March 12, 2003

Award-Winning Developer of Master Planne Communities Named President and CEO;

THE WOODLANDS, TX, March 12, 2003 - Thomas J. D’Alesandro IV, an award-winning developer of master planned communities, was named president and CEO of The Woodlands Operating Company, L.P. (TWOC) today in a joint announcement from Crescent Real Estate Equities and Morgan Stanley, owners of the best-selling community in Texas. Veteran company executives in land, residential, and commercial development, Alex Sutton, Tim Welbes, and Eric Wojner, were promoted to senior vice president as the company positions itself to “accomplish new milestones in our development activities,” the announcement said.

D’Alesandro has been serving as vice president and Eastern regional manager of Terrabrook, developer of large-scale master planned communities and mixed-use projects with more than 45 properties in 26 markets of the United States including Hawaii and Puerto Rico. He comes to The Woodlands, a 27,000-acre forested community located 27 miles north of Houston, from Reston, Virginia, the internationally recognized master planned community that was emulated by George Mitchell when he founded The Woodlands in 1974. Since 1996, D’Alesandro has also served Terrabrook, an affiliate of Westbrook Partners, LLC, in its Georgia Division and Virginia Division.

He joined Mobil Land Development Corporation in 1989 as executive vice president of its Virginia region where he led the development of the more than three million square foot Reston Town Center with over 80 shops and restaurants, a hotel, an outdoor pavilion and skating rink, a movie theater, and over 1.8 million square feet of office space. As The Woodlands Town Center begins to fully emerge as the urban core of its community with The Woodlands Waterway, residential living, entertainment venues, office buildings, and as a transportation corridor that will eliminate thousands of automobile trips each day, D’Alesandro’s activities in the Reston and other Town Centers will provide invaluable expertise to the project, according to the Crescent and Morgan Stanley announcement. D’Alesandro was president of Mobil’s Georgia region from 1994 to 1996 responsible for developing two large-scale master planned communities in the Atlanta area.

Although he will assume his TWOC responsibilities on March 17, D’Alesandro will return next month to Virginia to receive The Greater Reston Chamber of Commerce “Best of Reston” award as a volunteer who has made “significant commitments for the betterment of the community.” The event benefits Reston Interfaith, a non-profit organization similar to The Woodlands’ own Interfaith group. His community service on behalf of Terrabrook included The Greater Reston Chamber of Commerce, The Greater Reston Arts Center, Fairfax County Arts Council, Reston Hospital Center Board, Washington Airports Task Force, Northern Virginia Transportation Alliance, Reston Town Center Joint Committee, and numerous other civic and charitable organizations.

He holds a masters degree in business administration from the University of Virginia Graduate School of Business, a master of arts degree from the University of Chicago, and a bachelor of arts degree from Loyola College in Baltimore, where his father and grandfather both served as innovative mayors of that Maryland city. He is a member of the Urban Land Institute, the Fairfax County Economic Development Council, Northern Virginia Technology Council and Lambda Alpha. D’Alesandro and his wife, Katherine, will relocate to a home in The Woodlands with their two young sons, Mark and David.

His management team at TWOC will be led by three senior vice presidents: Alex Sutton, Senior Vice President, Land Development and Planning – Sutton oversees all activities relating to the development of the residential and commercial properties in The Woodlands, including residential lots, golf courses, office buildings, apartment complexes, and retail construction. He also interfaces with all governmental and regulatory agencies involved with land development, such as the municipal utility districts, environmental regulatory agencies, and federal and state transportation agencies. Previously, he was a shareholder and senior manager at Pate Engineers, Inc. where he managed large water resource projects for municipal and private clients, directed firm-wide marketing activities, and developed sophisticated analytical software for public facility management. He earned both a bachelors and a masters degree in civil engineering from Rice University, a master of business administration degree from the University of Houston, is a Registered Professional Engineer and a Certified Public Accountant who joined TWOC in 1994.

Tim Welbes, Senior Vice President, Residential Division - Having spent most of his career building family communities, Welbes joined the company in 1985 as vice president of marketing and sales in the residential division. Previously he had been president of Pace and Company Builders of Houston and area division manager for Standard Pacific Homes of Texas, Inc., a publicly traded, national homebuilding company. Welbes is affiliated with the Greater Houston Builders Association and the Texas Association of Builders, where he sits on the executive committee. He is a graduate of the University of Houston with a degree in accounting and is a CPA.

Eric Wojner, Senior Vice President, Commercial Division - As an expert in real estate acquisitions, deal structuring, and new development opportunities, Wojner directs the commercial and investment property division of The Woodlands Operating Company, L.P. He joined The Woodlands in 1984 as controller and spent the next five years managing the accounting activities related to land development, investment and hospitality properties, and the mortgage company. Previously he was a financial analyst for the real estate development division of The Rouse Company and the management consulting firm of Booz Allen & Hamilton. He is a native of New York City and graduated from New York University with a dual degree in accounting and finance. He is also a Certified Public Accountant.

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For further information: Paul Lazzaro: 281-719-6148, plazzaro@thewoodlands.com