Baker Hughes Announces July 2004 Rig Counts

International Rig Count Down 3% From June 2004; Up 5% From One Year Ago Worldwide Rig Count Up 4% From June 2004; Up 6% From One Year Ago

HOUSTON, Aug 6, 2004 /PRNewswire-FirstCall via COMTEX/ -- Baker Hughes Incorporated (NYSE: BHI; PCX; EBS) announced today that the international rig count for July 2004 was 817, down 24 from the 841 counted in June 2004, and up 42 from the 775 counted in July 2003. The international offshore rig count for July 2004 was 218, down 25 from the 243 counted in June 2004 and down 13 from the 231 counted in July 2003.

The US rig count for July 2004 was 1,213, up 37 from the 1,176 counted in June 2004 and up 132 from the 1,081 counted in July 2003. The Canadian rig count for July 2004 was 351, up 86 from the 265 counted in June 2004 and down 47 from the 398 counted in July 2003.

The worldwide rig count for July 2004 was 2,381, up 99 from the 2,282 counted in June 2004 and up 127 from the 2,254 counted in July 2003.

     July 2004 Rotary Rig Counts

                       July 2004               June 2004        July 2003
                    ---------------         --------------   ---------------
                    Land   OS Total   Var.  Land  OS Total   Land   OS Total
    ------------------------------------------------------------------------
        Europe        26   32    58  (18)    29   47    76     36   54    90
        Middle East  189   33   222   (4)   190   36   226    183   28   211
        Africa        35   15    50    0     34   16    50     35   13    48
        Latin
         America     225   61   286   (6)   231   61   292    190   60   250
        Asia Pacific 124   77   201    4    114   83   197    100   76   176
    International    599  218   817  (24)   598  243   841    544  231   775
        United
         States    1,115   98 1,213   37  1,081   95 1,176    974  107 1,081
        Canada       344    7   351   86    261    4   265    393    5   398
    North America  1,459  105 1,564  123  1,342   99 1,441  1,367  112 1,479
    ------------------------------------------------------------------------
    Worldwide      2,058  323 2,381   99  1,940  342 2,282  1,911  343 2,254
    ========================================================================


     July 2004 Workover Rig Counts

                      July 2004     Var.     June 2004     July 2003
    ------------------------------------------------------------------------
      United States     1,235        66        1,169         1,172
      Canada              619        44          575           375
    ------------------------------------------------------------------------
    North America       1,854       110        1,744         1,547
    ========================================================================

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
     H. Gene Shiels (713) 439-8822

SOURCE Baker Hughes Incorporated

Gary R. Flaharty, +1-713-439-8039, or H. Gene Shiels,
+1-713-439-8822, both of Baker Hughes Incorporated
http://www.bakerhughes.com