A&B TO ACQUIRE HIGH-RISE CONDOMINIUM SITE IN HONOLULU 

HONOLULU – August 4, 2004 – Alexander & Baldwin, Inc. (NASDAQ: ALEX) announced today that it has entered into a definitive agreement to purchase a 2.7-acre vacant parcel two blocks from downtown Honolulu, planned for development as a high-rise condominium project. The property comprises an entire block, and is located at the corner of South Street and Queen Street in the Kakaako District, Honolulu’s emerging urban core. Closing is scheduled for late August; the purchase price was not disclosed.

“We are extremely pleased to have secured this property and the opportunity to develop another quality condominium project in Honolulu,” said A&B President and CEO Allen Doane. “The property is in a great location, within walking distance of downtown and in close proximity to numerous business and government offices, retail and entertainment centers and dining establishments. The Kakaako District is truly emerging as a new urban village, and the vision of it being a place for people to ‘live, work and play’ is fast becoming a reality. We are excited to be participating in the development of Kakaako and, similar to our involvement in two other high-rise condominium projects -- Lanikea and Hokua -- we expect to build a quality highrise that will be well received in the marketplace.”

The property is fully zoned for residential condominium use and ready for development, with all necessary infrastructure in place. It is owned by Kakaako M-P Development, which in the early 1990’s planned to develop a high-rise project on the property. In preparation for development, Kakaako M-P performed extensive pile driving and environmental remediation at the site. Kakaako M-P subsequently elected not to proceed with the project, and the property has since been used as a parking lot. 

“This project would be A&B’s third high-rise condominium in Honolulu in the last couple years,” noted Stanley Kuriyama, chief executive officer of A&B Properties, Inc., A&B’s real estate subsidiary. “Our Lanikea project in Waikiki, which consists of 100 units, is currently under construction, and is completely sold out. The Hokua condominium project, being developed in a joint venture with the MacNaughton and Kobayashi Groups and also located in the Kakaako District, is under construction as well, and 240 of the project’s 247 units have been sold under binding contracts.

“We believe this site represents another great location for people who want to live in town,” continued Kuriyama. “Downtown Honolulu is just two blocks away, and the Ala Moana Shopping Center, Victoria Ward centers, Restaurant Row complex, the new University of Hawaii medical school, Ala Moana Beach Park and numerous other recreational amenities are all located within a mile of the property. In addition, the project will have excellent ocean views and good access from adjoining streets.”

Further planning and design will need to be completed to determine the number of units to be built and unit sizes, but it is anticipated the project will contain over 300 units, with most of the units being two-bedroom, two-bath units, with two parking stalls. After completing preliminary design and securing required government approvals, A&B expects to begin pre-selling units early next year, with start of construction targeted for late 2005. Sales prices have not yet been determined, but are expected to range generally between $450,000 and $650,000.

A&B’s landholdings include a total of over 90,000 acres in Hawaii, making it the state’s fourth largest private landowner, and an income property portfolio comprising over 5 million square feet of leasable space in Mainland and Hawaii office, industrial and retail properties. Besides focusing on the development and management of these core real estate holdings, in recent years A&B has embarked on a strategy of expanding beyond its historical landholdings in Hawaii. This Kakaako acquisition would be A&B’s 21st Hawaii real estate investment outside of its core landholdings over the last five years. A&B development projects are ongoing in various locations on Oahu, Maui and Kauai, and the company recently announced its first large project on the Big Island at the Mauna Lani Resort.

Alexander & Baldwin, Inc. (A&B), headquartered in Honolulu, is engaged in real property development and management through its subsidiary A&B Properties, Inc.; in transportation through its subsidiaries Matson Navigation Company, Inc. and Matson Integrated Logistics, Inc.; and in food products through Hawaiian Commercial & Sugar Company and Kauai Coffee Company, Inc. Additional information about A&B may be found at its web site: www.alexanderbaldwin.com 

Statements in this press release that are not historical facts are “forward-looking” statements that involve a number of risks and uncertainties that could cause actual results to differ materially from those contemplated by the relevant forward-looking statement. Factors that could cause actual results to differ materially from those contemplated in the statements include, without limitation, failure to satisfy the closing conditions set forth in the definitive agreement and other risks associated generally with acquisitions.

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