Calloway Real Estate Investment Trust declares May 2007 distribution

    TORONTO, May 18 /CNW/ - Calloway REIT (TSX: CWT.UN) (TSX: CWT.DB) today
announced that the trustees of the REIT have declared a distribution for the
month of May 2007 of $0.12500 per trust unit, representing $1.50 per unit on
an annualized basis. Payment will be made on June 15, 2007 to unitholders of
record on May 31, 2007.

    Calloway Real Estate Investment Trust is an unincorporated open-end real
estate investment trust created to invest in a geographically diversified
portfolio of high quality retail shopping centres in Canada.

    The Toronto Stock Exchange neither approves nor disapproves of the
    contents of this Press Release.

    %SEDAR: 00017520E

For further information: Steve Liew, Vice President - Finance, 700
Applewood Crescent, Suite 200, Vaughan, ON, L4K 5X3, Tel: (905) 326-6400 ext.
7798, Fax: (905) 326-0783, sliew@callowayreit.com