Parkway Properties Provides Tax Treatment of 2010 Dividends

JACKSON, Miss., Jan. 14, 2011 /PRNewswire/ -- Parkway Properties, Inc. provided today the tax treatment for its 2010 distributions, as follows.

Common Stock (CUSIP #70159Q10-4, ticker symbol PKY on the NYSE): Total Total Capital Record Payment Distribution Ordinary Gain Date Date Per Share Dividends Distribution ------ ---- --------- --------- ------------ 03/17/10 03/31/10 $0.075000 $0.073297 $0.000000 06/16/10 06/30/10 0.075000 0.008222 0.065075 09/15/10 09/29/10 0.075000 0.073297 0.000000 12/15/10 12/29/10 0.075000 0.073297 0.000000 Totals $0.300000 $0.228113 $0.065075 Unrecaptured Section Record Payment 1250 Nondividend Distributions Date Date Gain (1) (2) ---- ---- -------- -------------- 03/17/10 03/31/10 $0.000000 $0.001703 06/16/10 06/30/10 0.065075 0.001703 09/15/10 09/29/10 0.000000 0.001703 12/15/10 12/29/10 0.000000 0.001703 Totals $0.065075 $0.006812 Series D Preferred Stock (CUSIP #70159Q40-1, ticker symbol PKY PrD on the NYSE): Total Total Capital Record Payment Distribution Ordinary Gain Date Date Per Share Dividends Distribution ------ ---- --------- --------- ------------ 03/31/10 04/15/10 $0.500000 $0.500000 $0.000000 06/30/10 07/15/10 0.500000 0.066165 0.433835 09/30/10 10/15/10 0.500000 0.500000 0.000000 12/31/10 01/14/11 0.500000 0.500000 0.000000 Totals $2.000000 $1.566165 $0.433835 Unrecaptured Section Record Payment 1250 Nondividend Distributions Date Date Gain (1) (2) ---- ---- -------- -------------- 03/31/10 04/15/10 $0.000000 $0.000000 06/30/10 07/15/10 0.433835 0.000000 09/30/10 10/15/10 0.000000 0.000000 12/31/10 01/14/11 0.000000 0.000000 Totals $0.433835 $0.000000

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

(2) Return of Capital

Of the total ordinary dividends paid during 2010, none are considered qualifying dividends for purposes of the 15% income tax rate. The Company did not incur any foreign taxes. Should you require additional information, please contact Rita Jordan at [e-mail] or [phone].

About Parkway Properties

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 as of January 14, 2011. Included in the portfolio are 20 properties totaling 3.7 million square feet that are owned jointly with other investors, representing 28.0% 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 1.8 million square feet for third-party owners at January 14, 2011.

Parkway Properties, Inc.'s press releases and additional information about the Company are available on the Company's website at http://www.pky.com/.

FOR FURTHER INFORMATION: Richard G. Hickson, IV Chief Financial Officer Mandy M. Pope Chief Accounting Officer [phone]

Parkway Properties, Inc.

CONTACT: Richard G. Hickson, IV, Chief Financial Officer; Mandy M. Pope,
Chief Accounting Officer, [phone]

Web Site: http://www.pky.com/