Parkway Properties Prices Series D Preferred Stock Offering

JACKSON, Miss., Aug. 9 /PRNewswire-FirstCall/ -- Parkway Properties, Inc. (NYSE: PKY) announced that it has priced today a public offering of 1,974,896 additional shares of its 8.0% Series D Cumulative Redeemable Preferred Stock. Upon completion of this offering, the Company will have 4,374,896 shares of 8.0% Series D Cumulative Redeemable Preferred Stock outstanding. The shares were priced at $23.757 per share equating to a yield of 8.500% (excluding accrued dividends).  The Series D Preferred Stock has a $25 liquidation value per share and was redeemable at the option of the Company as of June 27, 2008.  Dividends on the Series D Preferred Stock sold in this offering will be payable quarterly and the first dividend on stock sold in this offering will be paid on October 15, 2010, in the amount of $0.50 per share. The offering will result in approximately $45 million of net proceeds, which will be used for working capital and general corporate purposes, which may include acquisitions, other portfolio investments and the repayment of borrowings outstanding under the Company's unsecured line of credit.

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Wells Fargo Securities, LLC and Banc of America Securities LLC acted as joint book-running managers on the transaction. This press release is neither an offer to sell nor a solicitation of an offer to buy shares of Series D Preferred Stock. The offering may be made only by means of a prospectus and related prospectus supplement. Copies of the prospectus supplement and accompanying prospectus relating to these securities may be obtained from Wells Fargo Securities, LLC, 1525 West W.T. Harris Blvd., NC0675, Charlotte, North Carolina 28262, Attn: Syndicate Operations, 1-800-326-5897, email: [email protected] and Banc of America Securities LLC, Attention: Prospectus Department, 100 West 33rd Street, 3rd Floor, New York, New York 10001, 1-800-294-1322, email:  [email protected].

About Parkway

Parkway Properties, Inc., a member of the S&P Small Cap 600 Index, is a self-administered real estate investment trust specializing in the operation, leasing, acquisition, and ownership of office properties. The Company is geographically focused on the Southeastern and Southwestern United States and Chicago. Parkway owns or has an interest in 64 office properties located in 11 states with an aggregate of approximately 13.2 million square feet of leasable space at August 9, 2010.  Included in the portfolio are 21 properties totaling 3.9 million square feet that are owned jointly with other investors, representing 29.3% of the portfolio.  Fee-based real estate services are offered through the Company's wholly-owned subsidiary, Parkway Realty Services, which also manages and/or leases approximately 2.8 million square feet for third-party owners at August 9, 2010.

Forward-Looking Statements

Certain statements in this release that are not in the present or past tense or that discuss the Company's expectations are forward-looking statements within the meaning of the federal securities laws and as such are based upon the Company's current belief as to the outcome and timing of future events. There can be no assurance that future developments affecting the Company will be those anticipated by the Company. These forward-looking statements involve risks and uncertainties (some of which are beyond the control of the Company) and are subject to change based upon various factors, including but not limited to the following risks and uncertainties: changes in the real estate industry and in performance of the financial markets; the demand for and market acceptance of the Company's properties for rental purposes; the amount and growth of the Company's expenses; tenant financial difficulties and general economic conditions, including interest rates, as well as economic conditions in those areas where the Company owns properties; risks associated with joint venture partners; the risks associated with the ownership and development of real property; the failure to acquire or sell properties as and when anticipated; the outcome of claims and litigation involving and affecting the Company and other risks and uncertainties detailed from time to time in the Company's SEC filings. Should one or more of these risks or uncertainties occur, or should underlying assumptions prove incorrect, the Company's results could differ materially from those expressed in the forward-looking statements. The Company does not undertake to update forward-looking statements.

SOURCE Parkway Properties, Inc.