CRESCENT OPERATING, INC. ANNOUNCES SALE OF DALLAS ARENA ASSETS

Press Release:Crescent Operating, Inc.

July 29, 1999
FT. WORTH, TX--Crescent Operating, Inc. (Nasdaq:COPI) announced yesterday that it has agreed to sell its equity interests in American Airlines Center, the new Dallas sports arena development, and in Victory, the 66-acre mixed use development in downtown Dallas. The sale is subject to satisfaction of customary conditions and consent of the National Basketball Association.

Crescent Operating will sell 100% of its interests in these assets to Hillwood for approximately $1.4 million in cash. The sale will occur in conjunction with, and is contingent upon, the transaction previously announced by Crescent Real Estate Equities Company involving the sale of its interests in the same investments.

Crescent Operating is a diversified management company which through various subsidiaries and affiliates, owns, leases or operates a portfolio of assets consisting primarily of seven full-service hotels and two destination health and fitness resorts, an interest in a behavioral health company, an interest in a refrigerated warehouse operating company, an interest in three real estate development operations, and an equipment sales and leasing business.

Certain of the statements in this press release constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Although Crescent Operating believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, Crescent Operating's actual results could differ materially from those set forth in the forward-looking statements. Factors that could cause actual results to differ materially from Crescent Operating's expectations include, among others, the ability to negotiate final definitive documents with Hillwood, and other general risk factors. For a more complete discussion of the Company's risk factors, please see Crescent Operating's SEC reports, including its annual report on Form 10-K, quarterly reports on Form 10-Q, reports on Form 8-K and the Company's Registration Statement on Form S-4.

For further information, please contact Rick Knight, Chief Financial Officer at 817/339-2212. Crescent Operating is also online at www.crescentoperating.com.

Contact:

Crescent Operating, Inc., Fort Worth
Rick Knight, 817/339-2212