Baker Hughes Announces July 2005 Rig Counts

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

Worldwide Rig Count Up 7% From June 2005; Up 16% From One Year Ago

HOUSTON, Aug. 5 /PRNewswire/ -- Baker Hughes Incorporated (NYSE: BHI) announced today that the international rig count for July 2005 was 911 down 21 from the 932 counted in June 2005, and up 94 from the 817 counted in July 2004. The international offshore rig count for July 2005 was 278, down 15 from the 293 counted in June 2005 and up 57 from the 221 counted in July 2004.

The US rig count for July 2005 was 1,398 up 43 from the 1,355 counted in June 2005 and up 185 from the 1,213 counted in July 2004. The Canadian rig count for July 2005 was 450, up 157 from the 293 counted in June 2005 and up 99 from the 351 counted in July 2004.

The worldwide rig count for July 2005 was 2,759, up 179 from the 2,580 counted in June 2005 and up 378 from the 2,381 counted in July 2004.


    July 2005 Rotary Rig Counts

                         July 2005              June 2005       July 2004
                      Land  OS  Total  Var.  Land  OS  Total  Land  OS  Total
     -------------------------------------------------------------------------
      Europe           27   53    80    2     25   53    78    26   32    58
      Middle East     209   32   241   -7    210   38   248   189   33   222
      Africa           31   15    46   -7     36   17    53    35   15    50
      Latin America   255   63   318  -10    259   69   328   225   61   286
      Asia Pacific    111  115   226    1    109  116   225   121   80   201
                      ---  ---   ---    -    ---  ---   ---   ---   --   ---
     International    633  278   911  -21    639  293   932   596  221   817

      United States  1297  101  1398   43   1259   96  1355  1115   98  1213
      Canada          446    4   450  157    289    4   293   344    7   351
                      ---    -   ---  ---    ---    -   ---   ---    -   ---
     North America   1743  105  1848  200   1548  100  1648  1459  105  1564
     -------------------------------------------------------------------------
    Worldwide        2376  383  2759  179   2187  393  2580  2055  326  2381

    July 2005 Workover Rig Counts

                           July 2005       June 2005       July 2004
                               Total           Total           Total
      United States             1349            1309            1235
      Canada                     540             508             619
     North America              1889            1817            1854

    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 is 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

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