NEW YORK, NEW YORK - Griffin Land & Nurseries, Inc. (Nasdaq: GRIF) ("Griffin") today announced that its real estate division, Griffin Land, had entered into a Purchase and Sale Agreement for the previously announced sale to Walgreen Co. ("Walgreen") of approximately 130 acres of undeveloped land in the New England Tradeport (the "Tradeport"), Griffin Land's 600 acre industrial park located in Windsor and East Granby, Connecticut. The purchase price is $13 million in cash, before transaction expenses.

The completion of this transaction is contingent on a number of factors including: (i) obtaining all required approvals from governmental authorities for Walgreen's proposed construction of a distribution facility on the land to be sold; (ii) obtaining a certificate from the Connecticut State Traffic Commission (the "STC Certificate") approving both the construction of Walgreen's proposed facility and additional buildings by Griffin Land having more than an additional one million square feet of light manufacturing and warehouse space; and (iii) Griffin Land receiving satisfactory site plan approval for the additional square footage to be built under the STC Certificate. Griffin Land's buildings, if built, would be built over time, based on anticipated demand, on other Tradeport land currently held by Griffin Land. Griffin Land has no presently identified tenants for this additional space. Griffin Land currently owns approximately 800,000 square feet of light manufacturing and warehouse space at Tradeport. The completion of this transaction is subject to Walgreen's satisfactory completion of due diligence on the land to be sold. Obtaining the required approvals and due diligence on this transaction are expected to require a number of months with a closing expected to take place in mid 2006 if all conditions are satisfied.

If completed under its present terms, Griffin expects to record a substantial pretax gain from this proposed transaction. There is no assurance that this proposed transaction will be completed.

Griffin operates a real estate business under its Griffin Land division and a landscape nursery business, Imperial Nurseries, Inc.