KAHULUI, MAUI, HAWAII - (May 17, 2006) - A&B Kane LLC, a subsidiary of A&B Properties, Inc., has established a timetable for the sale of the first phase of residential condominiums at its latest project in Kahului. Called `Aina o Kane (land of Kane in Hawaiian), this mixed-use project offers 103 fee-simple residential condominiums above fee-simple ground floor commercial condominiums in four of five buildings; with the fifth building consisting entirely of residential units. This first increment of 14 residential apartments is being offered only to prospective owner occupants. There are several types and sizes of residential apartments, with prices starting at $314,900 for a 2-bedrooms/1-bathroom unit.

Owner-occupants will be given first priority to purchase the residential units, and a public lottery will establish the order of unit selection. A sales kick-off event will be held at the Maui Mall (Space A-4) on Saturday, May 20 from 10:00 a.m. to 4:30 p.m. Brochures and sales reservation packets may be obtained and submitted at this event. Applications are being accepted until May 26; the lottery will be held May 31.

"We are very pleased to be proceeding with this development that can serve the local residential market, creating needed housing in Central Maui," said Grant Chun, vice president of A&B Properties. "This location - across from Kaahumanu Center and within easy walking distance of Kahului Shopping Center and Maui Mall - makes it attractive for residents who prefer to be close to many services, and will provide the option of fee-simple commercial space in a prime business area."

Local broker `Aina Maui Properties will manage the residential sales program on behalf of the developer. For more information, contact `Aina Maui Properties, 2145 Wells Street, Suite 301, Wailuku, HI 96893 or phone 808-242-4400 or visit www.ainaokane.com.

The project is bounded by Kane, Vevau and School streets, and consists of five buildings of varied sizes and designs; four will be mixed-use with the fifth consisting entirely of residential units. The location is within walking distance of the Maui Mall, Queen Kaahumanu Center, Maui Community College and Hoaloha Park at Kahului Harbor. The project is also adjacent to the Maui Community College student housing project, which is currently under construction.

The commercial space will consist of approximately 19,800 square feet of ground-floor space. The space will be divided into four commercial condominium units and will be sold in fee-simple A&B Properties Executive Vice President Norbert Buelsing, responsible for the company's portfolio of income properties, said, "There are many small business owners within Central Maui who wish to control their occupancy costs by owning, rather than leasing, their office or retail commercial space." A&B Properties will handle the marketing of the commercial units, which will commence shortly.

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 development projects are ongoing in various locations on Oahu, Maui, Kauai, and the Big Island of Hawaii. 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, 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.

FOR MORE INFORMATION:
Meredith J. Ching, A&B, 808-525-6669 or mching@abinc.com