Crescent Announces Management Re-Organization.

FORT WORTH, Texas--(BUSINESS WIRE)--Sept. 28, 1999--

Crescent Real Estate Equities Company (NYSE:CEI), one of the nation's largest real estate investment trusts, today announced a re-organized senior management.

The purpose of this reorganization is to more efficiently execute Crescent's operating strategies, to better position the company to take advantage of investment opportunities and to establish a formal investor relations department.

John C. Goff, President and Chief Executive Officer of Crescent stated, "As part of refining our strategic direction, I and other senior managers have reviewed our internal corporate structure and our method of doing business from top to bottom. We have spent a great deal of time and effort analyzing the strengths of our organization and its people. As a result of this process, we have restructured to better align employee talents and responsibilities with the overall corporate objective of enhancing shareholder value. I personally hired many of these team members over five years ago and am confident in their talent and experience as well as in their ability to lead Crescent to the fulfillment of our strategic initiatives as we enter this new era for the company.

"We are completing the process of reviewing Crescent's business units and assets and look forward to clearly articulating our strategic plan as part of our third quarter earnings conference call," said Goff.

Effective immediately, Crescent's senior management team will be structured as follows:

-- Jerry R. Crenshaw has been promoted to the position of Senior

Vice President and Chief Financial Officer. Mr. Crenshaw has

served the Company since its inception as Vice President and

Controller and has developed strong relationships with

institutional investors, analysts and lenders. Mr. Crenshaw will

replace Jack I. Tompkins, who will be leaving the Company to

become Chairman and CEO of iExalt, Inc. (OTC BB:IXLT), a

Christian Internet services company.

-- David M. Dean will continue to serve as Senior Vice President,

Law and Secretary and will also assume additional duties as the

head of Corporate Administration. In his role as general counsel,

Mr. Dean has been instrumental in each of the significant

transactions undertaken by Crescent since its initial public

offering in 1994. Prior to joining Crescent and since 1986, Mr.

Dean was a corporate and transactional attorney working

extensively on various acquisition, financing and corporate

transactions for Richard Rainwater and Mr. Goff.

-- Alan D. Friedman will continue to serve as President of

Crescent's Development subsidiary, which handles all of the

Company's commercial development opportunities, and will gain

responsibility for Crescent's office acquisition and disposition

efforts. Mr. Friedman has been associated with Crescent since its

initial public offering and has sourced and executed many of its

office acquisitions. Mr. Friedman has over 20 years of

development and acquisition experience in the commercial real

estate business and has been responsible for the development of

over 3 million square feet of office product.

-- William D. Miller will continue to serve as Senior Vice

President, Office Asset Management, overseeing all aspects of the

office portfolio, including asset management, leasing and

property management. Mr. Miller joined the Company in 1997 with

over 10 years of real estate transactional experience. He had

served as the lead real estate attorney in the acquisition of the

Company's original office investments and was active in the

formation of the Company.

-- Bruce A. Picker has been promoted to the newly created position

of Senior Vice President and Chief Investment Officer, where he

will have responsibility for the oversight of the Company's

non-office investments including residential developments, hotels

and resorts, temperature controlled logistics (refrigerated 

storage) and behavioral healthcare. Mr. Picker will also focus

his efforts on the Company's strategic initiatives and business

development opportunities. Mr. Picker has worked for Mr.

Rainwater and Mr. Goff on their real estate investments since

1990 and has served as Vice President and Treasurer of Crescent

since its founding.

-- Sanjay Varma will head up a new Crescent venture to maximize the

value of Crescent's hotel and resort assets and to capitalize on 

the unique franchises that Crescent has acquired in the resort

area, such as the Sonoma Mission Inn & Spa and the Ventana Inn.

This venture will focus specifically on expanding Crescent's

asset base in this area by acquiring unique spa resorts. Mr.

Varma joined Crescent in 1995 after over sixteen years with

Marriott International, Inc. and the Walt Disney Company, where

he served as Executive Vice President.

Crescent also announced that it has hired Walt F. Czaicki ("size-key") to the newly created position of Vice President, Investor Relations. Mr. Czaicki will be responsible for expanding Crescent's investor relations programs and making the Company more accessible and user friendly to shareholders and to Wall Street. Prior to joining Crescent, Mr. Czaicki worked in the investment management industry for over 13 years, the last three as a senior fundamental equity research analyst at Bank of America Investment Management. As a research analyst, Mr. Czaicki's industry coverage ranged from telecommunications services to lodging & recreation companies. Mr. Czaicki earned his bachelor's degree in finance and MBA from St. Louis University, and is a Chartered Financial Analyst.

Crescent, one of the country's largest real estate investment trusts, owns and manages a diversified portfolio consisting of Class A office and retail properties, hotels and destination fitness resorts, residential land developments, temperature controlled logistic (refrigerated storage) properties and behavioral healthcare facilities. Our mission is to maximize value to our shareholders by: i) distinguishing ourselves as the undisputed leader in each of our businesses through customer service and asset quality; and ii) executing a disciplined real estate investment and operating strategy that focuses on market leadership, innovative growth opportunities, and outstanding employee and partner alliances.

Certain matters discussed within this press release are forward-looking statements within the meaning of the federal securities laws. Although Crescent believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, Crescent's future operations will depend on a number of factors that may differ materially from Crescent's assumptions. These factors are detailed from time to time in Crescent's SEC reports, including its annual report on Form 10-K, quarterly reports on Form 10-Q, and reports on Form 8-K.

For more information on Crescent Real Estate Equities Company, visit the Company's Web site at www.cei-crescent.com