Parkway Closes Offering of Common Shares, Exercise of Overallotment Option

Parkway Properties, Inc.

announced today the completion of its public offering of 11,000,000 shares of its common stock, plus an additional 1,650,000 shares of its common stock issued and sold pursuant to the exercise of the underwriters' option to purchase additional shares in full, at the public offering price of $17.25 per share. The net proceeds from the offering, after deducting the underwriting discount and offering expenses, were approximately $209.1 million.   The Company intends to use the net proceeds of the offering to redeem in full all of its outstanding 8.00% Series D Cumulative Redeemable Preferred Stock, to fund potential acquisition opportunities, to repay amounts outstanding from time to time under its senior unsecured revolving credit facility and/or for general corporate purposes. BofA Merrill Lynch and Wells Fargo Securities are the joint lead-bookrunners for the offering, and KeyBanc Capital Markets and RBC Capital Markets are the joint bookrunners for the offering.  The senior co-managers of the offering are Credit Suisse and Raymond James, and the co-managers of the offering are BMO Capital Markets and Stifel.