Crescent Real Estate Equities Announces $400 Million Investment in Real Estate Venture.

FORT WORTH, Texas--(BUSINESS WIRE)--Sept. 29, 1997--Crescent Real Estate Equities Company (NYSE:CEI) today announced the formation of a joint venture with Vornado Realty Trust (NYSE:VNO) to acquire the country's two largest suppliers of public refrigerated warehouse space. The two companies, Americold Corporation and URS Logistics, Inc., together own 79 refrigerated warehouses aggregating 368 million cubic feet. The facilities are operated for such national food suppliers as Tyson Foods, Kraft Foods, ConAgra and Pillsbury. The two companies are being acquired in separate transactions for approximately $1 billion from investor groups led by investment funds managed by Kelso & Company. Definitive agreements have been entered into for the consummation of the transactions which are expected to be completed in the fourth quarter of 1997 subject to certain customary closing conditions.

Crescent and Vornado will hold 40% and 60% interests, respectively, in the joint venture which will own the 79 warehouses.

Gerald Haddock, Crescent's president and chief executive officer commented, "This transaction is consistent with Crescent's strategy of making innovative real estate investments which offer the potential for superior returns. The transaction also provides a platform for a strategic alliance with Vornado. We are pleased to partner with Vornado's Steve Roth and Mike Fascitelli in this exciting venture."

Certain matters discussed within this press release are forward-looking statements within the meaning of the federal securities laws, and the transactions contemplated herein are subject to certain closing conditions, including approval of federal antitrust authorities. Although Crescent believes that the expectations include changes in real estate conditions (including rental rates and competing properties) or in industries in which principal tenants compete, failure to consummate anticipated transactions, or other risks detailed from time to time in the Company's SEC reports, including quarterly reports on Form 10-Q, reports on Form 8-K, and annual reports on Form 10-K.

Crescent is a fully-integrated real estate company which, upon completion of the pending transactions, will own through its subsidiaries a portfolio of real estate assets, consisting of 78 office properties and 7 retail properties totaling 27 million square feet, 79 refrigerated warehouse facilities, 92 behavioral healthcare facilities, 5 full-service hotels totaling 1,870 rooms, 2 destination health and fitness resorts, and economic interests in 5 residential development corporations. The office and retail properties are located primarily in 21 metropolitan submarkets in Texas and Colorado.

CONTACT: Crescent Real Estate Equities Company 

Dallas E. Lucas, 817/878-0426