Ashland Inc. and Consolidated Subsidiaries												Page 1
STATEMENTS OF CONSOLIDATED INCOME
(In millions except per share data - preliminary and unaudited)
		Three months ended						Nine months ended
		June 30						June 30
		2006			2005			2006			2005
REVENUES
	Sales and operating revenues	$	2,691		$	2,492		$	7,378		$	6,731
	Equity income		4			315			9			530
	Other income		13			14			49			49
			2,708			2,821			7,436			7,310
COSTS AND EXPENSES
	Cost of sales and operating expenses		2,252			2,074			6,217			5,678
	Selling, general and administrative expenses		329			337			948			957
			2,581			2,411			7,165			6,635
OPERATING INCOME			127			410			271			675
	Gain (loss) on the MAP Transaction (a)		-			1,295			(2)			1,295
	Loss on early retirement of debt		-			(143)			-			(145)
	Net interest and other financing income (costs)		9			(31)			29			(89)
INCOME FROM CONTINUING OPERATIONS
	BEFORE INCOME TAXES		136			1,531			298			1,736
	Income tax (expense) benefit		(43)			236			(90)			157
INCOME FROM CONTINUING OPERATIONS			93			1,767			208			1,893
	Results from discontinued operations (net of income taxes)		-			-			(1)			-
NET INCOME		$	93		$	1,767		$	207		$	1,893
DILUTED EARNINGS PER SHARE
	Income from continuing operations	$	1.29		$	23.65		$	2.87		$	25.48
	Results from discontinued operations		-			-			(.01)			-
	Net income	$	1.29		$	23.65		$	2.86		$	25.48
AVERAGE COMMON SHARES AND ASSUMED CONVERSIONS			72			75			72			74
SALES AND OPERATING REVENUES
	APAC	$	838		$	713		$	2,053		$	1,713
	Performance Materials (b)		370			383			1,068			1,028
	Distribution		1,050			987			3,046			2,837
	Valvoline		366			354			1,030			987
	Water Technologies (b)		113			101			310			290
	Intersegment sales		(46)			(46)			(129)			(124)
		$	2,691		$	2,492		$	7,378		$	6,731
OPERATING INCOME (c)
	APAC	$	68		$	41		$	95		$	(6)
	Performance Materials (b)		41			33			94			73
	Distribution		30			31			95			80
	Valvoline		(10)			19			(6)			49
	Water Technologies (b)		9			2			9			9
	Refining and Marketing (d)		-			290			-			486
	Unallocated and other		(11)			(6)			(16)			(16)
		$	127		$	410		$	271		$	675
(a)	“MAP Transaction” refers to the June 30, 2005 transfer of Ashland’s 38% interest in Marathon Ashland Petroleum LLC (MAP), Ashland's maleic anhydride business and 60 Valvoline Instant Oil Change centers in Michigan and northwest Ohio to Marathon Oil Corporation in a transaction valued at approximately $3.7 billion.
(b)	In June 2006, Ashland redefined its reporting segments in order to provide stakeholders with a clearer understanding of its businesses as the company evolves into a diversified chemical company.  Performance Materials and Water Technologies were formerly combined under Ashland Specialty Chemical.  Prior periods have been conformed to the current period presentation.
(c)	In October 2005, Ashland refined its segment reporting to allocate substantially all corporate expenses to Ashland's five operating divisions, with the exception of certain legacy costs or items clearly not associated with the operating divisions.  Prior periods have been conformed to the current period presentation.
(d)	Includes Ashland's equity income from MAP, amortization related to Ashland's excess investment in MAP and other activities associated with refining and marketing through June 30, 2005.