/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR

DISSEMINATION IN THE UNITED STATES/

HALIFAX, July 17 /CNW/ - Killam Properties Inc. (TSX:KMP) is pleased to announce that its board of directors has declared a dividend pursuant to Killam's monthly dividend policy. The dividend of $0.046668 per common share will be paid on August 17, 2009 to shareholders of record on July 31, 2009.

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.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction. The common shares of Killam have not and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act"), or the securities laws of any state of the United States, and may not be offered or sold in the United States or to any U.S. person absent registration or an applicable exemption therefrom under the 1933 Act and the securities laws of all applicable states.

Note: The Toronto Stock Exchange has neither approved or disapproved of
the information contained herein.