Baker Hughes Announces August 2004 Rig Counts

International Rig Count Up 5% From July 2004; Up 10% From One Year Ago;

Worldwide Rig Count Up 3% From July 2004; Up 7% From One Year Ago

HOUSTON, Sept. 8 /PRNewswire-FirstCall/ -- Baker Hughes Incorporated (NYSE: BHI) announced today that the international rig count for August 2004 was 856, up 39 from the 817 counted in July 2004, and up 77 from the 779 counted in August 2003. The international offshore rig count for August 2004 was 244, up 23 from the 221 counted in July 2004, and up 28 from the 216 counted in August 2003. The July 2004 international rig count has been revised to reflect a correction to the land and offshore counts in Asia. The land rig count was decreased by three and offshore rig count was increased by three. The total rig count remained unchanged.

The US rig count for August 2004 was 1,234, up 21 from the 1,213 counted in July 2004 and up 144 from the 1,090 counted in August 2003. The Canadian rig count for August 2004 was 353, up two from the 351 counted in July 2004 and down 51 from the 404 counted in August 2003.

The worldwide rig count for August 2004 was 2,443 up 62 from the 2,381 counted in July 2004 and up 170 from the 2,273 counted in August 2003.


     August 2004 Rotary Rig Counts

                      August 2004              July 2004        August 2003
                    ----------------        ---------------  ----------------
                    Land   OS  Total  Var.  Land  OS  Total  Land   OS  Total
    -------------------------------------------------------------------------
      Europe          27   38    65    7     26   32    58     37   51     88
      Middle East    197   40   237   15    189   33   222    188   21    209
      Africa          34   15    49   (1)    35   15    50     37   15     52
      Latin America  234   61   295    9    225   61   286    195   55    250
      Asia Pacific   120   90   210    9    121   80   201    106   74    180
    International    612  244   856   39    596  221   817    563  216    779
      United
       States      1,139   95 1,234   21  1,115   98 1,213    980  110  1,090
      Canada         348    5   353    2    344    7   351    399    5    404
    North America  1,487  100 1,587   23  1,459  105 1,564  1,379  115  1,494
    -------------------------------------------------------------------------
    Worldwide      2,099  344 2,443   62  2,055  326 2,381  1,942  331  2,273
    =========================================================================


     August 2004 Workover Rig Counts

                         August 2004    Var.    July 2004   August 2003
    ------------------------------------------------------------------------
      United States         1,237         2       1,235         1,134
      Canada                  661        42         619           377
    ------------------------------------------------------------------------
    North America           1,898        44       1,854         1,511
    ========================================================================


    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
     H. Gene Shiels (713) 439-8822
SOURCE  Baker Hughes Incorporated
    -0-                             09/08/2004
    /CONTACT:  Gary R. Flaharty, +1-713-439-8039, or H. Gene Shiels,
+1-713-439-8822, both of Baker Hughes Incorporated/
    /Web site:  http://www.bakerhughes.com
                http://www.bakerhughes.com/investor/rig /
    (BHI)

CO:  Baker Hughes Incorporated
ST:  Texas
IN:  OIL
SU:

JC-AP 
-- DAW012 --
6566 09/08/2004 01:00 EDT http://www.prnewswire.com