Ashland Inc. and Consolidated Subsidiaries										Page 3
STATEMENTS OF CONSOLIDATED CASH FLOWS
(In millions - preliminary and unaudited)
						Year ended
						September 30
						2006			2005
CASH FLOWS FROM OPERATING ACTIVITIES FROM CONTINUING OPERATIONS
	Net Income					$	407		$	2,004
	Results from discontinued operations (net of income taxes)						(224)			(46)
	Adjustments to reconcile income from continuing operations
	to cash flows from operating activities
		Depreciation and amortization					111			100
		Deferred income taxes					(1)			(500)
		Equity income from affiliates					(11)			(525)
		Distributions from equity affiliates					5			279
		Loss (gain) on the MAP Transaction					5			(1,284)
		Loss on early retirement of debt					-			145
		Change in operating assets and liabilities (a)					(141)			(232)
		Other items					(3)			(5)
							148			(64)
CASH FLOWS FROM FINANCING ACTIVITIES FROM CONTINUING OPERATIONS
	Proceeds from issuance of common stock						18			115
	Excess tax benefits related to share-based payments						6			20
	Repayment of long-term debt						(13)			(1,552)
	Repurchase of common stock						(405)			(100)
	Decrease in short-term debt						-			(40)
	Cash dividends paid						(78)			(79)
							(472)			(1,636)
CASH FLOWS FROM INVESTING ACTIVITIES FROM CONTINUING OPERATIONS
	Additions to property, plant and equipment						(175)			(180)
	Purchase of operations - net of cash acquired						(183)			(135)
	Proceeds from sale of operations (b)						-			3,303
	Purchases of available-for-sale securities						(824)			(402)
	Proceeds from sales and maturities of available-for-sale securities						876			1
	Purchase of accounts receivable						-			(150)
	Collections of accounts receivable purchased						-			150
	Other - net						20			9
							(286)			2,596
CASH (USED) PROVIDED BY CONTINUING OPERATIONS							(610)			896
	Cash provided (used) by discontinued operations
		Operating cash flows					197			53
		Investing cash flows					1,248			(207)
INCREASE IN CASH AND CASH EQUIVALENTS						$	835		$	742
DEPRECIATION AND AMORTIZATION
	Performance Materials (c)					$	31		$	31
	Distribution						21			18
	Valvoline						28			27
	Water Technologies (c)						17			13
	Unallocated and other						14			11
						$	111		$	100
ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT
	Performance Materials (c)					$	58		$	45
	Distribution						36			26
	Valvoline						38			66
	Water Technologies (c)						23			19
	Unallocated and other						20			24
						$	175		$	180
(a)	Excludes changes resulting from operations acquired or sold.
(b)	Amount for 2005 includes cash proceeds (net of expenses) of $3,290 million from the MAP Transaction.
(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.