Crescent Real Estate Equities, Developer of The Residences at The Ritz-Carlton, Dallas, Announces Phase II -- The Tower Residences and Regency Row at The Ritz-Carlton, Dallas.

DALLAS -- One of Dallas' most desirable new addresses is now twice as good. Crescent Real Estate Equities Company (NYSE:CEI), developer of The Ritz-Carlton, Dallas, recently announced the newest additions to The Residences at The Ritz-Carlton neighborhood, The Tower Residences and Regency Row at The Ritz-Carlton, Dallas. Scheduled for completion in fall 2008, The Tower Residences will feature a 23-story Regency-designed tower consisting of 96 units with a variety of floor plans ranging from one- to three-bedroom residences to penthouses. Also included are four elegantly appointed Regency Row homes separate from the tower. All offer magnificent views of downtown Dallas, American Airlines Center and the Crescent Hotel and Shops. Prices range from $700,000 to $8 million.

Located in the heart of Dallas' thriving Uptown entertainment district, the 5.5 acre luxury Residences neighborhood and common area are designed by renowned architect Robert A.M. Stern, FAIA, with residence interiors designed by Sherry Hayslip, A.S.I.D., IIDA. The neighborhood offers homeowners access to the legendary service and amenities offered only by The Ritz-Carlton. The Tower Residences will connect to The Ritz-Carlton Hotel via a second floor air-conditioned walkway, and Tower and Regency Row residents will have full access to the hotel's signature restaurant and bar featuring internationally-acclaimed chef Dean Fearing; the 12,000-square-foot, world-class spa; 24-hour valet and concierge; in-room dining; and housekeeping service. The homes also will include a private auto court; underground parking with climate-controlled storage; a private pool with lush landscaping; an exclusive resident fitness center on the ground floor; and a private dining/meeting room.

"We are pleased to bring The Ritz-Carlton lifestyle to the Dallas market and are thrilled with the response to the development and the tremendous sales in Phase I," said John C. Goff, Crescent's Vice Chairman and Chief Executive Officer. "It is exciting to now have Phase II available to potential homeowners, adding value and convenience to the perfectly located Residences neighborhood."

Phase I of the property encompasses The Ritz-Carlton, Dallas and The Residences at The Ritz-Carlton, Dallas, both scheduled to open in third quarter 2007. The 217-room hotel will occupy the first eight floors of the building, and The Residences will consist of 70 private condominiums, located on floors nine through 21.

Crescent Plaza Residential, L.P. is owner and developer of The Residences at The Ritz-Carlton, Dallas, Phase I, while Crescent Tower Residential, L.P. is owner and developer of Phase II. Crescent Plaza Hotel Owner, L.P. is owner and developer of The Ritz-Carlton Hotel in Dallas. All are subsidiaries of Crescent Real Estate Equities Company (NYSE:CEI), a real estate investment trust headquartered in Fort Worth, Texas. Through its subsidiaries and joint ventures, Crescent owns and manages a portfolio of 75 premier office buildings totaling 31 million square feet located in select markets across the United States; world-class resorts, such as Sonoma Mission Inn in Sonoma, California; as well as 48 percent of Canyon Ranch(R), including the brand. Crescent also invests in resort residential developments in extraordinary locations such as Scottsdale, Arizona; Vail Valley, Colorado; and Lake Tahoe, California. Crescent, along with its development partner, East West Partners, recently announced The Ritz-Carlton Highlands, Lake Tahoe, which is scheduled for completion in 2009. Crescent will lend its experience and financial strength to ensuring a world-class development in The Ritz-Carlton, Dallas that homeowners and hotel guests alike will appreciate for many years to come. For additional information, please visit our web site at www.AreYouOnTheListPhase2.com or call The Residences at The Ritz-Carlton, Dallas Sales Center at 214-855-2020.

For investor relations, please contact Jane E. Mody, Managing Director, Capital Markets, 817-321-1086, or Jennifer L. Terrell, Manager, Investor & Media Relations, 817-321-1464.