A&B Properties Sells Honolulu Property for $45 Million

September 14, 2007

Capitalizes on Strong Commercial Market in Urban Core

HONOLULU--(BUSINESS WIRE)--Sept. 14, 2007--A&B Properties, Inc., the real estate subsidiary of Alexander & Baldwin, Inc. (NASDAQ:ALEX), has sold its fee simple interest in a four-acre commercial parcel in Honolulu, close to Ala Moana Shopping Center, for $45.5 million. The buyer and previous ground lease holder, Don Quijote (USA), closed the transaction today, September 14, and will continue to operate its U.S. flagship store at the location.

A&B Properties CEO Stanley M. Kuriyama said, "Don Quijote's unsolicited offer allowed us to capture the property's embedded intrinsic value well ahead of our original schedule. We purchased this property in 2005 with the intent to redevelop it upon the ground lease termination in 2018. However, this transaction both allows A&B to realize the financial benefits from its investment, and Don Quijote to achieve its strategic and operating goals, on an accelerated timeline."

Kuriyama added, "This transaction validates the continued strength of commercial markets in Hawaii. We expect to reinvest the proceeds from this sale into other commercial investments, in line with our strategy to grow our income portfolio through the use of tax-deferred I.R.S. 1031 exchanges."

The 176,000 square-foot parcel is centrally located within one of Honolulu's strongest urban cores, the Kapiolani corridor. Steve Sombrero of ChaneyBrooks, who represented Don Quijote in the transaction, said, "This acquisition is an important building block in establishing Don Quijote's presence in Hawaii, providing them with the opportunity to begin to invest additional capital in the flagship store."

Sombrero added, "Don Quijote has been pleased with the reception by the Hawaii community, and this investment will permit Don Quijote to significantly enhance the unique retail experience it brings to the State. This property is a wonderful location for Don Quijote, surrounded by numerous high-rise apartment buildings and close to many of Don Quijote's customers."

In addition to its income portfolio, which comprises more than 5.3 million square feet of retail, office and industrial space in Hawaii and on the Mainland, A&B Properties is one of Hawaii's most active real estate development companies, with development projects on-going on all of the major Hawaiian Islands. With ownership of nearly 90,000 acres in Hawaii, A&B is the State's fourth largest private land owner. In addition to its diverse pipeline of commercial and residential projects on its historical landholdings, since 1999 the company has invested in 25 Hawaii properties outside of its historic holdings, representing a capital commitment in excess of $670 million. Additional information about the company may be found at www.abprop.com.

Alexander & Baldwin, Inc. ("A&B"), headquartered in Honolulu, Hawaii is engaged in ocean transportation and logistics services, through its subsidiaries, Matson Navigation Company, Inc. and Matson Integrated Logistics, Inc.; in real estate, through A&B Properties, 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," 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. 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.

CONTACT: A&B
Meredith J. Ching, 808-525-6669
mching@abinc.com

SOURCE: Alexander & Baldwin, Inc.