Crescent Communications, Inc. (OTCBB:CCES) 10Q for the period ending June 30, 2002

Medical Technology Firm reports Quarterly Revenues.

August 14, 2002. (Houston) Crescent Communications, Inc. (OTCBB:CCES) released its financial results for the period ending June 30, 2002. During the six months ended June 30, 2002, the Company's revenue from connectivity systems, web site hosting, engineering services and hardware sales was $862,513. The Company began its operations on July 23, 2001, therefore a comparison to the prior year or previous six month period is not completely appropriate. Revenue growth has, however, been consistent with improvements noted primarily in the connectivity system side of the business. Connectivity revenues were $582,310 during the first six months of 2002. On a quarter over quarter basis, revenues from connectivity during the three month period ended June 30 were $305,977, representing an improvement of $29,644 versus the three month period ended March 31, 2002 of 276,333 or 10.7%. Cost of sales for the six month period ended June 30, 2002 were $624,645, with a gross margin of $237,868. On a quarter over quarter basis, cost of sales during the second quarter of $315,992 are reasonably consistent with the amounts realized during the quarter ended March 31,2002 of $308,653. Gross margins were 27.5% for the quarter and year to date periods. These amounts compare favorably to the gross margin percentage of 9.9% realized during the period from the Company's inception through December 31, 2001. Selling, general and administrative expenses were $1,158,106 for the six month period ended June 30, 2002. On a quarter over quarter basis these expenses aggregated $618,687 during the most recent quarter versus $539,419 for the three month period ended in March. Higher selling, general and administrative expenses are primarily attributable to the Company's expensing of certain non-qualified stock options granted to employees. The Company has issued non-qualified stock options to certain employees and contractors in lieu of cash compensation. These options have been valued based on the difference between the option price and the market price of the Company's stock on the date of the grant and that amount is included as a reduction of current earnings. Total expense associated with such compensation arrangements accumulated $375,688 through June 30, of which $268,289 related to the second quarter.

While quarter to quarter revenue growth was basically flat, we are pleased that our gross margins have increased to more appropriate levels", stated Manfred Sternberg, CEO. We expect the connectivity side of our business to grow substantially as we deploy our Business Plan to provide services to the medical industry.

The Company also announced that Manfred Sternberg, CEO, has certified the accuracy of its financial statements pursuant to recently adopted Federal guidelines.

About Crescent Communications, Inc.

Crescent Communications, Inc. (OTCBB: CCES) is a value added network provider, (VAN), focused on the small business and enterprise-level market segments providing industry specific end-to-end solutions for vertical markets such as medical, high end graphics and printing, legal and financial. Crescent provides wireless, DSL and traditional communication technologies using several regional and national carriers. Besides managed VPNs, Crescent delivers application and web hosting services as well as managed firewall services from its ATM core fiber backbone network.

This news release contains forward-looking statements" within the meaning of Section 27a of the Securities Acts of 1933 and Section 21E of the Securities Exchange Act of 1934. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove correct.

For additional information:

Company contact:
Manfred Sternberg, CEO
701 North Post Oak Rd, Suite 630
Houston, Texas 77024
(713) 682-7400
(713) 682-7402 fax
www.crescentb.com
email: investorrelations@crescentb.com