Washington, D.C. Announced as Location of Newest Canyon Ranch Living® Community

Business Wire, April 26, 2006

TUCSON, Ariz. -- Canyon Ranch of Tucson, Ariz. the pioneer and leader in wellness lifestyle, and The Penrose Group, a Virginia development company, today announced the finalization of an agreement that will pave the way for the development of a Canyon Ranch Living community in Bethesda, Maryland.

With the first Canyon Ranch Living community currently under construction in Miami Beach, Fla., Canyon Ranch is now responding to its large clientele in the Washington, D.C., Metro area and to thousands of other prospective buyers who are seeking the opportunity to merge their healthy lifestyle practices with their residential preferences.

The second Canyon Ranch Living community, located just minutes from downtown Washington, D.C., is slated for opening in 2008. Canyon Ranch Living - Bethesda includes 157 wellness and lifestyle-oriented hotel rooms, two 20-story towers with 434 well-appointed condominiums expected to serve as primary residences, and 87 luxury rental apartments. At the heart of the community will be a 90,000-square-foot integrated wellness complex that will feature the caliber of wellness programming and access to highly credentialed health professionals that have propelled Canyon Ranch to worldwide recognition and industry leadership.

Canyon Ranch Living is an adaptation of the company's world-renowned health and personal renewal destination resorts. Beyond luxury residences, Canyon Ranch Living's most distinguishing element will be its world-class wellness center offering an integrated approach to health and well-being, combining access to physicians, behavioral therapists, nutritionists and other wellness specialists to help residents enhance their lives. State-of-the-art exercise and fitness equipment and an array of advanced spa treatments for which Canyon Ranch is renowned will be included in the continuum of healthy living opportunities.

Additionally, Canyon Ranch Living - Bethesda will feature personal enrichment through lectures and consultations on lifestyle management and a wide array of innovative spa services. The restaurant at Canyon Ranch will offer the fresh and healthy gourmet cuisine for which Canyon Ranch is widely acclaimed and will be open to the public.

"Our extensive research shows that many people are seeking wellness and balance in their lives," says Canyon Ranch President Kevin Kelly. "They want to live in a community that promotes and shares their values. One of our goals has been to support people on that quest by finding unique, stimulating environments for our Canyon Ranch Living communities. Penrose Group's Rock Spring Centre is one of the most thoughtful and exciting mixed-use developments in the Washington D.C. area. Residents of Canyon Ranch Living will be able to fully enjoy the surrounding retail areas, restaurants and parks that will further enhance the Canyon Ranch lifestyle."

Penrose President Mark Gregg adds, "For us, this project goes beyond a typical development. The people who will live here are those who are making a choice, not only about where and how they live, but about the quality of their lives. We're very excited about bringing this extraordinary wellness lifestyle to our marketplace. With commitment letters for our equity requirements and construction loan, we are moving forward with pre-sales and anticipate a loan closing in June."

BBG-BBGM of New York and Washington, D.C. is the architect for the hotel and Wellness Center. The Los Angeles-based Jerde Partnership is the architect for the retail portion of the project. The condominium units were designed by Lessard Group Inc. of Vienna, VA, and Peter Fillat of Baltimore is the architect for the mixed use retail multifamily portion of the project.

Canyon Ranch is owned 52% by its Founders and 48% by Crescent Real Estate Equities Company (NYSE: CEI).

CANYON RANCH

Mel and Enid Zuckerman founded the original Canyon Ranch in Tucson, Ariz. in 1979 and ten years later followed it with a second destination wellness resort in Lenox, Mass. For over 25 years, they have guided the growth of the organization into a comprehensive, market-leading brand, offering a wide diversity of integrated programs and resources designed to help individuals meaningfully improve the quality of their lives. Other Canyon Ranch facilities include the Canyon Ranch SpaClubs at The Venetian Resort in Las Vegas, Nev., at the Gaylord Palms Resort in Kissimmee, Fla; and on board the Queen Mary 2 luxury ocean liner. Canyon Ranch and the Cleveland Clinic, one of the nation's largest and most prestigious medical centers, are jointly developing programs that integrate the best practices of traditional medicine with the latest advancements in wellness and prevention.

CRESCENT REAL ESTATE EQUITIES COMPANY

Crescent Real Estate Equities Company (NYSE: CEI) is 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, 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. Crescent has been a partner in the Canyon Ranch business since 1996 and currently holds 48% ownership in all Canyon Ranch assets, including the brand. For more information, visit the Company's website at http://www.crescent.com.