Baker Hughes Announces August 2000 Rig Counts

HOUSTON--(BUSINESS WIRE)--Sept. 5, 2000--

International Rig Count Up 6% From July 2000; Up 27% From 1 Year Ago; Worldwide Rig Count Up 5% From July 2000; Up 48% From 1 Year Ago

Baker Hughes Incorporated (NYSE:BHI)(PCX:BHI)(EBS:BHI) announced today that the international rig count for August 2000 was 705, up 43 from the 662 counted in July 2000 and up 149 from the 556 counted in August 1999. The international offshore rig count for August 2000 was 208, up 19 from the 189 counted in July 2000 and up 44 from the 164 counted in August 1999.

The U.S. rig count for August 2000 was 987 up 45 from the 942 counted in July 2000 and up 348 from the 639 counted in August 1999. The Canadian rig count for August 2000 was 319 up 11 from the 308 counted in July 2000 and up 49 from the 270 counted in August 1999.

The worldwide rig count for August 2000 was 2,011 up 99 from the 1,912 counted in July 2000 and up 546 from the 1,465 counted in August 1999.

                     August 2000 Rotary Rig Counts

                August 2000              July 2000      August 1999
              -----------------       --------------- ----------------
               Land Off-  Total Vari- Land Off-  Total Land Off- Total
                    Shore       ance       Shore            Shore
--------------------------------------------------------------------
Europe           37   53    90   5    36    49    85    38  36    74
Middle East     140   24   164   4   137    23   160   114  23   137
Africa           26   24    50   5    24    21    45    24  16    40
Latin America   203   46   249  16   195    38   233   147  37   184
Asia Pacific     91   61   152  13    81    58   139    69  52   121
--------------------------------------------------------------------
International   497  208   705  43   473   189   662   392 164   556
 U.S.           828  159   987  46   784   157   941   487 100   587
 Canada         315    4   319  11   303     5   308   209   6   215
North America 1,143  163 1,306  57 1,087   162 1,249   696 106   802
--------------------------------------------------------------------
Worldwide     1,640  371 2,011 100 1,560   351 1,911 1,088 270 1,358

                    August 2000 Workover Rig Counts

                   August 2000             July 2000     August 1999
----------------------------------------------------------------------
U.S.                 1,032           18       1,014      860
Canada                 327           25         302      300
----------------------------------------------------------------------
North America        1,359           43       1,316    1,160

About the Baker Hughes Rig Counts

The Baker Hughes Rotary Rig Counts are counts of the number of drilling rigs actively exploring for or developing oil or natural gas in the United States, Canada and international markets. Baker Hughes has issued the rotary rig counts as a service to the petroleum industry since 1944, when Hughes Tool Company began weekly counts of U.S. and Canadian drilling activity. Hughes initiated the monthly international rig count in 1975. In 1987 the Baker Oil Tools began its monthly workover rig count.

North American rig count data is scheduled to be released at noon central time on the last working day of each week. The international rig count and North American workover rig counts are scheduled to be released on the 5th working day of the month. Additional detailed information on the Baker Hughes rig counts are available from our Web site at http://www.bakerhughes.com/investor/rig.

Baker Hughes is a leading supplier of reservoir-centered products, services and systems to the worldwide oil and gas industry.

NOT INTENDED FOR BENEFICIAL HOLDERS

CONTACT: Baker Hughes Incorporated, Houston
Gary R. Flaharty, 713/439-8039
gary.flaharty@bakerhughes.com