Ashland Inc.

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COVINGTON, Ky. - Ashland Inc. (NYSE: ASH), a global leader in specialty chemical
solutions for consumer and industrial markets, today completed its acquisition
of privately owned International Specialty Products Inc. (ISP), a global
specialty chemical manufacturer of innovative functional ingredients and
technologies. The purchase was an all-cash transaction for  $3.2 billion,
subject to post-closing adjustments for changes in net working capital and
certain other items.

"This defining transaction is expected to be immediately accretive and will
significantly expand our position in higher-margin, higher-growth end markets,
including personal care, pharmaceutical, food and beverage and energy," said
James J. O'Brien, Ashland chairman and chief executive officer. "We are excited
about combining ISP's technologies and capabilities with our own. This
acquisition enhances our ability to satisfy the increasing global demand for
more technologically advanced consumer and industrial products, and to continue
to generate industry-leading innovation and solutions for our customers."

Integration overview

ISP will be integrated into the Ashland Aqualon Functional Ingredients
commercial unit, more than doubling the size of Ashland's highest-margin
business. Effective immediately, the combined unit will be called Ashland
Specialty Ingredients. Going forward, Ashland Specialty Ingredients is expected
to contribute roughly half of Ashland's EBITDA. In addition, approximately half
of Ashland's overall revenues will now be derived outside of North America.

An integration team with key representatives of both companies is being led by
John Panichella, president of the new Ashland Specialty Ingredients business.
Ashland anticipates approximately $50 million in annual run-rate savings by the
end of the second year through eliminating redundancies and capturing
operational efficiencies.

Added Panichella, "The addition of ISP greatly expands the breadth of our
technology platforms and provides new resources and capabilities to better
capitalize on market opportunities. In particular, we now can offer our
customers one of the broadest, most functional portfolios of water-soluble
polymers in the world."

Transaction Details

The transaction was funded through a combination of cash on hand and borrowed
funds from Citigroup, The Bank of Nova Scotia, BofA Merrill Lynch and U.S. Bank
National Association. BofA Merrill Lynch acted as financial advisor, and
Cravath, Swaine & Moore LLP acted as legal counsel, to Ashland. Moelis & Company
acted as financial advisor, and Sullivan & Cromwell LLP acted as legal counsel,
to ISP.

About Ashland

In more than 100 countries, the people of Ashland Inc. (NYSE: ASH) provide the
specialty chemicals, technologies and insights to help customers create new and
improved products for today and sustainable solutions for tomorrow. Our
chemistry is at work every day in a wide variety of markets and applications,
including architectural coatings, automotive, construction, energy, food and
beverage, personal care, pharmaceutical, tissue and towel, and water treatment.
Visitwww.ashland.com to see the innovations we offer through our four commercial
units - Ashland Specialty Ingredients, Ashland Water Technologies, Ashland
Performance Materials and Ashland Consumer Markets (Valvoline).


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C-ASH

Forward-Looking Statements

This news release contains 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. In addition, Ashland may from time to time make forward-
looking statements in its other filings with the Securities and Exchange
Commission (SEC), news releases and other written and oral communications. These
forward-looking statements are based on Ashland's expectations and assumptions,
as of the date such statements are made, regarding Ashland's future operating
performance and financial condition, the economy and other future events or
circumstances. Ashland's expectations and assumptions include, without
limitation, internal forecasts and analyses of current and future market
conditions and trends, management plans and strategies, operating efficiencies
and economic conditions (such as prices, supply and demand, cost of raw
materials, and the ability to recover raw-material cost increases through price
increases), and risks and uncertainties associated with the following: the
possibility that the benefits (including the expected sales and growth
opportunities, synergies and cost savings) anticipated from the acquisition of
International Specialty Products Inc. (ISP) will not be fully realized, the
ability of Ashland to integrate the businesses of ISP successfully and
efficiently with Ashland's businesses, the substantial indebtedness Ashland has
incurred to finance the acquisition of ISP (including the possibility that such
debt and related restrictive covenants may adversely affect Ashland's future
cash flows, results of operations, financial condition and its ability to repay
debt), weather, natural disasters, and legal proceedings and claims (including
environmental and asbestos matters). Various risks and uncertainties may cause
actual results to differ materially from those stated, projected or implied by
any forward-looking statements, including, without limitation, risks and
uncertainties affecting Ashland that are described in its most recent Form 10-K
(including Item 1A Risk Factors) and Forms 10-Q filed with the SEC, which are
available on Ashland's website athttp://investor.ashland.com or on the SEC's
website at www.sec.gov. Ashland believes its expectations and assumptions are
reasonable, but there can be no assurance that the expectations reflected herein
will be achieved. Ashland undertakes no obligation to subsequently update any
forward-looking statements made in this news release or otherwise except as
required by securities or other applicable law.

FOR ADDITIONAL INFORMATION
 Media Relations:                   Investor Relations:

 Jim Vitak                          David Neuberger

 (614) 790-3715                     (859) 815-4454

 jevitak@ashland.com                daneuberger@ashland.com



To see a video of Ashland Chairman and CEO Jim O'Brien discussing the ISP
acquisition, click here.

The attached file contains additional background about Ashland Specialty
Ingredients.



Ashland Specialty Ingredients: 
http://hugin.info/147920/R/1539958/470947.pdf




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(i) the releases contained herein are protected by copyright and 
    other applicable laws; and 
(ii) they are solely responsible for the content, accuracy and 
     originality of the information contained therein. 
    
Source: Ashland Inc. via Thomson Reuters ONE

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