Ashland Inc. and Consolidated Subsidiaries							Page 3
STATEMENTS OF CONSOLIDATED CASH FLOWS
(In millions - preliminary and unaudited)
			Three months ended
			December 31
			2006			2005
CASH FLOWS FROM OPERATING ACTIVITIES FROM CONTINUING OPERATIONS
	Net income		$	49		$	66
	Loss (income) from discontinued operations (net of income taxes)			4			(31)
	Adjustments to reconcile income from continuing operations to
	cash flows from operating activities
		Depreciation and amortization		28			25
		Deferred income taxes		11			39
		Equity income from affiliates		(4)			(2)
		Distributions from equity affiliates		2			1
		(Gain) on the MAP Transaction		-			(2)
		Change in operating assets and liabilities (a)		(212)			(306)
		Other items		-			(1)
				(122)			(211)
CASH FLOWS FROM FINANCING ACTIVITIES FROM CONTINUING OPERATIONS
	Proceeds from issuance of common stock			13			4
	Excess tax benefits related to share-based payments			6			1
	Repayment of long-term debt			(5)			(5)
	Repurchase of common stock			(288)			(96)
	Cash dividends paid			(692)			(20)
				(966)			(116)
CASH FLOWS FROM INVESTING ACTIVITIES FROM CONTINUING OPERATIONS
	Additions to property, plant and equipment			(35)			(25)
	Purchase of operations - net of cash acquired			(73)			-
	Purchases of available-for-sale securities			(286)			(227)
	Proceeds from sales and maturities of available-for-sale securities			207			152
	Other - net			2			3
				(185)			(97)
CASH USED BY CONTINUING OPERATIONS				(1,273)			(424)
	Cash provided (used) by discontinued operations
		Operating cash flows		(4)			64
		Investing cash flows		(27)			(24)
DECREASE IN CASH AND CASH EQUIVALENTS			$	(1,304)		$	(384)
DEPRECIATION AND AMORTIZATION
	Performance Materials (b)		$	8		$	7
	Distribution			5			5
	Valvoline			7			6
	Water Technologies (b)			4			3
	Unallocated and other			4			4
			$	28		$	25
ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT
	Performance Materials (b)		$	10		$	7
	Distribution			7			3
	Valvoline			8			5
	Water Technologies (b)			7			5
	Unallocated and other			3			5
			$	35		$	25
(a)	Excludes changes resulting from operations acquired or sold.
(b)	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.