A&B ACCEPTING APPLICATIONS FOR KEALA′ULA HOMES AT PORT ALLEN
Interested Buyers Apply by Noon on April 12; Lottery Held April 20

LIHUE, HAWAII – (March 23, 2006) – A&B Properties, Inc., a subsidiary of Alexander & Baldwin, Inc. (NASDAQ: ALEX), will begin accepting reservations from Kauai residents to purchase lot and home packages in its 60-unit single family home development at Port Allen called Keala′ula. Up to 37 single family home and lot packages at Keala′ula will be released for pre-sale beginning March 29. Kauai residents intending to occupy the homes as their primary residence will be given a first opportunity to purchase. A&B plans to conduct a lottery to determine the home selection order. Ten of the first 37 homes are reserved for sale to A&B employees who are Kauai residents and first-time homebuyers.

The project includes a variety of efficiently designed three-bedroom, two-bathroom homes on lots that average 6,000 square feet. Prices for the 37 units in Phase 1A range from $348,000 to $460,000 and include a provision for shared appreciation upon sale, which expires after ten years. The lottery packets are available starting March 29 and must be completed and submitted no later than noon on April 12. To obtain a lottery package, contact Broker in Charge Trinette Kaui® at 808-335-2850 or by email tkaui@abprop.com. The lottery will be held April 20 and home selections can be made on April 27.

“A&B Properties is pleased to bring these homes to the local residential market to meet Kauai’s strong demand for resident housing,” said A&B Properties President Robert K. Sasaki. “We are confident that these homes, close to Port Allen Harbor, will be attractive to Kauai residents.” An adjacent 75-unit multi-story condominium development, called Kai ′Olino, was released in 2005 and the first 48 units are under non-binding contracts.

These projects both are located on a 17-acre parcel overlooking Port Allen Harbor, accessible from Waialo Road. Infrastructure construction at the projects’ site has been ongoing since November. Home construction is set to begin this spring. Traffic improvements to be made by A&B Properties in the vicinity include the installation of a traffic signal at the intersection of Kaumualii Highway and Waialo Road.

Previous A&B residential developments on Kauai since 1980 include more than 450 single-family homes at Ele′ele Nani I and II, located near Port Allen.

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 development projects are ongoing in various locations on Oahu, Maui, Kauai, and the Big Island of Hawaii. A&B Properties has an income portfolio of commercial properties in Hawaii and on the Mainland consisting of more than 5 million square feet of retail, office, and industrial space. The majority of A&B’s recent acquisition and investment activity has been focused on Hawaii where, since 1999, A&B Properties has acquired or invested in 25 properties outside its core land holdings on Maui and Kauai.

Alexander & Baldwin, Inc. is a diversified corporation headquartered in Honolulu. A&B’s major lines of business are ocean transportation (Matson Navigation Company, Inc. and Matson Integrated Logistics, 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 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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