Baker Hughes Announces July 2007 Rig Counts

U.S. Workover Rig Count To Be Discontinued

HOUSTON, Aug. 7 /PRNewswire-FirstCall/ -- Baker Hughes Incorporated (NYSE: BHI; EBS) announced today that the international rig count for July 2007 was 1,018, up 3 from the 1,015 counted in June 2007, and up 97 from the 921 counted in July 2006. The international offshore rig count for July 2007 was 296, up 11 from the 285 counted in June 2007 and up 27 from the 269 counted in July 2006.

The US rig count for July 2007 was 1,777, up 6 from the 1,771 counted in June 2007 and up 96 from the 1,681 counted in July 2006. The Canadian rig count for July 2007 was 349, up 139 from the 210 counted in June 2007 and down 204 from the 553 counted in July 2006.

The worldwide rig count for July 2007 was 3,144, up 148 from the 2,996 counted in June 2007 and down 11 from the 3,155 counted in July 2006. The decline in the Latin American rig count reflects the impact of strikes in Argentina during the month of July.

Baker Hughes has decided to discontinue its North American Workover Rig Count. The June 2007 count will be the last workover rig count released by Baker Hughes. Archived information will continue to be available on our website. In reaching this decision we considered the wealth of industry information that was available from other sources. Baker Hughes will continue to compile and report the Baker Hughes Rotary Drilling Rig Count.


    July 2007 Rotary Rig Counts

                       July 2007             June 2007        July 2006
                   Land  OS   Total  Var.  Land  OS  Total  Land  OS   Total
    -------------------------------------------------------------------------
     Europe          25   54   79     13     25   41    66    22    49    71
     Middle East(1) 238   37  275      6    235   34   269   210    32   242
     Africa          46   14   60     (5)    48   17    65    43    16    59
     Latin America  285   75  360     (6)   293   73   366   261    62   323
     Asia Pacific   128  116  244     (5)   129  120   249   116   110   226
                    ---  ---  ---    ---   ----  ---  ----  ----   ---   ---
    International   722  296 1018      3    730  285  1015   652   269   921

     United
     States        1699   78 1777      6   1692   79  1771  1587    94  1681
     Canada         347    2  349    139    208    2   210   550     3   553
                    ---  ---  ---    ---   ----  ---  ----  ----   ---   ---
     North America 2046   80 2126    145   1900   81  1981  2137    97  2234
    -------------------------------------------------------------------------
     Worldwide     2768  376 3144    148   2630  366  2996  2789   366  3155


    (1) Beginning with the January 2006 report, the company has discontinued
        its rig count for Iran and Sudan.  In the third quarter of 2005, our
        independent foreign subsidiaries initiated a process to prohibit any
        business activity that directly or indirectly involves or facilitates
        transactions in Iran, Sudan or with their governments, including
        government-controlled companies operating outside of these countries.

    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.

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 is 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.


NOT INTENDED FOR BENEFICIAL HOLDERS

Contacts:
Gary R. Flaharty (713) 439-8039
H. Gene Shiels (713) 439-8822
Baker Hughes Incorporated
P.O. Box 4740
Houston, Texas 77210-4740

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