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Ashland Inc. : Ashland Inc. and Kentucky Gov. Beshear announce $15 million investment in Calvert City production facility

  Ashland Inc. : Ashland Inc. and Kentucky Gov. Beshear announce $15 million
                investment in Calvert City production facility

January 30, 2013

Addition of  three  heat  recovery steam  generators  will  reduce  emissions, 
improve operating efficiency and help retain 500 jobs

COVINGTON, Ky. -  Ashland Inc.  (NYSE: ASH)  and Kentucky  Gov. Steve  Beshear 
today announced the  company will  invest approximately $15  million to  build 
three new heat recovery steam generators at its production facility in Calvert
City. Construction of the high-efficiency  generators is expected to begin  in 
March 2013.  When completed  in 2014,  the generators  will reduce  emissions, 
improve the  plant's  operating  efficiency  and  help  retain  500  full-time 
positions.

"The addition  of  these  gas-fired  boilers  will  dramatically  improve  the 
operating efficiency of  our Calvert City  facility and help  us compete  more 
effectively on a global  scale," said James J.  O'Brien, Ashland chairman  and 
chief executive  officer.  "Calvert  City  will  play  an  important  role  in 
Ashland's growth,  particularly as  we expand  our presence  in personal  care 
products. We are grateful for the support  of Gov. Beshear and his Cabinet  in 
this important investment in our workforce and in Kentucky's future." 

"This is a major investment in Calvert  City and a tremendous step forward  in 
the  successful  partnership  between  Ashland  and  the  Commonwealth,"  said 
Kentucky Gov. Steve Beshear. "We're thrilled  to see Ashland retain 500  jobs, 
invest $15 million  and improve  its ability  to compete  as a  leader in  the 
global marketplace."

The Kentucky  Economic  Development  Finance Authority  (KEDFA)  has  approved 
Ashland for $5.5 million in  tax incentives through the Kentucky  Reinvestment 
Act (KRA). The  program is  designed to assist  companies that  need to  make 
significant capital  investment  in Kentucky  facilities  in order  to  remain 
competitive and  to  retain  existing workforces.  Without  the  approved  tax 
incentives, it is unlikely that Ashland would have proceeded with the  project 
as currently planned.

Under terms of the project, Ashland  plans to install three new heat  recovery 
steam generators.  These generators  would replace  an aging  and  inefficient 
coal-fired boiler, as well as two existing gas-fired boilers that are  nearing 
the end of their usefulness. The  new generators could eventually be  combined 
with turbine/generator  sets  that together  would  serve as  a  co-generation 
system for electricity. A co-generation system would support plant  operations 
during any  outages in  the local  power grid,  such as  when ice  storms  hit 
Kentucky in 2009.

Ashland completed design and engineering work on the project in December, with
construction and installation tentatively planned to begin in March 2013.  The 
new boilers should be ready to  begin operation in spring 2014, with  start-up 
to follow shortly thereafter.

The Calvert  City facility,  which opened  in 1955,  was originally  owned  by 
General Aniline & Film, which became International Specialty Products (ISP) in
the early '90s.  Ashland assumed  ownership of  the Calvert  City facility  in 
August 2011 when it completed the  acquisition of ISP for $3.2 billion.  Today 
the facility employs approximately 500 full-time workers.

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. Visit 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.

                                    - 0 -
(TM)Trademark of Ashland or its subsidiaries, registered in various countries

FOR FURTHER INFORMATION:
Media Relations
Gary Rhodes
+1 (859) 815-3047
glrhodes@ashland.com



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Source: Ashland Inc. via Thomson Reuters ONE
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