CRESCENT REAL ESTATE EQUITIES, INC. ANNOUNCES $160 MILLION OF PROPERTY TRANSACTIONS AND SIGNIFICANT LEASING TRANSACTIONS.

NEW YORK--(BUSINESS WIRE)--June 7, 1995--Crescent Real Estate Equities, Inc. (NYSE:CEI) today announced approximately $160 million of property transactions, including completion of $25 million of office building acquisitions and approximately $135 million of additional property investments expected to close in June. The pending investments include a contract to acquire the MCI Tower/Denver Marriott City Center in downtown Denver and a proposed partnership with The Woodlands Corporation, a subsidiary of Mitchell Energy & Development Corp. These completed and pending acquisitions, in the aggregate, are expected to produce initial unleveraged returns in excess of 10 percent, after consideration of recurring capital expenditures. Crescent also announced the completion of two significant leasing transactions at its Waterside Commons property which will increase the property's occupancy to 96 percent.

Crescent's expected closing of the MCI Tower/Denver Marriott City Center in downtown Denver provides Crescent an operating presence in the three major Denver submarkets, including Regency Plaza One in the Denver Tech Center suburban market and The Citadel in the Cherry Creek suburban market. This downtown property consists of 551,000 square feet of Class A office space which is currently 99 percent occupied and a 613 room hotel which is managed by Marriott International. "The acquisition of the MCI Tower/Denver Marriott City Center represents a tremendous opportunity to benefit from the ongoing revitalization of downtown Denver. With the continued redevelopment of downtown housing and retail properties and the addition of amenities such as the Coor's Field baseball stadium, the downtown office market, which has a 91 percent Class A occupancy, is poised to be a major beneficiary of future growth in Denver," stated Gerald Haddock, president and chief operating officer. According to Haddock, "The Denver Marriott City Center, which is the second largest hotel in downtown Denver, is an attractive complement to this office tower, and the acquisition of this office tower continues our strategy of acquiring dominant, high quality properties in select markets where we can achieve favorable current returns on invested capital and significant appreciation as the market recovers."

Crescent also announced an agreement in principle to form a partnership with The Woodlands Corporation in which Crescent will own a 75 percent interest in 10 office buildings, constructed in the 1980's and 1990's and aggregating 703,000 square feet, in The Woodlands, a master planned community located 27 miles north of downtown Houston. A subsidiary of The Woodlands Corporation, original developer of the office buildings, will own a 25 percent interest in the partnership. The Woodlands Corporation will continue to manage and lease the buildings. The Woodlands Corporation is a subsidiary of Mitchell Energy & Development Corp. and has led the development of all residential, retail and office properties in The Woodlands over the last 21 years. The Woodlands is home to more than 42,000 people and 660 firms with an employment base of 15,500. According to Haddock, "This transaction continues Crescent's investment strategy and provides a strong foundation for subsequent investment opportunities since the partnership with The Woodlands Corporation provides Crescent the opportunity to participate with a solid and experienced partner in future office development within The Woodlands."

Crescent's completed acquisitions include the Steak & Ale Office Building, a 234,000 square foot Class A office building located in the Park Central submarket of North Dallas and Barton Oaks Plaza, a 100,000 square foot Class A office building located in southwest Austin, Texas. The Steak & Ale Office Building is currently 100 percent occupied, and was acquired for $16 million, representing a 40 percent discount from the property's estimated replacement costs. Barton Oaks Plaza is currently 97 percent occupied and was acquired for a purchase price of $8.5 million, representing a 30 percent discount from the property's estimated replacement cost. The Park Central submarket consists of 4 million square feet of Class A office space and currently has a Class A occupancy of 87 percent. The southwest Austin submarket has a 95 percent Class A office occupancy and has experienced a 23 percent growth in Class A rental rates since the end of 1993.

Crescent also announced that two major lease transactions have been completed at Waterside Commons located in Las Colinas, Texas. Sprint Communications Company, L.P. entered into a 10 year renewal lease covering 366,000 square feet and GTE North Incorporated leased 82,000 square feet for an initial term of five years. The combination of these leasing transactions increases the occupancy of Waterside Commons to 96 percent with two high quality tenants. According to Haddock, "These leasing transactions highlight the strength of the Class A office market in the Las Colinas submarket which currently has a Class A occupancy of 93 percent."

Crescent is a fully integrated real estate company, which through the UPREIT operating partnership structure, conducts its business activities and owns and operates a diversified portfolio of real estate assets, including 14 office properties and two retail centers comprising approximately 5.9 million square feet, a 295 room resort hotel and economic interests in four single family residential land developments.

CONTACT: Dallas E. Lucas, chief financial officer,

Crescent Real Estate Equities, Inc., 212/836-4216.