FOR FURTHER INFORMATION:

                                             Stan Lampe
                                             606-329-4061

                                             FOR IMMEDIATE RELEASE
                                             January 30, 1997

Ashland Inc. board approves initial public
offering/spin-off for Ashland Exploration

     Ashland,  Ky. --  Ashland  Inc.  (NYSE:  ASH) will  proceed  toward an
initial  public  offering  for Ashland  Exploration  Inc.,  a  wholly-owned
subsidiary,  according to Paul W.  Chellgren,  chairman and chief executive
officer.  

     The  Ashland  Inc.  Board of  Directors  approved,  subject to certain
contingencies,  the  initital  public  offering  of less than 20 percent of
Ashland Exploration. This transaction would likely occur in the late spring
or summer.  The initial  public  offering  would  likely be followed by the
tax-free spin-off of Ashland's  remaining  ownership in Ashland Exploration
to Ashland Inc.  shareholders  once an appropriate  ruling is received from
the Internal Revenue Service.

     "Ashland Exploration is well positioned to grow its core operations in
the  Appalachian  Basin,  the Gulf of  Mexico  and  Nigeria.  Total  proved
reserves  at  September  30,  1996,  were 577 BCF of  natural  gas and 21.5
million  barrels of crude oil,"  Chellgren  said. "We hope to complete both
transactions  before  the  end  of  the  1997  calendar  year,  subject  to
governmental and regulatory approvals,  tax rulings,  market conditions and
definitive agreements among various parties."

     Ashland  Exploration  is a  domestic  and  international  producer  of
natural  gas and crude  oil.  The  division  is  currently  engaged  in the
exploration  for and  production of crude oil and natural gas in the United
States and in the exploration for and production of crude oil in Nigeria.

     Ashland  Inc.  is a large  energy  and  chemical  company  engaged  in
petroleum refining and marketing;  coal; highway construction;  and oil and
gas exploration and production. Ashland Chemical is the largest distributor
of  chemicals  and  plastics  in North  America  and a leading  supplier of
specialty  chemicals  worldwide.  Ashland's  major consumer  brands include
Valvoline(R)  motor oils,  Zerex(R)  antifreeze  and Pyroil(R)  Performance
Products automotive  chemicals.  As one of the largest independent refiners
in the nation,  Ashland is also a leading regional gasoline marketer,  with
products  marketed under the  SuperAmerica(R)  and Ashland(R)  brand names.
Ashland Inc.'s internet address is http://www.ashland.com

                                     - 0 -