Ashland Inc. and Consolidated Subsidiaries								Page 2
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions - preliminary and unaudited)
					December 31
				2007			2006
ASSETS
	Current assets
		Cash and cash equivalents		$	681		$	516
		Available-for-sale securities			394			436
		Accounts receivable			1,374			1,341
		Inventories			633			580
		Deferred income taxes			63			76
		Other current assets			91			65
					3,236			3,014
	Investments and other assets
		Goodwill and other intangibles			380			377
		Asbestos insurance receivable (noncurrent portion)			448			440
		Deferred income taxes			157			189
		Other noncurrent assets			436			443
					1,421			1,449
	Property, plant and equipment
		Cost			2,151			2,042
		Accumulated depreciation and amortization			(1,162)			(1,079)
					989			963
				$	5,646		$	5,426
LIABILITIES AND STOCKHOLDERS’ EQUITY
	Current liabilities
		Current portion of long-term debt		$	5		$	7
		Trade and other payables			1,036			1,059
		Income taxes			3			10
					1,044			1,076
	Noncurrent liabilities
		Long-term debt (less current portion)			64			70
		Employee benefit obligations			262			303
		Asbestos litigation reserve (noncurrent portion)			546			577
		Other noncurrent liabilities and deferred credits			524			522
					1,396			1,472
	Stockholders’ equity				3,206			2,878
				$	5,646		$	5,426