Baker Hughes Announces August 2003 Rig Counts

International Rig Count Up 1% From July 2003; Up 8% From One Year Ago;

Worldwide Rig Count Up 1% From July 2003; Up 26% From One Year Ago

HOUSTON, Sept. 8 /PRNewswire-FirstCall/ -- Baker Hughes Incorporated (NYSE: BHI; PCX; EBS) announced today that the international rig count for August 2003 was 779, up four from the 775 counted in July 2003, and up 57 from the 722 counted in August 2002. The international offshore rig count for August 2003 was 216, down 15 from the 231 counted in July 2003, and down six from the 222 counted in August 2002.

The US rig count for August 2003 was 1,090, up nine from the 1,081 counted in July 2003 and up 242 from the 848 counted in August 2002. The Canadian rig count for August 2003 was 404, up six from the 398 counted in July 2003 and up 169 from the 235 counted in August 2002.

The worldwide rig count for August 2003 was 2,273, up 19 from the 2,254 counted in July 2003 and up 468 from the 1,805 counted in August 2002.

     August 2003 Rotary Rig Counts

                       August 2003              July 2003       August 2002
                     ---------------         --------------   ---------------
                     Land   OS Total   Var.  Land  OS Total   Land   OS Total
     ------------------------------------------------------------------------
      Europe           37   51    88   (2)    36   54    90     31   48    79
      Middle East     188   21   209   (2)   183   28   211    169   34   203
      Africa           37   15    52    4     35   13    48     33   27    60
      Latin America   195   55   250    0    190   60   250    161   45   206
      Asia Pacific    106   74   180    4    100   76   176    106   68   174
     International    563  216   779    4    544  231   775    500  222   722
      United States   980  110 1,090    9    974  107 1,081    736  112   848
      Canada          399    5   404    6    393    5   398    227    8   235
     North America  1,379  115 1,494   15  1,367  112 1,479    963  120 1,083
     ------------------------------------------------------------------------
     Worldwide      1,942  331 2,273   19  1,911  343 2,254  1,463  342 1,805
     ========================================================================

     August 2003 Workover Rig Counts

                       August 2003   Var.       July 2003    August 2002
     ------------------------------------------------------------------------
      United States       1,134      (38)          1,172        1,007
      Canada                377        2             375          243
     ------------------------------------------------------------------------
     North America        1,511      (36)          1,547        1,250
     ========================================================================

    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 US and Canadian drilling activity. Hughes initiated the monthly international rig count in 1975. In 1987, 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 website at http://www.bakerhughes.com/investor/rig .

Baker Hughes is a leading provider of drilling, formation evaluation, completion and production products and services to the worldwide oil and gas industry.

NOT INTENDED FOR BENEFICIAL HOLDERS

Contact:
Gary R. Flaharty (713) 439-8039
gary.flaharty@bakerhughes.com

Kyle J. Leak (713) 439-8042
kyle.leak@bakerhughes.com

SOURCE Baker Hughes Incorporated
CONTACT: Gary R. Flaharty, +1-713-439-8039, or
gary.flaharty@bakerhughes.com , or Kyle J. Leak, +1-713-439-8042, or
kyle.leak@bakerhughes.com , both of Baker Hughes Incorporated
Web site: http://www.bakerhughes.com
http://www.bakerhughes.com/investor/rig