24 WATERWAY AVENUE TOPPED OUT, TENANTS ANNOUNCED

THE WOODLANDS, TX – (August 9, 2007) – A “topping out” ceremony was held today at 24 Waterway Avenue, a new 308,206-square-foot mixed use building on Waterway Square in The Woodlands Town Center. Several tenants, including Hubbell and Hudson, HMT and GPM,Inc. have already announced plans to occupy approximately 49,000 square feet in the new building when it is completed early next year, according to Dan Leverett, vice president of commercial for The Woodlands Development Company. Additional leasing is underway, and the building is 60% committed, according to Leverett.

24 Waterway Avenue is the largest mixed use, Class A speculative office building constructed to date by The Woodlands Development Company. The building includes 12 office floors totaling 268,263 square feet with 39,943 square feet of restaurant and retail space on the ground floor. In-building parking, high quality finishes and building materials and panoramic views of Waterway Square and The Woodlands Waterway® are highlights of the building design. 24 Waterway Avenue was designed by Elkus Manfredi of Boston, MA and constructed by Harvey Builders of Houston.

24 Waterway Avenue is located in the Waterway Square District, at the north end of Waterway Square Park, a one-acre public plaza with unique water features and greenspaces that will be the “centerpiece” of The Woodlands Town Center when it opens in the spring of 2008.

The park includes a 120-foot long, 10-foot high water wall, flanked by stairs and stepped water cascades at each side of the Square. Water jets, waterfalls and cascades are designed to create a variety of displays and effects, ranging from the subtle flow of water over the waterwall to dancing columns of water, to “boomer” jets that can shoot water 60 feet into the air. The fountains will be choreographed to music with colored lights at night.

A seating area under a grove of shade trees, and children’s interactive fountain with fanciful mosaic artwork designed by renowned artist, Dixie Friend Gay are other attractions at Waterway Square. The park is designed by Sasaki Associates of Watertown, MA, designers of the 2008 Olympic Green in Beijing, China. Water features are designed by Aquatic Design and Engineering, Inc. of Oakland, FL, designers of several major water features for Disney Resorts in Orlando and Orlando City Hall.

Also planned is 20 Waterway Avenue, consisting of two separate specialty restaurant buildings with street access to Waterway Avenue, terraces overlooking Waterway Square and patios on The Woodlands Waterway. The buildings are being designed by Lucas Associates.

Future plans for The Waterway Square District include two more Class A office buildings – a nine-story building and a six-story building - an outdoor amphitheater in the public plaza, a luxury condo tower and boutique hotel.

Three other mixed use buildings totaling 36,123 square feet were recently completed in the Waterway Square District. The largest of these is 25 Waterway Avenue, a 24,000-square-foot, three-story building with retail on the ground level and two levels of parking above. Tenants include Baker Street Pub & Grill, Chocolata and Woodforest National Bank. 25 Waterway Avenue is located adjacent to The Woodlands Waterway Marriott Hotel parking garage at the southwest corner of Waterway Avenue and Lake Robbins Drive.

1701 Lake Robbins, a 12,123-square-foot, two-story mixed use building located at the corner of Lake Robbins Drive and Six Pines Drive and 21 Waterway Avenue, a seven-story, 103,000-square-foot mixed use building were completed and occupied in 2006. 1701 Lake Robbins is 100 percent leased to Fidelity and Taco Milagro. Office tenants in 21 Waterway include Wells Fargo, Smith Barney, Cargill, Bank of America and BusinesSuites. Major retail tenants include The Goose’s Acre and Americas restaurants.

The Woodlands is a 28,000-acre master-planned community located 27 miles north of downtown Houston. It is a project of The Woodlands Development Company, a limited partnership of Morgan Stanley and General Growth Properties, Inc.