Ashland Inc. and Consolidated Subsidiaries							Page 3
STATEMENTS OF CONSOLIDATED CASH FLOWS
(In millions - preliminary and unaudited)
			Three months ended
			December 31
			2005			2004
CASH FLOWS FROM OPERATIONS
	Income from continuing operations		$	67		$	94
	Adjustments to reconcile to cash flows from operations
		Depreciation, depletion and amortization		51			46
		Deferred income taxes		54			17
		Equity income from affiliates		(2)			(146)
		Distributions from equity affiliates		1			1
		Change in operating assets and liabilities (a)		(312)			(70)
		Other items		(3)			2
				(144)			(56)
CASH FLOWS FROM FINANCING
	Proceeds from issuance of common stock			4			20
	Excess tax benefits related to share-based payments			1			2
	Repayment of long-term debt			(5)			(98)
	Repurchase of common stock			(96)			-
	Increase in short-term debt			-			211
	Cash dividends paid			(20)			(20)
				(116)			115
CASH FLOWS FROM INVESTMENT
	Additions to property, plant and equipment			(50)			(55)
	Purchase of operations - net of cash acquired			-			(95)
	Purchases of available-for-sale securities			(227)			-
	Proceeds from sales and maturities of available-for-sale securities			152			-
	Other - net			3			2
				(122)			(148)
CASH USED BY CONTINUING OPERATIONS				(382)			(89)
	Cash used by discontinued operations			(2)			(8)
DECREASE IN CASH AND CASH EQUIVALENTS			$	(384)		$	(97)
DEPRECIATION, DEPLETION AND AMORTIZATION
	APAC		$	26		$	22
	Ashland Distribution			5			4
	Ashland Specialty Chemical			10			11
	Valvoline			6			6
	Unallocated and other			4			3
			$	51		$	46
ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT
	APAC		$	25		$	33
	Ashland Distribution			3			5
	Ashland Specialty Chemical			12			11
	Valvoline			5			5
	Unallocated and other			5			1
			$	50		$	55
(a)	Excludes changes resulting from operations acquired or sold.