Crescent Real Estate Equities Company Announces 25% Increase in Quarterly Dividend.

FORT WORTH, Texas--(BUSINESS WIRE)--Sept. 10, 1997--Crescent Real Estate Equities Company (NYSE:CEI) today announced that its Board of Trust Managers has declared a cash dividend of $.38 per share for the quarter ending Sept. 30, 1997, representing a 25% increase over the prior quarter's dividend of $.305 per share. The dividend is equivalent to an annualized dividend of $1.52 per share and is payable Nov. 4, 1997, to shareholders of record on Oct. 16, 1997.

Gerald W. Haddock, Crescent's president and chief executive officer, commented, "In setting the new dividend amount, management and the Board of Trust Managers considered such factors as the company's substantial cash flow growth in the prior 12 months, near-term and long-term growth prospects and minimum REIT distribution requirements. After this increase, the company will continue to maintain a conservative payout ratio based on both funds from operations and funds available for distribution."

Crescent is a fully-integrated real estate company which, upon completion of certain pending transactions, will own through its subsidiaries a portfolio of real estate assets, consisting of 77 office properties and 6 retail properties totaling 26.2 million square feet, 92 behavioral healthcare facilities, 5 full-service hotels totaling 1,870 rooms, 2 destination health and fitness resorts, and economic interests in 7 single-family residential land developments. The office and retail properties are located primarily in 21 metropolitan submarkets in Texas and Colorado.

CONTACT: Crescent Real Estate Equities Company, Fort Worth

Dallas E. Lucas, 817/878-0426

www.cei-crescent.com