Crescent Operating Inc. Announces Appointment of John C. Goff as Chief Executive Officer.

FT. WORTH, Texas--(BUSINESS WIRE)--June 11, 1999--

Crescent Operating, Inc. ("Crescent Operating" or the "Company") (Nasdaq:COPI) today announced that its Board of Directors has appointed John C. Goff, Vice Chairman of the Company's Board of Directors, to the additional positions of President and Chief Executive Officer. Mr. Goff replaces Gerald W. Haddock, who resigned his positions as President, Chief Executive Officer and as a member of the Board of Directors in order to pursue other business interests.

Richard E. Rainwater, Chairman of the Board, commented, "John is well suited for this role, having been actively involved as a member of the Board of Directors since the Company's inception. We have a tremendous amount of respect for John's leadership abilities and appreciate his desire to assume this new role. I speak for everyone at Crescent Operating when I wish Gerald well in his future endeavors. He has earned the thanks and appreciation of all the constituencies of the Company."

John Goff further commented, "I am looking forward to assuming these new responsibilities and leading the Company to a new level. The Company owns, leases and operates superior assets and businesses. Our number one priority will be increasing shareholder value by improving the operations of each of our business segments while positioning the Company to capitalize on future opportunities."

Crescent Operating is a diversified management company which through various subsidiaries and affiliates, owns, leases or operates a portfolio of assets consisting primarily of lessee interests in six 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 company.