HONOLULU, Mar 27, 2003 (BUSINESS WIRE) -- Alexander & Baldwin, Inc. (Nasdaq:ALEX) has acquired, through its real estate subsidiary, A&B Properties, Inc., a 31-story office tower in downtown Honolulu's central business district. The fee simple, "Class A" office tower is located two blocks from the State Capitol and is known as 1100 Alakea. The building was completed in 1993 and is noted for its award-winning architecture and exterior glass elevators.

"1100 Alakea is an excellent addition to a long list of property acquisitions and investments A&B has made in Hawaii," said A&B President and CEO Allen Doane. "We have demonstrated confidence in our State's future by investing. It is the strongest statement we can make about our belief in Hawaii. To provide a sense of our commitment to Hawaii:

-- Over the last four years A&B has acquired or invested in 15 properties outside our core land holdings on Maui and Kauai. -- A few years ago, the Alexander & Baldwin building, where our corporate office is located, was our only Oahu property. The acquisition of 1100 Alakea now makes the number 10. -- A&B has a Hawaii commercial portfolio of office, retail and industrial properties totaling 23. -- In addition, the company has 12 separate commercial and residential projects in various stages of development on Oahu, Maui, Kauai and the Big Island. -- Our single most significant project is the Kukui'Ula joint venture with a premiere partner, DMB Associates. Planned for residential development of the highest quality, Kukui'Ula comprises 1,045 acres of prime land adjacent to the Poipu area on Kauai.

"We hope and expect there will be more announcements in the future on additional investments in our great state," Doane concluded.

1100 Alakea contains 170,000 square feet of leasable area, including office and ground floor retail space, on 26,000 square-feet of fee simple property. The building was purchased from the original developer, 1100 Alakea Corp., for an undisclosed price. National tenants include AOL-Time Warner, Prudential Insurance and T-Mobile.

A&B Properties Vice President Michael G. Wright, responsible for implementing A&B's strategy for growth through real estate acquisitions and investments, said, "1100 Alakea is a beautiful building in an excellent location, and most floors have expansive views of the ocean and of Waikiki. We are planning several significant improvements and expect to convert the fee simple building to office condominiums, providing a rare opportunity for downtown professionals to purchase their own Class A office space."

Wright added, "Our market research indicates that the building's design, plentiful on-site parking, excellent security, ocean views and high quality construction -- coupled with the lowest interest rate-environment in 40 years -- will make this a very attractive investment for both investors and owner-user businesses. 1100 Alakea has the potential to become one of the premier business addresses in downtown Honolulu."

Including this latest acquisition, A&B Properties has a portfolio comprising more than 5.4 million square feet of leasable retail, office and industrial space (3.5 million square feet on the Mainland and the balance in Hawaii). Additional information may be found at its web site: www.abprop.com.

A&B Properties, Inc. 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 fifth 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). 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 that involve a number of risks and uncertainties such as those described on page 19 of the Company's Annual Report on Form 10-K, which is incorporated in the Company's 2002 annual report to shareholders. These factors could cause actual results to differ materially from those projected in the statements.

Note to Editors: For a digital photo/scan of this property, please contact lhowe@abinc.com.

CONTACT:
Alexander & Baldwin, Inc.
Linda Howe, 808/525-6642
lhowe@abinc.com