Baker Hughes Announces January 2003 Rig Counts

International Rig Count Down 3% From December 2002; Down 1% From One Year Ago;

Worldwide Rig Count Up 6% From December 2002; Up 2% From One Year Ago

HOUSTON, Feb. 7 /PRNewswire-FirstCall/ -- Baker Hughes Incorporated (NYSE: BHI; PCX; EBS) announced today that the international rig count for January 2003 was 734, down 19 from the 753 counted in December 2002, and down 10 from the 744 counted in January 2002. The international offshore rig count for January 2003 was 213, down one from the 214 counted in December 2002, and down 22 from the 235 counted in January 2002.

The US rig count for January 2003 was 854, down two from the 856 counted in December 2002 and down 13 from the 867 counted in January 2002. The Canadian rig count for January 2003 was 478, up 130 from the 348 counted in December 2002 and up 73 from the 405 counted in January 2002.

The worldwide rig count for January 2003 was 2,066, up 109 from the 1,957 counted in December 2002 and up 50 from the 2,016 counted in January 2002.

January 2003 Rotary Rig Counts

                       January 2003           December 2002     January 2002
                      ---------------         --------------   ---------------
                      Land   OS Total   Var.  Land  OS Total   Land   OS Total
    --------------------------------------------------------------------------
      Europe            37   47    84    1     36   47    83     35   71   106
      Middle East      175   35   210   (1)   178   33   211    150   37   187
      Africa            37   16    53   (3)    38   18    56     30   20    50
      Latin America    166   45   211   (8)   175   44   219    184   46   230
      Asia Pacific     106   70   176   (8)   112   72   184    110   61   171
    International      521  213   734  (19)   539  214   753    509  235   744
      United States    743  111   854   (2)   743  113   856    741  126   867
      Canada           475    3   478  130    344    4   348    398    7   405
    North America    1,218  114 1,332  128  1,087  117 1,204  1,139  133 1,272
    --------------------------------------------------------------------------
    Worldwide        1,739  327 2,066  109  1,626  331 1,957  1,648  368 2,016

==========================================================================

January 2003 Workover Rig Counts

                        January 2003    Var.  December 2002   January 2002
    --------------------------------------------------------------------------
      United States           989       (40)      1,029         1,027
      Canada                  489       152         337           351
    --------------------------------------------------------------------------
    North America           1,478       112       1,366         1,378

==========================================================================

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
Baker Hughes Incorporated
P.O. Box 4740
Houston, Texas 77210-4740

SOURCE Baker Hughes Incorporated

-0- 02/07/2003

/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/investor/rig