Crescent Resources manages land holdings and develops high-quality commercial, residential and multi-family real estate projects in nine states. Crescent Resources has received numerous awards for its environmentally sensitive property development strategies and partnerships with environmental and wildlife groups.

Crescent Resources continues to focus on real estate development in growth markets, primarily in the southeastern and southwestern United States. The company will invest in commercial and residential opportunities based on earnings potential and geographic market demand.

Crescent Resources is expected to deliver ongoing segment EBIT of approximately $250 million in 2006.

2005 Highlights

Crescent Resources continued to benefit from robust commercial and residential real estate markets, to end 2005 with segment EBIT of $314 million, compared to $240 million in 2004 — generating more earnings than anticipated for the second consecutive year.

Crescent actively managed its real estate holdings to achieve gains on the sale of a site in Nashville, Tenn., to Nissan for its North American corporate headquarters, a legacy land tract in South Carolina, its interest in a portfolio of office buildings in Georgia and Florida, and 2,483 residential lots in the Carolinas, Georgia, Florida, Texas and Arizona.

The book value of Crescent’s portfolio was $1.3 billion at year-end 2005, compared with $1.1 billion at the end of 2004.