Introduction to

Baker Hughes Incorporated

November 2008

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Baker PetroliteBaker Petrolite

Baker AtlasBaker Atlas

CentriliftCentrilift

Baker Hughes IncorporatedDrilling & Evaluation

Completion & Production

Provides advanced products and services to drill, evaluate and complete oil and gas wells and maximize production from the reservoir. We also provide reservoir consulting services.

FY2007

• Revenues: $10.4 billion

• R&E budget: $372 million

• 36,000 employees

• Facilities in 72 countries

• Operations in 90+ countries Reservoir Technology & Consulting

High Performance Culture

Core Values HS&E Commitment Completely Compliant…ethics, laws, safety

How Baker Hughes Creates Value

Focus, through product line divisions People who are experts Technology to meet customer objectives Global presence Performance for efficient operations and improved reservoir recovery

Reliability, built into every tool and service

Drilling, evaluation, completion, and production products and services…

And reservoir services.

Drilling

Drill Bits

Directional Drilling

Drilling Fluids

Drilling Optimization

Formation Evaluation

LoggingWhile Drilling

FluidSampling

IntegratedFormationEvaluation

WirelineLogging

Coring

Completion

Perforating Intelligent WellSystems

ExpandableCompletions

FlawlessExecution

Sand ControlCompletions

PumpingServices

MultilateralSystems

Production

Electric SubmersiblePump Systems

Production Logging

Oilfield Chemicals

Fishing Services

Workover Services

Progressing Cavity Pumps

Reservoir Understanding

Reservoir Technology and Consulting Group – Gaffney, Cline & Associates– Geomechanics International

Some clients seek service companies with broad reservoir management capabilities

Reservoir Engineering Integrated technical and

reservoir management advice– Exploration – Field development – Enhanced Oil Recovery – Operations management

Geomechanics

Research & Engineering

Completion System Design, Russia Drilling Fluids Laboratory, Aberdeen

Rapid Prototyping, HoustonBETA rig Drilling Simulator, The Woodlands

Center for Technology Innovation

Phase I completedPhase I completed

Investing in Technical Capabilities

xHPHT Test CellxHPHT Test Cell

World Class Manufacturing

Screen Plant, Lafayette Celle Technology Center, Germany Completion Tool Mfg., Houston

Blending Plant, La Porte Houston Technology Center Tricone Manufacturing, The Woodlands

Baker Hughes Region Territories

Investment for Growth - Infrastructure

BHI infrastructure Growth

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600

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1400

2005 2006 2007 2008

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Non-North America

North America

Al Khobar, Saudi Arabia

Celle, Germany

Eastern Hemisphere Education Center

Major training facility

16 classrooms Laboratory Auditorium Workshop 32 instructors 300 students

at a time

Summary of Baker Hughes Strategy Be the leading global

service company Long-term Investment

– Infrastructure– People– Technology

Technology Innovation– Deep water– HPHT– Unconventional reserves

Strengthen Capabilities– Reservoir Engineering– Reservoir Monitoring– Project Management