FOR  ADDITIONAL INFORMATION:
                                                                 Stan Lampe
                                                             (606) 815-4061

                                                      FOR IMMEDIATE RELEASE
                                                           March 16, 2000

Ashland Inc. board approves
distribution of Arch Coal shares

         Covington,  Ky. - The board of directors  of Ashland  Inc.  (NYSE:
ASH) approved  today a taxable  distribution  of 17,397,233  shares of Arch
Coal, Inc. (NYSE: ACI) stock to the Ashland Inc. shareholders,  and has set
a record date of March 24.
         "Initially, our preferred path was a tax-free distribution of this
stock," said Paul W. Chellgren,  Ashland Inc.  chairman and chief executive
officer. "However, several factors mitigated against this strategy. One was
uncertainty  involved in obtaining a satisfactory  ruling from the Internal
Revenue  Service.  Another was  uncertainty  associated  with  successfully
concluding  negotiations  with a  special  committee  of the Arch  board of
directors.  These  factors,  coupled  with a  decline  in the value of Arch
stock,  led to our  decision  to  declare  a taxable  dividend,"  Chellgren
stated.
         The pro rata distribution  will take the form of a dividend,  that
will be taxable to the  shareholders  of Ashland  Inc. at  ordinary  rates.
Based on the 70,762,855 shares of Ashland Inc. shares  outstanding on March
15, and  assuming  no change in the number of  outstanding  Ashland  shares
before the record date of March 24, each share of Ashland  Inc.  stock will
receive  approximately  0.2458 shares of Arch Coal, Inc.  stock.  The exact
ratio of Arch shares to Ashland shares will be determined when the dividend
is issued.  Any fractional  shares of Arch stock,  that may result from the
distribution of

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the  shares  will  be  retained  by  Ashland,   with  Ashland  subsequently
distributing  the  equivalent  cash  value  to  the  affected  shareholder.
Information  regarding the distribution is expected to be mailed to Ashland
shareholders on or about March 27.
          After the distribution is completed, Ashland will continue to own
approximately 4.7 million Arch Coal shares. The company plans to dispose of
these shares in a tax efficient manner based on market conditions .
         "Our board  approved  this  action  after  significant  review and
study,  because we believe it is in the best interest of our  shareholders,
as well as that of both  companies,"  Chellgren  said.  "This will increase
Arch's float in the marketplace,  remove uncertainty surrounding the future
of our holdings in Arch, and, most  significantly,  enable Ashland Inc. and
Arch  Coal to  pursue  their  individual  value  creation  strategies  more
effectively," he concluded.
         Ashland Inc.  (NYSE:ASH)  provides basic industrial  materials and
services  to  customers  throughout  the  world,  with a  primary  focus on
transportation-and  construction-related  markets.  Consumer brands include
Valvoline(R)  motor  oils,  Eagle  One(R)  appearance  products,   Zerex(R)
antifreeze,   Pyroil(R)  Performance  Products  and  Valvoline  SynPower(R)
automotive  chemicals.  In  addition,  Ashland  owns 38 percent of Marathon
Ashland  Petroleum  LLC and 58  percent  of  Arch  Coal,  Inc.  (NYSE:ACI).
Ashland's Internet address is http://www.ashland.com.

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