EXHIBIT 99.1
[GRAPHIC OMITTED]
FOR ADDITIONAL INFORMATION:
Media Relations: Investor Relations:
Jim Vitak Daragh Porter
(614) 790-3715 (859) 815-3825
jevitak@ashland.com dlporter@ashland.com
FOR IMMEDIATE RELEASE
September 14, 2006
ASHLAND INC. DECLARES SPECIAL CASH DIVIDEND;
AUTHORIZES ADDITIONAL SHARE REPURCHASE PROGRAM
COVINGTON, Ky. -- The board of directors of Ashland Inc. (NYSE: ASH)
today declared a special cash dividend of $10.20 per share that will be
payable on October 25, 2006, to shareholders of record as of October 10,
2006. The specific consequences of stock trades made in the period between
the record and payable dates are detailed later in this release.
The Ashland board also authorized the repurchase of up to an
additional 7 million shares of the company's common stock, to be made from
time to time in the open market. Repurchases under this new authorization
may also be made under a rule 10b5-1 stock trading plan, which permits the
company to repurchase stock during "blackout" periods.
On June 30, 2005, Ashland made certain representations of intent to
the Internal Revenue Service with respect to stock repurchases as part of
the transfer of Ashland's interest in Marathon Ashland Petroleum LLC to
Marathon Oil Corporation. The actions taken by Ashland's board today are
consistent with those representations. Following the completion of the
newly announced share repurchase program, Ashland will have purchased
almost 20 percent of the shares outstanding on June 30, 2005.
"This special dividend and additional share repurchase authorization
demonstrate Ashland's commitment to building value for our shareholders,"
said James J. O'Brien, Ashland chairman and chief executive officer.
"Perhaps more important, we expect to drive shareholder value by managing
our businesses for growth and improved efficiency, while carefully
examining the landscape for acquisitions."
- more -
Ashland Inc. - Covington, Ky. - 41012-0391 - (859) 815-3333 - www.ashland.com
ASHLAND INC. DECLARES SPECIAL CASH DIVIDEND, PG. 2
Substantially all of the after-tax proceeds from the sale of Ashland
Paving And Construction, Inc. were used to fund the completion of the
January 25, 2006, share repurchase authorization, and will be used to fund
the additional 7-million-share repurchase authorization and the special
cash dividend. After-tax proceeds, after adjustment for changes in working
capital and certain other accounts, are estimated to total $1.28 billion.
Because of the magnitude of the special cash dividend, the New York
Stock Exchange has determined that the ex-dividend date will be October 26,
2006, the business day following the payable date for the special cash
dividend. Ashland shareholders of record on the October 10, 2006, record
date who subsequently sell their shares of common stock through the payable
date for the special dividend will also be selling their right to receive
such dividend. The special cash dividend is expected to be taxable to
shareholders at the dividend tax rate and will not be considered a return
of capital. Shareholders are encouraged to consult with their financial
advisors regarding the circumstances of their individual tax situation.
Ashland Inc. (NYSE: ASH), a diversified, global chemical company,
provides quality products, services and solutions to customers in more than
100 countries. A FORTUNE 500 company, it operates through four wholly owned
divisions: Ashland Performance Materials, Ashland Distribution, Valvoline
and Ashland Water Technologies. To learn more about Ashland, visit
www.ashland.com.
-0-
FORTUNE 500 is a registered trademark of Time Inc.
FORWARD-LOOKING STATEMENTS
This news release contains statements related to future events and
expectations and, as such, constitutes forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934. Although Ashland believes its
expectations are based on reasonable assumptions, these forward-looking
statements are subject to known and unknown risks, uncertainties,
assumptions and other factors that may cause actual results, performance or
achievements of the Company to be different from those expressed or implied
above. The risks, uncertainties and assumptions which forward-looking
statements are subject to include, but are not limited to, the effect of
governmental regulations, the economy, competition and other risks
contained in Ashland's Form 10-K, as amended, for the fiscal year ended
Sept. 30, 2005, and in other reports and filings with the Securities and
Exchange Commission, which are available on Ashland's Investor Relations
website at www.ashland.com/investors or the SEC's website at www.sec.gov.
Ashland expressly disclaims any duty to update or revise forward-looking
statements.