Parkway Announces New Chairman and Chief Investment Officer

JACKSON, Miss., Oct. 11, 2011 /PRNewswire/ -- Parkway Properties, Inc. (NYSE: PKY) announced today that Charles T. Cannada has been appointed Chairman of Parkway's Board of Directors effective January 1, 2012.  Mr. Cannada will replace Parkway's current Executive Chairman, James R. Heistand, who will become Parkway's permanent President and Chief Executive Officer on the same date.  As previously announced, Steven G. Rogers will be stepping down as the Company's current President and Chief Executive Officer on December 31, 2011.  Additionally, Parkway's Board of Directors has appointed David R. O'Reilly as Executive Vice President and Chief Investment Officer, effective October 31, 2011.  James M. Ingram, who has served as Executive Vice President and Chief Investment Officer since 2003, will continue to serve as Executive Vice President and Chief of Sales and Business Development.

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Mr. Heistand stated, "I am confident that the depth and knowledge we have both at the board level and among our executive management team will be an important driving factor in providing improved performance for our shareholders going forward.  I have enjoyed working with Charles since joining Parkway earlier this year, and I fully support his transition to Chairman.  I have also known and worked with David for many years and believe his strong transactional and financial background will be instrumental as we pursue our investment strategies, especially when combined with the continued important presence of Jim's strong relationships and experience in the sales and investments arena.  I am excited to work with our team in building a stronger, even better Parkway."

Mr. Cannada has served as a Director for Parkway since 2010, and is currently a member of the Audit Committee and Compensation Committee.  Mr. Cannada is a private investor and advisor with an extensive background in the telecommunications industry.  From 1989 to 2000, Mr. Cannada held various executive management positions at MCI (previously WorldCom and earlier LDDS Communications), including Chief Financial Officer from 1989 to 1994 and Senior Vice President in charge of Corporate Development and International Ventures and Alliances from 1995 to 2000.  In these roles, Mr. Cannada was involved in numerous merger and acquisition transactions and financing transactions.  Prior to joining MCI, Mr. Cannada was in public accounting from 1980 to 1989.  Mr. Cannada currently serves on the board of directors for several non-public companies, including Chairman of the Board of Nanoventions, Inc., and Director of First Commercial Bank, Inc. and Stadium Wrap America, LLC.  Mr. Cannada also serves as Chairman of the Board of Trustees for Belhaven University and serves on The University of Mississippi's Foundation Board and the School of Accountancy's Board of Advisors.  Mr. Cannada earned a Bachelor of Business Administration in Accounting from the University of Mississippi.

Prior to joining Parkway, Mr. O'Reilly was a Partner and Executive Vice President of Banyan Street Capital where he led the firm's investment activities.  Prior to joining Banyan Street Capital, Mr. O'Reilly served as the Chief Financial Officer and Director of Capital Markets for Eola Capital starting in August 2009.  Mr. O'Reilly also served as Senior Vice President in Barclays Capital's Real Estate Investment Banking Group and was at Lehman Brothers in the same capacity for seven years.  During his tenure in investment banking, Mr. O'Reilly was involved in a broad range of financial advisory and merger and acquisition assignments, including leveraged buy-outs, initial public offerings, and single-asset and pooled CMBS transactions.  Mr. O'Reilly earned a Bachelor of Science in Civil Engineering from Tufts University and a Master of Business Administration from Columbia University.

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.  Parkway owns or has an interest in 67 office properties located in 12 states with an aggregate of approximately 14.5 million square feet of leasable space at October 11, 2011.  Included in the portfolio are 26 properties totaling 6.6 million square feet that are owned jointly with other investors, representing 45.5% of the portfolio.  Fee-based real estate services are offered through wholly-owned subsidiaries of the Company, which in total manage and/or lease approximately 12.9 million square feet for third-party owners at October 11, 2011.

Forward Looking Statement

Certain statements in this release that are not in the present or past tense or discuss the Company's expectations (including the use of the words anticipate, believe, forecast, intends, expects, project, or similar expressions) are forward-looking statements within the meaning of the federal securities laws and as such are based upon the Company's current belief as to the outcome and timing of future events.  There can be no assurance that future developments affecting the Company will be those anticipated by the Company. These forward-looking statements involve risks and uncertainties (some of which are beyond the control of the Company) and are subject to change based upon various factors, including but not limited to the following risks and uncertainties: changes in the real estate industry and in performance of the financial markets; the demand for and market acceptance of the Company's properties for rental purposes; the amount and growth of the Company's expenses; tenant financial difficulties and general economic conditions, including interest rates, as well as economic conditions in those areas where the Company owns properties; risks associated with joint venture partners; the risks associated with the ownership and development of real property; the failure to acquire or sell properties as and when anticipated; termination of property management contracts, the bankruptcy or insolvency of companies for which Eola or Parkway provide property management services; the ability of Parkway to integrate the business of Eola and unanticipated costs in connection with such integration; the outcome of claims and litigation involving or affecting the Company; and other risks and uncertainties detailed from time to time in the Company's SEC filings. Should one or more of these risks or uncertainties occur, or should underlying assumptions prove incorrect, the Company's business, financial condition, liquidity, cash flows and results could differ materially from those expressed in the forward-looking statements. Any forward looking statements speaks only as of the date on which it is made.  New risks and uncertainties arise over time, and it is not possible for us to predict the occurrence of those matters or the manner in which they may affect us.  The Company does not undertake to update forward-looking statements except as may be required by law.

FOR FURTHER INFORMATION:
James R. Heistand
Executive Chairman
Steven G. Rogers
President & Chief Executive Officer
(601) 948-4091
www.pky.com

SOURCE Parkway Properties, Inc.