Baker Hughes Announces July 2003 Rig Counts

International Rig Count Up 1% From June 2003; Up 10% From One Year Ago; Worldwide Rig Count Up 5% From June 2003; Up 24% From One Year Ago

HOUSTON, Aug 7, 2003 /PRNewswire-FirstCall via COMTEX/ -- Baker Hughes Incorporated (NYSE: BHI; PCX; EBS) announced today that the international rig count for July 2003 was 775, up six from the 769 counted in June 2003, and up 70 from the 705 counted in July 2002. The international offshore rig count for July 2003 was 231, down three from the 234 counted in June 2003, and up 17 from the 214 counted in July 2002.

The US rig count for July 2003 was 1,081, up 14 from the 1,067 counted in June 2003 and up 230 from the 851 counted in July 2002. The Canadian rig count for July 2003 was 398, up 90 from the 308 counted in June 2003 and up 132 from the 266 counted in July 2002.

The worldwide rig count for July 2003 was 2,254, up 110 from the 2,144 counted in June 2003 and up 432 from the 1,822 counted in July 2002.

     July 2003 Rotary Rig Counts
                       July 2003               June 2003         July 2002
                    ---------------         --------------   ---------------
                    Land   OS Total   Var.  Land  OS Total   Land   OS Total
    ------------------------------------------------------------------------
      Europe          36   54    90    4     35   51    86     34   44    78
      Middle East    183   28   211    3    176   32   208    165   36   201
      Africa          35   13    48  (10)    38   20    58     30   25    55
      Latin America  190   60   250    5    185   60   245    154   45   199
      Asia Pacific   100   76   176    4    101   71   172    108   64   172
    International    544  231   775    6    535  234   769    491  214   705
      United States  974  107 1,081   14    958  109 1,067    740  111   851
      Canada         393    5   398   90    304    4   308    257    9   266
    North America  1,367  112 1,479  104  1,262  113 1,375    997  120 1,117
    ------------------------------------------------------------------------
    Worldwide      1,911  343 2,254  110  1,797  347 2,144  1,488  334 1,822
    ========================================================================

     July 2003 Workover Rig Counts
                      July 2003     Var.    June 2003       July 2002
    ------------------------------------------------------------------------
      United States     1,172        21       1,151         1,036
      Canada              375       114         261           243
    ------------------------------------------------------------------------
    North America       1,547       135       1,412         1,279
    ========================================================================

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

SOURCE Baker Hughes Incorporated

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

http://www.bakerhughes.com