Baker Hughes Announces June 2003 Rig Counts

International Rig Count Up 2% From May 2003; Up 5% From One Year Ago;

Worldwide Rig Count Up 11% From May 2003; Up 21% From One Year Ago

HOUSTON, July 8 /PRNewswire-FirstCall/ -- Baker Hughes Incorporated (NYSE: BHI; PCX; EBS) announced today that the international rig count for June 2003 was 769, up 14 from the 755 counted in May 2003, and up 39 from the 730 counted in June 2002. The international offshore rig count for June 2003 was 234, down one from the 235 counted in May 2003, and up two from the 232 counted in June 2002.

The US rig count for June 2003 was 1,067, up 32 from the 1,035 counted in May 2003 and up 224 from the 843 counted in June 2002. The Canadian rig count for June 2003 was 308, up 158 from the 150 counted in May 2003 and up 103 from the 205 counted in June 2002.

The worldwide rig count for June 2003 was 2,144, up 204 from the 1,940 counted in May 2003 and up 366 from the 1,778 counted in June 2002.

 June 2003 Rotary Rig Counts

                         June 2003               May 2003        June 2002
                      ---------------         --------------   ---------------
                      Land   OS Total   Var.  Land  OS Total   Land   OS Total
    ------------------------------------------------------------------------
      Europe            35   51    86    5     31   50    81     34   53    87
      Middle East      176   32   208   (1)   179   30   209    163   38   201
      Africa            38   20    58    4     34   20    54     30   24    54
      Latin America    185   60   245    7    180   58   238    170   46   216
      Asia Pacific     101   71   172   (1)    96   77   173    101   71   172
    International      535  234   769   14    520  235   755    498  232   730
      United States    958  109 1,067   32    922  113 1,035    734  109   843
      Canada           304    4   308  158    146    4   150    197    8   205
    North America    1,262  113 1,375  190  1,068  117 1,185    931  117 1,048
    --------------------------------------------------------------------------
    Worldwide        1,797  347 2,144  204  1,588  352 1,940  1,429  349 1,778
    ==========================================================================


    June 2003 Workover Rig Counts

                           June 2003     Var.       May 2003 June 2002
    --------------------------------------------------------------------------
      United States          1,151         7          1,144       1,006
      Canada                   261         6            255         209
    --------------------------------------------------------------------------
    North America            1,412        13          1,399       1,215
    ==========================================================================

    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

/CONTACT: 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/
/Web site: http://www.bakerhughes.com/investor/rig http://www.bakerhughes.com /
(BHI)