Ashland Inc. and Consolidated Subsidiaries						Page 1
STATEMENTS OF CONSOLIDATED INCOME
(In millions except per share data - preliminary and unaudited)
		Three months ended
		December 31
		2006			2005
REVENUES
	Sales and operating revenues	$	1,803		$	1,686
	Equity income		4			2
	Other income		6			8
			1,813			1,696
COSTS AND EXPENSES
	Cost of sales and operating expenses		1,489			1,397
	Selling, general and administrative expenses		266			253
			1,755			1,650
OPERATING INCOME			58			46
	Gain on the MAP Transaction (a)		-			2
	Net interest and other financing income		16			10
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES			74			58
	Income taxes		(21)			(23)
INCOME FROM CONTINUING OPERATIONS			53			35
	Income (loss) from discontinued operations (net of income taxes) (b)		(4)			31
NET INCOME		$	49		$	66
DILUTED EARNINGS PER SHARE
	Income from continuing operations	$	.81		$	.48
	Income (loss) from discontinued operations		(.06)			.43
	Net income	$	.75		$	.91
AVERAGE COMMON SHARES AND ASSUMED CONVERSIONS			65			73
SALES AND OPERATING REVENUES
	Performance Materials (c)	$	366		$	352
	Distribution		948			967
	Valvoline		351			310
	Water Technologies (c)		179			97
	Intersegment sales		(41)			(40)
		$	1,803		$	1,686
OPERATING INCOME
	Performance Materials (c)	$	26		$	26
	Distribution		14			34
	Valvoline		18			1
	Water Technologies (c)		5			1
	Unallocated and other (d)		(5)			(16)
		$	58		$	46
(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.  After-tax operating results of APAC (excluding previously allocated corporate costs - see note (d) 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 corporate costs previously allocated to APAC of $10 million for the three months ended December 31, 2005.