Baker Hughes Announces August 2006 Rig Counts

HOUSTON, Sept. 8 /PRNewswire-FirstCall/ -- Baker Hughes Incorporated (NYSE: BHI; EBS) announced today that the international rig count for August 2006 was 954, up 33 from the 921 counted in July 2006, and up 40 from the 914 counted in August 2005. The international offshore rig count for August 2006 was 278, up 9 from the 269 counted in July 2006 and up 10 from the 268 counted in August 2005.

(1) Excluding Iran and Sudan, the international rig count for August 2006 was 954, up 33 from the 921 counted in July 2006, and up 95 from the 859 counted in August 2005. The international offshore rig count for August 2006 was 278, up 9 from the 269 counted in July 2006 and up 16 from the 262 counted in August 2005.

The US rig count for August 2006 was 1,738 up 57 from the 1,681 counted in July 2006 and up 303 from the 1,435 counted in August 2005. The Canadian rig count for August 2006 was 482, down 71 from the 553 counted in July 2006 and down 63 from the 545 counted in August 2005.

The worldwide rig count for August 2006 was 3,174, up 19 from the 3,155 counted in July 2006 and up 280 from the 2,894 counted in August 2005. (1) Excluding Iran and Sudan, the worldwide rig count for August 2006 was 3,174, up 19 from the 3,155 counted in July 2006 and up 335 from the 2,839 counted in August 2005.



    August 2006 Rotary Rig Counts

                      August 2006               July 2006        August 2005
                    Land OS  Total  Var.      Land OS Total     Land OS Total
    -------------------------------------------------------------------------
      Europe         25  56   81     10        22  49   71       29  47   76
      Middle East   226  30  256     14       210  32  242      218  30  248
      Africa         45  18   63      4        43  16   59       36  13   49
      Latin America 265  61  326      3       261  62  323      242  66  308
      Asia Pacific  115 113  228      2       116 110  226      121 112  233
                    --- ---  ---     --       --- ---  ---      --- ---  ---
    International   676 278  954     33       652 269  921      646 268  914

      United
       States      1639  99 1738     57      1587  94 1681     1333 102 1435
      Canada        479   3  482    -71       550   3  553      540   5  545
                    --- ---  ---    ---       ---  --  ---      --- ---  ---
    North America  2118 102 2220    -14      2137  97 2234     1873 107 1980
    -------------------------------------------------------------------------
    Worldwide      2794 380 3174     19      2789 366 3155     2519 375 2894


     (1)  Beginning with the January 2006 report, the company has discontinued
          its rig count for Iran and Sudan.  In the third quarter of 2005, our
          independent foreign subsidiaries initiated a process to prohibit any
          business activity that directly or indirectly involves or
          facilitates transactions in Iran, Sudan or with their governments,
          including government-controlled companies operating outside of these
          countries.



    (1) August 2006 Totals excluding Iran and Sudan

                       August 2006              July 2006       August 2005
                     Land  OS  Total   Var.  Land  OS  Total  Land  OS  Total
    -------------------------------------------------------------------------
      Middle East     226  30   256      7    210  32   242    169  24   193
                                        --    ---  --   ---    ---  --   ---
    International     676 278   954     15    652 269   921    597 262   859
    -------------------------------------------------------------------------
    Worldwide Total  2794 380  3174    176   2789 366  3155   2470 369  2839



    August 2006 Workover Rig Counts
                           August 2006      Var.     July 2006   August 2005
    -------------------------------------------------------------------------
      United States           1629          -12         1641         1410

      Canada                   715          -45          760          635
                               ---          ---          ---          ---
    North America             2344          -57         2401         2045


    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
CONTACT: Gary R. Flaharty, +1-713-439-8039, or H. Gene Shiels, +1-713-439-8822, both of Baker Hughes Incorporated