HALIFAX, NOVA SCOTIA--(Marketwire - March 4, 2010) -

NOT FOR DISTRIBUTION TO THE UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Killam Properties Inc. ("Killam") (TSX:KMP)(TSX:KMP.DB) is pleased to announce that it has reached an agreement with a syndicate of underwriters led by RBC Capital Markets to issue to the public, subject to regulatory approval, 5,400,000 common shares (the "Shares") for $8.15 per Share for gross proceeds of $44,010,000. In addition, Killam has granted the Underwriters an over-allotment option for the purposes of covering the Underwriters' over-allocation portion for an additional 15% of the base deal exercisable up to 30 days after closing of the offering.

The first cash dividend to which purchasers of Shares under this offering will be entitled to participate will be for the month of March, expected to have a record date of March 31, 2010 and payment date of April 15, 2010.

Killam intends to use the net proceeds from this offering to fund future property acquisitions, to repay indebtedness, including amounts incurred under its operating credit facilities, and for general corporate purposes.

Killam will, within the next few days, file with the securities commissions and other similar regulatory authorities in each of the provinces of Canada, excluding Quebec, a preliminary short form prospectus relating to the issuance of the Shares. Closing of the offering is expected to take place on or about March 25, 2010.

"As set out in our press release on March 2, 2010, Killam plans to complete between $100 million and $150 million in acquisitions during 2010", noted Philip Fraser, Killam's President and Chief Executive Officer. "Our focus is on acquiring high-quality and well located multi-family buildings. This equity raise will provide Killam with the capital to execute on our growth strategy."

This press release is not an offering of securities for sale in the United States. The Shares being offered have not been and will not be registered under the United States Securities Act of 1933, as amended, and state securities laws. Accordingly, the Shares may not be offered or sold in the United States absent registration or an exemption from the registration requirements of that Act.

Corporate Profile

Killam Properties Inc, based in Halifax, Nova Scotia, is one of Canada's largest residential landlords, owning and operating multi-family apartments and manufactured home communities.

Note: Certain statements in this report may constitute forward-looking statements relating to the offering, our operations and the environment in which we operate, which are based on our expectations, estimates, forecast and projections, which we believe are reasonable as of the current date. Such forward-looking statements involve risks, uncertainties and other factors which may cause actual results, performance or achievements of Killam to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. For more exhaustive information on these risks and uncertainties, you should refer to our most recently filed annual information form which is available at www.sedar.com. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, a forward-looking statement speaks only as of the date on which such statement is made and should not be relied upon as of any other date. Other than as required by law, Killam does not undertake to update any of such forward-looking statements.