Ashland Inc. and Consolidated Subsidiaries																		Page 5
COMPONENTS OF OPERATING INCOME
(In millions - preliminary and unaudited)
		Three Months Ended September 30, 2007
		Performance									Water			Unallocated
		Materials			Distribution			Valvoline			Technologies			& Other				Total
OPERATING INCOME
	Postretirement benefit obligation adjustment	$	(3.3)		$	(5.6)		$	(0.9)		$	(1.5)		$	-		$	(11.3)
	Self-insurance reserve adjustment		-			-			-			-			8.0			8.0
	Asset impairments - PathGuard® equipment		-			-			-			(10.6)			-			(10.6)
	Non-North American entities reporting lag elimination		2.1			(0.9)			-			4.0			-			5.2
	Litigation reserve adjustment		(5.5)			-			-			-			-			(5.5)
	All other operating income		13.9			2.0			18.8			6.6			(0.9)			40.4
		$	7.2		$	(4.5)		$	17.9		$	(1.5)		$	7.1		$	26.2
		Three Months Ended September 30, 2006
		Performance									Water			Unallocated
		Materials			Distribution			Valvoline			Technologies			& Other				Total
OPERATING INCOME
	Environmental remediation expense	$	(6.7)		$	(8.7)		$	0.3		$	(2.0)		$	(6.3)		$	(23.4)
	Severance costs		(0.4)			(2.0)			(1.7)			(6.1)			(0.4)			(10.6)
	Insurance settlements		2.7			3.5			-			0.9			10.8			17.9
	Asset impairments		-			-			(4.4)			(0.1)			-			(4.5)
	Corporate costs previously charged to APAC		-			-			-			-			(7.5)			(7.5)
	Litigation reserve adjustment		(2.0)			-			-			-			-			(2.0)
	All other operating income		24.2			32.8			(8.8)			12.2			(2.1)			58.3
		$	17.8		$	25.6		$	(14.6)		$	4.9		$	(5.5)		$	28.2