MEDIA RELEASE

Responding to difficult economic conditions which have produced continuing operating losses, Parker Ranch, Inc’s (PRI) Board of Directors has decided on a change in strategy and announced several resulting operational changes.

“The company will re-focus its efforts on its two core business lines—livestock production and land resource management,” PRI Board Chairman Pete Moynahan said. “This new direction will require that the ranch transition out of its non-core businesses including general real estate brokerage, tours of the ranch and its historic properties and retailing.”

Coupled with refocusing business activities and exiting certain existing operations, the ranch will be reducing certain administrative expenses, including eliminating the positions of two vice presidents who have long been an integral part of the Parker Ranch ohana and the ranch looks forward to their assistance as consultants during the transition of operations.

The Board of Directors expresses its great appreciation for the long and very capable service of vice presidents Michael “Corky” Bryan and Diane S. Quitiquit.

The changes in PRI’s operational strategy will be led by Bill Maris, Chief Operating Officer (COO), and are designed to both reduce general operating costs and eliminate unprofitable businesses in order to improve the company’s performance and long-term sustainability.

Along with continuing livestock operations that market approximately 10,000 head of cattle annually, Parker Ranch, Inc.’s revised strategy also includes long-term land management uses to preserve and enhance core land assets, coupled with appropriately planned dispositions or exchanges of real estate to reduce debt, fund necessary infrastructure improvements for Waimea’s growth, and prudently diversify PRI’s and Parker Ranch Foundation Trust’s (PRFT) asset base.

Moynahan said “PRI’s revised strategy is designed to stabilize PRI and thereby better position PRFT to fulfill its long-term mission of carrying out Richard Smart’s vision of perpetuating a healthy, vibrant Waimea community through the trust’s support of its four beneficiaries.”

Maris said “PRI’s historic core business of livestock production will remain the Ranch’s primary long-term land management use and agricultural business. However, PRI plans to further explore and potentially expand into other long-term land management opportunities that can be complimentary to cattle ranching; including wind and/or solar energy production, biomass production, wildlife, habitat restoration and other natural resource based land uses. These and other opportunities were identified by the PRI Board of Directors in recent strategic planning meetings.”

Consistent with other cost reduction efforts, Moynahan said “PRI has already reduced the size of its Board of Directors. Also, PRFT trustees have voluntary implemented a reduction in fees, and, in addition, relinquished their office space to allow PRI to make further operating cost reductions.”

Parker Ranch is the fifth largest ranch in the United States, spanning approximately 130,000 acres across the Big Island. It surrounds the town of Waimea and spreads between the Kohala and Mauna Kea mountains.

Parker Ranch, Inc. is owned by the Parker Ranch Foundation Trust for the benefit of four local charities: North Hawaii Community Hospital, Hawaii Preparatory Academy, Parker School Trust Corporation and the Richard Smart Fund of the Hawaii Community Foundation.

— Find out more:

www.parkerranch.com