Barnwell Industries, Inc. Reports Final County Zoning Approval for Kaupulehu Project.

HONOLULU--(BUSINESS WIRE)--April 7, 1999--Barnwell Industries, Inc., (ASE:BRN), announced today that the Hawaii County Council voted to adopt an ordinance granting final zoning approval for a residential, golf and commercial project on approximately 1,000 acres at Kaupulehu, North Kona, Hawaii. This project is being developed by Kaupulehu Developments, a partnership of which Barnwell's subsidiary Barnwell Hawaiian Properties, Inc. is the majority and managing partner. The zoning ordinance is now before County of Hawaii Mayor Stephen Yamashiro, whose approval is required for this ordinance to become effective.

Morton H. Kinzler, Chairman and Chief Executive Officer of Barnwell, commented, "The vote granting this final zoning approval is a major step towards the development of another phase of the resort and residential area at Kaupulehu, which now includes the Four Seasons Hualalai Resort and Jack Nicklaus-designed Hualalai Golf Course and the previously- existing Kona Village Resort. With the approval of Mayor Yamashiro, this will represent the culmination of over six years of work by management on this expansion project.

"In order to proceed with our plans for development of this area, several steps must be completed, including the resolution of a legal challenge to a prior approval for this project which is before the Hawaii Supreme Court. This vote affirms the County of Hawaii's support for the project and allows us to proceed with the final design work in the interim. We wish to thank the County of Hawaii, State of Hawaii, Kamehameha Schools/Bernice Pauahi Bishop Estate and the Big Island community for their continuing support throughout this process."