KEOLA LA´I CONDO PRE-CONSTRUCTION ACTIVITIES START
Safety Fencing To Go Up Shortly

HONOLULU – September 30, 2005 – Pre-construction activities will commence in October on the Kaka´ako site of a 42-story residential condominium being developed by A&B Properties, Inc., the real estate subsidiary of Alexander & Baldwin, Inc. (NASDAQ: ALEX). The condominium, named Keola La´i, is located on a 2.7-acre parcel at the corner of South Street and Queen Street, close to downtown Honolulu. The preliminary activities include erecting a safety fence around the entire property, grading, utilities, site work and other pre-construction work. Vertical construction is expected to start by early 2006, lasting roughly two years. The site will cease to be used as a parking lot as of today.

Keola La´i will have 37 stories of residential apartments atop five floors of parking. There also will be 10,000 square-feet of commercial space on the ground floor, available to retailers, service providers and other businesses. There are one-, two- and three-bedroom models still available. Reserved housing units required by HCDA rules will also be provided within the project and released for sale at a later date. A&B has constructed a sales office and model unit in the Waterhouse building on Queen Street, adjacent to the project site, and Coldwell Banker Pacific Properties has been hired as the project broker.

The property comprises an entire block, and establishments surrounding the property include The Advertiser Building, Kamehameha School’s Kawaiahao Plaza headquarters, a Gold’s Gym and the office headquarters and museum for the Honolulu Fire Department, which is currently under construction.

A&B Properties, Inc. (www.abprop.com) is the real estate subsidiary of Alexander & Baldwin, Inc., a diversified corporation headquartered in Honolulu. A&B’s major lines of business are ocean transportation (Matson Navigation Company, Inc.); real estate (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, failure to satisfy the closing conditions set forth in the definitive agreement 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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