Baker Hughes Announces Dividend Increase; Declares Regular Quarterly Dividend; and Increases Share Repurchase Authorization

HOUSTON, July 24 /PRNewswire/ -- Baker Hughes Incorporated (NYSE: BHI) announced today that its Board of Directors has authorized a regular dividend of $0.15 per share, an increase of approximately 15% from the previous regular quarterly dividend of $0.13 per share.

Chad C. Deaton, Baker Hughes' chairman, president and chief executive officer announced today that the Baker Hughes Board declared the regular quarterly cash dividend of $0.15 per share of common stock payable August 15, 2008, to holders of record August 4, 2008.

Baker Hughes also announced today that the company's Board of Directors has authorized a plan to repurchase $1 billion of the company's common stock in addition to the existing stock repurchase plan. As of July 24, 2008, the company had authorization remaining to repurchase approximately $1.246 billion of common stock.

Baker Hughes provides reservoir consulting, drilling, formation evaluation, completion and production products and services to the worldwide oil and gas industry.

Contact:

Gary R. Flaharty (713) 439-8039

H. Gene Shiels (713) 439-8822

SOURCE Baker Hughes Incorporated