Baker Hughes Announces December 2003 Rig Counts

International Rig Count Up 3% From November 2003; Up 7% From One Year Ago;

Worldwide Rig Count Up 1% From November 2003; Up 19% From One Year Ago

HOUSTON, Jan. 9 /PRNewswire-FirstCall/ -- Baker Hughes Incorporated (NYSE: BHI, PCX, EBS) announced today that the international rig count for December 2003 was 803, up 23 from the 780 counted in November 2003, and up 50 from the 753 counted in December 2002. The international offshore rig count for December 2003 was 247, up 17 from the 230 counted in November 2003, and up 33 from the 214 counted in December 2002.

The US rig count for December 2003 was 1,114, up two from the 1,112 counted in November 2003 and up 258 from the 856 counted in December 2002. The Canadian rig count for December 2003 was 417, up five from the 412 counted in November 2003 and up 69 from the 348 counted in December 2002.

The worldwide rig count for December 2003 was 2,334 up 30 from the 2,304 counted in November 2003 and up 377 from the 1,957 counted in December 2002.


     December 2003 Rotary Rig Counts
                      December 2003           November 2003     December 2002
                     ---------------         --------------   ---------------
                     Land   OS Total   Var.  Land  OS Total   Land   OS Total
     ------------------------------------------------------------------------
      Europe           36   47    83    6     36   41    77     36   47    83
      Middle East     183   34   217    5    178   34   212    178   33   211
      Africa           38   24    62   11     32   19    51     38   18    56
      Latin America   197   67   264   (5)   204   65   269    175   44   219
      Asia Pacific    102   75   177    6    100   71   171    112   72   184
     International    556  247   803   23    550  230   780    539  214   753
      United States 1,009  105 1,114    2  1,006  106 1,112    743  113   856
      Canada          412    5   417    5    409    3   412    344    4   348
     North America  1,421  110 1,531    7  1,415  109 1,524  1,087  117 1,204
     ------------------------------------------------------------------------
     Worldwide      1,977  357 2,334   30  1,965  339 2,304  1,626  331 1,957
     ========================================================================

     December 2003 Workover Rig Counts
                          December 2003  Var.  November 2003  December 2002
     ------------------------------------------------------------------------
      United States         1,162       (17)      1,179         1,029
      Canada                  304       (54)        358           337
     ------------------------------------------------------------------------
     North America          1,466       (71)      1,537         1,366
     ========================================================================

    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-                             01/09/2004
    /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 /
    (BHI)

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

AH-AP 
-- DAF005 --
4729 01/09/2004 01:00 EST http://www.prnewswire.com