Baker Hughes Announces September 2004 Rig Counts

International Rig Count Up 1% From August 2004; Up 9% From One Year Ago;

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

HOUSTON, Oct. 7 /PRNewswire-FirstCall/ -- Baker Hughes Incorporated (NYSE: BHI) announced today that the international rig count for September 2004 was 866, up 10 from the 856 counted in August 2004, and up 74 from the 792 counted in September 2003. The international offshore rig count for September 2004 was 235, down nine from the 244 counted in August 2004, and up six from the 229 counted in September 2003.

The US rig count for September 2004 was 1,240, up six from the 1,234 counted in August 2004 and up 147 from the 1,093 counted in September 2003. The Canadian rig count for September 2004 was 273, down 80 from the 353 counted in August 2004 and down 75 from the 348 counted in September 2003.

The worldwide rig count for September 2004 was 2,379, down 64 from the 2,443 counted in August 2004 and up 146 from the 2,233 counted in September 2003.

     September 2004 Rotary Rig Counts

                      September 2004           August 2004     September 2003
                     ----------------        ---------------   ---------------
                     Land    OS Total  Var.  Land   OS Total   Land   OS Total
     -------------------------------------------------------------------------
         Europe         28   35    63   (2)    27   38    65     40   47    87
         Middle East   214   34   248   11    197   40   237    186   29   215
         Africa         33   16    49    0     34   15    49     34   16    50
         Latin
          America      231   63   294   (1)   234   61   295    199   60   259
         Asia Pacific  125   87   212    2    120   90   210    104   77   181
     International     631  235   866   10    612  244   856    563  229   792
         United
          States     1,149   91 1,240    6  1,139   95 1,234    984  109 1,093
         Canada        270    3   273  (80)   348    5   353    343    5   348
     North America   1,419   94 1,513  (74) 1,487  100 1,587  1,327  114 1,441
     -------------------------------------------------------------------------
     Worldwide       2,050  329 2,379  (64) 2,099  344 2,443  1,890  343 2,233
     =========================================================================


     September Workover Rig Counts

                         September 2004  Var.  August 2004   September 2003
     -------------------------------------------------------------------------
       United States         1,293        56 1,237          1,187
       Canada                  621       (40)       661            348
     -------------------------------------------------------------------------
     North America           1,914        16      1,898          1,535
     =========================================================================

     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.

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                     NOT INTENDED FOR BENEFICIAL HOLDERS

     Contact:
     Gary R. Flaharty (713) 439-8039
     H. Gene Shiels (713) 439-8822
SOURCE  Baker Hughes Incorporated
    -0-                             10/07/2004
    /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:

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5980 10/07/2004 01:00 EDT http://www.prnewswire.com