Crescent Operating Announces Plan Confirmation

FORT WORTH, Texas--()--June 23, 2004--Crescent Operating, Inc. (the "Company") (Pink Sheets:COPIQ) announced today that the United States Bankruptcy Court has entered an order confirming the Company's plan of reorganization under the United States Bankruptcy Code. Under the plan of reorganization the stock transfer books were closed at the close of business on June 22, 2004.

Consummation of the plan of reorganization will occur upon the sale of the Company's interest in Americold Logistics, LLC, payment of creditors and distribution of shares of stock of Crescent Real Estate Equities Company ("Crescent Real Estate") (NYSE: CEI) to Company stockholders. The Company believes that the plan of reorganization will be consummated during the third or fourth quarter of 2004.

The precise number of common shares of Crescent Real Estate that will be distributed to Company stockholders will be calculated based upon the formula described in the Company's January 2003 proxy statement and will take into account all amounts funded, advanced or accrued by Crescent Real Estate or its affiliates in connection with its Settlement Agreement with the Company and the reorganization of the Company. Regardless of the number produced by the final calculation under the Settlement Agreement formula, however, the plan of reorganization provides that Crescent Real Estate will issue common shares with a minimum value, based on the final calculation, of $0.20 for each share of Company common stock. Company stockholders will receive information on the exact number of Crescent Real Estate common shares that Company stockholders will be entitled to receive and how to turn in their shares of Company common stock following completion of the final calculation.

ABOUT THE COMPANY

Crescent Operating, Inc. is a management company which owns an interest in a temperature controlled logistics operating company. It has been a debtor-in-possession in proceedings under the United States Bankruptcy Code since March 10, 2003.

Contacts

Crescent Operating, Inc., Fort Worth
Jeffrey L. Stevens, 817-321-1601

Contacts

Crescent Operating, Inc., Fort Worth
Jeffrey L. Stevens, 817-321-1601