Crescent Real Estate and the Ritz-Carlton Hotel Company, LLC Break Ground on Texas' Only Ritz-Carlton Hotel and the Residences at the Ritz-Carlton, Dallas

Business Wire, May 25, 2005

DALLAS -- In a brief ceremony today, Dallas Mayor, Laura Miller; Crescent Real Estate Equities Company (NYSE:CEI) Vice Chairman and Chief Executive Officer, John Goff; and The Ritz-Carlton Hotel Company, L.L.C. Executive Vice President of Operations and Chief Financial Officer, Ken Rehmann gathered with a crowd of guests, donned hard hats, and turned shovels of earth to celebrate the start of construction on The Ritz-Carlton, Dallas and The Residences at The Ritz-Carlton, Dallas. The ceremony was held on the project site located on the block bound by Pearl, McKinney, Olive and Cedar Springs in bustling Uptown.

Dallas residents have enthusiastically embraced the new project which marks Ritz-Carlton's entry into the Texas market. The project includes a 217-room Ritz-Carlton hotel and 70 luxury residences, which are substantially pre-sold, in a 21-story Robert Stern-designed tower.

"This is a great day for Dallas," exclaimed Mayor Miller. "We are so pleased to be the site of Ritz-Carlton's first Texas hotel and residences. The addition of properties of this caliber reinforces Dallas' status as a world-class city."

"We are pleased by the level of excitement this project has received," added John Goff. "For years, we contemplated the appropriate use of our land that sits adjacent to the Crescent Office Towers and Atrium. It became increasingly obvious that Dallas was ready for the quality of lifestyle that will be offered by The Residences at the Ritz-Carlton, Dallas. We all know that Ritz-Carlton is famous for their superior customer service, and we are excited to partner with them in this endeavor."

"Dallas has long been part of our strategic expansion plan," said Ken Rehmann. "We were just looking for the right partner and the right site. We are very pleased to be partnering with Crescent because we know they share our commitment to creating exceptional places and delivering unmatched service to their customers."

The Ritz-Carlton, Dallas will occupy the first eight floors of the building, and will include a restaurant/bar, 14,000 square feet of meeting space, a 10,000-square-foot ballroom, and a 12,000 square foot spa and fitness center. Available residences range in price from $1.3 million for a two-bedroom home to more than $6 million for a four-bedroom penthouse. Homeowners will have access to all the services of the hotel, including housekeeping, catering, room service, and concierge.

Crescent is a publicly held real estate investment trust headquartered in Fort Worth. Its portfolio of more than 75 premier office buildings totaling more than 30 million square feet is located in select markets across the United States with major concentrations in Dallas, Houston, Austin, Denver, Miami and Las Vegas. Crescent also makes strategic investments in resort residential development, as well as resorts, including Canyon Ranch.

The Ritz-Carlton, Dallas and The Residences at The Ritz-Carlton, Dallas marks another step in the ongoing evolution of The Ritz-Carlton brand. Since 200l, The Ritz-Carlton has successfully opened 23 hotel and resort properties.

The Ritz-Carlton Hotel Company, L.L.C. currently operates 58 hotels in the Americas, Europe, Asia, the Middle East and Africa. It is the only service company to have twice earned the prestigious Malcolm Baldrige National Quality Award, which recognizes outstanding customer service.

The Ritz-Carlton, Dallas and The Residences at The Ritz-Carlton, Dallas are slated for completion in 2007.

Renderings of the Ritz-Carlton, Dallas and The Residences at The Ritz-Carlton, Dallas are available at the following link: http://www.crescent.com/newsroom/gallery.asp. Photos of today's groundbreaking ceremony are available upon request at: amata@crescent.com.