Ashland Inc. and Consolidated Subsidiaries												Page 1
STATEMENTS OF CONSOLIDATED INCOME
(In millions except per share data - preliminary and unaudited)
								Three months ended
								December 31
								2007			2006
SALES AND OPERATING REVENUES								$	1,905		$	1,803
COSTS AND EXPENSES
	Cost of sales and operating expenses								1,589			1,489
	Selling, general and administrative expenses								281			266
									1,870			1,755
EQUITY AND OTHER INCOME									11			10
OPERATING INCOME									46			58
	Gain on the MAP Transaction (a)								-			-
	Net interest and other financing income								12			16
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES									58			74
	Income taxes								(20)			(21)
INCOME FROM CONTINUING OPERATIONS									38			53
	Loss from discontinued operations (net of income taxes)								(5)			(4)
NET INCOME								$	33		$	49
DILUTED EARNINGS PER SHARE
	Income from continuing operations							$	.60		$	.81
	Loss from discontinued operations								(.08)			(.06)
	Net income							$	.52		$	.75
AVERAGE COMMON SHARES AND ASSUMED CONVERSIONS									64			65
SALES AND OPERATING REVENUES
	Performance Materials							$	371		$	366
	Distribution								990			948
	Valvoline								380			351
	Water Technologies								206			179
	Intersegment sales								(42)			(41)
								$	1,905		$	1,803
OPERATING INCOME
	Performance Materials							$	12		$	26
	Distribution								6			14
	Valvoline								20			18
	Water Technologies								5			5
	Unallocated and other								3			(5)
								$	46		$	58
(a)	“MAP Transaction” refers to the June 30, 2005 transfer of Ashland’s 38% interest in Marathon Ashland Petroleum LLC (MAP) and two other businesses to Marathon Oil Corporation.  The gain for the periods presented reflects adjustments in the recorded receivable for future estimated tax deductions related primarily to environmental and other postretirement liabilities.