Ashland Inc. and Consolidated Subsidiaries							Page 2
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions - preliminary and unaudited)
			December 31
			2006			2005
ASSETS
	Current assets
		Cash and cash equivalents	$	516		$	601
		Available-for-sale securities		436			479
		Accounts receivable		1,341			1,191
		Inventories		580			499
		Deferred income taxes		76			66
		Other current assets		65			80
		Current assets of discontinued operations		-			472
				3,014			3,388
	Investments and other assets
		Goodwill and other intangibles		377			231
		Asbestos insurance receivable (noncurrent portion)		440			363
		Deferred income taxes		189			222
		Other noncurrent assets		443			478
		Noncurrent assets of discontinued operations		-			967
				1,449			2,261
	Property, plant and equipment
		Cost		2,042			1,848
		Accumulated depreciation and amortization		(1,079)			(1,015)
				963			833
			$	5,426		$	6,482
LIABILITIES AND STOCKHOLDERS’ EQUITY
	Current liabilities
		Current portion of long-term debt	$	7		$	12
		Trade and other payables		1,059			1,025
		Income taxes		10			2
		Current liabilities of discontinued operations		-			203
				1,076			1,242
	Noncurrent liabilities
		Long-term debt (less current portion)		70			77
		Employee benefit obligations		303			394
		Asbestos litigation reserve (noncurrent portion)		577			512
		Other long-term liabilities and deferred credits		522			483
		Noncurrent liabilities of discontinued operations		-			88
				1,472			1,554
	Stockholders’ equity			2,878			3,686
			$	5,426		$	6,482