Integration Updates

March 9, 2010

Pre-Close Workshops and Webinars

To ensure all BJ Services employees have a clear understanding of the combination process beginning on Day One, all BJ managers will participate in a variety of learning events. Some managers will attend pre-close workshops that will prepare them to present the new organization to their teams. To minimize pre-close disruption to our business, these participants have been kept to a minimum.

Most managers will participate via web-based workshops that will convey the same pertinent information. The intent of these workshops is to inform managers so they can share their knowledge with all employees throughout their respective regions and areas of responsibility.

Welcome Presentations

BJ Services employees will be invited to attend a welcome meeting to hear from senior-level managers about the benefits of the combined organization and what to expect in the early stages of the integration. Employees will also have the opportunity to participate in a Q&A session.

The welcome presentation will take one of three forms depending on the size of your location:

• Town hall meetings: BJ and Baker Hughes management will welcome BJ employees at the larger BJ facilities across the organization, as well as at key regional offices.
• Local meetings: A local BJ manager and a local BHI counterpart will conduct rollout presentations for employees. Some facilities may hold multiple meetings to ensure that employees, who are on rotation, working on customer jobs, are able to participate in the presentations.
• Field meetings: BJ Services employees at remote or smaller facilities will be invited to participate in rollout presentations via live webinars.

Additional details about these activities and the Together We Win campaign will be communicated over the next few weeks.

Please Remember

• Baker Hughes and BJ Services must continue to operate independently until the merger has been completed.
• All Baker Hughes and BJ Services employees must continue to report only to their current supervisor until the transaction closes.
• Safety and service quality are our top priorities. Please do your part to ensure that our operations are as safe and environmentally responsible as ever.

Please Remember

• Baker Hughes and BJ Services will continue to operate independently until the merger has been approved by the stockholders and is legally finalized.
•  All Baker Hughes and BJ Services employees must continue to report only to their current supervisor until the transaction closes.
•  Safety and service quality are our top priorities. Please do your part to ensure that our operations are as safe and environmentally responsible as ever.

For Additional Information

Please feel free to submit questions to your respective HR department. All frequently-asked questions and other communications regarding the integration are available on the transition website, www.premieroilservices.com.

Andy O'Donnell                           Dave Dunlap

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Forward-Looking Statements

Except for the historical information set forth in this document, the matters discussed in this document are forward-looking statements that involve certain assumptions and known and unknown risks, uncertainties and other factors that could cause our actual results to differ materially. Such forward-looking statements include, but are not limited to, statements about the benefits of the business combination transaction involving Baker Hughes and BJ Services, including expected future financial and operating results, anticipated accretion to Baker Hughes’ earnings per share arising from the transaction, the expected amount and timing of cost savings and operating synergies, whether and when the transactions contemplated by the merger agreement will be consummated, the new combined company’s plans and other expectations, objectives, intentions and other statements that are not historical facts.

The following additional factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: the ability to obtain regulatory approvals for the transaction and the approval of the merger agreement by the stockholders of both parties; the risk that the cost savings and any other synergies from the transaction may not be realized or take longer to realize than expected; disruption from the transaction making it more difficult to maintain relationships with customers, employees or suppliers; the ability to successfully integrate the businesses; unexpected costs or unexpected liabilities that may arise from the transaction, whether or not consummated; the inability to retain key personnel; continuation or deterioration of current market conditions; the outcome of pending litigation; future regulatory or legislative actions that could adversely affect the companies; and the business plans of the customers of the respective parties. Additional factors that may affect future results are contained in Baker Hughes’ and BJ Services’ filings with the SEC, which are available at the SEC’s web site at www.sec.gov. Except as required by law, neither Baker Hughes nor BJ Services intends to update or revise statements contained in these materials based on new information, future events or otherwise.

Additional Information and Where to Find It

Participants in the Solicitation