Parkway Properties Announces Quarterly Dividend

JACKSON, Miss., May 8 /PRNewswire-FirstCall/ -- Parkway Properties, Inc. announced today that its Board of Directors declared a quarterly dividend of sixty-five cents ($.65) per share payable on June 25, 2008, to shareholders of record of Common Stock on June 11, 2008. This dividend is the eighty-seventh (87th) consecutive quarterly distribution to Parkway's shareholders of Common Stock and represents an annualized dividend rate of $2.60 per share.

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

The Board of Directors also declared a quarterly dividend of fifty cents ($.50) per share payable on July 15, 2008 to shareholders of record of Series D Preferred Stock on June 30, 2008.

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 69 office properties located in 11 states with an aggregate of approximately 14.1 million square feet of leasable space as of May 8, 2008. Included in the portfolio are 21 properties totaling 3.8 million square feet that are owned jointly with other investors, representing 27.2% of the portfolio. Under the Company's GEAR UP plan, which started January 1, 2006, and ends 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 May 8, 2008.

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

CONTACT: STEVEN G. ROGERS PRESIDENT & CHIEF EXECUTIVE OFFICER J. MITCHELL COLLINS CHIEF FINANCIAL OFFICER (601) 948-4091