Baker Hughes Announces July 2001 Rig Counts

HOUSTON--(BUSINESS WIRE)--Aug. 7, 2001--

        International Rig Count Down 2% From June 2001; Up 13%
            From 1 Year Ago; Worldwide Rig Count Up 1% From
                  June 2001; Up 23% From 1 Year Ago

Baker Hughes Incorporated (NYSE:BHI)(PCX:BHI)(EBS:BHI) announced today that the international rig count for July 2001 was 748, down 12 from the 760 counted in June 2001 and up 86 from the 662 counted in July 2000. The international offshore rig count for July 2001 was 217 down 15 from the 232 counted in June 2001 and up 28 from the 189 counted in July 2000.

The U.S. rig count for July 2001 was 1,278 up 7 from the 1,271 counted in June 2001 and up 337 from the 941 counted in July 2000. The Canadian rig count for July 2001 was 319 up 17 from the 302 counted in June 2001 and up 13 from the 306 counted in July 2000.

The worldwide rig count for July 2001 was 2,345 up 12 from the 2,333 counted in June 2001 and up 436 from the 1,909 counted in July 2000.

July 2001 Rotary Rig Counts

                    July 2001              June 2001         July 2000
              ---------------         --------------   ---------------
              Land   OS Total   Var   Land  OS Total   Land   OS Total
----------------------------------------------------------------------
 Europe         35   63    98   (1)    34   65    99     36   49    85
 Middle East   151   30   181    2    149   30   179    137   23   160
 Africa         32   23    55   (2)    33   24    57     24   21    45
 Latin America 218   44   262   (3)   216   49   265    195   38   233
 Asia Pacific   95   57   152   (8)    96   64   160     81   58   139
International  531  217   748  (12)   528  232   760    473  189   662
 U.S.        1,122  156 1,278    7  1,108  163 1,271    784  157   941
 Canada        315    4   319   17    300    2   302    301    5   306
N. America   1,437  160 1,597   24  1,408  165 1,573  1,085  162 1,247
----------------------------------------------------------------------
Worldwide    1,968  377 2,345   12  1,936  397 2,333  1,558  351 1,909
======================================================================

    July 2001 Workover Rig Counts

                     July 2001       Var.    June 2001       July 2000
----------------------------------------------------------------------
U.S.                     1,295        98        1,197            1,014
Canada                     346        35          311              302
----------------------------------------------------------------------
North America            1,641       133        1,508            1,316
======================================================================

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 the 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 Web site 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

--30--HM/ho*

CONTACT: Baker Hughes Incorporated, Houston
Gary R. Flaharty, 713/439-8039
gary.flaharty@bakerhughes.com
or
Kyle J. Leak, 713/439-8042
kyle.leak@bakerhughes.com