Real Estate — September 18, 2009

Morguard Corporation announces renewal of normal course issuer bid

TORONTO, Sept. 18 /CNW/ - Morguard Corporation ("Morguard") today announced that the Toronto Stock Exchange (the "TSX") has accepted a notice filed by Morguard of its intention to make a normal course issuer bid through the facilities of the TSX.

The notice provides that Morguard may, during the twelve-month period commencing September 22nd, 2009 and ending September 21st, 2010 purchase up to 710,069 common shares ("Common Shares") in total, being approximately 10% of the public float of the issued and outstanding Common Shares. Common Shares purchased under the normal course issuer bid will be cancelled. The price that Morguard will pay for any such Common Shares will be the market price at the time of acquisition. Management of Morguard will determine the actual number of Common Shares that may be purchased and the timing of any such purchases, subject to compliance with TSX guidelines.

Morguard purchased 177,635 Common Shares for cancellation during the last twelve months at an average cost per share of $22.30. As of September 15, 2009 there were 13,961,505 Common Shares outstanding. Morguard's average daily trading volume for the prior six months is 2,680.

Morguard believes that its Common Shares have been trading in price ranges which do not adequately reflect their value in relation to the business of Morguard and its future business prospects. As a result, depending upon future price movements and other factors, Morguard believes that its outstanding Common Shares may represent an attractive investment. Furthermore, the purchases are expected to benefit all persons who continue to hold Common Shares by increasing their proportionate interest in Morguard. All Common Shares purchased by Morguard under the normal course issuer bid will be cancelled.

Morguard Corporation is a major Canadian real estate and property management company. It has extensive retail, office, industrial and residential holdings owned directly and through its investment in Morguard REIT. Morguard provides management services to institutional and other investors for commercial and residential real estate through Morguard Investments Limited and Morguard Residential.

For further information: Paul Miatello, Chief Financial Officer, Tel: (905) 281-3800, Fax: (905) 281-5890, e-mail: pmiatello@morguard.com; Beverley G. Flynn, Secretary, Tel: (905) 281-3800, Fax: (905) 281-5890, e-mail: bflynn@morguard.com

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