News Release

Crescent Acquires Downtown Houston Office Property
Chevron Tower Acquisition Brings All of Houston Center Assets into Crescent's Portfolio

FORT WORTH, TEXAS, December 22, 2004ÑCrescent Real Estate Equities Company (NYSE:CEI) today announced it has acquired 1301 McKinney, also known as Chevron Tower, a 51-story, 1.2 million square-foot Class A office property located within the Houston Center complex in downtown Houston. Constructed in 1982, the property is currently 49% leased. Chevron Tower has been identified as a possible joint venture candidate in the near future.

Crescent acquired Chevron Tower as a result of exercising its right of first refusal on the property. The seller is a unit of ChevronTexaco, who announced earlier this year the consolidation of its employees to other buildings in Houston. Tim Relyea, David Chuoke and Jim Bailey of Cushman & Wakefield of Texas, Inc., represented the seller. Additional details about the transaction will be disclosed in Crescent's 4th quarter earnings call.

John C. Goff, Crescent's Vice-Chairman and Chief Executive Officer, commented, "The acquisition of Chevron Tower reaffirms our commitment to Houston and our continued belief in its long-term prosperity, particularly in downtown. This acquisition brings all of the Houston Center assets under Crescent's management and leasing platform. We are excited about acquiring Chevron Tower at a discount to replacement cost and having the opportunity to create significant value for our shareholders with this investment."

ABOUT THE COMPANY - Crescent Real Estate Equities Company (NYSE: CEI) is one of the largest publicly held real estate investment trusts in the nation. Through its subsidiaries and joint ventures, Crescent owns and manages a portfolio of more than 70 premier office buildings totaling more than 29 million square feet primarily located in the Southwestern United States, with major concentrations in Dallas, Houston, Austin, Denver, Miami and Las Vegas. In addition, Crescent has investments in world-class resorts and spas and upscale residential developments. For more information, visit the company's website at http://www.crescent.com.