Ashland Inc. and Consolidated Subsidiaries								Page 2
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions - preliminary and unaudited)
				September 30
				2006			2005
ASSETS
	Current assets
		Cash and cash equivalents		$	1,820		$	985
		Available-for-sale securities			349			403
		Accounts receivable			1,401			1,242
		Inventories			532			439
		Deferred income taxes			93			104
		Other current assets			55			22
		Current assets of discontinued operations			-			562
					4,250			3,757
	Investments and other assets
		Goodwill and other intangibles			310			235
		Asbestos insurance receivable (noncurrent portion)			444			370
		Deferred income taxes			186			228
		Other noncurrent assets			450			419
		Noncurrent assets of discontinued operations			-			976
					1,390			2,228
	Property, plant and equipment
		Cost			2,007			1,830
		Accumulated depreciation and amortization			(1,057)			(1,000)
					950			830
				$	6,590		$	6,815
LIABILITIES AND STOCKHOLDERS’ EQUITY
	Current liabilities
		Current portion of long-term debt		$	12		$	12
		Dividends payable			674			-
		Trade and other payables			1,302			1,239
		Income taxes			53			13
		Current liabilities of discontinued operations			-			281
					2,041			1,545
	Noncurrent liabilities
		Long-term debt (less current portion)			70			82
		Employee benefit obligations			313			358
		Reserves of captive insurance companies			175			182
		Asbestos litigation reserve (noncurrent portion)			585			521
		Other long-term liabilities and deferred credits			310			309
		Noncurrent liabilities of discontinued operations			-			79
					1,453			1,531
	Stockholders’ equity				3,096			3,739
				$	6,590		$	6,815