Baker Hughes Announces May 2004 Rig Counts

   International Rig Count Up 1% From April 2004; Up 11% From One Year Ago

     Worldwide Rig Count Up 3% From April 2004; Up 13% From One Year Ago

HOUSTON, June 7 /PRNewswire-FirstCall/ -- Baker Hughes Incorporated (NYSE: BHI; PCX; EBS) announced today that the international rig count for May 2004 was 839, up seven from the 832 counted in April 2004, and up 84 from the 755 counted in May 2003. The international offshore rig count for May 2004 was 249, down 11 from the 260 counted in April 2004, and up 14 from the 235 counted in May 2003.

The US rig count for May 2004 was 1,164, up 13 from the 1,151 counted in April 2004 and up 129 from the 1,035 counted in May 2003. The Canadian rig count for May 2004 was 187, up 34 from the 153 counted in April 2004 and up 37 from the 150 counted in May 2003.

The worldwide rig count for May 2004 was 2,190 up 54 from the 2,136 counted in April 2004 and up 250 from the 1,940 counted in May 2003.


     May 2004 Rotary Rig Counts

                        May 2004               April 2004        May 2003
                     ---------------         --------------   ---------------
                     Land   OS Total   Var.  Land  OS Total   Land   OS Total
    -------------------------------------------------------------------------
      Europe           27   44    71   (9)    30   50    80     31   50    81
      Middle East     191   34   225   (1)   194   32   226    179   30   209
      Africa           37   14    51    5     32   14    46     34   20    54
      Latin America   225   68   293    8    213   72   285    180   58   238
      Asia Pacific    110   89   199    4    103   92   195     96   77   173
    International     590  249   839    7    572  260   832    520  235   755
      United States 1,069   95 1,164   13  1,058   93 1,151    922  113 1,035
      Canada          185    2   187   34    149    4   153    146    4   150
    North America   1,254   97 1,351   47  1,207   97 1,304  1,068  117 1,185
    -------------------------------------------------------------------------
    Worldwide       1,844  346 2,190   54  1,779  357 2,136  1,588  352 1,940
    =========================================================================


     May 2004 Workover Rig Counts

                      May 2004      Var.     April 2004   May 2003
    -------------------------------------------------------------------------
      United States     1,205       (23)         1,228      1,144
      Canada              490       296            194        255
    -------------------------------------------------------------------------
    North America       1,695       273          1,422      1,399
    =========================================================================

    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
    -0-                             06/07/2004
    /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 /
    (BHI)

CO:  Baker Hughes Incorporated
ST:  Texas
IN:  OIL
SU:

CJ-JS 
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4000 06/07/2004 01:00 EDT http://www.prnewswire.com