Baker Hughes Announces December 2002 Rig Counts

International Rig Count Down 1% From November 2002; Up One Rig From One Year

Ago; Worldwide Rig Count Up 4% From November 2002; Up 2% From One Year Ago

HOUSTON, Jan. 8 /PRNewswire-FirstCall/ -- Baker Hughes Incorporated (NYSE: BHI; PCX; EBS) announced today that the international rig count for December 2002 was 753, down seven from the 760 counted in November 2002, and up one from the 752 counted in December 2001. The international offshore rig count for December 2002 was 214, down 23 from the 237 counted in November 2002, and down eight from the 222 counted in December 2001.

The US rig count for December 2002 was 856, up 22 from the 834 counted in November 2002 and down 45 from the 901 counted in December 2001. The Canadian rig count for December 2002 was 348, up 67 from the 281 counted in November 2002 and up 84 from the 264 counted in December 2001.

The worldwide rig count for December 2002 was 1,957, up 82 from the 1,875 counted in November 2002 and up 40 from the 1,917 counted in December 2001.

December 2002 Rotary Rig Counts

                       December 2002           November 2002    December 2001
                      ---------------         --------------   ---------------
                      Land   OS Total   Var.  Land  OS Total   Land   OS Total
    --------------------------------------------------------------------------
      Europe            36   47    83   (5)    30   58    88     38   61    99
      Middle East      178   33   211    1    178   32   210    151   37   188
      Africa            38   18    56   (3)    37   22    59     27   18    45
      Latin America    175   44   219  (11)   173   57   230    208   47   255
      Asia Pacific     112   72   184   11    105   68   173    106   59   165
    International      539  214   753   (7)   523  237   760    530  222   752
      United States    743  113   856   22    724  110   834    780  121   901
      Canada           344    4   348   67    276    5   281    257    7   264
    North America    1,087  117 1,204   89  1,000  115 1,115  1,037  128 1,165
    --------------------------------------------------------------------------
    Worldwide        1,626  331 1,957   82  1,523  352 1,875  1,567  350 1,917

==========================================================================

December 2002 Workover Rig Counts

                         December 2002    Var.   November 2002  December 2001
     -------------------------------------------------------------------------
       United States         1,029       (25)         1,054         1,099
       Canada                  337        50            287           318
     -------------------------------------------------------------------------
     North America           1,366        25          1,341         1,417

=========================================================================

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

-0- 01/08/2003

/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/investor/rig