Ashland 8-K Regulation FD Disclosure

EXHIBIT 99.1

Ashland Inc. and Consolidated Subsidiaries
Statements of Consolidated Income
Years Ended September 30
(In millions except per share data)	2008			2007			2006			2005			2004
Sales and operating revenues	$	8,381		$	7,785		$	7,233		$	6,731		$	5,776
Costs and expenses
Cost of sales and operating expenses		7,056			6,447			6,030			5,545			4,721
Selling, general and administrative expenses		1,166			1,171			1,077			1,079			968
		8,222			7,618			7,107			6,624			5,689
Equity and other income		54			49			44			564			438
Operating income		213			216			170			671			525
Gain (loss) on the MAP Transaction (a)		20			(3	)		(5	)		1,284			-
Loss on early retirement of debt		-			-			-			(145	)		-
Net interest and other financing income (costs)		28			46			47			(82	)		(114	)
Income from continuing operations before income taxes		261			259			212			1,728			411
Income tax (expense) benefit		(86	)		(58	)		(29	)		230			(100	)
Income from continuing operations		175			201			183			1,958			311
Income (loss) from discontinued operations (net of income taxes)		(8	)		29			224			46			67
Net income	$	167		$	230		$	407		$	2,004		$	378
Earnings per share
Basic
Income from continuing operations	$	2.78		$	3.20		$	2.57		$	26.85		$	4.44
Income (loss) from discontinued operations		(.13	)		.46			3.16			.64			.97
Net income	$	2.65		$	3.66		$	5.73		$	27.49		$	5.41
Diluted
Income from continuing operations	$	2.76		$	3.15		$	2.53		$	26.23		$	4.36
Income (loss) from discontinued operations		(.13	)		.45			3.11			.62			.95
Net income	$	2.63		$	3.60		$	5.64		$	26.85		$	5.31

(a) “MAP Transaction” refers to the June 30, 2005 transfer of Ashland’s 38% interest in Marathon Ashland Petroleum LLC (MAP), Ashland's maleic anhydride business and 60 Valvoline Instant Oil Change centers in Michigan and northwest Ohio to Marathon Oil Corporation in a transaction valued at approximately $3.7 billion.

Ashland Inc. and Consolidated Subsidiaries
Consolidated Balance Sheets
September 30
(In millions)	2008			2007			2006			2005			2004
Assets
Current assets
Cash and cash equivalents	$	886		$	897		$	1,820		$	985		$	243
Available-for-sale securities		-			155			349			403			-
Accounts receivable		1,469			1,467			1,401			1,242			953
Inventories		494			610			532			439			383
Deferred income taxes		97			69			93			104			96
Other current assets		86			78			55			22			111
Current assets of discontinued operations		-			-			-			562			516
		3,032			3,276			4,250			3,757			2,302
Investments and other assets
Investment in Marathon Ashland Petroleum LLC (MAP)		-			-			-			-			2,713
Auction rate securities		243			-			-			-			-
Goodwill and other intangibles		408			377			310			235			116
Asbestos insurance receivable (noncurrent portion)		428			458			444			370			399
Deferred income taxes		154			157			186			228			-
Other noncurrent assets		394			435			450			419			286
Noncurrent assets of discontinued operations		-			-			-			976			909
		1,627			1,427			1,390			2,228			4,423
Property, plant and equipment
Cost
Performance Materials		756			701			637			573			613
Distribution		436			434			407			378			355
Valvoline		502			488			489			488			466
Water Technologies		244			272			255			184			167
Unallocated and other		359			230			219			207			201
		2,297			2,125			2,007			1,830			1,802
Accumulated depreciation and amortization		(1,185	)		(1,142	)		(1,057	)		(1,000	)		(1,025	)
		1,112			983			950			830			777
	$	5,771		$	5,686		$	6,590		$	6,815		$	7,502
Liabilities and Stockholders’ Equity
Current liabilities
Debt due within one year
Short-term debt	$	-		$	-		$	-		$	-		$	40
Current portion of long-term debt		21			5			12			12			399
Dividends payable		-			-			674			-			-
Trade and other payables		1,209			1,141			1,302			1,239			1,106
Income taxes		-			6			53			13			14
Current liabilities of discontinued operations		-			-			-			281			256
		1,230			1,152			2,041			1,545			1,815
Noncurrent liabilities
Long-term debt (noncurrent portion)		45			64			70			82			1,109
Employee benefit obligations		344			255			313			358			428
Deferred income taxes		-			-			-			-			286
Asbestos litigation reserve (noncurrent portion)		522			560			585			521			568
Other noncurrent liabilities		428			501			485			482			429
Noncurrent liabilities of discontinued operations		-			-			-			88			161
		1,339			1,380			1,453			1,531			2,981
Stockholders’ equity
Common stock		1			1			1			1			72
Paid-in capital		33			16			240			605			478
Retained earnings		3,138			3,040			2,899			3,251			2,262
Accumulated other comprehensive income (loss)		30			97			(44	)		(118	)		(106	)
		3,202			3,154			3,096			3,739			2,706
	$	5,771		$	5,686		$	6,590		$	6,815		$	7,502

Ashland Inc. and Consolidated Subsidiaries
Statements of Consolidated Cash Flows
Years Ended September 30
(In millions)		2008			2007			2006			2005			2004
Cash flows from operating activities from continuing operations
Net income		$	167		$	230		$	407		$	2,004		$	378
Loss (income) from discontinued operations (net of income taxes)			8			(29	)		(224	)		(46	)		(67	)
Adjustments to reconcile income from continuing operations
to cash flows from operating activities
	Depreciation and amortization		145			133			111			100			98
	Deferred income taxes		44			22			(1	)		(500	)		104
	Equity income from affiliates		(23	)		(15	)		(11	)		(525	)		(412	)
	Distributions from equity affiliates		13			10			5			279			152
	Gain from the sale of property and equipment		(2	)		(4	)		(1	)		(9	)		(8	)
	Stock based compensation expense		12			16			25			25			15
	(Gain) loss on the MAP Transaction		(20	)		3			5			(1,284	)		-
	Loss on early retirement of debt		-			-			-			145			-
	Change in operating assets and liabilities (a)		134			(177	)		(168	)		(260	)		(227	)
	Other items		-			-			(3	)		(5	)		-
			478			189			145			(76	)		33
Cash flows from investing activities from continuing operations
Additions to property, plant and equipment			(205	)		(154	)		(175	)		(180	)		(137	)
Proceeds from the disposal of property, plant and equipment			10			27			21			18			31
Purchase of operations - net of cash acquired			(129	)		(75	)		(183	)		(135	)		(5	)
Proceeds from sale of operations			26			-			-			3,303			-
Purchases of available-for-sale securities			(435	)		(484	)		(824	)		(402	)		-
Proceeds from sales and maturities of
available-for-sale securities			315			680			876			1			-
Purchase of accounts receivable			-			-			-			(150	)		-
Collections of accounts receivable purchased			-			-			-			150			-
			(418	)		(6	)		(285	)		2,605			(111	)
Cash flows from financing activities from continuing operations
Proceeds from the exercise of stock options			3			19			18			115			108
Excess tax benefits related to share-based payments			1			9			6			20			3
Repayment of long-term debt			(5	)		(13	)		(13	)		(1,552	)		(100	)
Repurchase of common stock			-			(288	)		(405	)		(100	)		-
(Decrease) increase in revolving credit facility			-			-			-			(40	)		40
Cash dividends paid			(69	)		(743	)		(78	)		(79	)		(77	)
			(70	)		(1,016	)		(472	)		(1,636	)		(26	)
Cash (used) provided by continuing operations			(10	)		(833	)		(612	)		893			(104	)
Cash (used) provided by discontinued operations
	Operating cash flows		(8	)		(3	)		197			53			143
	Investing cash flows		-			(92	)		1,248			(207	)		(21	)
			(8	)		(95	)		1,445			(154	)		122
Effect of currency exchange rate changes on cash and cash equivalents			7			5			2			3			2
(Decrease) increase in cash and cash equivalents			(11	)		(923	)		835			742			20
Cash and cash equivalents - beginning of year			897			1,820			985			243			223
Cash and cash equivalents - end of year		$	886		$	897		$	1,820		$	985		$	243
(Increase) decrease in operating assets (a)
Accounts receivable		$	10		$	(56	)	$	(77	)	$	(292	)	$	(150	)
Inventories			126			(75	)		(56	)		(73	)		(9	)
Other current assets			(53	)		(22	)		21			94			(60	)
Investments and other assets			78			90			(2	)		(247	)		(15	)
Increase (decrease) in operating liabilities (a)
Trade and other payables			57			(103	)		41			105			(4	)
Other current liabilities			(7	)		(20	)		(90	)		(27	)		(11	)
Pension contributions			(25	)		(58	)		(111	)		(121	)		(137	)
Noncurrent liabilities			(52	)		67			106			301			159
Change in operating assets and liabilities		$	134		$	(177	)	$	(168	)	$	(260	)	$	(227	)
(a)	Excludes changes resulting from operations acquired or sold.

Ashland Inc. and Consolidated Subsidiaries
Information by Industry Segment
Years Ended September 30
(In millions)		2008			2007			2006			2005			2004
Sales and operating revenues
Performance Materials		$	1,621		$	1,580		$	1,425		$	1,369		$	1,026
Distribution			4,374			4,031			4,070			3,810			3,199
Valvoline			1,662			1,525			1,409			1,326			1,297
Water Technologies			893			818			502			394			360
Intersegment sales (a)
	Performance Materials		(151	)		(154	)		(145	)		(143	)		(85	)
	Distribution		(12	)		(12	)		(23	)		(22	)		(19	)
	Valvoline		(6	)		(1	)		(3	)		(2	)		(1	)
	Water Technologies		-			(2	)		(2	)		(1	)		(1	)
		$	8,381		$	7,785		$	7,233		$	6,731		$	5,776
Equity income
Performance Materials		$	16		$	10		$	10		$	7		$	7
Valvoline			5			4			1			1			-
Water Technologies			1			1			-			-			-
Refining and Marketing			-			-			-			517			405
Unallocated and other			1			-			-			-			-
			23			15			11			525			412
Other income
Performance Materials			3			4			4			17			8
Distribution			3			3			4			7			9
Valvoline			7			8			7			6			4
Water Technologies			2			3			4			4			8
Refining and Marketing			-			-			-			3			(6	)
Unallocated and other			16			16			14			2			3
			31			34			33			39			26
		$	54		$	49		$	44		$	564		$	438
Operating income
Performance Materials		$	52		$	89		$	112		$	88		$	42
Distribution			51			41			120			99			56
Valvoline			83			86			(21	)		59			77
Water Technologies			10			16			14			11			14
Refining and Marketing (b)			-			-			-			486			383
Unallocated and other			17			(16	)		(55	)		(72	)		(47	)
		$	213		$	216		$	170		$	671		$	525
Depreciation and amortization
Performance Materials		$	42		$	36		$	31		$	31		$	30
Distribution			24			22			21			18			18
Valvoline			32			31			28			27			27
Water Technologies			26			27			17			13			11
Unallocated and other			21			17			14			11			12
		$	145		$	133		$	111		$	100		$	98

(a)	Intersegment sales are accounted for at prices that approximate market value.
(b)	Includes Ashland's equity income from MAP through June 30, 2005, amortization related to Ashland's excess investment in MAP, and other activities associated with refining and marketing.

Ashland Inc. and Consolidated Subsidiaries
Information by Industry Segment
Years Ended September 30
(In millions)	2008			2007			2006			2005				2004
Assets
Performance Materials	$	1,080		$	997		$	841		$	764			$	640
Distribution		1,090			1,218			1,148			1,057				922
Valvoline		750			751			742			723				658
Water Technologies		495			514			468			233				202
Refining and Marketing		-			-			-			-				2,742
Discontinued operations		-			-			-			1,569				1,428
Unallocated and other (a)		2,356			2,206			3,391			2,469				910
	$	5,771		$	5,686		$	6,590		$	6,815			$	7,502
Capital employed
Performance Materials	$	795		$	682		$	505		$	466			$	373
Distribution		521			672			564			513				449
Valvoline		485			501			489			483				388
Water Technologies		333			359			322			146				116
Return on investment (b)
Performance Materials		4.6	%		9.2	%		15.9	%		10.8	%	(c)		8.0	%
Distribution		5.8	%		4.1	%		13.5	%		12.0	%			7.7	%
Valvoline		11.7	%		10.2	%		(2.6	)%		9.0	%	(c)		11.5	%
Water Technologies		1.8	%		4.9	%		6.4	%		7.6	%			9.0	%
Additions to property, plant and equipment
Performance Materials	$	48		$	56		$	58		$	45			$	45
Distribution		27			29			36			26				10
Valvoline		42			28			38			66				26
Water Technologies		17			24			23			19				17
Unallocated and other		71			17			20			24				39
	$	205		$	154		$	175		$	180			$	137

(a)	Includes cash, cash equivalents, available-for-sale securities, property and other assets.
(b)	Calculated as income from continuing operations divided by average quarterly capital employed.
(c)	On June 30, 2005, Ashland transferred its 38% interest in Marathon Ashland Petroleum LLC and two other businesses to Marathon Oil Corporation (the "MAP Transaction").  Amounts for 2005 exclude the respective portions of the net gain on the MAP Transaction of $43 million for Performance Materials and $24 million for Valvoline.  Including these amounts, the return on investment would have been 20.3% for Performance Materials and 14.4% for Valvoline.

Ashland Inc. and Consolidated Subsidiaries
Information by Industry Segment
Years Ended September 30
(In millions)		2008			2007			2006			2005			2004
Operating information
Performance Materials (a) (b)
	Sales per shipping day	$	6.4		$	6.1		$	5.7		$	5.4		$	4.0
	Pounds sold per shipping day		4.9			4.9			4.9			5.4			5.1
	Gross profit as a percent of sales		17.0	%		20.5	%		22.5	%		20.4	%		20.4	%
Distribution (a) (b)
	Sales per shipping day	$	17.3		$	15.9		$	16.2		$	15.1		$	12.6
	Pounds sold per shipping day		18.8			19.6			20.3			21.0			21.0
	Gross profit as a percent of sales		7.8	%		7.9	%		9.5	%		9.7	%		9.6	%
Valvoline (a) (b)
	Lubricant sales (gallons)		169.2			167.1			168.7			175.4			191.6
	Premium lubricants (percent of U.S. branded volumes)		24.9	%		23.3	%		23.1	%		23.4	%		21.5	%
	Gross profit as a percent of sales		23.0	%		24.8	%		19.9	%		26.6	%		28.2	%
Water Technologies (a) (b)
	Sales per shipping day	$	3.5		$	3.1		$	2.0		$	1.6		$	1.4
	Gross profit as a percent of sales		36.7	%		39.2	%		43.7	%		47.8	%		49.3	%
(a)	Sales are defined as sales and operating revenues. Gross profit is defined as sales and operating revenues, less cost of sales and operating expenses.
(b)	Excludes amounts resulting from the elimination of the previous one month financial reporting lag for wholly owned entities outside North America, which was recorded during fiscal 2007.

Ashland Inc. and Consolidated Subsidiaries
International Operations
Years Ended September 30
(In millions)	2008		2007			2006		2005		2004
International assets (a)
Performance Materials	$	553	$	535		$	463	$	396	$	333
Distribution		265		319			264		216		184
Valvoline		186		186			158		146		132
Water Technologies		322		312			268		88		83
		1,326		1,352			1,153		846		732
International liabilities (a)
Performance Materials		115		148			130		102		94
Distribution		120		103	��		127		94		88
Valvoline		57		51			44		42		54
Water Technologies		96		109			89		31		34
		388		411			390		269		270
Net international investment (a)
Performance Materials		438		387			333		294		239
Distribution		145		216			137		122		96
Valvoline		129		135			114		104		78
Water Technologies		226		203			179		57		49
	$	938	$	941		$	763	$	577	$	462
International income before income taxes (a) (b)
Performance Materials	$	68	$	64		$	68	$	64	$	43
Distribution		7		6			12		17		14
Valvoline		37		29			19		26		20
Water Technologies		61		62			41		37		30
	$	173	$	161		$	140	$	144	$	107
International revenues (a) (c)
Performance Materials	$	861	$	732		$	608	$	601	$	387
Distribution		967		846			729		663		537
Valvoline		418		392			310		287		249
Water Technologies		661		545			309		229		202
	$	2,907	$	2,515		$	1,956	$	1,780	$	1,375

(a)	Excludes amounts resulting from the elimination of the previous one month financial reporting lag for wholly owned entities outside North America, which was recorded during fiscal 2007.
(b)	Amounts represent income recorded by international subsidiaries, equity and dividend income from international affiliates, and international source royalty and other income recorded by U.S. subsidiaries.  Amounts do not reflect intercompany items eliminated in consolidation (e.g., interest) or any allocation of unallocated expenses incurred in the U.S. (e.g., research and development, advertising or administrative expenses) for the benefit of both U.S. and international operations.
(c)	Includes sales and operating revenues, equity income and other income.

Ashland Inc. and Consolidated Subsidiaries
International Operations
Years Ended September 30
(In millions)	2008		2007		2006		2005		2004
International assets (a)
Europe	$	779	$	842	$	715	$	499	$	432
Canada		189		205		193		189		164
Asia		205		168		131		72		58
Australia and New Zealand		59		64		55		46		48
Other		94		73		59		40		30
		1,326		1,352		1,153		846		732
International liabilities (a)
Europe		252		283		287		181		180
Canada		46		63		48		48		52
Asia		47		27		22		9		11
Australia and New Zealand		23		21		19		17		17
Other		20		17		14		14		10
		388		411		390		269		270
Net international investment (a)
Europe		527		559		428		318		252
Canada		143		142		145		141		112
Asia		158		141		109		63		47
Australia and New Zealand		36		43		36		29		31
Other		74		56		45		26		20
	$	938	$	941	$	763	$	577	$	462
International income before income taxes (a) (b)
Europe	$	69	$	82	$	67	$	61	$	41
Canada		19		13		29		40		32
Asia		31		29		18		14		14
Australia and New Zealand		17		11		6		10		11
Other		37		26		20		19		9
	$	173	$	161	$	140	$	144	$	107
International revenues (a) (c)
Europe	$	1,745	$	1,530	$	1,118	$	999	$	757
Canada		431		405		421		422		344
Asia		312		231		143		114		87
Australia and New Zealand		159		142		107		105		95
Other		260		207		167		140		92
	$	2,907	$	2,515	$	1,956	$	1,780	$	1,375

(a)	Excludes amounts resulting from the elimination of the previous one month financial reporting lag for wholly owned entities outside North America, which was recorded during fiscal 2007.
(b)	Amounts represent income recorded by international subsidiaries, equity and dividend income from international affiliates, and international source royalty and other income recorded by U.S. subsidiaries.  Amounts do not reflect intercompany items eliminated in consolidation (e.g., interest) or any allocation of unallocated expenses incurred in the U.S. (e.g., research and development, advertising or administrative expenses) for the benefit of both U.S. and international operations.
(c)	Includes sales and operating revenues, equity income and other income.