Crescent Real Estate Announces First Quarter 2007 Common and Preferred Share Dividends.

FORT WORTH, Texas -- Crescent Real Estate Equities Company (NYSE: CEI) today announced that its Board of Trust Managers has declared the following cash dividends for the quarter ended March 31, 2007:

                                      <                      <  First

Annualized
Common                                <                      <  $0.375000

$1.5000
6.75% Series A Convertible Preferred  <                      <  $0.421875

$1.6875
9.50% Series B Redeemable Preferred   <                      <  $0.593750

$2.3750

The dividends are payable May 15, 2007, to shareholders of record on April 30, 2007.

The Company announced on March 1, 2007 as part of its strategic transformation that it intends to align its dividend with its new business model and with industry-accepted pay-out ranges to allow for retention of capital for growth. John C. Goff, Crescent's vice-chairman and chief executive officer, said, "Execution of the strategic transformation is going well. We have our hotel portfolio under contract at an attractive price and early indications on the sales of the office buildings are good. While we continue to expect to generate significant capital gains through our announced sales activity, the Board of Trust Managers has determined that it is still too early in the process to adjust the dividend. We will continue to evaluate future common dividends in light of on-going operational performance, execution of the planned sales and the capital gains generated by such sales."

ABOUT CRESCENT

Crescent Real Estate Equities Company (NYSE: CEI) is a real estate investment trust headquartered in Fort Worth, Texas. Through its subsidiaries and joint ventures, Crescent owns and manages a portfolio of 71 premier office buildings totaling 28 million square feet located in select markets across the United States with major concentrations in Dallas, Houston, Austin, Denver, Miami, and Las Vegas. Crescent also holds investments in resort residential developments in locations such as Scottsdale, AZ, Vail Valley, CO, and Lake Tahoe, CA; in destination resorts such as Fairmont Sonoma Mission Inn[R] in Sonoma, CA; and in the wellness lifestyle leader, Canyon Ranch[R]. For more information, visit Crescent's Web site at www.crescent.com.