Baker Hughes Announces December 2001 Rig Counts.

Business Editors & Energy Writers

HOUSTON, Texas--(BUSINESS WIRE)--Jan. 8, 2002

International Rig Count up 1% from November 2001;

Up 7% from 1 year ago Worldwide Rig Count down 4% from November 2001;

Down 13% from 1 year ago

Baker Hughes Incorporated (NYSE:BHI) (PCX:BHI) (EBS:BHI) announced today that the international rig count for December 2001 was 752, up 11 from the 741 counted in November 2001 and up 47 from the 705 counted in December 2000. The international offshore rig count for December 2001 was 222 up 2 from the 220 counted in November 2001 and up 21 from the 201 counted in December 2000.

The US rig count for December 2001 was 901 down 99 from the 1,000 counted in November 2001 and down 196 from the 1,097 counted in December 2000. The Canadian rig count for December 2001 was 264 down 2 from the 266 counted in November 2001 and down 146 from the 410 counted in December 2000.

The worldwide rig count for December 2001 was 1,917 down 90 from the 2,007 counted in November 2001 and down 295 from the 2,212 counted in December 2000.

December 2001 Rotary Rig Counts

               December 2001          November 2001     December 2000
              ---------------         --------------   ---------------
              Land   OS Total   Var   Land  OS Total   Land   OS Total
----------------------------------------------------------------------
Europe          38   61    99    0     40   59    99     37   52    89
Middle East    151   37   188    6    148   34   182    142   22   164
Africa          27   18    45   (4)    28   21    49     27   22    49
Latin America  208   47   255    2    208   45   253    207   50   257
Asia Pacific   106   59   165    7     97   61   158     91   55   146
International  530  222   752   11    521  220   741    504  201   705
US             780  121   901  (99)   866  134 1,000    950  147 1,097
Canada         257    7   264   (2)   262    4   266    405    5   410
N. America   1,037  128 1,165 (101) 1,128  138 1,266  1,355  152 1,507
----------------------------------------------------------------------
Worldwide    1,567  350 1,917  (90) 1,649  358 2,007  1,859  353 2,212
======================================================================



December Workover Rig Counts

                 December 2001   Var.   November 2001    December 2000
----------------------------------------------------------------------
  US                  1,099       (45)       1,144            1,116
  Canada                318         2          316              391
----------------------------------------------------------------------
North America         1,417       (43)       1,460            1,507
======================================================================

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