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BAKER HUGHES REACHES AGREEMENT IN LITIGATION SETTLEMENT

 HOUSTON, April 19 /PRNewswire/ -- Baker Hughes Incorporated (NYSE: BHI; Zurich Stock Exchange: PSE) today announced that it has entered into a Memorandum of Understanding with Dresser Industries (DI) and Parker and Parsley Petroleum Development Incorporated (PDP) covering the settlement of all outstanding litigation among the parties. The understanding calls for a cash payment from BHI and DI to PDP of $115 million on behalf of approximately 18,000 working interest owners and partners in partnerships sponsored by PDP. Such payment will be shared equally by BHI and DI. The parties will shortly enter into a binding settlement agreement based on the terms of the Memorandum. The settlement agreement will be subject to approval by the boards of directors of BHI, DI and PDP, respectively. Of the $57.5 million portion of the settlement for which BHI is responsible, BHI believes it has substantial insurance coverage available to meet this obligation and will recover a significant portion of the settlement amount.
 Baker Hughes has previously established a reserve for this litigation and also has access to additional third party funds from a previous contractual arrangement. If BHI can timely reach agreement with its insurance carriers concerning coverage issues it believes it is adequately reserved to meet the settlement obligation without a significant additional charge to earnings. If BHI is unable to reach timely agreement with its insurance carriers, BHI would anticipate a charge to earnings in the March quarter of an amount not to exceed $25 million and would vigorously pursue its legal claims against its insurance carriers.
 Baker Hughes is a leading provider of products and services for the oil, gas and process industries.
 -0- 4/19/93
 /CONTACT: Ronald G. Turner of Baker Hughes, 713-439-8666/
 (BHI)


CO: Baker Hughes Incorporated ST: Texas IN: OIL SU:

SH -- NY056 -- 7265 04/19/93 10:13 EDT
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Publication:PR Newswire
Date:Apr 19, 1993
Words:305
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