Ashland Inc. and Consolidated Subsidiaries								Page 2
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions - preliminary and unaudited)
					March 31
				2008			2007
ASSETS
	Current assets
		Cash and cash equivalents		$	847		$	584
		Available-for-sale securities			74			371
		Accounts receivable			1,498			1,448
		Inventories			545			576
		Deferred income taxes			68			86
		Other current assets			83			79
					3,115			3,144
	Investments and other assets
		Auction rate securities			254			-
		Goodwill and other intangibles			385			375
		Asbestos insurance receivable (noncurrent portion)			443			449
		Deferred income taxes			145			194
		Other noncurrent assets			421			438
					1,648			1,456
	Property, plant and equipment
		Cost			2,178			2,045
		Accumulated depreciation and amortization			(1,163)			(1,088)
					1,015			957
				$	5,778		$	5,557
LIABILITIES AND STOCKHOLDERS’ EQUITY
	Current liabilities
		Current portion of long-term debt		$	3		$	10
		Trade and other payables			1,129			1,143
		Income taxes			4			22
					1,136			1,175
	Noncurrent liabilities
		Long-term debt (less current portion)			64			67
		Employee benefit obligations			259			318
		Asbestos litigation reserve (noncurrent portion)			539			569
		Other noncurrent liabilities and deferred credits			484			507
					1,346			1,461
	Stockholders’ equity				3,296			2,921
				$	5,778		$	5,557