Baker Hughes' Revenue Recording Practice Violates Generally Accepted Accounting Principles, Says the Pomerantz Firm and Law Office of Klari Neuwelt.

NEW YORK--(BUSINESS WIRE)--Jan. 7, 2000

The following is an announcement by the law firm of Pomerantz Haudek Block Grossman & Gross LLP:

Baker Hughes, Inc. ("Baker Hughes" or the "Company") (NYSE: BHI) and two of the Company's senior officers allegedy knew or materially disregarded that the Company's financial statements had been inflated due to "various accounting issues" which allowed Baker Hughes to report inflated revenues and earnings in violation of Generally Accepted Accounting Principles ("GAAP"). As a result of these accounting improprieties, Baker Hughes' consolidated earnings were materially inflated during the Class Period (May 3, 1999 and December 8, 1999, inclusive), according to allegations in a complaint filed by Pomerantz Haudek Block Grossman & Gross LLP (www.pomerantzlaw.com) and the Law Office of Klari Neuwelt.

The Complaint alleges that during the Class Period, defendants knew or materially disregarded that Baker Hughes' INTEQ unit, which represented over 20% of the Company's business, had materially overstated its earnings which enabled Baker Hughes to report improperly inflated revenues and earnings during the Class Period.

As a result of Baker Hughes' false and misleading statements, it is alleged that the price of Baker Hughes' common stock was artificially inflated during the Class Period.

The market first learned of Baker Hughes' misrepresentations on December 8, 1999 when it announced that it planned to restate its prior financial statements and postpone a $200 million note offering. As a result of the news, the price of Baker Hughes common stock lost more than 50% of its value.

If you purchased Baker Hughes common stock during the Class Period, you have until February 7, 2000 to ask the Court to appoint you as one of the lead plaintiffs for the Class. In order to serve as lead plaintiff, you must meet certain legal requirements. If you wish to discuss this action or have any questions, please contact Andrew G. Tolan, Esq. of the Pomerantz firm at 888-476-6529 (or (888) 4-POMLAW), toll free, or at [e-mail] by e-mail. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.

The Pomerantz firm is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz firm pioneered the field of securities class actions. Today, over 50 years later, the Pomerantz firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion dollar damages awards on behalf of class members. The Law Office of Klari Neuwelt also has substantial experience in similar litigation.