Baker Hughes Announces August 2005 Rig Counts

International Rig Count Up 0.3% From July 2005; Up 7% From One Year Ago

Worldwide Rig Count Up 5% From July 2005; Up 20% From One Year Ago

HOUSTON, Sept. 8 /PRNewswire-FirstCall/ -- Baker Hughes Incorporated (NYSE: BHI) announced today that the international rig count for August 2005 was 914 up 3 from the 911 counted in July 2005, and up 58 from the 856 counted in August 2004. The international offshore rig count for August 2005 was 268, down 10 from the 278 counted in July 2005 and up 24 from the 244 counted in August 2004.

The US rig count for August 2005 was 1,435 up 37 from the 1,398 counted in July 2005 and up 201 from the 1,234 counted in August 2004. The Canadian rig count for August 2005 was 545, up 95 from the 450 counted in July 2005 and up 192 from the 353 counted in August 2004.

The worldwide rig count for August 2005 was 2,894 up 135 from the 2,759 counted in July 2005 and up 451 from the 2,443 counted in August 2004.




     August 2005 Rotary Rig Counts

                          August 2005          July 2005        August 2004
                     Land  OS  Total  Var.  Land  OS  Total   Land  OS  Total
    -------------------------------------------------------------------------
      Europe          29   47    76    -4    27   53    80     27   38    65
      Middle East    218   30   248     7   209   32   241    197   40   237
      Africa          36   13    49     3    31   15    46     34   15    49
      Latin America  242   66   308   -10   255   63   318    234   61   295
      Asia Pacific   121  112   233     7   111  115   226    120   90   210
                    ----  ---  ----   ---  ----  ---  ----   ----  ---  ----
    International    646  268   914     3   633  278   911    612  244   856

      United States 1333  102  1435    37  1297  101  1398   1139   95  1234
      Canada         540    5   545    95   446    4   450    348    5   353
                    ----  ---  ----   ---  ----  ---  ----   ----  ---  ----
    North America   1873  107  1980   132  1743  105  1848   1487  100  1587
    ------------------------------------------------------------------------
    Worldwide       2519  375  2894   135  2376  383  2759   2099  344  2443


     August 2005 Workover Rig Counts

                                August 2005        July 2005     August 2004
                                      Total            Total           Total
                                      -----            -----           -----
      United States                    1410             1368            1237
      Canada                            635              540             661
                                      -----            -----           -----
     North America                     2045             1908            1898


    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 is 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

Contacts:
Gary R. Flaharty (713) 439-8039
H. Gene Shiels (713) 439-8822

SOURCE: Baker Hughes Incorporated