A&B PROPERTIES TO DEVELOP RETAIL POWER CENTER IN BAKERSFIELD
Sixth Investment with Intertex in Southern California

HONOLULU – (November 27, 2006) – A&B Properties, Inc., the real estate subsidiary of Alexander & Baldwin, Inc. (NASDAQ: ALEX), has partnered with Intertex to purchase a 57-acre vacant commercial-zoned parcel in Bakersfield, Calif., for the development of a regional retail power center of up to 600,000 square feet. The purchase closed on November 22, at a price of $15 million. Bakersfield is located roughly 100 miles north of Los Angeles, and this joint venture represents A&B’s sixth development project with Intertex, the first five of which are located in nearby Valencia, Calif.

The property is situated at the intersection of Panama Road and Gosford Road, the latter being a primary north-south thoroughfare in Southwest Bakersfield. The site is surrounded by residential zoned properties, and within a five-mile radius of the property are a number of new residential projects being developed by half-dozen homebuilders. Also located nearby is a retail shopping center with a Sam’s Club and Kohl’s department store.

Construction is expected to commence early 2008 and take 12 months to complete. Total cost of the project is estimated at $90 million.

“A&B continues to build upon its program of investing outside of its historic Hawaii landholdings,” said A&B Senior Vice President Michael G. Wright, who is responsible for implementing A&B’s strategy for growth through real estate acquisitions and investments. “We have made six investments in Valencia, and this acquisition in Bakersfield represents an expansion of our Mainland strategy of acquiring prime retail locations in select high-growth markets. It’s also a reflection of our desire to expand the reach of our investment activity by partnering with development companies with strong local expertise and a proven track record of successful development.”

“Bakersfield is a dynamic and growing community,” continued Wright, “and this property is located in an under-retailed area of Bakersfield that has experienced, and will continue to experience, very rapid residential growth.”

Bakersfield is located in Kern County, 100 miles north of Los Angeles, and is California’s third largest inland city, after Sacramento and Fresno. The city has some of the most affordable housing in California, helping fuel economic growth that supported a ten-percent increase in the county’s labor force between 2001 and 2005. In 2005, Bakersfield experienced the largest population growth of any city in the United States having a population greater than 250,000 people.

This development will be A&B’s sixth real estate investment with Intertex. Valencia projects currently under construction with Intertex include: Crossroads Plaza, a 62,000 square-foot retail center; Centre Pointe Marketplace, a 106,000-square foot shopping center; and Bridgeport Marketplace, a 122,000-square foot neighborhood shopping center.

A&B Properties is one of Hawaii’s most active real estate companies. A&B has residential and commercial projects currently under development throughout the State, and owns 90,000 acres in Hawaii, making it the state’s fourth largest private landowner. A&B also has a leased portfolio comprising more than 5.3 million square feet of leasable retail, office and industrial space on the Mainland and in Hawaii. Additional information may be found at its web site: www.abprop.com.

A&B Properties, Inc. 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 and 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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