Crescent Real Estate Announces Settlement of Remaining Forward Share Purchase Agreement.

FORT WORTH, Texas--(BUSINESS WIRE)--July 2, 1999--

Crescent Real Estate Equities Company (NYSE:CEI), one of the nation's largest real estate investment trusts, announced the settlement of its forward share purchase agreement with UBS AG on June 30, 1999.

Through settlement of the forward share purchase, UBS returned approximately 7.3 million common shares of the Company in exchange for a cash payment of approximately $149 million. The forward share purchase agreement with UBS AG was Crescent's last remaining forward share purchase agreement.

The company also announced the refinancing of Greenway Plaza, a 4.3 million square foot mixed-use office complex in Houston, for $280 million on a 10-year fixed-rate mortgage at 7.53%. A portion of the proceeds from the Greenway Plaza refinancing was used to repay existing debt on the complex of $115 million and to make the payment to UBS described above. The refinancing package for Greenway Plaza was arranged by Holliday Fenoglio Fowler L.P. with funding partners consisting of AEGON USA Realty Advisors Inc., PPM America, Inc., American General Realty Advisors, and Massachusetts Mutual Life Insurance Company.

John C. Goff, Crescent's President and Chief Executive Officer, commented, "We are extremely pleased to complete this attractive refinancing of Greenway Plaza which allowed us to settle the UBS forward share purchase agreement prior to its scheduled expiration in August. This complex was purchased in October of 1996 for a net investment of approximately $196 million or $45 per square foot, when the occupancy was approximately 70%. Since our purchase, the complex has benefited not only from a greatly improved Houston office market but also from our own efforts to upgrade the buildings, their amenities, and tenant services all of which have been important factors in driving both the occupancy and rental rates. In summary, Greenway Plaza illustrates the success of our acquisition strategy and the expertise of our property management and leasing teams."

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.

Crescent is a fully integrated real estate company which owns through its subsidiaries a portfolio of real estate assets, consisting of 89 office properties and 7 retail properties with a total of 32.6 million square feet, a 39.6% interest in 92 refrigerated storage properties with a total of approximately 19 million square feet, 88 behavioral healthcare facilities, 7 full-service hotels with a total of 2,247 rooms, 2 destination health and fitness resorts, and economic interests in 5 residential development corporations. The office properties are located in 31 metropolitan submarkets in 9 states.

For further information, please contact Jack I. Tompkins, Executive Vice President and Chief Financial Officer, Crescent Real Estate Equities Company at 817/321-1426. Crescent is also online at www.cei-crescent.com.