A&B PROPERTIES SELLS CALIFORNIA INDUSTRIAL PROPERTY
Ontario Pacific Business Centre Sold For $17.8 Million

HONOLULU – (January 12, 2005) – A subsidiary of Alexander & Baldwin, Inc. (A&B) (NASDAQ: ALEX) today completed the sale of Ontario Pacific Business Centre, a seven-building industrial complex in Ontario, Calif., for $17.8 million. The 11.2 acre property, which is improved with 246,600 square-feet of leasable space with 31 tenant spaces, was sold by A&B subsidiary A&B Properties, Inc. to LBA Realty Fund – Holdings Co. II, LLC.

“Our attention to the management and leasing of this property combined with double-digit increases in land values the Ontario area – over 20 percent in the last year – led to several unsolicited, but favorable offers for Ontario Pacific Business Centre,” explained Norbert Buelsing, A&B Properties’ executive vice president in charge of A&B’s leased portfolio. “Our plan is to reinvest the proceeds either in Hawaii or on the Mainland, as part of our ongoing strategy to grow our real estate business.”

A&B Properties had purchased the property in 1999. Its current occupancy is 97 percent, which also is its historic average occupancy. Ontario Pacific Business Centre is situated in the center of California’s fast-growing Inland Empire, within one mile of the intersection of the San Bernardino (I-10) and the Ontario (I-15) freeways and in close proximity to the Ontario International Airport. The property serves the requirements of businesses needing smaller warehouse units ranging in size from 5,000 to 14,000 square feet with dock high and ground level loading capacity.

A&B Properties has an income portfolio of commercial properties in Hawaii and on the U. S. Mainland consisting of more than 5.4 million square feet of leasable retail, office, and industrial space. The majority of A&B’s recent acquisition and investment activity has been focused on Hawaii where, over the last five years, A&B Properties has acquired or invested in 21 properties outside its core land holdings on Maui and Kauai. These transactions represent a total capital commitment of nearly $400 million.

A&B Properties, Inc. (www.abprop.com) is the property development and management subsidiary of Alexander & Baldwin, Inc., a diversified corporation headquartered in Honolulu. A&B owns 91,000 acres in Hawaii, making it Hawaii’s fourth largest private landowner. A&B’s major lines of business are ocean transportation (Matson Navigation Company, Inc.); property development and management (A&B Properties, Inc.); and food products (Hawaiian Commercial & Sugar Company, 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,” within the meaning of the Private Securities Litigation Reform Act of 1995, 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, overall economic conditions and other risks associated generally with acquisitions and developments. These forward-looking statements are not guarantees of future performance. This release should be read in conjunction with our Annual Report on Form 10-K and our other filings with the SEC through the date of this release, which identify important factors that could affect the forward-looking statements in this release.

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