Baker Hughes Announces June 2004 Rig Counts

International Rig Count Unchanged From May 2004; Up 9% From One Year Ago Worldwide Rig Count Up 4% From May 2004; Up 6% From One Year Ago

HOUSTON, Jul 8, 2004 /PRNewswire-FirstCall via COMTEX/ -- Baker Hughes Incorporated (NYSE: BHI) (PCX: BHI) (EBS: BHI) announced today that the international rig count for June 2004 was 841, up two from the 839 counted in May 2004, and up 72 from the 769 counted in June 2003. The international offshore rig count for June 2004 was 243, down six from the 249 counted in May 2004, and up nine from the 234 counted in June 2003.

The US rig count for June 2004 was 1,176, up 12 from the 1,164 counted in May 2004 and up 109 from the 1,067 counted in June 2003. The Canadian rig count for June 2004 was 265, up 78 from the 187 counted in May 2004 and down 43 from the 308 counted in June 2003.

The worldwide rig count for June 2004 was 2,282 up 92 from the 2,190 counted in May 2004 and up 138 from the 2,144 counted in June 2003.

     June 2004 Rotary Rig Counts

                         June 2004               May 2004         June 2003
                      ---------------         --------------   ---------------
                      Land   OS Total   Var.  Land  OS Total   Land   OS Total
    --------------------------------------------------------------------------
      Europe            29   47    76    5     27   44    71     35   51    86
      Middle East      190   36   226    1    191   34   225    176   32   208
      Africa            34   16    50   (1)    37   14    51     38   20    58
      Latin America    231   61   292   (1)   225   68   293    185   60   245
      Asia Pacific     114   83   197   (2)   110   89   199    101   71   172
    International      598  243   841    2    590  249   839    535  234   769
      United States  1,081   95 1,176   12  1,069   95 1,164    958  109 1,067
      Canada           261    4   265   78    185    2   187    304    4   308
    North America    1,342   99 1,441   90  1,254   97 1,351  1,262  113 1,375
    --------------------------------------------------------------------------
    Worldwide        1,940  342 2,282   92  1,844  346 2,190  1,797  347 2,144
    ==========================================================================


     June 2004 Workover Rig Counts
                           June 2004     Var.    May 2004     June 2003
    --------------------------------------------------------------------------
      United States         1,169       (36)      1,205         1,151
      Canada                  575        85         490           261
    --------------------------------------------------------------------------
    North America           1,744        49       1,695         1,412
    ==========================================================================

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