Baker Hughes Announces December 2005 Rig Counts

International Rig Count Up 1% From November 2005; Up 9% From One Year Ago;

Worldwide Rig Count Down 1% From November 2005; Up 17% From One Year Ago

HOUSTON, Jan. 9 /PRNewswire-FirstCall/ -- Baker Hughes Incorporated (NYSE: BHI; EBS) announced today that the international rig count for December 2005 was 948, up 13 from the 935 counted in November 2005, and up 79 from the 869 counted in December 2004. The international offshore rig count for December 2005 was 264, down three from the 267 counted in November 2005 and up 16 from the 248 counted in December 2004.

The US rig count for December 2005 was 1,470 down 16 from the 1,486 counted in November 2005 and up 224 from the 1,246 counted in December 2004. The Canadian rig count for December 2005 was 575, down 25 from the 600 counted in November 2005 and up 135 from the 440 counted in December 2004.

The worldwide rig count for December 2005 was 2,993 down 28 from the 3,021 counted in November 2005 and up 438 from the 2,555 counted in December 2004.



     December 2005 Rotary Rig Counts

                     December 2005         November 2005    December 2004
                    Land   OS Total  Var. Land   OS Total  Land   OS  Total
    ------------------------------------------------------------------------
      Europe          25   49    74   -1    25   50    75    27   36    63
      Middle East    225   37   262    6   221   35   256   210   37   247
      Africa          36   13    49    0    38   11    49    37   16    53
      Latin
       America       263   64   327    9   253   65   318   243   63   306
      Asia Pacific   135  101   236   -1   131  106   237   104   96   200
                     ---  ---   ---  ---   ---  ---   ---   ---  ---   ---
    International    684  264   948   13   668  267   935   621  248   869

      United
       States       1393   77  1470  -16  1402   84  1486  1140  106  1246
      Canada         571    4   575  -25   596    4   600   436    4   440
                     ---  ---   ---  ---   ---  ---   ---   ---  ---   ---
    North America   1964   81  2045  -41  1998   88  2086  1576  110  1686
    ------------------------------------------------------------------------
    Worldwide       2648  345  2993  -28  2666  355  3021  2197  358  2555



     December 2005 Workover Rig Counts

                     December 2005     Var.    November 05   December 2004
    ------------------------------------------------------------------------
      United States       1494          48         1446          1280
      Canada               791           1          790           752
                           ---         ---          ---           ---
    North America         2285          49         2236          2032

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