Parkway Closes Offering of Common Shares, Exercise of Overallotment Option

Parkway Properties, Inc. (NYSE: PKY) announced today the completion of its public offering of 11,000,000shares of its common stock, plus an additional 1,650,000 shares of its commonstock issued and sold pursuant to the exercise of the underwriters' option topurchase additional shares in full, at the public offering price of $17.25 pershare.The net proceeds from the offering, after deducting the underwriting discountand offering expenses, were approximately $209.1 million.  The Company intends to use the net proceeds of the offering to redeem in fullall of its outstanding 8.00% Series D Cumulative Redeemable Preferred Stock,to fund potential acquisition opportunities, to repay amounts outstanding fromtime to time under its senior unsecured revolving credit facility and/or forgeneral corporate purposes.BofA Merrill Lynch and Wells Fargo Securities are the joint lead-bookrunnersfor the offering, and KeyBanc Capital Markets and RBC Capital Markets are thejoint bookrunners for the offering.  The senior co-managers of the offeringare Credit Suisse and Raymond James, and the co-managers of the offering areBMO Capital Markets and Stifel.