Crescent Real Estate Announces Office Joint Ventures

Press Release
August 1, 2001
FORT WORTH, TX -- Crescent Real Estate Equities Company (NYSE:CEI) entered into joint-venture arrangements with an affiliate of General Electric Pension Trust (``GE'') on two of its existing office properties.

The joint ventures are structured such that GE now owns an 80% interest in each of Four Westlake Park, a 560,000 square foot Class A office property located in the Katy Freeway submarket of Houston, and Bank One Tower, a 390,000 square foot Class A office property located in downtown Austin. Crescent will continue to own the remaining 20% interests and will manage and lease the properties on a fee basis. Total proceeds to Crescent, including financing on the two properties, was approximately $120 million.

``For any office joint-venture arrangement, Crescent seeks out partners who believe in our core markets and business strategy. GE is a natural fit in that they share our optimism about the long-term growth prospects of both the Houston and Austin markets, and they credit us for the exceptional talent we have within our operational infrastructure,'' commented Denny Alberts, President and Chief Operating Officer. ``This transaction is just another measure we are taking to further our organic growth strategy which positions us for future opportunities within our core competencies.''

ABOUT THE COMPANY

Crescent Real Estate Equities Company, one of the country's largest real estate investment trusts, owns and manages, through its subsidiaries, a diversified portfolio consisting of Class A office properties, destination resorts, and upscale residential developments. Its mission is to expand the dimensions of business to its customers and maximize value to its shareholders by distinguishing itself as the undisputed leader in each of its businesses. Crescent will accomplish these goals by providing exceptional 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.

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Contact: 

     Crescent Real Estate Equities Company, Fort Worth
     Investors:
     Jane E. Mody, 817/321-1086
        or
     Jerry R. Crenshaw, 817/321-1492
        or
     Keira B. Moody, 817/321-1412
        or
     Media:
     Sandra Porter, 817/321-1460