|                                                                                                                                                                                                                           |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                           |  |
|                                                                                                                                                                                                                           | News Release |
| Investor Contacts:Trey Clark, +1.713.439.8039, trey.clark@bakerhughes.comEric Holcomb, +1.713.439.8822, eric.s.holcomb@bakerhughes.comMedia Contact:Christine Mathers, +1.713.439.8738, christine.mathers@bakerhughes.com | Baker Hughes Incorporated2929 Allen ParkwayHouston, Texas 77019Phone: 713.439.8600Fax: 713.439.8280www.bakerhughes.com |

|         |                                                                                       |
|---------|---------------------------------------------------------------------------------------|
| • | Record revenue of $5.9 billion for the quarter and $22.4 billion for the year |

|         |                                                                                                                                   |
|---------|-----------------------------------------------------------------------------------------------------------------------------------|
| • | Adjusted net income of $0.62 per diluted share for the quarter including costs of $0.18 per diluted share related to Iraq |

|         |                                                                 |
|---------|-----------------------------------------------------------------|
| • | Record free cash flow of $1.5 billion generated during 2013 |

|         |                                                           |
|---------|-----------------------------------------------------------|
| • | Repurchased $350 million of shares during the quarter |

|                                                  |
|--------------------------------------------------|
|                                                  |  |  |  |  |  |  |  |  |  |  |  |
|                                             | Q4 2013 |   | Q3 2013 |   | Q4 2012 |
| Revenue (millions)                               | $ | 5,860 |  |   | $ | 5,787 |  |   | $ | 5,325 |  |
| Adjusted net income (non-GAAP, millions)         | 277 |  |   | 358 |  |   | 214 |  |
| Net income (GAAP, millions)                      | 248 |  |   | 341 |  |   | 214 |  |
| Adjusted net income per diluted share (non-GAAP) | 0.62 |  |   | 0.81 |  |   | 0.49 |  |
| Net income per diluted share (GAAP)              | 0.56 |  |   | 0.77 |  |   | 0.49 |  |

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|                                                          |  |
| Baker Hughes Incorporated News Release                   | Page 2 |
| Baker Hughes Announces Fourth Quarter and Annual Results |   |

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|                                                          |  |
| Baker Hughes Incorporated News Release                   | Page 3 |
| Baker Hughes Announces Fourth Quarter and Annual Results |   |

|                                                            |
|------------------------------------------------------------|
|                                                            |  |  |  |  |  |  |  |  |  |  |  |
|                                                       | Three Months Ended |
|                                                       | December 31, |   | September 30, |
| (In millions, except per share amounts)               | 2013 |   | 2012 |   | 2013 |
| Revenue                                                    | $ | 5,860 |  |   | $ | 5,325 |  |   | $ | 5,787 |  |
| Costs and expenses:                                        |   |   |   |   |   |
| Cost of revenue                                            | 4,886 |  |   | 4,441 |  |   | 4,750 |  |
| Research and engineering                                   | 156 |  |   | 127 |  |   | 142 |  |
| Marketing, general and administrative                      | 336 |  |   | 317 |  |   | 319 |  |
| Total costs and expenses                                   | 5,378 |  |   | 4,885 |  |   | 5,211 |  |
| Operating income                                           | 482 |  |   | 440 |  |   | 576 |  |
| Interest expense, net                                      | (61 | ) |   | (57 | ) |   | (58 | ) |
| Income before income taxes                                 | 421 |  |   | 383 |  |   | 518 |  |
| Income taxes                                               | (171 | ) |   | (168 | ) |   | (178 | ) |
| Net income                                                 | 250 |  |   | 215 |  |   | 340 |  |
| Net (income) loss attributable to noncontrolling interests | (2 | ) |   | (1 | ) |   | 1 |  |
| Net income attributable to Baker Hughes                    | $ | 248 |  |   | $ | 214 |  |   | $ | 341 |  |
|                                                       |   |   |   |   |   |
| Basic earnings per share attributable to Baker Hughes      | $ | 0.56 |  |   | $ | 0.49 |  |   | $ | 0.77 |  |
| Diluted earnings per share attributable to Baker Hughes    | $ | 0.56 |  |   | $ | 0.49 |  |   | $ | 0.77 |  |
|                                                       |   |   |   |   |   |
| Weighted average shares outstanding, basic                 | 442 |  |   | 440 |  |   | 444 |  |
| Weighted average shares outstanding, diluted               | 444 |  |   | 441 |  |   | 445 |  |
|                                                       |   |   |   |   |   |
| Depreciation and amortization expense                      | $ | 436 |  |   | $ | 417 |  |   | $ | 423 |  |
| Capital expenditures                                       | $ | 533 |  |   | $ | 727 |  |   | $ | 511 |  |

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|                                                          |  |
| Baker Hughes Incorporated News Release                   | Page 4 |
| Baker Hughes Announces Fourth Quarter and Annual Results |   |

|                                                         |
|---------------------------------------------------------|
|                                                         |  |  |  |  |  |  |  |
|                                                    | Year Ended December 31, |
| (In millions, except per share amounts)            | 2013 |   | 2012 |
| Revenue                                                 | $ | 22,364 |  |   | $ | 21,361 |  |
| Costs and expenses:                                     |   |   |   |
| Cost of revenue                                         | 18,553 |  |   | 17,356 |  |
| Research and engineering                                | 556 |  |   | 497 |  |
| Marketing, general and administrative                   | 1,306 |  |   | 1,316 |  |
| Total costs and expenses                                | 20,415 |  |   | 19,169 |  |
| Operating income                                        | 1,949 |  |   | 2,192 |  |
| Interest expense, net                                   | (234 | ) |   | (210 | ) |
| Income before income taxes                              | 1,715 |  |   | 1,982 |  |
| Income taxes                                            | (612 | ) |   | (665 | ) |
| Net income                                              | 1,103 |  |   | 1,317 |  |
| Net income attributable to noncontrolling interests     | (7 | ) |   | (6 | ) |
| Net income attributable to Baker Hughes                 | $ | 1,096 |  |   | $ | 1,311 |  |
|                                                    |   |   |   |
| Basic earnings per share attributable to Baker Hughes   | $ | 2.47 |  |   | $ | 2.98 |  |
| Diluted earnings per share attributable to Baker Hughes | $ | 2.47 |  |   | $ | 2.97 |  |
|                                                    |   |   |   |
| Weighted average shares outstanding, basic              | 443 |  |   | 440 |  |
| Weighted average shares outstanding, diluted            | 444 |  |   | 441 |  |
|                                                    |   |   |   |
| Depreciation and amortization expense                   | $ | 1,698 |  |   | $ | 1,568 |  |
| Capital expenditures                                    | $ | 2,085 |  |   | $ | 2,910 |  |

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|                                                          |  |
| Baker Hughes Incorporated News Release                   | Page 5 |
| Baker Hughes Announces Fourth Quarter and Annual Results |   |

|                                                                                        |
|----------------------------------------------------------------------------------------|
|                                                                                        |  |  |  |  |  |  |  |
|                                                                                   | December 31, |   | December 31, |
| (In millions)                                                                          | 2013 |   | 2012 |
| ASSETS                                                                                 |   |   |   |
| Current Assets:                                                                        |   |   |   |
| Cash and cash equivalents                                                              | $ | 1,399 |  |   | $ | 1,015 |  |
| Accounts receivable - less allowance for doubtful accounts (2013 - $238,  2012 - $308) | 5,138 |  |   | 4,815 |  |
| Inventories, net                                                                       | 3,884 |  |   | 3,781 |  |
| Other current assets                                                                   | 874 |  |   | 806 |  |
| Total current assets                                                                   | 11,295 |  |   | 10,417 |  |
| Property, plant and equipment, net                                                     | 9,076 |  |   | 8,707 |  |
| Goodwill                                                                               | 5,966 |  |   | 5,958 |  |
| Intangible assets, net                                                                 | 883 |  |   | 993 |  |
| Other assets                                                                           | 714 |  |   | 614 |  |
| Total assets                                                                           | $ | 27,934 |  |   | $ | 26,689 |  |
| LIABILITIES AND EQUITY                                                                 |   |   |   |
| Current Liabilities:                                                                   |   |   |   |
| Accounts payable                                                                       | $ | 2,574 |  |   | $ | 1,737 |  |
| Short-term debt and current portion of long-term debt                                  | 499 |  |   | 1,079 |  |
| Accrued employee compensation                                                          | 778 |  |   | 646 |  |
| Other accrued liabilities                                                              | 727 |  |   | 662 |  |
| Total current liabilities                                                              | 4,578 |  |   | 4,124 |  |
| Long-term debt                                                                         | 3,882 |  |   | 3,837 |  |
| Deferred income taxes and other tax liabilities                                        | 821 |  |   | 745 |  |
| Long-term liabilities                                                                  | 741 |  |   | 715 |  |
| Equity                                                                                 | 17,912 |  |   | 17,268 |  |
| Total liabilities and equity                                                           | $ | 27,934 |  |   | $ | 26,689 |  |

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|                                                          |
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|                                                          |  |
| Baker Hughes Incorporated News Release                   | Page 6 |
| Baker Hughes Announces Fourth Quarter and Annual Results |   |

|                                                                                  |
|----------------------------------------------------------------------------------|
|                                                                                  |  |  |  |  |  |  |  |
|                                                                             | Year Ended December 31, |
| (In millions)                                                                    | 2013 |   | 2012 |
| Cash flows from operating activities:                                            |   |   |   |
| Net income                                                                       | $ | 1,103 |  |   | $ | 1,317 |  |
| Adjustments to reconcile net income to net cash flows from operating activities: |   |   |   |
| Depreciation and amortization                                                    | 1,698 |  |   | 1,568 |  |
| Other, primarily working capital                                                 | 360 |  |   | (1,050 | ) |
| Net cash flows provided by operating activities                                  | 3,161 |  |   | 1,835 |  |
| Cash flows from investing activities:                                            |   |   |   |
| Expenditures for capital assets                                                  | (2,085 | ) |   | (2,910 | ) |
| Proceeds from disposal of assets                                                 | 455 |  |   | 389 |  |
| Other                                                                            | (33 | ) |   | — |  |
| Net cash flows used in investing activities                                      | (1,663 | ) |   | (2,521 | ) |
| Cash flows from financing activities:                                            |   |   |   |
| Net (repayments) proceeds from issuance of debt                                  | (571 | ) |   | 847 |  |
| Repurchase of common stock                                                       | (350 | ) |   | — |  |
| Dividends                                                                        | (267 | ) |   | (263 | ) |
| Other                                                                            | 85 |  |   | 62 |  |
| Net cash flows (used in) provided by financing activities                        | (1,103 | ) |   | 646 |  |
| Effect of foreign exchange rate changes on cash and cash equivalents             | (11 | ) |   | 5 |  |
| Increase (decrease) in cash and cash equivalents                                 | 384 |  |   | (35 | ) |
| Cash and cash equivalents, beginning of period                                   | 1,015 |  |   | 1,050 |  |
| Cash and cash equivalents, end of period                                         | $ | 1,399 |  |   | $ | 1,015 |  |

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|                                                          |  |
| Baker Hughes Incorporated News Release                   | Page 7 |
| Baker Hughes Announces Fourth Quarter and Annual Results |   |

|                                                |
|------------------------------------------------|
|                                                |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                | Three Months Ended December 31, 2013 |   | Three Months Ended September 30, 2013 |
| (In millions, except per share amounts)   | NetIncome |   | Diluted EarningsPer Share |   | NetIncome |   | Diluted EarningsPer Share |
| Net income attributable to Baker Hughes (GAAP) | $ | 248 |  |   | $ | 0.56 |  |   | $ | 341 |  |   | $ | 0.77 |  |
| Identified item:                               |   |   |   |   |   |   |   |
| Severance charges5                             | 29 |  |   | 0.06 |  |   | 17 |  |   | 0.04 |  |
| Adjusted net income (non-GAAP)1                | $ | 277 |  |   | $ | 0.62 |  |   | $ | 358 |  |   | $ | 0.81 |  |

|                                                |
|------------------------------------------------|
|                                                |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                | Year Ended December 31, 2013 |   | Year Ended December 31, 2012 |
| (In millions, except per share amounts)   | NetIncome |   | Diluted EarningsPer Share |   | NetIncome |  | Diluted EarningsPer Share |
| Net income attributable to Baker Hughes (GAAP) | $ | 1,096 |  |   | $ | 2.47 |  |   | $ | 1,311 |  |   | $ | 2.97 |  |
| Identified items:                              |   |   |   |   |   |   |   |
| Information technology charges2                | — |  |   | — |  |   | 28 |  |   | 0.07 |  |
| Facility closure3                              | — |  |   | — |  |   | 15 |  |   | 0.03 |  |
| Devaluation of Venezuelan currency4            | 23 |  |   | 0.05 |  |   | — |  |   | — |  |
| Severance charges5                             | 46 |  |   | 0.10 |  |   | — |  |   | — |  |
| Adjusted net income (non-GAAP)1                | $ | 1,165 |  |   | $ | 2.62 |  |   | $ | 1,354 |  |   | $ | 3.07 |  |

|   |
|---|
|   |  |  |
| 1 |  | Adjusted net income is a non-GAAP measure comprised of net income attributable to Baker Hughes excluding the impact of certain identified items.  The Company believes that adjusted net income is useful to investors because it is a consistent measure of the underlying results of the Company's business.  Furthermore, management uses adjusted net income as a measure of the performance of the Company's operations. |
| 2 |  | Charge of $43 million before-tax ($28 million after-tax) related to internally developed software and other information technology assets in the third quarter of 2012. |
| 3 |  | Charge of $20 million before-tax ($15 million after-tax) resulting from the closure of a chemical manufacturing facility in the United Kingdom in the third quarter of 2012. |
| 4 |  | Foreign exchange loss of $23 million before and after-tax due to the devaluation of Venezuela's currency from the prior exchange rate of 4.3 Bolivars Fuertes per U.S. Dollar to 6.3 Bolivars Fuertes per U.S. Dollar, which applied to our local currency denominated balances in the first quarter of 2013. |
| 5 |  | Severance charges of $37 million before-tax ($29 million after-tax) were incurred during the fourth quarter of 2013 and $19 million before-tax ($17 million after-tax) during the third quarter of 2013. |

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|                                                          |  |
| Baker Hughes Incorporated News Release                   | Page 8 |
| Baker Hughes Announces Fourth Quarter and Annual Results |   |

|                                                                        |
|------------------------------------------------------------------------|
|                                                                        |  |  |  |  |  |  |  |  |  |  |  |
|                                                                   | Three Months Ended |
|                                                                   | December 31, |   | September 30, |
| (In millions)                                                          | 2013 |   | 2012 |   | 2013 |
| Net income attributable to Baker Hughes                                | $ | 248 |  |   | $ | 214 |  |   | $ | 341 |  |
| Net income (loss) attributable to noncontrolling interests             | 2 |  |   | 1 |  |   | (1 | ) |
| Income taxes                                                           | 171 |  |   | 168 |  |   | 178 |  |
| Income before income taxes                                             | 421 |  |   | 383 |  |   | 518 |  |
| Interest expense, net                                                  | 61 |  |   | 57 |  |   | 58 |  |
| Earnings before interest and taxes (EBIT)                              | 482 |  |   | 440 |  |   | 576 |  |
| Depreciation and amortization expense                                  | 436 |  |   | 417 |  |   | 423 |  |
| Earnings before interest, taxes, depreciation andamortization (EBITDA) | 918 |  |   | 857 |  |   | 999 |  |
| Adjustments to EBITDA:                                                 |   |   |   |   |   |
| Severance charges2                                                     | 37 |  |   | — |  |   | 19 |  |
| Adjusted EBITDA                                                        | $ | 955 |  |   | $ | 857 |  |   | $ | 1,018 |  |

|                                                                        |
|------------------------------------------------------------------------|
|                                                                        |  |  |  |  |  |  |  |
|                                                                   | Year Ended December 31, |
| (In millions)                                                          | 2013 |   | 2012 |
| Net income attributable to Baker Hughes                                | $ | 1,096 |  |   | $ | 1,311 |  |
| Net income attributable to noncontrolling interests                    | 7 |  |   | 6 |  |
| Income taxes                                                           | 612 |  |   | 665 |  |
| Income before income taxes                                             | 1,715 |  |   | 1,982 |  |
| Interest expense, net                                                  | 234 |  |   | 210 |  |
| Earnings before interest and taxes (EBIT)                              | 1,949 |  |   | 2,192 |  |
| Depreciation and amortization expense                                  | 1,698 |  |   | 1,568 |  |
| Earnings before interest, taxes, depreciation andamortization (EBITDA) | 3,647 |  |   | 3,760 |  |
| Adjustments to EBITDA:                                                 |   |   |   |
| Severance charges2                                                     | 56 |  |   | — |  |
| Devaluation of Venezuelan currency3                                    | 23 |  |   | — |  |
| Information technology charges4                                        | — |  |   | 43 |  |
| Facility closure5                                                      | — |  |   | 20 |  |
| Adjusted EBITDA                                                        | $ | 3,726 |  |   | $ | 3,823 |  |

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|                                                          |  |
| Baker Hughes Incorporated News Release                   | Page 9 |
| Baker Hughes Announces Fourth Quarter and Annual Results |   |

|   |
|---|
|   |  |  |
| 1 |  | EBIT, EBITDA, and Adjusted EBITDA (as defined in the calculations above) are non-GAAP measures.  Management is providing these measures because it believes that such measures are widely accepted financial indicators used by investors and analysts to analyze and compare companies on the basis of operating performance. |
| 2 |  | Severance charges of $37 million before-tax ($29 million after-tax) were incurred during the fourth quarter of 2013 and $19 million before-tax ($17 million after-tax) during the third quarter of 2013. |
| 3 |  | Foreign exchange loss of $23 million before and after-tax due to the devaluation of Venezuela's currency from the prior exchange rate of 4.3 Bolivars Fuertes per U.S. Dollar to 6.3 Bolivars Fuertes per U.S. Dollar, which applied to our local currency denominated balances in the first quarter of 2013. |
| 4 |  | Charge of $43 million before-tax ($28 million after-tax) related to internally developed software and other information technology assets in the third quarter of 2012. |
| 5 |  | Charge of $20 million before-tax ($15 million after-tax) resulting from the closure of a chemical manufacturing facility in the United Kingdom in the third quarter of 2012. |

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|                                                          |
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|                                                          |  |
| Baker Hughes Incorporated News Release                   | Page 10 |
| Baker Hughes Announces Fourth Quarter and Annual Results |   |

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |  |  |  |
|                                  | Three Months Ended |
|                                  | December 31, |   | September 30, |
| (In millions)                         | 2013 |   | 2012 |   | 2013 |
| Segment Revenue                       |   |   |   |   |   |
| North America                         | $ | 2,744 |  |   | $ | 2,559 |  |   | $ | 2,854 |  |
| Latin America                         | 603 |  |   | 639 |  |   | 557 |  |
| Europe/Africa/Russia Caspian          | 1,046 |  |   | 950 |  |   | 984 |  |
| Middle East/Asia Pacific              | 1,121 |  |   | 882 |  |   | 1,064 |  |
| Industrial Services                   | 346 |  |   | 295 |  |   | 328 |  |
| Total Operations                      | $ | 5,860 |  |   | $ | 5,325 |  |   | $ | 5,787 |  |
| Profit Before Tax                     |   |   |   |   |   |
| North America                         | $ | 227 |  |   | $ | 222 |  |   | $ | 295 |  |
| Latin America                         | 58 |  |   | 8 |  |   | (23 | ) |
| Europe/Africa/Russia Caspian          | 156 |  |   | 173 |  |   | 170 |  |
| Middle East/Asia Pacific              | 91 |  |   | 81 |  |   | 156 |  |
| Industrial Services                   | 34 |  |   | 27 |  |   | 38 |  |
| Total Operations                      | $ | 566 |  |   | $ | 511 |  |   | $ | 636 |  |
| Corporate and Other Profit Before Tax |   |   |   |   |   |
| Corporate and other                   | (84 | ) |   | (71 | ) |   | (60 | ) |
| Interest expense, net                 | (61 | ) |   | (57 | ) |   | (58 | ) |
| Corporate, net interest and other     | (145 | ) |  | (128 | ) |   | (118 | ) |
| Profit Before Tax                     | $ | 421 |  |   | $ | 383 |  |   | $ | 518 |  |
| Profit Before Tax Margin1             |   |   |   |   |   |
| North America                         | 8 | % |   | 9 | % |   | 10 | % |
| Latin America                         | 10 | % |   | 1 | % |   | (4 | %) |
| Europe/Africa/Russia Caspian          | 15 | % |   | 18 | % |   | 17 | % |
| Middle East/Asia Pacific              | 8 | % |   | 9 | % |   | 15 | % |
| Industrial Services                   | 10 | % |   | 9 | % |   | 12 | % |
| Total Operations                      | 10 | % |   | 10 | % |   | 11 | % |

|   |
|---|
|   |  |  |
| 1 |  | Profit before tax margin is a non-GAAP measure defined as profit before tax (“income before income taxes”) divided by revenue.  Management uses the profit before tax margin because it believes it is a widely accepted financial indicator used by investors and analysts to analyze and compare companies on the basis of operating performance. |

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|                                                          |
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|                                                          |  |
| Baker Hughes Incorporated News Release                   | Page 11 |
| Baker Hughes Announces Fourth Quarter and Annual Results |   |

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |
|                                  | Year Ended December 31, |
| (In millions)                         | 2013 |   | 2012 |
| Segment Revenue                       |   |   |   |
| North America                         | $ | 10,878 |  |   | $ | 10,836 |  |
| Latin America                         | 2,307 |  |   | 2,399 |  |
| Europe/Africa/Russia Caspian          | 3,850 |  |   | 3,634 |  |
| Middle East/Asia Pacific              | 4,050 |  |   | 3,275 |  |
| Industrial Services                   | 1,279 |  |   | 1,217 |  |
| Total Operations                      | $ | 22,364 |  |   | $ | 21,361 |  |
| Profit Before Tax                     |   |   |   |
| North America                         | $ | 968 |  |   | $ | 1,268 |  |
| Latin America                         | 66 |  |   | 197 |  |
| Europe/Africa/Russia Caspian          | 570 |  |   | 586 |  |
| Middle East/Asia Pacific              | 478 |  |   | 313 |  |
| Industrial Services                   | 135 |  |   | 131 |  |
| Total Operations                      | $ | 2,217 |  |   | $ | 2,495 |  |
| Corporate and Other Profit Before Tax |   |   |   |
| Corporate and other                   | (268 | ) |   | (303 | ) |
| Interest expense, net                 | (234 | ) |   | (210 | ) |
| Corporate, net interest and other     | (502 | ) |   | (513 | ) |
| Profit Before Tax                     | $ | 1,715 |  |   | $ | 1,982 |  |
| Profit Before Tax Margin1             |   |   |   |
| North America                         | 9 | % |   | 12 | % |
| Latin America                         | 3 | % |   | 8 | % |
| Europe/Africa/Russia Caspian          | 15 | % |   | 16 | % |
| Middle East/Asia Pacific              | 12 | % |   | 10 | % |
| Industrial Services                   | 11 | % |   | 11 | % |
| Total Operations                      | 10 | % |   | 12 | % |

|   |
|---|
|   |  |  |
| 1 |  | Profit before tax margin is a non-GAAP measure defined as profit before tax (“income before income taxes”) divided by revenue.  Management uses the profit before tax margin because it believes it is a widely accepted financial indicator used by investors and analysts to analyze and compare companies on the basis of operating performance. |

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|                                                          |
|----------------------------------------------------------|
|                                                          |  |
| Baker Hughes Incorporated News Release                   | Page 12 |
| Baker Hughes Announces Fourth Quarter and Annual Results |   |

|                                            |
|--------------------------------------------|
|                                            |  |  |  |  |  |  |  |
| (In millions)                              | Three Months Ended December 31, 20132 |   | Three Months Ended September 30, 20132 |
| Adjustments to Operating Profit Before Tax |   |   |   |
| North America                              | $ | 14 |  |   | $ | — |  |
| Latin America                              | 13 |  |   | 19 |  |
| Europe/Africa/Russia Caspian               | 6 |  |   | — |  |
| Middle East/Asia Pacific                   | 3 |  |   | — |  |
| Industrial Services                        | 1 |  |   | — |  |
| Total Operations                           | $ | 37 |  |   | $ | 19 |  |

|                                            |
|--------------------------------------------|
|                                            |  |  |  |  |  |  |  |
| (In millions)                              | Year Ended December 31, 20133 |   | Year Ended December 31, 20124 |
| Adjustments to Operating Profit Before Tax |   |   |   |
| North America                              | $ | 14 |  |   | $ | 33 |  |
| Latin America                              | 55 |  |   | 7 |  |
| Europe/Africa/Russia Caspian               | 6 |  |   | 11 |  |
| Middle East/Asia Pacific                   | 3 |  |   | 10 |  |
| Industrial Services                        | 1 |  |   | 2 |  |
| Total Operations                           | $ | 79 |  |   | $ | 63 |  |

|   |
|---|
|   |  |  |
| 1 |  | There were no items identified requiring adjustment in the fourth quarter of 2012. |
| 2 |  | Severance charges of $37 million before-tax were incurred during the fourth quarter of 2013, as well as, severance charges of $19 million before-tax related to restructuring in Latin America during the third quarter of 2013. |
| 3 |  | Includes severance charges incurred in the third and fourth quarters of 2013 (see note 2 above) and foreign exchange loss of $23 million before-tax incurred in the first quarter of 2013 due to the devaluation of Venezuela's currency from the prior exchange rate of 4.3 Bolivars Fuertes per U.S. Dollar to 6.3 Bolivars Fuertes per U.S. Dollar, which applied to our local currency denominated balances. |
| 4 |  | Charges of $43 million before-tax related to internally developed software and other information technology assets in the third quarter of 2012.  Charges of $20 million before-tax associated with the closure of a chemical manufacturing facility in the United Kingdom in the third quarter of 2012.  The information technology assets and manufacturing facility supported our global operations.  Therefore, these costs have been allocated to all segments. |

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|                                                          |
|----------------------------------------------------------|
|                                                          |  |
| Baker Hughes Incorporated News Release                   | Page 13 |
| Baker Hughes Announces Fourth Quarter and Annual Results |   |

|                                     |
|-------------------------------------|
|                                     |  |  |  |  |  |  |  |  |  |  |  |
|                                | Three Months Ended |
|                                | December 31, |   | September 30, |
| (In millions)                       | 2013 |   | 2012 |   | 2013 |
| Segment Revenue                     |   |   |   |   |   |
| North America                       | $ | 2,744 |  |   | $ | 2,559 |  |   | $ | 2,854 |  |
| Latin America                       | 603 |  |   | 639 |  |   | 557 |  |
| Europe/Africa/Russia Caspian        | 1,046 |  |   | 950 |  |   | 984 |  |
| Middle East/Asia Pacific            | 1,121 |  |   | 882 |  |   | 1,064 |  |
| Industrial Services                 | 346 |  |   | 295 |  |   | 328 |  |
| Total Operations                    | $ | 5,860 |  |   | $ | 5,325 |  |   | $ | 5,787 |  |
| Operating Profit Before Tax1        |   |   |   |   |   |
| North America                       | $ | 241 |  |   | $ | 222 |  |   | $ | 295 |  |
| Latin America2                      | 71 |  |   | 8 |  |   | (4 | ) |
| Europe/Africa/Russia Caspian        | 162 |  |   | 173 |  |   | 170 |  |
| Middle East/Asia Pacific3           | 94 |  |   | 81 |  |   | 156 |  |
| Industrial Services                 | 35 |  |   | 27 |  |   | 38 |  |
| Total Operations                    | $ | 603 |  |   | $ | 511 |  |   | $ | 655 |  |
| Operating Profit Before Tax Margin1 |   |   |   |   |   |
| North America                       | 9 | % |   | 9 | % |   | 10 | % |
| Latin America2                      | 12 | % |   | 1 | % |   | (1 | %) |
| Europe/Africa/Russia Caspian        | 15 | % |   | 18 | % |   | 17 | % |
| Middle East/Asia Pacific3           | 8 | % |   | 9 | % |   | 15 | % |
| Industrial Services                 | 10 | % |   | 9 | % |   | 12 | % |
| Total Operations                    | 10 | % |   | 10 | % |   | 11 | % |

|   |
|---|
|   |  |  |
| 1 |  | Operating profit before tax is a non-GAAP measure defined as profit before tax ("income before income taxes") less certain identified costs.  Operating profit before tax margin is a non-GAAP measure defined as operating profit before tax divided by revenue.  Management uses each of these measures because it believes they are widely accepted financial indicators used by investors and analysts to analyze and compare companies on the basis of operating performance and that these measures may be used by investors to make informed investment decisions. |
| 2 |  | Latin America operating profit before tax and operating profit before tax margin include before-tax bad debt provisions of $42 million and $63 million in the third quarter of 2013 and fourth quarter of 2012, respectively. |
| 3 |  | Middle East/Asia Pacific operating profit before tax and operating profit before tax margin include costs of $79 million in Iraq related to the significant disruption of operations, expenses associated with personnel movements and security measures, and other nonrecurring items. |

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|----------------------------------------------------------|
|                                                          |  |
| Baker Hughes Incorporated News Release                   | Page 14 |
| Baker Hughes Announces Fourth Quarter and Annual Results |   |

|                                     |
|-------------------------------------|
|                                     |  |  |  |  |  |  |  |
|                                | Year Ended December 31, |
| (In millions)                       | 2013 |   | 2012 |
| Segment Revenue                     |   |   |   |
| North America                       | $ | 10,878 |  |   | $ | 10,836 |  |
| Latin America                       | 2,307 |  |   | 2,399 |  |
| Europe/Africa/Russia Caspian        | 3,850 |  |   | 3,634 |  |
| Middle East/Asia Pacific            | 4,050 |  |   | 3,275 |  |
| Industrial Services                 | 1,279 |  |   | 1,217 |  |
| Total Operations                    | $ | 22,364 |  |   | $ | 21,361 |  |
| Operating Profit Before Tax1        |   |   |   |
| North America                       | $ | 982 |  |   | $ | 1,301 |  |
| Latin America2                      | 121 |  |   | 204 |  |
| Europe/Africa/Russia Caspian        | 576 |  |   | 597 |  |
| Middle East/Asia Pacific3           | 481 |  |   | 323 |  |
| Industrial Services                 | 136 |  |   | 133 |  |
| Total Operations                    | $ | 2,296 |  |   | $ | 2,558 |  |
| Operating Profit Before Tax Margin1 |   |   |   |
| North America                       | 9 | % |   | 12 | % |
| Latin America2                      | 5 | % |   | 9 | % |
| Europe/Africa/Russia Caspian        | 15 | % |   | 16 | % |
| Middle East/Asia Pacific3           | 12 | % |   | 10 | % |
| Industrial Services                 | 11 | % |   | 11 | % |
| Total Operations                    | 10 | % |   | 12 | % |

|   |
|---|
|   |  |  |
| 1 |  | Operating profit before tax is a non-GAAP measure defined as profit before tax ("income before income taxes") less certain identified costs.  Operating profit before tax margin is a non-GAAP measure defined as operating profit before tax divided by revenue.  Management uses each of these measures because it believes they are widely accepted financial indicators used by investors and analysts to analyze and compare companies on the basis of operating performance and that these measures may be used by investors to make informed investment decisions. |
| 2 |  | Latin America operating profit before tax and operating profit before tax margin include before-tax bad debt provisions of $62 million in 2013 ($20 million in the second quarter and $42 million in the third quarter) and $85 million in 2012 ($22 million in the third quarter and $63 million in the fourth quarter). |
| 3 |  | Middle East/Asia Pacific operating profit before tax and operating profit before tax margin include costs of $79 million in Iraq during the fourth quarter related to the significant disruption of operations, expenses associated with personnel movements and security measures, and other nonrecurring items. |

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|                                                          |
|----------------------------------------------------------|
|                                                          |  |
| Baker Hughes Incorporated News Release                   | Page 15 |
| Baker Hughes Announces Fourth Quarter and Annual Results |   |

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|                                                          |
|----------------------------------------------------------|
|                                                          |  |
| Baker Hughes Incorporated News Release                   | Page 16 |
| Baker Hughes Announces Fourth Quarter and Annual Results |   |

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|                                                          |
|----------------------------------------------------------|
|                                                          |  |
| Baker Hughes Incorporated News Release                   | Page 17 |
| Baker Hughes Announces Fourth Quarter and Annual Results |   |