Baker Hughes Announces December 2000 Rig Counts

HOUSTON--(BUSINESS WIRE)--Jan. 8, 2001--

       International Rig Count Up 1% From November 2000; Up 23%
                            From 1 Year Ago
         Worldwide Rig Count Up 4% From November 2000; Up 26%
                            From 1 Year Ago

Baker Hughes Incorporated (NYSE:BHI)(PCX:BHI)(EBS:BHI) announced today that the international rig count for December 2000 was 705, up 5 from the 700 counted in November 2000 and up 131 from the 574 counted in December 1999. The international offshore rig count for December 2000 was 201, up 5 from the 196 counted in November 2000 and up 42 from the 159 counted in December 1999.

The US rig count for December 2000 was 1,097 up 30 from the 1,067 counted in November 2000 and up 299 from the 798 counted in December 1999. The Canadian rig count for December 2000 was 410 up 48 from the 362 counted in November 2000 and up 25 from the 385 counted in December 1999.

The worldwide rig count for December 2000 was 2,212, up 83 from the 2,129 counted in November 2000 and up 455 from the 1,757 counted in December 1999.

                    December 2000 Rotary Rig Counts

                 December 2000          November 2000     December 1999
                ---------------        ---------------   ---------------
               Land   OS  Total  Var  Land   OS  Total  Land  OS  Total
------------------------------------------------------------------------
Europe           37   52    89    9     36   44    80     36   38    74
Middle East     142   22   164   (1)   144   21   165    119   20   139
Africa           27   22    49    0     25   24    49     24   14    38
Latin America   207   50   257    0    208   49   257    163   33   196
Asia Pacific     91   55   146   (3)    91   58   149     73   54   127
International   504  201   705    5    504  196   700    415  159   574
US              950  147 1,097   30    916  151 1,067    675  123   798
Canada          405    5   410   48    357    5   362    380    5   385
N. America    1,355  152 1,507   78  1,273  156 1,429  1,055  128 1,183
------------------------------------------------------------------------
Worldwide     1,859  353 2,212   83  1,777  352 2,129  1,470  287 1,757
========================================================================


                   December 2000 Workover Rig Counts

               December 2000   Var.   November 2000     December 1999
----------------------------------------------------------------------
US                 1,116       (43)       1,159             1,030
Canada               391        45          346               322
----------------------------------------------------------------------
North America      1,507         2        1,505             1,352
======================================================================

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 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 website 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

--30--AC/na*

CONTACT: Baker Hughes Incorporated
Gary R. Flaharty, 713/439-8039
gary.flaharty@bakerhughes.com
or
Kyle J. Leak, 713/439-8042
Kyle.leak@bakerhughes.com