Baker Hughes Announces October 2004 Rig Counts

International Rig Count Down 3% From September 2004; Up 7% From One Year Ago; Worldwide Rig Count Up 3% From September 2004; Up 7% From One Year Ago

HOUSTON, Nov 5, 2004 /PRNewswire-FirstCall via COMTEX/ -- Baker Hughes Incorporated (NYSE: BHI) announced today that the international rig count for October 2004 was 842, down 24 from the 866 counted in September 2004, and up 52 from the 790 counted in October 2003. The international offshore rig count for October 2004 was 234, down one from the 235 counted in September 2004, and up two from the 232 counted in October 2003.

The US rig count for October 2004 was 1,240, unchanged from the 1,240 counted in September 2004 and up 138 from the 1,102 counted in October 2003. The Canadian rig count for October 2004 was 372, up 99 from the 273 counted in September 2004 and down 22 from the 394 counted in October 2003.

The worldwide rig count for October 2004 was 2,454, up 75 from the 2,379 counted in September 2004 and up 168 from the 2,286 counted in October 2003.

     October 2004 Rotary Rig Counts

                      October 2004           September 2004     October 2003
                     ----------------        ---------------   --------------
                     Land   OS  Total  Var.  Land  OS  Total   Land  OS Total
     ------------------------------------------------------------------------
      Europe           30   40    70    7     28   35    63     36   44    80
      Middle East     205   30   235  (13)   214   34   248    182   27   209
      Africa           34   13    47   (2)    33   16    49     33   18    51
      Latin America   230   66   296    2    231   63   294    201   65   266
      Asia Pacific    109   85   194  (18)   125   87   212    106   78   184
     International    608  234   842  (24)   631  235   866    558  232   790
      United States 1,145   95 1,240    0  1,149   91 1,240    996  106 1,102
      Canada          369    3   372   99    270    3   273    391    3   394
     North America  1,514   98 1,612   99  1,419   94 1,513  1,387  109 1,496
     ------------------------------------------------------------------------
     Worldwide      2,122  332 2,454   75  2,050  329 2,379  1,945  341 2,286
     ========================================================================


     October 2004 Workover Rig Counts

                        October 2004    Var.     September 2004   October 2003
     -------------------------------------------------------------------------
      United States         1,329        36      1,293          1,132
      Canada                  721       100             621            373
     -------------------------------------------------------------------------
     North America          2,050       136           1,914          1,505
     =========================================================================

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