A&B Reports 2005 Net Income of $126 Million, Up 25%; 4th Quarter Net $23.4 Million, Also Up 25%

Net income for the fourth quarter of 2005 was $23,400,000, or$0.53 per fully diluted share. Net income in the fourth quarter of2004 was $18,700,000, or $0.42 per fully diluted share. Revenue in thefourth quarter of 2005 was $398,500,000, compared with revenue of$392,500,000 in the fourth quarter of 2004.

COMMENTS ON YEAR, QUARTER & OUTLOOK

"2005 was a benchmark year," said Allen Doane, president and chiefexecutive officer of A&B. "The Transportation segments achieved a 22percent year-over-year increase in operating profit and Real Estate'stotal operating profit rose 20 percent. Even with a subpar harvest,Food Products operating profit doubled, thanks to a one-time federalpayment and increased power sales.

"In the fourth quarter, however, Matson Navigation and itssubsidiary, Matson Integrated Logistics, when combined, experienced a5 percent decrease in operating profit, partially due to one lessaccounting week in 2005. Other factors included higher fuel costs,lower Hawaii freight volume and pre-startup costs associated with thenew Guam-China service. Real estate results in the quarter were quitefavorable.

"A&B's successful earnings performance in 2005 makes it difficult-- but all the more necessary -- to remind investors that we stillexpect that the results in 2006 will be lower.

"Matson has completed preparations for the first sailing this weekof its new China-Long Beach Express service that will replace theCompany's alliance with APL, but no amount of preparation can offsetthe costs of starting the new China service and of shifting vesselspreviously used in the Guam service to Hawaii.

"Closer to home, we continue to make progress with permits atKukui'ula on Kauai, where I had the opportunity to participate in agroundbreaking ceremony on January 23, preparatory to beginning majorconstruction. There still are a number of hurdles to clear before weclose the first sales there -- planned for the 4th quarter of 2006.

"Hawaii is enjoying good economic growth, with residential realestate markets now seeing moderation in price appreciation. Matsonretains a strong competitive position in its present trades, with acommitment to customer service and a continuing need to maintain costdiscipline. A&B Properties continues to seek entitlements on companyowned lands, to pursue developments at multiple locations in Hawaii,and to invest in additional new development opportunities.

"As we have stated publicly since July 2004, the ending of theGuam APL Alliance and the initiation of the new Guam-China servicewill make year-to-year comparisons negative for Matson. Real estateprospects for A&B Properties remain favorable, although residentialmarkets in Hawaii appear to be plateauing. Food Products will have adifficult time lapping 2005, given the one-time federal paymentreceived that year."

TRANSPORTATION -- OCEAN TRANSPORTATION

----------------------------------------------------------------------
Quarter Ended December 31
----------------------------------------------------------------------
Dollars in Millions 2005 2004 Change
----------------------------------------------------------------------
Revenue $ 223.6 $ 230.5 - 3%
Operating Profit $ 22.8 $ 25.3 - 10%
----------------------------------------------------------------------
Volume (Units)
----------------------------------------------------------------------
Hawaii Containers 44,300 45,900 - 3%
Hawaii Automobiles 37,200 46,700 - 20%
Guam Containers 4,100 4,000 + 3%
----------------------------------------------------------------------

Fourth quarter 2005 Ocean Transportation revenue of $223.6 millionwas $6.9 million, or 3 percent, lower than the fourth quarter of 2004.A significant portion of the decrease is due to comparing a 13-weekaccounting period in 2005 with 14 weeks in 2004. Also contributing tothe decrease were lower auto volumes and rates due to competitivefactors, offset in part by higher revenue from a higher fuelsurcharge, and improved yields and mix for containerized freight.Total Hawaii container volume was three percent lower than the fourthquarter of 2004, reflecting primarily the shorter accounting period.Total Hawaii automobile volume was 20 percent lower. Auto shipments inthe 4th quarter of 2004 had been unusually high due to large shipmentsfrom manufacturers to renew rental car fleets.

Fourth quarter 2005 Ocean Transportation operating profit of $22.8million was $2.5 million, or 10 percent, lower than the fourth quarterof 2004. This decrease resulted primarily from the factors cited fordecreased revenue, plus higher fuel costs, startup expenses related tothe new Guam-China service and higher purchased transportation costsdue in part to a greater portion of freight shipped to the NeighborIslands. These factors were offset, in part, by continuing goodperformance at SSA Terminals, LLC (SSAT), a stevedoring and terminaloperating company of which Matson is a minority partner, and fewervessel operating days.

----------------------------------------------------------------------
Year Ended December 31
----------------------------------------------------------------------
Dollars in Millions 2005 2004 Change
----------------------------------------------------------------------
Revenue $ 878.3 $ 850.1 3%
Operating Profit $ 128.0 $ 108.3 18%
----------------------------------------------------------------------
Volume (Units)
----------------------------------------------------------------------
Hawaii Containers 175,800 169,600 4%
Hawaii Automobiles 148,100 157,000 - 6%
Guam Containers 16,600 17,200 - 3%
----------------------------------------------------------------------

Full year 2005 Ocean Transportation revenue of $878.3 million was$28.2 million, or 3 percent, higher than the full year 2004. Thisincrease was primarily the result of increases in the fuel surcharge,higher Hawaii freight volume, and improved freight yields and mix,offset in part by lower automobile volume and rates. Total Hawaiicontainer volume was 4 percent higher than in full year 2004. TotalHawaii automobile volume was 6 percent lower.

Full year 2005 Ocean Transportation operating profit of $128.0million was $19.7 million, or 18 percent, higher than the full year2004. This increase was primarily the result of higher earnings fromSSAT, improved freight yields and cargo mix in all services, higherHawaii freight volume and lower vessel and operating overheadexpenses, offset in part by higher outside transportation costs andlower vessel charters and other business.

TRANSPORTATION -- LOGISTICS SERVICES

----------------------------------------------------------------------
Quarter Ended December 31
----------------------------------------------------------------------
Dollars in Millions 2005 2004 Change
----------------------------------------------------------------------
Revenue $120.4 $109.8 10%
Operating Profit $ 4.3 $ 3.1 39%
----------------------------------------------------------------------

Fourth quarter 2005 Logistics Services revenue of $120.4 millionwas $10.6 million, or 10 percent, higher than the fourth quarter of2004. Continued growth in highway volumes was offset by declines indomestic and international intermodal rail volumes. Yields were higherin all lines, however.

Fourth quarter 2005 Logistics Services operating profit of $4.3million was $1.2 million, or 39 percent, higher than in the comparableperiod last year. Gross margins were higher in all lines, offset, inpart, by higher G&A and other normal operating expenses.

The operating profit margin for Logistics Services reached anall-time high of 3.6 percent in the fourth quarter of 2005, comparedwith 2.8 percent for the fourth quarter of 2004 and the previous highof 3.4 percent in the second quarter of 2005. The good performance wasdue, in part, to a growing portion of higher-margin highway businessin the total.

----------------------------------------------------------------------
Year Ended December 31
----------------------------------------------------------------------
Dollars in Millions 2005 2004 Change
----------------------------------------------------------------------
Revenue $431.6 $376.9 15%
Operating Profit $ 14.4 $ 8.9 62%
----------------------------------------------------------------------

Year 2005 Logistics Services revenue of $431.6 million was $54.7million, or 15 percent, higher than the full year 2004. Revenue washigher, with strength in highway volumes offset by declines indomestic and international intermodal rail volumes, but higher yieldsin all lines.

Year 2005 Logistics Services operating profit of $14.4 million was$5.5 million, or 62 percent, higher than in the comparable period lastyear. The improvement in operating profit was the result of higheryields and higher total volume, partially offset by higher personnelcosts and other overhead.

REAL ESTATE--LEASING

----------------------------------------------------------------------
Quarter Ended December 31
----------------------------------------------------------------------
Dollars in Millions 2005 2004 Change
----------------------------------------------------------------------
Revenue $23.2 $ 21.7 7%
Operating Profit $11.1 $ 10.0 11%
----------------------------------------------------------------------
Occupancy Rates
----------------------------------------------------------------------
Mainland 96% 95% 1%
Hawaii 95% 91% 4%
----------------------------------------------------------------------
Leasable Space (Million sq. ft.)
----------------------------------------------------------------------
Mainland 3.5 3.7 - 5%
Hawaii 1.6 1.7 - 6%
----------------------------------------------------------------------

Fourth quarter 2005 Real Estate Leasing revenue (before removingamounts treated as discontinued operations) of $23.2 million was $1.5million, or 7 percent, higher than the fourth quarter of 2004. RealEstate Leasing operating profit of $11.1 million was $1.1 million, or11 percent, higher. The improved revenue and operating profit resultedprimarily from property acquisitions, higher occupancy rates and thecompletion and leasing of the Kunia Shopping Center.

Comparing the periods, leasable area declined slightly. On theMainland, two leased properties were sold during the first quarter andone acquired during the second. In Hawaii, one property, a groundleased retail site in Honolulu, was acquired during the first quarter;one property, a shopping center in Kona, was acquired in the thirdquarter; and two office buildings were sold during the fourth quarter.

----------------------------------------------------------------------
Year Ended December 31
----------------------------------------------------------------------
Dollars in Millions 2005 2004 Change
----------------------------------------------------------------------
Revenue $89.7 $83.8 7%
Operating Profit $43.7 $38.8 13%
----------------------------------------------------------------------
Occupancy Rates
----------------------------------------------------------------------
Mainland 95% 95% --
Hawaii 93% 90% 3%
----------------------------------------------------------------------

Full year 2005 Real Estate Leasing revenue (before removingamounts treated as discontinued operations) of $89.7 million was $5.9million, or 7 percent, higher than the full year 2004. Real EstateLeasing operating profit of $43.7 million was $4.9 million, or 13percent, higher. The improved revenue and operating profit resultedfrom property acquisitions, higher occupancies and leasing of KuniaShopping Center.

REAL ESTATE -- SALES

----------------------------------------------------------------------
Quarter Ended December 31
----------------------------------------------------------------------
Dollars in Millions 2005 2004 Change
----------------------------------------------------------------------
Revenue $26.7 $ 2.3 12X
Operating Profit $ 7.2 $(0.3) NA
----------------------------------------------------------------------

Fourth quarter 2005 Real Estate Sales revenue of $26.7 million was$24.4 million higher than the fourth quarter of 2004. Real EstateSales operating profit of $7.2 million was $7.5 million higher thanthe fourth quarter of 2004.

Sales during the fourth quarter of 2005 consisted primarily of twooffice buildings, the Haseko Building and Oceanview Center, bothlocated on leased land in downtown Honolulu, and one lot at Mill TownCenter on Oahu. There were no major property sales in the fourthquarter of 2004.

----------------------------------------------------------------------
Year Ended December 31
----------------------------------------------------------------------
Dollars in Millions 2005 2004 Change
----------------------------------------------------------------------
Revenue $148.9 $82.3 81%
Operating Profit $ 44.1 $34.6 27%
----------------------------------------------------------------------

Full year 2005 Real Estate Sales revenue of $148.9 million was$66.6 million, or 81 percent, higher than the full year 2004. RealEstate Sales operating profit of $44.1 million was $9.5 million, or 27percent, higher than the full year 2004. Sales in both periodsreflected Hawaii's broad real estate market strength. Full year 2005results also benefited from a $5.2 million insurance gain received inthe 3rd quarter as a result of a February 2005 fire that destroyedmuch of the Kahului Shopping Center on Maui. Variations in profitmargin result from the mix of properties sold.

The sales during full year 2005 included:

-- the Haseko and Oceanview buildings, sold for a total of $25.5 million;

-- closings of 100 condominium units at the Lanikea high-rise in Waikiki for $59 million;

-- Ontario Pacific Business Centre, in Ontario, Calif., for $17.8 million;

-- the 80 percent balance of an installment sale of a 30-acre development parcel at Wailea, Maui, for $14.2 million;

-- Northwest Business Center, in San Antonio, Texas, for $6.3 million;

-- 5-1/2 floors at Alakea Corporate Tower, a Honolulu office condominium, for $5.5 million;

-- an eight-acre residential resort development parcel at Wailea for $4.5 million;

-- a commercial development parcel in Waikiki;

-- three residential lots at Wailea Golf Vistas;

-- three lots at Maui Business Park Phase I and

-- four lots at Mill Town Center on Oahu.

-- Joint venture income in 2005 included the sale of the Westridge project in Valencia and preferred income on the Hokua condominium financing offset, in part, by marketing expenses at Kukui'ula.

In the full year 2004, sales consisted primarily of:

-- 33 commercial properties on Maui and Oahu that sold for a total of $24 million, including 8 lots at Maui Business Park and 22 lots at Mill Town Center on Oahu;

-- three resort residential parcels at Wailea that sold for a total of $13.8 million;

-- 17-1/2 floors at Alakea Corporate Tower for $19.3 million, and

-- 28 residential lots, including 26 at Wailea Golf Vistas, for $23.2 million.

-- In addition, 11 sales of homes at the Kai Lani joint venture on Oahu and three at Holo Holo Ku on the Big Island closed out those projects.

Discontinued operations in the full year 2005 included the OntarioPacific Business Centre and Northwest Business Center, and the feeinterest in a parcel on Maui. They also included the operating resultsof an office building on Maui expected to be sold in 2006 and twooffice buildings in downtown Honolulu that were sold in October 2005.Three parcels on Maui were classified as discontinued operations in2005 and were sold in January 2006. The amounts reported as continuingand discontinued operations in prior quarters are restated each time aproperty is designated as discontinued.

FOOD PRODUCTS

----------------------------------------------------------------------
Quarter Ended December 31
----------------------------------------------------------------------
Dollars in Millions 2005 2004 Change
----------------------------------------------------------------------
Revenue $ 34.0 $ 32.2 6%
Operating Profit $ 2.0 $ 1.3 54%
----------------------------------------------------------------------
Tons Sugar Produced 52,400 56,400 - 7%
----------------------------------------------------------------------

Fourth quarter 2005 Food Products revenue of $34.0 million was$1.8 million, or 6 percent, higher than in 2004. The increasereflected higher electric power sales revenue, due to higher rates andgreater volume, and higher molasses prices, partially offset by lowerraw sugar sales volume and prices.

Fourth quarter 2005 Food Products operating profit of $2.0 millionwas $0.7 million greater than the $1.3 million operating profit in thefourth quarter of 2004. The increase was primarily the result of thehigher power sales and molasses prices, and a smaller charge duringthe fourth quarter of 2005 than in 2004 to reduce the carrying valueof coffee inventories to fair market value. These factors werepartially offset by lower margins on raw sugar sales due to lowersales volume and prices.

----------------------------------------------------------------------
Year Ended December 31
----------------------------------------------------------------------
Dollars in Millions 2005 2004 Change
----------------------------------------------------------------------
Revenue $ 123.2 $ 112.8 9%
Operating Profit $ 11.2 $ 4.8 2.3X
----------------------------------------------------------------------
Tons Sugar Produced 192,700 198,800 - 3%
----------------------------------------------------------------------

Full year 2005 Food Products revenue of $123.2 million was $10.4million, or 9 percent, higher than in 2004. Full year 2005 FoodProducts operating profit of $11.2 million was $6.4 million higherthan that of 2004. Both revenue and operating profit benefited from a$5.5 million one-time, weather-related federal relief payment receivedduring the first quarter. Apart from that factor, the benefits ofhigher power sales rates and volume, and higher molasses prices weremore than offset by lower sugar volume and prices and higher operatingcosts, primarily personnel, boiler and mobile-equipment fuel,chemicals and fertilizer expenses.

CORPORATE EXPENSE, OTHER

Fourth quarter 2005 corporate expenses of $7.8 million were $1.7million, or 28 percent, higher than the fourth quarter of 2004. Forthe full year, corporate expense of $24.1 million was $3.8 million, or19 percent higher. The increases in both periods were due primarily tohigher charitable contributions to the A&B Foundation, increasedamortization of restricted stock grants, and higher personnel andincentive costs, partially offset by lower Sarbanes-Oxley relatedcosts. Impairment losses of $2.2 million and $0.1 million wererecorded in the second and third quarters, respectively, in connectionwith A&B's ultimate disposition of its interest in C&H.

BALANCE SHEET, CASH FLOW COMMENTS, TAX RATE

The $156 million increase in Property, Net and the $82 millionincrease in Long-Term Debt both primarily reflect the delivery of anew vessel.

On the cash flow statements through December 31, the $80 millionincrease in Capital Expenditures reflects primarily the delivery ofthe new ship and active real estate construction. The $173 million netincrease in Proceeds (Payments) From Issuance of Debt reflectsprimarily the delivery of the new ship.

The consolidated tax rate for 2005 was 37.5 percent, lower thanthe 38 percent estimated until the 4th quarter. Expanded tax creditsassociated with renewable energy production were the primary reasonfor the change.

Alexander & Baldwin, Inc., headquartered in Honolulu, is engagedin ocean transportation and intermodal services, through itssubsidiaries, Matson Navigation Company, Inc. and Matson IntegratedLogistics, Inc.; in real estate, through A&B Properties, Inc.; and infood products, through Hawaiian Commercial & Sugar Company and KauaiCoffee Company, Inc. Additional information about A&B may be found atits web site: www.alexanderbaldwin.com.

Statements in this press release that are not historical facts are"forward-looking statements," within the meaning of the PrivateSecurities Litigation Reform Act of 1995, that involve a number ofrisks and uncertainties that could cause actual results to differmaterially from those contemplated by the relevant forward-lookingstatement. These forward-looking statements are not guarantees offuture performance. This release should be read in conjunction withour Annual Report on Form 10-K and our other filings with the SECthrough the date of this release, which identify important factorsthat could affect the forward-looking statements in this release.

ALEXANDER & BALDWIN, INC.
2005 and 2004 Fourth-Quarter and Full-Year Results
----------------------------------------------------------------------

2005 2004
-------------- --------------
Three Months Ended December 31:
--------------------------------------
Revenue $ 398,500,000 $ 392,500,000
Income From Continuing Operations $ 18,300,000 $ 18,100,000
Discontinued Operations: Properties(1) $ 5,100,000 $ 600,000
Net Income $ 23,400,000 $ 18,700,000
Basic Share Earnings
Continuing Operations $ 0.42 $ 0.42
Net Income $ 0.54 $ 0.44
Diluted Share Earnings
Continuing Operations $ 0.42 $ 0.42
Net Income $ 0.53 $ 0.42
Average Basic Shares Outstanding 43,700,000 42,900,000
Average Diluted Shares Outstanding 44,100,000 43,600,000

Year Ended December 31:
--------------------------------------
Revenue $1,606,800,000 $1,489,100,000
Income From Continuing Operations $ 115,800,000 $ 97,600,000
Discontinued Operations: Properties(1) $ 10,200,000 $ 3,100,000
Net Income $ 126,000,000 $ 100,700,000
Basic Share Earnings
Continuing Operations $ 2.66 $ 2.29
Net Income $ 2.89 $ 2.37
Diluted Share Earnings
Continuing Operations $ 2.63 $ 2.26
Net Income $ 2.86 $ 2.33
Average Basic Shares Outstanding 43,600,000 42,600,000
Average Diluted Shares Outstanding 44,000,000 43,200,000

(1) "Discontinued Operations: Properties" consists of sales, or
intended sales, of certain lands and buildings that are material
and have separately identifiable earnings and cash flows.



Industry Segment Data, Net Income
(In Millions, Except Per Share Amounts, Unaudited)


Three Months Ended Year Ended
------------------ -------------------
December 31, December 31,
------------------ -------------------
2005 2004 2005 2004
------- ------- --------- ---------
Revenue:
-------------------------------
Transportation
Ocean Transportation $223.6 $230.5 $ 878.3 $ 850.1
Logistics Services 120.4 109.8 431.6 376.9
Real Estate
Leasing 23.2 21.7 89.7 83.8
Sales 26.7 2.3 148.9 82.3
Less Amounts Reported In
Discontinued Operations (26.5) (2.5) (56.5) (10.3)
Food Products 34.0 32.2 123.2 112.8
Reconciling Items (2.9) (1.5) (8.4) (6.5)
------- ------- --------- ---------
Total Revenue $398.5 $392.5 $1,606.8 $1,489.1
======= ======= ========= =========

Operating Profit, Net Income:
-------------------------------
Transportation
Ocean Transportation $ 22.8 $ 25.3 $ 128.0 $ 108.3
Logistics Services 4.3 3.1 14.4 8.9
Real Estate
Leasing 11.1 10.0 43.7 38.8
Sales 7.2 (0.3) 44.1 34.6
Less Amounts Reported In
Discontinued Operations (8.1) (1.0) (16.5) (5.0)
Food Products 2.0 1.3 11.2 4.8
------- ------- --------- ---------
Total Operating Profit 39.3 38.4 224.9 190.4
Write-down of C&H - - (2.3) -
Interest Expense (3.4) (3.1) (13.3) (12.7)
Corporate Expenses (7.8) (6.1) (24.1) (20.3)
------- ------- --------- ---------
Income From Continuing
Operations
Before Income Taxes 28.1 29.2 185.2 157.4
Income Taxes (9.8) (11.1) (69.4) (59.8)
------- ------- --------- ---------
Income From Continuing
Operations 18.3 18.1 115.8 97.6
Discontinued Operations:
Properties 5.1 0.6 10.2 3.1
------- ------- --------- ---------
Net Income $ 23.4 $ 18.7 $ 126.0 $ 100.7
======= ======= ========= =========

Basic Earnings Per Share,
Continuing Operations $ 0.42 $ 0.42 $ 2.66 $ 2.29
Basic Earnings Per Share, Net
Income $ 0.54 $ 0.44 $ 2.89 $ 2.37

Diluted Earnings Per Share,
Continuing Operations $ 0.42 $ 0.42 $ 2.63 $ 2.26
Diluted Earnings Per Share,
Net Income $ 0.53 $ 0.42 $ 2.86 $ 2.33

Basic Shares 43.7 42.9 43.6 42.6
Diluted Shares 44.1 43.6 44.0 43.2




Condensed Consolidated Balance Sheets
----------------------------------------------------------------------
(In Millions)

December 31, December 31,
------------ -------------
2005 2004
------ ------
(Unaudited)
ASSETS
Current Assets $ 303 $ 288
Investments 154 111
Real Estate Developments 71 82
Property, Net 1,289 1,133
Capital Construction Fund 93 40
Other
Assets 161 124
------- -------
Total $2,071 $1,778
======= =======

LIABILITIES & EQUITY
Current Liabilities $ 254 $ 235
Long-Term Debt 296 214
Post-Retirement Benefit Obligs. 47 45
Other Long-Term Liabilities 45 41
Deferred Income Taxes 415 339
Shareholders' Equity 1,014 904
------- -------
Total $2,071 $1,778
======= =======



Condensed Consolidated Cash Flow Information
----------------------------------------------------------------------
(In Millions)
Year Ended
-------------
December 31,
-------------
2005 2004
------ ------
(Unaudited)

Operating Cash Flows $ 277 $ 173
Capital Expenditures (231) (151)
CCF Withdrawals/(Deposits), Net (69) 140
Proceeds From Issuance of (Payment of) Debt, Net 71 (102)
Repurchases of Capital Stock - (2)
Dividends Paid (39) (38)
All Other, Net 6 16
------ ------
Increase/(Decrease) In Cash $ 15 $ 36
====== ======

Depreciation $ (84) $ (80)
====== ======