Baker Hughes Announces February 2005 Rig Counts

International Rig Count Up 2% From January 2005; Up 11% From One Year Ago

Worldwide Rig Count Up 3% From January 2005; Up 11% From One Year Ago

HOUSTON, March 7 /PRNewswire/ -- Baker Hughes Incorporated (NYSE: BHI) announced today that the international rig count for February 2005 was 876, up 16 from the 860 counted in January 2005, and up 86 from the 790 counted in February 2004. The international offshore rig count for February 2005 was 253, up 19 from the 234 counted in January 2005 and up 17 from the 236 counted in February 2005.

The US rig count for February 2005 was 1,276, up 21 from the 1,255 counted in January 2005 and up 157 from the 1,119 counted in February 2004. The Canadian rig count for February 2005 was 593, up 43 from the 550 counted in January 2005 and up 25 from the 568 counted in February 2004.

The worldwide rig count for February 2005 was 2,745, up 80 from the 2,665 counted in January 2005 and up 268 from the 2,477 counted in February 2004.



     February 2005 Rotary Rig Counts

                      February 2005           January 2005      February 2004
                    ----------------        -----------------  ---------------
                    Land   OS  Total  Var.  Land   OS   Total  Land  OS  Total
    --------------------------------------------------------------------------
     Europe           24   30     54   (3)    24   33     57     30  43     73
     Middle East     204   28    232  (10)   210   32    242    182  34    216
     Africa           36   17     53    3     37   13     50     32  16     48
     Latin America   249   68    317   10    246   61    307    205  64    269
     Asia Pacific    110  110    220   16    109   95    204    105  79    184
    International    623  253    876   16    626  234    860    554 236    790
     United States 1,172  104  1,276   21  1,152  103  1,255  1,020  99  1,119
     Canada          590    3    593   43    547    3    550    565   3    568
    North America  1,762  107  1,869   64  1,699  106  1,805  1,585 102  1,687
    --------------------------------------------------------------------------
    Worldwide      2,385  360  2,745   80  2,325  340  2,665  2,139 338  2,477
    ==========================================================================


     February 2005 Workover Rig Counts

                     February 2005   Var.     January 2004       February 2003
    --------------------------------------------------------------------------
     United States      1,261         (3)         1,264              1,150
     Canada               820         50            770                789
    --------------------------------------------------------------------------
    North America       2,081         47          2,034              1,939
    ==========================================================================



    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

SOURCE Baker Hughes Incorporated