Ashland Inc. and Consolidated Subsidiaries								Page 2
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions - preliminary and unaudited)
				June 30
				2007			2006
ASSETS
	Current assets
		Cash and cash equivalents		$	848		$	363
		Available-for-sale securities			141			621
		Accounts receivable			1,466			1,394
		Inventories			587			519
		Deferred income taxes			78			83
		Other current assets			72			58
		Current assets of discontinued operations			-			579
					3,192			3,617
	Investments and other assets
		Goodwill and other intangibles			373			300
		Asbestos insurance receivable (noncurrent portion)			460			446
		Deferred income taxes			181			237
		Other noncurrent assets			437			442
		Noncurrent assets of discontinued operations			-			956
					1,451			2,381
	Property, plant and equipment
		Cost			2,074			1,998
		Accumulated depreciation and amortization			(1,105)			(1,063)
					969			935
				$	5,612		$	6,933
LIABILITIES AND STOCKHOLDERS’ EQUITY
	Current liabilities
		Current portion of long-term debt		$	5		$	18
		Trade and other payables			1,138			1,159
		Income taxes			4			48
		Current liabilities of discontinued operations			-			261
					1,147			1,486
	Noncurrent liabilities
		Long-term debt (less current portion)			65			70
		Employee benefit obligations			294			417
		Asbestos litigation reserve (noncurrent portion)			567			592
		Other long-term liabilities and deferred credits			501			470
		Noncurrent liabilities of discontinued operations			-			97
					1,427			1,646
	Stockholders’ equity				3,038			3,801
				$	5,612		$	6,933