Crescent and TXU Energy Services Sign Agreement

Deal to Create Energy Efficiencies for Crescent Properties
Company Press Release: Crescent Real Estate Equities Company
June 21, 2000
FORT WORTH, TX -- Crescent Real Estate Equities Company (NYSE: CEI) one of the country's largest real estate investment trusts, and TXU Energy Services, a wholly owned subsidiary of TXU Corporation (NYSE: TXU), announced yesterday that they have signed a five-year, $500 million energy services agreement. TXU Energy Services will manage a full range of energy services at approximately 85 Crescent-owned commercial office sites nationwide.

Under the terms of the agreement, TXU Energy Services will consolidate, audit and pay all utility bills, provide real-time metering technology, and offer on-line access to customized utility management reports. It also will manage supply-side services, including review of existing rate structure and negotiation and procurement of energy supply in competitive areas, and invest in energy efficiency and load management technologies. TXU Energy Services will also design, finance, and build energy-related projects on site-specific programs for Crescent. Crescent and TXU will work together to implement projects that upgrade the mechanical systems in Crescent buildings with state-of-the-art equipment, while maximizing energy efficiency throughout the portfolio.

Jane Page, senior vice president of asset management and leasing for Crescent, said, ``Our customers' comfort and satisfaction is extremely important to us as we further distinguish Crescent from other property owners in customer service. Working with TXU Energy Services in what we believe to be one of the most innovative agreements in the commercial real estate industry, we were able to develop a utility services program that is tailored specifically to our needs.'' She added, ``TXU Energy Services was flexible enough to share our desire for a collaborative working relationship. By working together to create new ways to manage energy-related costs, Crescent can remain competitive and at the forefront in a rapidly evolving commercial real estate environment.''

Ken Breeden, president of TXU Energy Services, added, ``We are pleased to be doing business with one of the premier companies in the real estate industry. One of our company's goals is to help customers focus on their core businesses. TXU Energy Services has proven results and energy experience in many industries and has a long history in the energy market place. As the energy industry continues to change and grow, far-sighted businesses such as Crescent are turning to companies like ours to manage their energy needs.''

The first phase of the contract focuses on Crescent's premier, Class A office properties located in Dallas, Houston, Austin, Denver, Colorado Springs, Albuquerque, Phoenix, Miami, San Diego, San Francisco and Washington, D.C. Future plans call for adding Crescent's hotels and resorts to the portfolio.

Crescent Real Estate Equities Company owns and manages a diversified portfolio consisting of Class A office properties, hotels and destination resorts, residential land developments, and temperature-controlled logistics facilities. Our mission is to maximize value to our shareholders by distinguishing ourselves as the undisputed leader in each of our businesses through customer service and asset quality and by executing a disciplined real estate investment and operating strategy that focuses on market leadership, innovative growth opportunities, and outstanding customer, employee and partner alliances. For more information, visit our website at www.cei-crescent.com .

TXU Energy Services offers a complete menu of full services energy solutions including: national energy portfolio management, natural gas and electric commodity procurement and retail sales, energy information, energy consumption, billing management, energy technology development, financing and integration. TXU is one of the largest investor-owned energy services companies in the world with assets of more than $40 billion. The company is a multinational leader in electric and natural gas services, merchant trading, energy marketing, telecommunications and other energy-related services. TXU delivers energy to nine million customers primarily in Texas, the United Kingdom and continental Europe and Australia.

TXU Energy Services is not the same company as TXU Electric & Gas and is not regulated by the Public Utility Commission of Texas, and you do not have to buy TXU Energy Services' products to continue to receive quality regulated services from TXU Electric & Gas.

SOURCE: Crescent Real Estate Equities Company