Baker Hughes Announces November 2004 Rig Counts

International Rig Count Up 4% From October 2004; Up 12% From One Year Ago;

Worldwide Rig Count Up 5% From October 2004; Up 12% From One Year Ago

HOUSTON, Dec. 7 /PRNewswire-FirstCall/ -- Baker Hughes Incorporated (NYSE: BHI) announced today that the international rig count for November 2004 was 876, up 34 from the 842 counted in October 2004, and up 96 from the 780 counted in November 2003. The international offshore rig count for November 2004 was 259, up 25 from the 234 counted in October 2004, and up 29 from the 230 counted in November 2003.

The US rig count for November 2004 was 1,262, up 22 from the 1,240 counted in October 2004 and up 150 from the 1,112 counted in November 2003. The Canadian rig count for November 2004 was 447, up 75 from the 372 counted in October 2004 and up 35 from the 412 counted in November 2003.

The worldwide rig count for November 2004 was 2,585, up 131 from the 2,454 counted in October 2004 and up 281 from the 2,304 counted in November 2003.


     November 2004 Rotary Rig Counts

                       November 2004           October 2004     November 2003
                      ---------------         --------------   ---------------
                      Land  OS  Total   Var.  Land  OS Total   Land  OS  Total
     -------------------------------------------------------------------------
      Europe            28   41    69   (1)    30   40    70     36   41    77
      Middle East      204   35   239    4    205   30   235    178   34   212
      Africa            35   14    49    2     34   13    47     32   19    51
      Latin America    246   71   317   21    230   66   296    204   65   269
      Asia Pacific     104   98   202    8    109   85   194    100   71   171
     International     617  259   876   34    608  234   842    550  230   780
      United States  1,162  100 1,262   22  1,145   95 1,240  1,006  106 1,112
      Canada           444    3   447   75    369    3   372    409    3   412
     North America   1,606  103 1,709   97  1,514   98 1,612  1,415  109 1,524
     -------------------------------------------------------------------------
     Worldwide       2,223  362 2,585  131  2,122  332 2,454  1,965  339 2,304
     =========================================================================

     November 2004 Workover Rig Counts

                           November 2004  Var. October 2004  November 2003
     -------------------------------------------------------------------------
       United States         1,278       (51)       1,329         1,179
       Canada                  737        16          721           358
     -------------------------------------------------------------------------
     North America           2,015       (35)       2,050         1,537
     =========================================================================

    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.

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