JACKSON, Miss., Jan. 14 /PRNewswire-FirstCall/ -- Parkway Properties, Inc. (NYSE: PKY) announced today that the tax treatment for the 2008 distributions for Parkway Properties CUSIP #70159Q10-4 traded on the New York Stock Exchange under ticker symbol PKY is as follows:



    Common Stock:

                                                         Unrecap-
                        Total                             tured
                        Distri-               Total      Section Nondividend
     Record  Payment    bution   Ordinary  Capital Gain   1250     Distri-
      Date    Date     Per Share Dividends Distribution   Gain(1)  butions(2)

    03/12/08 03/26/08  $0.650000 $0.283789  $0.268729  $0.220061  $0.097482
    06/11/08 06/25/08   0.650000  0.283789   0.268729   0.220061   0.097482
    09/10/08 09/24/08   0.650000  0.000000   0.552519   0.452454   0.097481
    12/10/08 12/24/08   0.325000  0.276260   0.000000   0.000000   0.048740

            Totals     $2.275000 $0.843838  $1.089977  $0.892576  $0.341185

The income tax treatment for the 2008 Series D Preferred distributions for Parkway Properties, Inc. CUSIP #70159Q40-1 traded on the New York Stock Exchange under ticker symbol PKY PrD is as follows:



    Series D Preferred Stock:
                                                          Unrecap-
                         Total                             tured
                         Distri-               Total      Section Nondividend
     Record   Payment    bution   Ordinary  Capital Gain   1250     Distri-
      Date     Date     Per Share Dividends Distribution   Gain(1)  butions(2)

    03/31/08 04/15/08  $0.500000 $0.330778  $0.169222   $0.138575   $0.000000
    06/30/08 07/15/08   0.500000  0.330778   0.169222    0.138575    0.000000
    09/30/08 10/15/08   0.500000  0.000000   0.500000    0.409447    0.000000
    12/31/08 01/15/09   0.500000  0.500000   0.000000    0.000000    0.000000

            Totals     $2.000000 $1.161556  $0.838444   $0.686597   $0.000000

(1) Unrecaptured Section 1250 Gain is a subset of, and included in, the Total Capital Gain Distribution amount.

(2) Return of Capital

Of the total ordinary dividends paid during 2008, none are considered qualifying dividends for purposes of the 15% income tax rate as added by the 2003 Tax Act. The Company did not incur any foreign taxes. Should you need any additional information, call Rita Jordan at (601) 948-4091.

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 67 office properties located in 11 states with an aggregate of approximately 13.5 million square feet of leasable space as of January 14, 2009. Included in the portfolio are 21 properties totaling 3.8 million square feet that are owned jointly with other investors, representing 28% of the portfolio. Under the Company's GEAR UP Plan, which started January 1, 2006 and ended December 31, 2008, it is the Company's strategy to transform from an owner-operator to an operator-owner. The strategy highlights the Company's strength in providing excellent service in the operation of office properties in addition to its direct ownership of real estate assets. Fee-based real estate services are offered through the Company's wholly owned subsidiary, Parkway Realty Services, which also manages and/or leases approximately 1.8 million square feet for third-party owners as of January 14, 2009.

Parkway Properties, Inc.'s press releases and additional information about the Company are available on the World Wide Web at www.pky.com.



    CONTACT:  J. MITCHELL COLLINS, CHIEF FINANCIAL OFFICER
              SARAH P. CLARK, SENIOR VICE PRESIDENT
              (601) 948-4091

    (Logo:  http://www.newscom.com/cgi-bin/prnh/20030513/PARKLOGO )

SOURCE Parkway Properties, Inc.