1305014--11/27/2007--ASHLAND_INC.

related topics
{cost, regulation, environmental}
{system, service, information}
{property, intellectual, protect}
{condition, economic, financial}
{provision, law, control}
Several of Ashland s businesses are cyclical in nature, and economic downturns or declines in demand, particularly for certain durable goods, may negatively impact its revenues and profitability. Ashland may not be able to successfully redeploy the proceeds of the MAP Transaction in a value-creating manner. Ashland s implementation of its SAP enterprise resource planning ( ERP ) project has the potential for business interruption and associated adverse impact on operating results as well as internal controls. Ashland Water Technologies business model redesign may result in consequences which could adversely impact financial performance The competitive nature of Ashland s markets may delay or prevent the company from passing increases in raw materials costs on to its customers. In addition, certain of Ashland s suppliers may be unable to deliver products or raw materials or may withdraw from contractual arrangements. The occurrence of either event could adversely affect Ashland s results of operations. Ashland is responsible for, and has financial exposure to, liabilities from pending and threatened claims, including those alleging personal injury caused by exposure to asbestos, which reduce Ashland s cash flows and could reduce profitability. Ashland has incurred, and may continue to incur, substantial operating costs and capital expenditures as a result of environmental, health and safety liabilities and requirements, which could reduce Ashland s profitability. Ashland s customers or markets may migrate to developing countries where it may have an insufficient presence. Also, Ashland may need to shift manufacturing of certain products to lower-cost countries or developing economies to remain competitive in its industry. Provisions of Ashland s articles of incorporation and by-laws and Kentucky law could deter takeover attempts and adversely affect Ashland s stock price.

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