BAKER HUGHES a GE (BHI) 8-K Baker Hughes Discloses Prior Period Regional Revenue and Operating Results

Exhibit 99.1

News Release
Contact:	Baker Hughes Incorporated
Gary R. Flaharty (713) 439-8039	P.O. Box 4740
H. Gene Shiels (713) 439-8822	Houston, Texas 77210-4740

Baker Hughes Discloses Prior Period Regional Revenue and Operating Results

HOUSTON, Texas – July 8, 2008. As previously announced, Baker Hughes Incorporated (BHI – NYSE) today disclosed historical revenue by region and operating profit before tax by region for thirteen quarters from the quarter ending March 31, 2005 through the quarter ended March 31, 2008. In the future the company will disclose revenue and operating profit before tax for its two operating segments – Drilling and Evaluation and Completion and Production, as well as for its four geographic regions – North America, Latin America, Europe Africa Russia and the Caspian and Middle East, Asia Pacific.

Revenue is based on the geographic region which provides operational support associated with the revenue and differs by an immaterial amount from the previously disclosed region revenue which was based on the ultimate destination of the products or services sold. This information is also posted on our website at www.bakerhughes.com/investor.

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Revenue and Operating Profit Before Tax¹ by Region
For the 12 Months ended December 31, 2005

									12 months
			3 months ended						ended
	3/31/2005		6/30/3005		9/30/2005		12/31/2005		12/31/2005
Segment Revenue
Drilling and Evaluation	$	839.3	$	893.7	$	915.0	$	1,046.2	$	3,694.2
Completion and Production		803.2		873.8		869.8		943.2		3,490.0
Oilfield Operations		1,642.5		1,767.5		1,784.8		1,989.4		7,184.2
Geographic Revenue
North America		716.8		751.6		762.4		845.1		3,075.9
Latin America		155.3		175.8		177.8		194.6		703.5
Europe, Africa, Russia, and the Caspian		463.6		496.3		499.2		547.5		2,006.6
Middle East, Asia Pacific		306.8		343.8		345.4		402.2		1,398.2
Oilfield Operations		1,642.5		1,767.5		1,784.8		1,989.4		7,184.2
Corporate and Other
Corporate and other revenue		0.4		0.9		—		—		1.3
Total revenues	$	1,642.9	$	1,768.4	$	1,784.8	$	1,989.4	$	7,185.5
Segment Operating Profit
Drilling and Evaluation	$	153.3	$	174.2	$	190.0	$	232.1	$	749.6
Completion and Production2		146.3		171.3		170.0		178.4		666.0

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													12 months
				3 months ended									ended
	3/31/2005			6/30/3005			9/30/2005			12/31/2005			12/31/2005
Oilfield Operations		299.6			345.5			360.0			410.5			1,415.6
Geographic Operating Profit
North America		148.8			157.0			167.4			194.9			668.1
Latin America		32.0			40.6			32.2			37.7			142.5
Europe, Africa, Russia, and the Caspian		79.0			92.1			95.6			103.5			370.2
Middle East, Asia Pacific		39.8			55.8			64.8			74.4			234.8
Oilfield Operations		299.6			345.5			360.0			410.5			1,415.6
WesternGeco		19.3			18.5			25.5			33.4			96.7
Total Oilfield		318.9			364.0			385.5			443.9			1,512.3
Corporate and Other Operating Profit
Interest expense		(21.2	)		(16.7	)		(18.8	)		(18.2	)		(74.9	)
Interest and dividend income		4.5			3.3			4.9			7.9			20.6
Corporate and other		(32.0	)		(45.2	)		(49.2	)		(52.4	)		(178.8	)
Corporate, net interest and other		(48.7	)		(58.6	)		(63.1	)		(62.7	)		(233.1	)
Total Operating Profit1	$	270.2		$	305.4		$	322.4		$	381.2		$	1,279.2

See “Notes to Revenue and Operating Profit Before Tax by Region” in this news release.

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Revenue and Operating Profit Before Tax¹ by Region
For the 12 Months ended December 31, 2006

									12 months
	3 months ended								ended
	3/31/2006		6/30/30061		9/30/2006		12/31/2006		12/31/2006
Segment Revenue
Drilling and Evaluation	$	1,084.5	$	1,118.4	$	1,204.1	$	1,253.7	$	4,660.7
Completion and Production		977.5		1,084.9		1,105.3		1,199.0		4,366.7
Oilfield Operations		2,062.0		2,203.3		2,309.4		2,452.7		9,027.4
Geographic Revenue
North America		946.7		979.3		1,044.1		1,047.2		4,017.3
Latin America		181.6		197.7		204.6		226.0		809.9
Europe, Africa, Russia, and the Caspian		557.1		605.4		637.9		689.2		2,489.6
Middle East, Asia Pacific		376.6		420.9		422.8		490.3		1,710.6
Oilfield Operations		2,062.0		2,203.3		2,309.4		2,452.7		9,027.4
Corporate and Other
Corporate and other revenue		—		—		—		—		—
Total revenues	$	2,062.0	$	2,203.3	$	2,309.4	$	2,452.7	$	9,027.4
Segment Operating Profit
Drilling and Evaluation4	$	277.3	$	288.0	$	320.7	$	355.8	$	1,241.8
Completion and Production		204.8		246.3		241.1		249.7		941.9

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													12 months
	3 months ended												ended
	3/31/2006			6/30/30061			9/30/2006			12/31/2006			12/31/2006
Oilfield Operations		482.1			534.3			561.8			605.5			2,183.7
Geographic Operating Profit
North America		254.2			262.5			282.2			288.5			1,087.4
Latin America		33.8			40.5			40.2			47.3			161.8
Europe, Africa, Russia, and the Caspian		125.3			140.2			156.1			159.4			581.0
Middle East, Asia Pacific		68.8			91.1			83.3			110.3			353.5
Oilfield Operations		482.1			534.3			561.8			605.5			2,183.7
WesternGeco3		47.9			10.8			—			—			58.7
Total Oilfield		530.0			545.1			561.8			605.5			2,242.4
Corporate and Other Operating Profit
Interest expense		(16.5	)		(17.0	)		(18.1	)		(17.3	)		(68.9	)
Interest and dividend income		7.3			24.2			22.6			13.4			67.5
Charge for investigation resolution5											(46.1	)		(46.1	)
Corporate and other		(41.4	)		(45.3	)		(49.0	)		(65.9	)		(201.6	)
Corporate, net interest and other		(50.6	)		(38.1	)		(44.5	)		(115.9	)		(249.1	)
Total Operating Profit1	$	479.4		$	507.0		$	517.3		$	489.6		$	1,993.3

See “Notes to Revenue and Operating Profit Before Tax by Region” in this news release.

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Revenue and Operating Profit Before Tax¹ by Region
For the 12 Months ended December 31, 2007

										12 months
			3 months ended							ended
	3/31/2007		6/30/3007		9/30/2007			12/31/2007		12/31/2007
Segment Revenue
Drilling and Evaluation5	$	1,288.5	$	1,278.7	$	1,356.0		$	1,370.0	$	5,293.2
Completion and Production		1,184.2		1,258.7		1,321.8			1,370.3		5,135.0
Oilfield Operations		2,472.7		2,537.4		2,677.8			2,740.3		10,428.2
Geographic Revenue
North America		1,073.8		1,055.8		1,124.7			1,117.0		4,371.3
Latin America		228.0		232.1		256.3			256.0		972.4
Europe, Africa, Russia, and the Caspian		709.2		765.0		799.1			803.0		3,076.3
Middle East, Asia Pacific		461.7		484.5		497.7			564.3		2,008.2
Oilfield Operations		2,472.7		2,537.4		2,677.8			2,740.3		10,428.2
Corporate and Other
Corporate and other revenue		0.1		0.1		(0.2	)		—		—
Total revenues	$	2,472.8	$	2,537.5	$	2,677.6		$	2,740.3	$	10,428.2
Segment Operating Profit
Drilling and Evaluation6	$	365.1	$	326.6	$	357.1		$	347.4	$	1,396.2
Completion and Production		245.0		265.2		287.2			314.8		1,112.2

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													12 months
				3 months ended									ended
	3/31/2007			6/30/3007			9/30/2007			12/31/2007			12/31/2007
Oilfield Operations		610.1			591.8			644.3			662.2			2,508.4
Geographic Operating Profit
North America		301.1			264.2			305.1			285.6			1,156.0
Latin America		44.9			39.6			53.9			58.2			196.6
Europe, Africa, Russia, and the Caspian		168.7			192.1			185.7			190.8			737.3
Middle East, Asia Pacific		95.4			95.9			99.6			127.6			418.5
Oilfield Operations		610.1			591.8			644.3			662.2			2,508.4
Corporate and Other Operating Profit
Interest expense		(16.8	)		(16.2	)		(16.7	)		(16.4	)		(66.1	)
Interest and dividend income		11.5			10.7			10.5			11.1			43.8
Corporate and other		(49.7	)		(54.5	)		(61.7	)		(63.5	)		(229.4	)
Corporate, net interest and other		(55.0	)		(60.0	)		(67.9	)		(68.8	)		(251.7	)
Total Operating Profit1	$	555.1		$	531.8		$	576.4		$	593.4		$	2,256.7

See “Notes to Revenue and Operating Profit Before Tax by Region” in this news release.

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Revenue and Operating Profit Before Tax¹by Region
For the 3 Months ended March 31, 2008

	3 months
	ended
	3/31/2008
Segment Revenue
Drilling and Evaluation	$	1,390.9
Completion and Production		1,279.5
Oilfield Operations		2,670.4
Geographic Revenue
North America		1,161.6
Latin America		250.0
Europe, Africa, Russia, and the Caspian		762.4
Middle East, Asia Pacific		496.4
Oilfield Operations		2,670.4
Corporate and Other
Corporate and other revenue		—
Total revenues	$	2,670.4
Segment Operating Profit
Drilling and Evaluation	$	349.5
Completion and Production		263.1
Oilfield Operations		612.6

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	3 months
	ended
	3/31/2008
Geographic Operating Profit
North America		311.7
Latin America		50.0
Europe, Africa, Russia, and the Caspian		161.5
Middle East, Asia Pacific		89.4
Oilfield Operations		612.6
Corporate and Other Operating Profit
Gain on sale of product line7		28.2
Interest expense		(15.7	)
Interest and dividend income		8.0
Corporate, net interest and other		(63.9	)
Total Operating Profit1	$	569.2

See “Notes to Revenue and Operating Profit Before Tax by Region” in this news release.

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Notes to Revenue and Operating Profit Before Tax by Region

1 — Operating profit before tax is a non-GAAP measures comprised of income from continuing operations excluding the impact of certain identified non-operational items. The company believes that operating profit is useful to investors because it is a consistent measure of the underlying results of the company’s business. Furthermore, management uses operating profit internally as a measure of the performance of the company’s operations. Income from continuing operations before tax is reconciled to operating profit before tax in the table below. Reconciliation of GAAP and operating profits for historical periods can be found on the company’s website at www.bakerhughes.com/investor.

Reconciliation of GAAP and Operating Profit Before Tax

	for the three			for the twelve months
UNAUDITED	months ended			ended December
(In millions except earnings per share)	June 30, 2006			31, 2006
Income from continuing operations (GAAP)	$	2,250.5		$	3,736.8
Less non-operational items:
Gain on sale of interest in WesternGeco		(1,743.5	)		(1,743.5	)
Operating results, excluding the impact of Non-operational items	$	507.0		$	1,993.3

The non-operational item in the second quarter of 2006 and the year ended December 31, 2006 related to the pre-tax gain of $1,743.5 million ($1,035.2 million after tax) from the sale of our 30% interest in WesternGeco, our seismic joint venture with Schlumberger, to Schlumberger on April 28, 2006 for $2.4 billion in cash.

There were no non-operational items in any other period between Quarter 1 2005 and Quarter 1 2008.

2 — Quarter 4 2005 results for Completion and Production include a $5.1 million write-off of in-process research and development associated with the acquisition of the remaining interest in QuantX. The impact on the region operating profit was: North America: $2.1 million; Europe Africa Russia and the Caspian: $3.0 million.

3 — Our 30% minority interest in WesternGeco was sold to Schlumberger on April 28, 2006.

4 — Fourth quarter 2006 results were favorably impacted by a change in accounting procedures related to certain inventory of our Baker Atlas division. The pretax impact of this change was a $21.2 million reduction to cost of services and rentals. The full amount is reflected in Drilling and Evaluation operating profit. The impact on the region operating profit was: North America: $7.5 million; Latin America: $2.6 million; Europe Africa Russia and the Caspian: $6.4 million; Middle East, Asia Pacific: $4.7 million.

5 — Fourth quarter 2006 results included a financial charge of approximately $46 million before tax ($38.5 million after tax or approximately $0.12 per diluted share) associated with the likely resolution of the investigations by the Securities and Exchange

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Commission and Department of Justice into activities in Angola, Kazakhstan and Nigeria.

6 — 2007 results were favorably impacted by an increase in the depreciable lives of certain assets of our Baker Atlas division. The pretax impact of this change was approximately $6.0 million reduction to cost of services and rentals per quarter.

7 — Profit before tax includes a gain of $28.2 million (approximately $18.4 million after tax or $0.06 per diluted share) for the gain on the sale of the Completion and Production segment’s Surface Safety Systems (“SSS”) product line in February 2008.

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

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