Baker Hughes Announces June 2006 Rig Counts

HOUSTON, July 11 /PRNewswire-FirstCall/ -- Baker Hughes Incorporated (NYSE: BHI; EBS) announced today that the international rig count for June 2006 was 906, down 14 from the 920 counted in May 2006, and down 26 from the 932 counted in June 2005. The international offshore rig count for June 2006 was 265, down 10 from the 275 counted in May 2006 and down 26 from the 291 counted in June 2005.

(1) Excluding Iran and Sudan, the international rig count for June 2006 was 906, down 14 from the 920 counted in May 2006, and up 30 from the 876 counted in June 2005. The international offshore rig count for June 2006 was 265, down 10 from the 275 counted in May 2006 and down 18 from the 283 counted in June 2005.

The US rig count for June 2006 was 1,665 up 30 from the 1,635 counted in May 2006 and up 310 from the 1,355 counted in June 2005. The Canadian rig count for June 2006 was 408, up 168 from the 240 counted in May 2006 and up 115 from the 293 counted in June 2005.

The worldwide rig count for June 2006 was 2,979, up 184 from the 2,795 counted in May 2006 and up 399 from the 2,580 counted in June 2005. 1Excluding Iran and Sudan, the worldwide rig count for June 2006 was 2,979, up 184 from the 2,795 counted in May 2006 and up 455 from the 2,524 counted in June 2005.


    June 2006 Rotary Rig Counts
                        June 2006               May 2006         June 2005
                     Land  OS Total  Var.  Land   OS Total   Land   OS Total
    --------------------------------------------------------------------------
      Europe           21   57    78    -8    25   61    86     25   53    78
      Middle East     203   32   235     6   198   31   229    210   38   248
      Africa           35   13    48    -2    38   12    50     36   17    53
      Latin America   266   62   328    -5   268   65   333    261   67   328
      Asia Pacific    116  101   217    -5   116  106   222    109  116   225
                      ---  ---   ---   ---   ---  ---   ---    ---  ---   ---
    International     641  265   906   -14   645  275   920    641  291   932

      United States  1570   95  1665    30  1512  100  1635   1259   96  1355
      Canada          404    4   408   168   237    3   240    289    4   293
                      ---  ---   ---   ---   ---  ---   ---    ---  ---   ---
      North America  1974   99  2073   221  1749  103  1875   1548  100  1648
    --------------------------------------------------------------------------
    Worldwide        2615  364  2979   184  2394  378  2795   2189  391  2580

    (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.


    (1) June 2006 Totals excluding Iran and Sudan

                        June 2006               May 2006         June 2005
                     Land   OS  Total Var.  Land   OS  Total  Land   OS  Total
    --------------------------------------------------------------------------
      Middle East     203   32    235    6   198   31    229   162   30    192
                      ---  ---    ---  ---   ---  ---    ---   ---  ---    ---
    International     641  265    906  -14   645  275    920   593  283    876
    --------------------------------------------------------------------------
    Worldwide Total  2615  364   2979  184  2417  378   2795  2141  383   2524


    June 2006 Workover Rig Counts

                            June 2006       Var.      May 2006     June 2005
    --------------------------------------------------------------------------
    United States             1647           10         1657         1309
    Canada                     760          234          526          508
                               ---          ---          ---          ---
    North America             2407          224         2183         1817

    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.

NOT INTENDED FOR BENEFICIAL HOLDERS

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
http://www.bakerhughes.com/investor/rig