Baker Hughes Calls LYONs for Redemption

HOUSTON--(BUSINESS WIRE)--April 26, 2001--Baker Hughes Incorporated (NYSE:BHI)(PCX:BHI)(EBS:BHI) announced today that it is calling its outstanding Liquid Yield Option Notes(TM)(LYONS(TM)) due 2008 for redemption on May 28, 2001, the redemption date, at a redemption price of $786.13 per $1,000 principal amount at maturity. As of the redemption date, if all of the outstanding LYONs are redeemed, the total amount that the company would pay to the holders of the LYONs would be approximately $302,854,000. Prior to the redemption date, holders of the LYONs have the right to convert each $1,000 principal amount at maturity of the LYONs into 18.599 shares of Baker Hughes common stock at an effective conversion price of $42.27 per share. If all holders of the LYONs converted their LYONs into shares of Baker Hughes common stock prior to the redemption date, the company would issue 7,161,000 shares. The company intends to fund the cash it needs for the redemption through the issuance of commercial paper.

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

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CONTACT: Baker Hughes, Houston
Gary R. Flaharty, 713/439-8039
Gary.flaharty@bakerhughes.com
or
Kyle J. Leak, 713/439-8042
Kyle.leak@bakerhughes.com