Baker Hughes' Manipulates Reported Revenue At Its Largest Business Unit, Says the Pomerantz Firm and Law Office of Klari Neuwelt

Business Wire, Jan 21, 2000

NEW YORK--(BUSINESS WIRE)--Jan. 21, 2000

The following is an announcement by the law firm of Pomerantz Haudek Block Grossman &Gross LLP:

Baker Hughes, Inc. (&uot;Baker Hughes&uot; or the &uot;Company&uot;) (NYSE:BHI) and two of the Company's senior officers allegedly manipulated reported revenue at the Company's largest business unit - INTEQ - in order to give the market the appearance that Baker Hughes was experiencing positive earnings growth while the opposite was occurring. Baker Hughes overstated the INTEQ drilling unit's earnings and included the overstatement into the Company's consolidated financial statements in violation of Generally Accepted Accounting Principles, according to allegations in a complaint filed by Pomerantz Haudek Block Grossman &Gross LLP (www.pomerantzlaw.com) and the Law Office of Klari Neuwelt on behalf of all those who purchased the common stock of Baker Hughes during the period between May 3, 1999 and December 8, 1999, inclusive (the &uot;Class Period&uot;).

As a result of the Company's actions, Baker Hughes' common stock was artificially inflated during the Class Period. The market first learned of Baker Hughes' misrepresentations on December 8, 1999, when it announced that it planned to restate its prior financial statements and postpone a $200 million note offering. As a result of the news, the price of Baker Hughes common stock lost more than 50% of its value.

If you purchased Baker Hughes common stock during the Class Period, you have until February 7, 2000 to ask the Court to appoint you as one of the lead plaintiffs for the Class. In order to serve as lead plaintiff, you must meet certain legal requirements. If you wish to discuss this action or have any questions, please contact Andrew G. Tolan, Esq. of the Pomerantz firm at 888-476-6529 (or (888) 4-POMLAW), toll free, or at agtolan@pomlaw.com by e-mail. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.

The Pomerantz firm is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz firm pioneered the field of securities class actions. Today, over 50 years later, the Pomerantz firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion dollar damages awards on behalf of class members. The Law Office of Klari Neuwelt also has substantial experience in similar litigation.

CONTACT: Andrew G. Tolan, Esq. of Pomerantz Haudek Block Grossman &Gross LLP, 888- 476-6529 ((888) 4-POMLAW) or agtolan@pomlaw.com