RALEIGH, N.C.--(BUSINESS WIRE)--July 9, 2007--Highwoods Properties, Inc. (NYSE: HIW), the largest owner and operator of suburban office properties in the Southeast, today announced that it has been awarded a build-to-suit contract by the U.S. General Services Administration (GSA) to develop a $31.7 million field office for the Federal Bureau of Investigation (FBI) in Jackson, Mississippi. The 110,000 square foot, three-story Class A office building and annex, with structured and surface parking, will be built on a ten-acre parcel of land the Company is acquiring. As part of the GSA requirements, this building will also be a Leadership in Energy and Environmental Design ("LEED") certified building. Construction will commence in the third quarter of this year and is expected to be completed in the first quarter of 2009.

Ed Fritsch, president and chief executive officer, commented, "We are pleased to be developing a second field office for the FBI, and further expanding our well pre-leased development pipeline. I congratulate our team for their hard work and continued success in leveraging our extensive knowledge and experience in working with the GSA to secure another 100% pre-leased development project. We also thank the GSA for their continued confidence in Highwoods."

Including this second field office, the Company has been awarded $152 million of 100% long-term pre-leased development, encompassing seven projects totaling 967,000 square feet, by an agency of the federal government. To date, Highwoods has delivered four of these developments, representing an $88 million investment, including a 138,000 square foot field office for the FBI in Tampa, two office buildings encompassing 224,000 square feet for the Centers for Disease Control and Prevention in Atlanta and a 354,000-square foot office and storage facility for the National Archives and Records Administration (NARA) in Atlanta. The Company is currently developing a $21.7 million, 91,000 square foot Class A office building for the Department of Homeland Security in Atlanta and a $10.2 million, 50,000 square foot Class A office building for the FAA in Atlanta.

With the addition of this project, the Company's development pipeline grows to approximately 2.8 million square feet that is 59% pre-leased, representing an investment of over $457 million with an average stabilized cash yield exceeding 9%. Since January 2005, the Company has started $513 million of development and delivered $262 million of development which is currently 76% leased.

About the Company

Highwoods Properties, Inc., a member of the S&P MidCap 400 Index, is a fully integrated, self-administered real estate investment trust ("REIT") that provides leasing, management, development, construction and other customer-related services for its properties and for third parties. At March 31, 2007, the Company owned or had an interest in 385 in-service office, industrial and retail properties encompassing approximately 33.9 million square feet. Highwoods also owned 625 acres of development land. Highwoods is based in Raleigh, North Carolina, and its properties and development land are located in Florida, Georgia, Iowa, Kansas, Missouri, North Carolina, South Carolina, Tennessee and Virginia. For more information about Highwoods Properties, please visit our Web site at www.highwoods.com.

Certain matters discussed in this press release, such as the expected timing and impact of our development activity, are forward-looking statements within the meaning of the federal securities laws. These statements are distinguished by use of the words "will", "expect", "intends" and words of similar meaning. Although Highwoods believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved.

Factors that could cause actual results to differ materially from Highwoods' current expectations include, among others, the following: the financial condition of our customers could deteriorate; unwaived defaults, if any, under our debt instruments could result in an acceleration of some of our outstanding debt; speculative development by others could result in excessive supply of office properties relative to customer demand; development, acquisition, reinvestment, disposition or joint venture projects may not be completed as quickly or on as favorable terms as anticipated; we may not be able to lease or re-lease space quickly or on as favorable terms as old leases; unexpected difficulties in obtaining additional capital to satisfy our future cash needs or unexpected increases in interest rates would increase our debt service costs; and others detailed in the Company's 2006 Annual Report on Form 10-K and subsequent SEC reports.

Copyright Business Wire 2007

Highwoods Properties, Inc.

Highwoods Properties, Inc.

Founded in 1978 and headquartered in Raleigh, North Carolina, Highwoods Properties (NYSE: HIW) is a fully integrated, self-administered real estate investment trust (“REIT”) that provides leasing, management, development, construction and other customer-related services for its properties and for third parties. At March 31, 2007, the Company owned or had an interest in 385 in-service office, industrial and retail properties encompassing approximately 33.9 million square feet and owned 625 acres of development land. The Company’s properties and development land are located in Florida, Georgia, Iowa, Kansas, Missouri, North Carolina, South Carolina, Tennessee and Virginia

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