Crescent Real Estate Equities Company Announces 45% Increase in Quarterly Dividend.

FORT WORTH, Texas--(BUSINESS WIRE)--Sept. 2, 1998--Crescent Real Estate Equities Company (NYSE:CEI), one of the country's largest real estate investment trusts, announced today that its Board of Trust Managers has declared a cash dividend of $.55 per common share for the quarter ending Sept. 30, 1998, representing an approximate 45% increase over the prior quarter's dividend of $.38 per common share. The dividend is equivalent to an annualized dividend of $2.20 per common share and is payable Nov. 3, 1998, to shareholders of record on Oct. 14, 1998.

Gerald W. Haddock, Crescent's President and Chief Executive Officer commented, "The significant increase in our cash flow over the prior twelve months as well as the continued growth prospects within our existing portfolio has allowed the Board of Trust Managers to feel confident in increasing our dividend to this level. As previously announced with our second quarter 1998 operating results, same store net operating income growth from our office properties for the six months ended June 30, 1998, increased approximately 14% over the same period in the prior year. Same store rental income growth from our hotel & resort properties increased approximately 8%. The investments we have in our residential development properties and the refrigerated storage properties continue to perform extremely well."

Mr. Haddock further commented, "Obviously, in light of these dynamic market conditions this was a decision that was carefully evaluated. Following this increase, the Company will continue to maintain a very reasonable payout ratio based on both funds from operations and funds available for distribution."

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. Although Crescent believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. Factors that could cause actual results to differ materially from Crescent's expectations include changes in real estate conditions (including rental rates and competing properties) or in industries in which our principal tenants compete, failure to consummate anticipated transactions, timely leasing of unoccupied square footage, timely releasing of occupied square footage upon expiration, finding acquisition opportunities which meet its investment strategy and 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 certain pending transactions, will own through its subsidiaries a portfolio of real estate assets, consisting of 99 office properties and 7 retail properties totaling 35.3 million square feet, a 38% interest in 94 refrigerated warehouse facilities, 89 behavioral healthcare facilities, 7 full-service hotels totaling 2,276 rooms, 2 destination health and fitness resorts, and economic interests in 5 residential development corporations. The office and retail properties are located primarily in 17 metropolitan submarkets in Texas.

CONTACT: Crescent Real Estate Equities Company, Fort Worth

Gerald W. Haddock, 817/321-1444

www.cei-crescent.com