Ashland Inc. and Consolidated Subsidiaries								Page 2
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions - preliminary and unaudited)
				March 31
				2007			2006
ASSETS
	Current assets
		Cash and cash equivalents		$	584		$	476
		Available-for-sale securities			371			621
		Accounts receivable			1,448			1,279
		Inventories			576			494
		Deferred income taxes			86			74
		Other current assets			79			86
		Current assets of discontinued operations			-			439
					3,144			3,469
	Investments and other assets
		Goodwill and other intangibles			375			230
		Asbestos insurance receivable (noncurrent portion)			449			345
		Deferred income taxes			194			231
		Other noncurrent assets			438			469
		Noncurrent assets of discontinued operations			-			954
					1,456			2,229
	Property, plant and equipment
		Cost			2,045			1,891
		Accumulated depreciation and amortization			(1,088)			(1,037)
					957			854
				$	5,557		$	6,552
LIABILITIES AND STOCKHOLDERS’ EQUITY
	Current liabilities
		Current portion of long-term debt		$	10		$	12
		Trade and other payables			1,143			1,083
		Income taxes			22			6
		Current liabilities of discontinued operations			-			211
					1,175			1,312
	Noncurrent liabilities
		Long-term debt (less current portion)			67			77
		Employee benefit obligations			318			404
		Asbestos litigation reserve (noncurrent portion)			569			500
		Other long-term liabilities and deferred credits			507			477
		Noncurrent liabilities of discontinued operations			-			88
					1,461			1,546
	Stockholders’ equity				2,921			3,694
				$	5,557		$	6,552