Ashland Inc. and Consolidated Subsidiaries												Page 1
STATEMENTS OF CONSOLIDATED INCOME
(In millions except per share data - preliminary and unaudited)
		Three months ended						Year ended
		September 30						September 30
		2006			2005			2006			2005
REVENUES
	Sales and operating revenues	$	1,908		$	1,712		$	7,233		$	6,731
	Equity income		4			1			11			525
	Other income		13			1			33			39
			1,925			1,714			7,277			7,295
COSTS AND EXPENSES
	Cost of sales and operating expenses		1,612			1,415			6,030			5,545
	Selling, general and administrative expenses		285			278			1,077			1,079
			1,897			1,693			7,107			6,624
OPERATING INCOME			28			21			170			671
	(Loss) gain on the MAP Transaction (a)		(4)			(10)			(5)			1,284
	Loss on early retirement of debt		-			-			-			(145)
	Net interest and other financing income (costs)		19			7			47			(82)
INCOME FROM CONTINUING OPERATIONS
	BEFORE INCOME TAXES		43			18			212			1,728
	Income tax benefit (expense)		13			63			(29)			230
INCOME FROM CONTINUING OPERATIONS			56			81			183			1,958
	Income from discontinued operations (net of income taxes) (b)		144			30			224			46
NET INCOME		$	200		$	111		$	407		$	2,004
DILUTED EARNINGS PER SHARE
	Income from continuing operations	$	0.79		$	1.08		$	2.53		$	26.23
	Income from discontinued operations		2.03			0.40			3.11			0.62
	Net income	$	2.82		$	1.48		$	5.64		$	26.85
AVERAGE COMMON SHARES AND ASSUMED CONVERSIONS			71			75			72			75
SALES AND OPERATING REVENUES
	Performance Materials (c)	$	358		$	341		$	1,425		$	1,369
	Distribution		1,024			972			4,070			3,810
	Valvoline		379			339			1,409			1,326
	Water Technologies (c)		191			105			502			394
	Intersegment sales		(44)			(45)			(173)			(168)
		$	1,908		$	1,712		$	7,233		$	6,731
OPERATING INCOME
	Performance Materials (c)	$	18		$	15		$	112		$	88
	Distribution		26			19			120			99
	Valvoline		(15)			10			(21)			59
	Water Technologies (c)		5			2			14			11
	Refining and Marketing (d)		-			-			-			486
	Unallocated and other (e)		(6)			(25)			(55)			(72)
		$	28		$	21		$	170		$	671
(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)	Ashland sold APAC to Oldcastle Materials, Inc. in August 2006 for approximately $1.3 billion, recording an after-tax gain on sale of discontinued operations of $110 million.  After-tax operating results of APAC (excluding previously allocated corporate costs - see note (e) below) are reflected in discontinued operations, with prior periods restated.
(c)	In June 2006, Ashland redefined its reporting segments as it continues to evolve into a diversified chemical company.  Performance Materials and Water Technologies, formerly combined under Ashland Specialty Chemical, have now been separately disclosed.  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.
(e)	Includes corporate costs previously allocated to APAC of $8 million and $13 million for the three months ended September 30, 2006 and 2005, respectively, and $41 million and $45 million for the years ended September 30, 2006 and 2005, respectively.