Baker Hughes Announces December 2004 Rig Counts

International Rig Count Down 1% From November 2004; Up 8% From One Year Ago

Worldwide Rig Count Down 1% From November 2004; Up 9% From One Year Ago

HOUSTON, Jan. 10 /PRNewswire-FirstCall/ -- Baker Hughes Incorporated (NYSE: BHI) announced today that the international rig count for December 2004 was 869, down seven from the 876 counted in November 2004, and up 66 from the 803 counted in December 2003. The international offshore rig count for December 2004 was 248, down 11 from the 259 counted in November 2004, and up one from the 247 counted in December 2003.

The US rig count for December 2004 was 1,246, down 16 from the 1,262 counted in November 2004 and up 132 from the 1,114 counted in December 2003. The Canadian rig count for December 2004 was 440, down seven from the 447 counted in November 2004 and up 23 from the 417 counted in December 2003.

The worldwide rig count for December 2004 was 2,555, down 30 from the 2,585 counted in November 2004 and up 221 from the 2,334 counted in December 2003.



     December 2004 Rotary Rig Counts
                      December 2004           November 2004     December 2003
                     ---------------         ---------------   ---------------
                     Land   OS Total   Var.  Land  OS Total   Land   OS  Total
    --------------------------------------------------------------------------
      Europe           27   36    63   (6)    28   41    69     36   47    83
      Middle East     210   37   247    8    204   35   239    183   34   217
      Africa           37   16    53    4     35   14    49     38   24    62
      Latin America   243   63   306  (11)   246   71   317    197   67   264
      Asia Pacific    104   96   200   (2)   104   98   202    102   75   177
    International     621  248   869   (7)   617  259   876    556  247   803
      United States 1,140  106 1,246  (16) 1,162  100 1,262  1,009  105 1,114
      Canada          436    4   440   (7)   444    3   447    412    5   417
    North America   1,576  110 1,686  (23) 1,606  103 1,709  1,421  110 1,531
    --------------------------------------------------------------------------
    Worldwide       2,197  358 2,555  (30) 2,223  362 2,585  1,977  357 2,334
    ==========================================================================



     December 2004 Workover Rig Counts
                          December 2004  Var.   November 2004   December 2003
    --------------------------------------------------------------------------
      United States           1,280        2        1,278           1,162
      Canada                    752       15          737             304
    --------------------------------------------------------------------------
    North America             2,032       17        2,015           1,466
    ==========================================================================

    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.

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