Crow Holdings Announces The Aquisition Of The Island At
South Shore Harbor

Dallas (January 2, 2007) – Crow Holdings, a privately-owned firm based in Dallas, announces the acquisition by its fourth real estate fund, Crow Holdings Realty Partners IV, L.P., of the Island at South Shore Harbor, a 35-acre island known as Lighthouse Island in League City, Texas. The island will be developed into a high-end, private, residential community offering a mix of waterfront estates, town homes, patio homes and luxury high-rise and mid-rise condos characterized by extensive landscaping and sweeping views of Clear Lake. The investment was made in partnership with The Verandah Companies, who will serve as the development partner.

The island is located within the 2,200-acre South Shore Harbour master-planned community along the south shore of Clear Lake. “This investment provides the opportunity to offer a highly amenitized and luxury residential development in a well-established and successful master-planned community,” states David Craig of Crow Holdings. The additional existing amenities in the area include a large marina, a 27-hole championship golf course and country club, a 70,000 square foot state-of-the-art fitness center, over 300,000 square feet of office space, over 115,000 square feet of retail, and the South Shore Harbour Resort & Conference Center featuring 250 rooms and 25,000 square feet of meeting space.

This is Crow Holdings second investment in partnership with The Verandah Companies, a highly regarded real estate firm that specializes in the development, management, and construction of luxury multi-family and single family developments. The acquisition, coupled with the recent 26-acre investment in South Shore Waterfront, gives the partnership the opportunity to own and control all available waterfront multi-family zoned land within this premier master-planned community on the preferred south side of Clear Lake. Together, Crow Holdings and The Verandah Companies own in excess of 60 acres of waterfront property with approximately 8,000 feet of shoreline.

The project marks the fifteenth investment made on behalf of Crow Holdings’ latest real estate fund, Crow Holdings Realty Partners IV, L.P. (Fund IV). To date, Fund IV is the largest fund sponsored by Crow Holdings, with equity commitments totaling approximately $850 million. Investors include endowments, foundations, pension funds and high net worth individuals. Crow Holdings is the largest investor, with a $150 million commitment.

For more information about the Island at South Shore Harbor, please contact:
David Craig at (214) 661-8360

For more information about Crow Holdings, please contact:
Dani Gastner at (214) 661-8345