Baker Hughes Announces May 2006 Rig Counts

HOUSTON, June 7 /PRNewswire-FirstCall/ -- Baker Hughes Incorporated (NYSE: BHI; EBS) announced today that the international rig count for May 2006 was 920, up eight from the 912 counted in April 2006, and up one from the 919 counted in May 2005. The international offshore rig count for May 2006 was 275, up six from the 269 counted in April 2006 and unchanged from the 275 counted in May 2005.

(A) Excluding Iran and Sudan, the international rig count for May 2006 was 920, up eight from the 912 counted in April 2006, and up 59 from the 861 counted in May 2005. The international offshore rig count for May 2006 was 275, up six from the 269 counted in April 2006 and up nine from the 266 counted in May 2005.

The US rig count for May 2006 was 1,635 up 38 from the 1,597 counted in April 2006 and up 316 from the 1,319 counted in May 2005. The Canadian rig count for May 2006 was 240, up 42 from the 198 counted in April 2006 and down seven from the 247 counted in May 2005.

The worldwide rig count for May 2006 was 2,795, up 88 from the 2,707 counted in April 2006 and up 310 from the 2,485 counted in May 2005. (A) Excluding Iran and Sudan, the worldwide rig count for May 2006 was 2,795, up 88 from the 2,707 counted in April 2006 and up 368 from the 2,427 counted in May 2005.



     May 2006 Rotary Rig Counts

                             May 2006           April 2006         May 2005
                      Land  OS  Total  Var.  Land  OS  Total   Land  OS  Total
    --------------------------------------------------------------------------
      Europe           25   61    86     5    26   55    81     27   45    72
      Middle East     198   31   229     3   201   25   226    211   34   245
      Africa           38   12    50    -6    39   17    56     33   13    46
      Latin America   268   65   333     6   264   63   327    264   66   330
      Asia Pacific    116  106   222     0   113  109   222    109  117   226
                      ---  ---   ---   ---   ---  ---   ---    ---  ---   ---
    International     645  275   920     8   643  269   912    644  275   919

      United States  1535  100  1635    38  1502   95  1597   1229   90  1319
      Canada          237    3   240    42   196    2   198    244    3   247
                      ---  ---   ---   ---   ---  ---   ---    ---  ---   ---
    North America    1772  103  1875    80  1698   97  1795   1473   93  1566
    --------------------------------------------------------------------------
    Worldwide        2417  378  2795    88  2341  349  2707   2117  368  2485

     (A)  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.



     (A) May 2006 Totals excluding Iran and Sudan

                             May 2006           April 2006         May 2005
                      Land  OS  Total  Var.  Land  OS  Total   Land  OS  Total
    --------------------------------------------------------------------------
      Middle East     198   31   229     3   201   25   226    162   25   187
                      ---  ---   ---   ---   ---  ---   ---    ---  ---   ---
    International     645  275   920     8   643  269   912    595  266   861

      US             1535  100  1635    38  1502   95  1597   1229   90  1319
      Canada          237    3   240    42   196    2   198    244    3   247
                      ---  ---   ---   ---   ---  ---   ---    ---  ---   ---
    --------------------------------------------------------------------------
    Worldwide Total  2417  378  2795    88  2341  366  2707   2068  359  2427



      May 2006 Workover Rig Counts

                             May 2006        Var.     April 2006      May 2005
    --------------------------------------------------------------------------
      United States            1657           88        1569            1336
      Canada                    526          208         318             466
                                ---          ---         ---             ---
    North America              2183          296        1887            1802


    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