Ashland Inc. Unifies Business Platforms; Chemicals and Transportation Construction

COVINGTON, Ky., Feb. 2 /PRNewswire-FirstCall/ -- Ashland Inc. (NYSE: ASH) has realigned the existing leadership of its four wholly owned divisions into two management teams - Chemicals and Transportation Construction - capitalizing on its progress as a unified company committed to top-quartile performance. The Chemicals component consists of Ashland Distribution, Ashland Specialty Chemical and Valvoline, and will report to Gary A. Cappeline. Transportation Construction is represented by Ashland Paving And Construction, Inc. (APAC), and reports to Garry M. Higdem.

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The strategic move was recommended by James J. O'Brien, Ashland Inc. chairman and chief executive officer, and has been approved by the company's board of directors. O'Brien stressed that the management reorganization reflects the logical interrelationship of Ashland's businesses, noting that the new structure is also consistent with the American Chemistry Council's categorization of chemical process industries.

"We will all operate one way -- The Ashland Way," O'Brien said. "Chemicals and Transportation Construction are distinctive business platforms for us. Yet, within each business model are similar work functions through which we can leverage our strengths, best practices, processes and capabilities for serving customers. Our new organization will align these assets within each business platform. As a result, our employees and customers will gain the benefits of strongly focused cross-functional teams, optimized efficiencies and improved communication. A unified Ashland also enables all employees to more easily work together - sharing their challenges and successes," he said.

"We fully expect this to allow us to excel in developing marketplace solutions and executing our strategies. And, through establishment of The Ashland Way and our high-performance culture, we continue to aggressively move forward with executing our game plan for delivering better value to customers and shareholders, and rewards for employees."

Cappeline, who reports to O'Brien, retains his title as senior vice president, Ashland Inc., and assumes the additional new title of president and chief operating officer, Chemicals. Reporting to Cappeline are Sam Mitchell, vice president, Ashland Inc., and president, Valvoline; Hank Waters, vice president, Ashland Inc., and president, Ashland Distribution; Michael J. Shannon, senior vice president, Ashland Specialty Chemical, Thermoset Resins; and Len R. Gelosa, senior vice president, Ashland Specialty Chemical, Water Technologies.

Garry M. Higdem retains his title as senior vice president, Ashland Inc., and president, Ashland Paving And Construction, Inc. (APAC). He now assumes the additional new title of president and chief operating officer, Transportation Construction. Higdem, who joined the company this past month, continues to report to O'Brien. Higdem stated that he has great confidence in the strong and stable management team he recently inherited. It consists of regional vice presidents Lamar M. Chambers, Carl. R. "Raymond" Lane, Roger L. "Don" Sollie and John A. Walker; in addition to John P. McAleer, vice president, major projects group; Robert K. "Kirk" Randolph, vice president, operations; and the full executive and operating committees.

Another important member of Ashland's senior management team, David J. D'Antoni, senior vice president, Ashland Inc., has announced his intention to retire later this year.

"Dave's contributions have been extremely influential during a very important period of Ashland's growth and change," O'Brien said. "We have called on his skills and counsel to focus, shape and build all parts of our company. Just recently, the contributions of Dave and his team at APAC were quite critical to Ashland's very positive, fiscal first-quarter results. We are very grateful to Dave for his extraordinary service throughout his career. I am also especially appreciative that we will have his continued support and leadership on much important work remaining throughout the rest of this fiscal year."

Until his retirement, D'Antoni will continue to serve on Ashland's executive committee and to advise and assist O'Brien and the company's management team on key strategic issues.

Ashland Inc. (NYSE: ASH) is a Fortune 500 transportation construction, chemicals and petroleum company providing products, services and customer solutions throughout the world. Through the dedication of our employees, we are "The Who In How Things Work^™." Find us at www.ashland.com .
^™ Trademark, Ashland Inc.

SOURCE Ashland Inc.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Ashland's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.