Crescent Announces Ritz-Carlton Palm Beach Disposition.

Business Editors/Real Estate Writers

FORT WORTH, Texas--(BUSINESS WIRE)--Nov. 25, 2003

Crescent Real Estate Equities Company (NYSE:CEI) today announced the sale of the Ritz-Carlton Palm Beach resort owned by Manalapan Hotel Partners, LLC, of which Crescent and Westbrook Real Estate Fund IV, L.P. each hold 50%. In 1997, Crescent held a 25% interest in the 270-key five star resort through an affiliate. Following a series of transactions in late 2002, Crescent increased its interest in the property to 50%. The sales price of the resort was $92.1 million. Net proceeds to Crescent were $19.0 million. Crescent had $15.5 million invested in the property as of September 30, 2003.

John C. Goff, vice chairman and chief executive officer, commented, "The strategic plan that we've been articulating to the market has been to selectively increase the size of our core business of owning and managing high quality office properties and, over time, to decrease our non-core holdings. We saw an opportunity to sell Ritz-Carlton Palm Beach at what we believe is an attractive price and decided, collectively with Westbrook, to sell the resort. This transaction allows us to free up capital for office investment."

ABOUT THE COMPANY

Crescent Real Estate Equities Company (NYSE: CEI) is one of the largest publicly held real estate investment trusts in the nation. Through its subsidiaries and partners, Crescent owns and manages a portfolio of 75 premier office buildings totaling over 30 million square feet primarily located in the Southwestern United States, with major concentrations in Dallas, Houston, Austin and Denver. In addition, the company invests in world-class resorts and spas and upscale residential developments.