Ashland Inc. and Consolidated Subsidiaries										Page 3
STATEMENTS OF CONSOLIDATED CASH FLOWS
(In millions - preliminary and unaudited)
						Six months ended
						March 31
						2007			2006
CASH FLOWS FROM OPERATING ACTIVITIES FROM CONTINUING OPERATIONS
	Net income					$	98		$	114
	Income from discontinued operations (net of income taxes)						(14)			(30)
	Adjustments to reconcile income from continuing operations to
	cash flows from operating activities
		Depreciation and amortization					57			52
		Deferred income taxes					(1)			22
		Equity income from affiliates					(6)			(4)
		Distributions from equity affiliates					3			2
		Change in operating assets and liabilities (a)					(223)			(310)
		Other items					3			2
							(83)			(152)
CASH FLOWS FROM FINANCING ACTIVITIES FROM CONTINUING OPERATIONS
	Proceeds from issuance of common stock						17			14
	Excess tax benefits related to share-based payments						8			4
	Repayment of long-term debt						(5)			(5)
	Repurchase of common stock						(288)			(138)
	Cash dividends paid						(709)			(40)
							(977)			(165)
CASH FLOWS FROM INVESTING ACTIVITIES FROM CONTINUING OPERATIONS
	Additions to property, plant and equipment						(66)			(75)
	Purchase of operations - net of cash acquired						(73)			(3)
	Proceeds from sale of operations						1			1
	Purchases of available-for-sale securities						(306)			(549)
	Proceeds from sales and maturities of available-for-sale securities						286			337
	Other - net						12			1
							(146)			(288)
CASH USED BY CONTINUING OPERATIONS							(1,206)			(605)
	Cash provided (used) by discontinued operations
		Operating cash flows					(2)			132
		Investing cash flows					(28)			(36)
DECREASE IN CASH AND CASH EQUIVALENTS						$	(1,236)		$	(509)
DEPRECIATION AND AMORTIZATION
	Performance Materials (b)					$	16		$	16
	Distribution						10			10
	Valvoline						15			13
	Water Technologies (b)						9			6
	Unallocated and other						7			7
						$	57		$	52
ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT
	Performance Materials (b)					$	19		$	20
	Distribution						13			19
	Valvoline						14			14
	Water Technologies (b)						12			11
	Unallocated and other						8			11
						$	66		$	75
(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.