetery regulations of this State. The public can be assured that the Cemetery Commissioner and the Department made every effort to select the best possible person to operate these cemeteries."

            On December 18, 2006, based upon action taken by Cox on behalf of Cemetery Commissioner Andrew Metcalf, the State assumed control of the cemeteries amid allegations that the owner, Clayton Smart of Okmulgee, Oklahoma, had embezzled cemetery trust funds. The Attorney General subsequently charged Smart with 39 felony counts in connection with the alleged embezzlement. Mr. Smart is currently in jail in Tennessee ? where he faces similar charges relative to cemeteries and funeral homes he owns in that state ? pending extradition to stand trial on the Michigan charges.

            Mr. Zausmer commented that, "I am confident that the new ownership team has a vision and plan to successfully operate the cemeteries."

            An intensive search to identify a buyer for the 28 cemeteries was conducted, with Mr. Shipper and Detroit Memorial Group emerging as the successful bidder.

            Under the agreement, Detroit Memorial Group will deposit $21.9 million into merchandise trust accounts for the 28 cemeteries, bringing the cemeteries into compliance with the funding requirements of the Michigan Cemetery Regulation Act which protects consumers who pre-purchase cemetery merchandise and services. Detroit Memorial Group has committed to fulfilling all contractual obligations to consumers in accordance with all applicable laws of the State of Michigan. The remaining $10.1 million of the $32 million purchase price will go into cemetery operating accounts to be used to complete mausoleum construction projects, make repairs to cemetery buildings and roadways, upgrade cemetery equipment, and to meet other operating obligations.

            "Recovery of the trust funds has been a high priority from the outset and this transaction will ensure that consumers are fully protected for any merchandise purchases, including mausoleums, that were made at the cemeteries" Cox continued.

            A hearing on the petition to approve the sale is scheduled for September 28, 2007 before the Honorable James Giddings in the Ingham County Circuit Court.

- 30 -