Baker Hughes Announces February 2004 Rig Counts

International Rig Count Down 1% From January 2004; Up 5% From One Year Ago;

Worldwide Rig Count Up 1% From January 2004; Up 12% From One Year Ago

HOUSTON, March 5 /PRNewswire-FirstCall/ -- Baker Hughes Incorporated (NYSE: BHI; PCX; EBS) announced today that the international rig count for February 2004 was 790, down 12 from the 802 counted in January 2004, and up 38 from the 752 counted in February 2003. The international offshore rig count for February 2004 was 236, up two from the 234 counted in January 2004, and up 18 from the 218 counted in February 2003.

The US rig count for February 2004 was 1,119, up 18 from the 1,101 counted in January 2004 and up 212 from the 907 counted in February 2003. The Canadian rig count for February 2004 was 568, up 14 from the 554 counted in January 2004 and up 14 from the 554 counted in February 2003.

The worldwide rig count for February 2004 was 2,477 up 20 from the 2,457 counted in January 2004 and up 264 from the 2,213 counted in February 2003.

     February 2004 Rotary Rig Counts

                       February 2004          January 2004      February 2003
                      ---------------        ---------------   ---------------
                      Land   OS Total   Var. Land   OS Total   Land   OS Total
    --------------------------------------------------------------------------
       Europe           30   43    73    4     33   36    69     36   47    83
       Middle East     182   34   216   (6)   187   35   222    182   37   219
       Africa           32   16    48    0     36   12    48     38   17    55
       Latin America   205   64   269   (4)   204   69   273    173   42   215
       Asia Pacific    105   79   184   (6)   108   82   190    105   75   180
    International      554  236   790  (12)   568  234   802    534  218   752
       United States 1,020   99 1,119   18  1,001  100 1,101    798  109   907
       Canada          565    3   568   14    549    5   554    550    4   554
    North America    1,585  102 1,687   32  1,550  105 1,655  1,348  113 1,461
    --------------------------------------------------------------------------
    Worldwide        2,139  338 2,477   20  2,118  339 2,457  1,882  331 2,213
    ==========================================================================


     February 2004 Workover Rig Counts

                         February 2004  Var.  January 2004   February 2003
    --------------------------------------------------------------------------
      United States         1,150       (32)      1,182         1,050
      Canada                  789        22         767           501
    --------------------------------------------------------------------------
    North America           1,939       (10)      1,949         1,551
    ==========================================================================

    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
     Kyle J. Leak (713) 439-8042
SOURCE  Baker Hughes Incorporated
    -0-                             03/05/2004
    /CONTACT:  Gary R. Flaharty, +1-713-439-8039, or Kyle J. Leak,
+1-713-439-8042, both of Baker Hughes Incorporated/
    /Web site:  http://www.bakerhughes.com
                http://www.bakerhughes.com/investor/rig /
    (BHI)

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

AW-AP 
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7679 03/05/2004 01:00 EST http://www.prnewswire.com