JACKSON, Miss., Jan. 15 /PRNewswire-FirstCall/ -- EastGroup Properties, Inc. (NYSE: EGP) announced today the income tax treatment of its 2008 distributions as described below. Shareholders are encouraged to consult with their personal tax advisors as to their specific tax treatment of EastGroup Properties distributions.


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    Common Stock:
    Ticker Symbol EGP, CUSIP #277 276 101

                             Total                Total
                            Distri-    Total     Capital     Unrecaptured
    Record       Payment    butions  Ordinary      Gain           Sec.
     Dates        Dates    Per Share Dividend   Distribution  1250 Gain (1)

    03/21/08     03/31/08   $.52     $.518943    $.001057     $.001057
    06/20/08     06/30/08    .52      .518943     .001057      .001057
    09/19/08     09/30/08    .52      .518943     .001057      .001057
    12/19/08     12/31/08    .52      .518943     .001057      .001057

                  TOTALS   $2.08    $2.075772    $.004228     $.004228

    Form 1099-DIV box                   1a           2a           2b


    Series D Preferred Stock:
    Ticker Symbol EGP PrD, CUSIP #277 276 408, Redeemed in full on July 2,
    2008

                             Total                Total
                            Distri-    Total     Capital     Unrecaptured
    Record       Payment    butions  Ordinary      Gain           Sec.
     Dates        Dates    Per Share Dividend   Distribution  1250 Gain (1)

    03/31/08     04/15/08  $.496900  $.495713    $.001187    $.001187
    06/30/08     07/15/08   .496900   .495713     .001187     .001187
    07/02/08     07/02/08   .011000   .010974     .000026     .000026

                  TOTALS    $1.0048   $1.0024    $.002400    $.002400
    Form 1099-DIV box                    1a           2a         2b


    (1) Unrecaptured Sec. 1250 Gain (box 2b) is a subset of, and is included
        in, the Total Capital Gain Distribution amount reported in box 2a of
        Form 1099-DIV.

The Company did not incur any foreign taxes in 2008. Of the total distributions during 2008, none are considered qualifying dividends for purposes of the federal 15% income tax rate. Should you need any additional information, please call Bruce Corkern, Senior Vice President and Controller, at 601-354-3555.

EastGroup Properties, Inc. is a self-administered equity real estate investment trust focused on the development, acquisition and operation of industrial properties in major Sunbelt markets throughout the United States with an emphasis in the states of Florida, Texas, Arizona and California. Its strategy for growth is based on its property portfolio orientation toward premier business distribution facilities clustered near major transportation features. EastGroup's portfolio currently includes 25.7 million square feet with an additional 1.6 million square feet of properties under development.

EastGroup Properties press releases are available at www.eastgroup.net.

SOURCE EastGroup Properties, Inc.