For further information, contact:
John B. Kelley, Vice President
808-525-8422
E-mail: invrel@alexanderbaldwin.com
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                             FOR IMMEDIATE RELEASE
                                August 10, 1998


                            A&B TO RECAPITALIZE C&H


     HONOLULU, August 10, 1998 -- Units of Alexander & Baldwin, Inc. (NASDAQ:
ALEX) have entered into definitive agreements providing for the recapitaliza-
tion of California and Hawaiian Sugar Company, Inc. (C&H) in partnership with
an investor group including Citicorp Venture Capital, Ltd.  In the trans-
action, A&B will receive a combination of cash, preferred stock, and common
stock in the new, recapitalized entity and will sell a majority of its equity
in the new entity to the investor group.

     A&B expects to receive approximately $80 million in net proceeds from the
transaction, consisting of approximately $55 million in cash, after the payment
of certain C&H indebtedness, and $25 million in senior preferred stock, in
addition to retaining a 40 percent common stock interest in the recapitalized
C&H.  The transaction is not expected to have a material impact on A&B's
income.  The proposed transaction, which has been approved by the board of
directors of C&H, is expected to close within ninety days.

     Alexander & Baldwin, Inc., headquartered in Honolulu, has two major
subsidiaries: Matson Navigation Company, Inc. (ocean transportation) and A&B-
Hawaii, Inc. (property development and management, and food products).
Additional information about A&B may be found at its web site:
www.alexanderbaldwin.com.
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