Ashland Inc. and Consolidated Subsidiaries								Page 2
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions - preliminary and unaudited)
				September 30
				2007			2006
ASSETS
	Current assets
		Cash and cash equivalents		$	897		$	1,820
		Available-for-sale securities			155			349
		Accounts receivable			1,467			1,401
		Inventories			610			532
		Deferred income taxes			69			93
		Other current assets			78			55
					3,276			4,250
	Investments and other assets
		Goodwill and other intangibles			377			310
		Asbestos insurance receivable (noncurrent portion)			458			444
		Deferred income taxes			157			186
		Other noncurrent assets			435			450
					1,427			1,390
	Property, plant and equipment
		Cost			2,125			2,007
		Accumulated depreciation and amortization			(1,142)			(1,057)
					983			950
				$	5,686		$	6,590
LIABILITIES AND STOCKHOLDERS’ EQUITY
	Current liabilities
		Current portion of long-term debt		$	5		$	12
		Dividends payable			-			674
		Trade and other payables			1,141			1,302
		Income taxes			6			53
					1,152			2,041
	Noncurrent liabilities
		Long-term debt (less current portion)			64			70
		Employee benefit obligations			255			313
		Asbestos litigation reserve (noncurrent portion)			560			585
		Other long-term liabilities and deferred credits			501			485
					1,380			1,453
	Stockholders’ equity				3,154			3,096
				$	5,686		$	6,590