Ashland Inc. and Consolidated Subsidiaries										Page 3
STATEMENTS OF CONSOLIDATED CASH FLOWS
(In millions - preliminary and unaudited)
						Three months ended
						December 31
						2007			2006
CASH FLOWS FROM OPERATING ACTIVITIES FROM CONTINUING OPERATIONS
	Net income					$	33		$	49
	Loss from discontinued operations (net of income taxes)						5			4
	Adjustments to reconcile income from continuing operations to
	cash flows from operating activities
		Depreciation and amortization					34			28
		Deferred income taxes					4			11
		Equity income from affiliates					(4)			(4)
		Distributions from equity affiliates					2			2
		Gain on the MAP Transaction								-
		Change in operating assets and liabilities (a)					(5)			(212)
		Other items					-			-
							69			(122)
CASH FLOWS FROM FINANCING ACTIVITIES FROM CONTINUING OPERATIONS
	Proceeds from issuance of common stock						2			13
	Excess tax benefits related to share-based payments						1			6
	Repayment of long-term debt						-			(5)
	Repurchase of common stock						-			(288)
	Cash dividends paid						(17)			(692)
							(14)			(966)
CASH FLOWS FROM INVESTING ACTIVITIES FROM CONTINUING OPERATIONS
	Additions to property, plant and equipment						(42)			(35)
	Purchase of operations - net of cash acquired						(3)			(73)
	Proceeds from sale of operations						-			-
	Purchases of available-for-sale securities						(356)			(286)
	Proceeds from sales and maturities of available-for-sale securities						117			207
	Other items						16			2
							(268)			(185)
CASH USED BY CONTINUING OPERATIONS							(213)			(1,273)
	Cash used by discontinued operations
		Operating cash flows					-			-
		Operating cash flows					(3)			(4)
		Investing cash flows					-			(27)
DECREASE IN CASH AND CASH EQUIVALENTS						$	(216)		$	(1,304)
DEPRECIATION AND AMORTIZATION
	Performance Materials					$	9		$	8
	Distribution						6			5
	Valvoline						8			7
	Water Technologies						6			4
	Unallocated and other						5			4
						$	34		$	28
ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT
	Performance Materials					$	8		$	10
	Distribution						7			7
	Valvoline						5			8
	Water Technologies						4			7
	Unallocated and other						18			3
						$	42		$	35
(a)	Excludes changes resulting from operations acquired or sold.