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USD ($)

USD ($) / shares

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   &lt;/div&gt;
   &lt;div align="center" style="font-size: 10pt; margin-top: 0pt"&gt;&lt;b&gt;&lt;/b&gt;
   &lt;/div&gt;
   &lt;div align="center" style="font-size: 10pt"&gt;&lt;b&gt;&lt;/b&gt;&lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 12pt"&gt;&lt;b&gt;NOTE 1. GENERAL&lt;/b&gt;
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&lt;b&gt;Nature of Operations&lt;/b&gt;
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;Baker Hughes Incorporated (&amp;#8220;Company,&amp;#8221; &amp;#8220;we,&amp;#8221; &amp;#8220;our&amp;#8221; or &amp;#8220;us&amp;#8221;) is engaged in the oilfield services
   industry. We are a leading supplier of wellbore-related products and technology services and
   systems and provide products and services for drilling, pressure pumping, formation evaluation,
   completion and production, and reservoir technology and consulting to the worldwide oil and natural
   gas industry. We also provide products and services to the downstream refining, and process and
   pipeline industries.
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 12pt"&gt;&lt;b&gt;Basis of Presentation&lt;/b&gt;
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;Our unaudited consolidated condensed financial statements included herein have been prepared
   in accordance with generally accepted accounting principles in the United States of America
   (&amp;#8220;GAAP&amp;#8221;) and pursuant to the rules and regulations of the Securities and Exchange Commission
   (&amp;#8220;SEC&amp;#8221;) for interim financial information. Accordingly, certain information and disclosures
   normally included in our annual financial statements have been condensed or omitted. These
   unaudited consolidated condensed financial statements should be read in conjunction with our
   audited consolidated financial statements included in our Annual Report on Form 10-K for the year
   ended December&amp;#160;31, 2010 (&amp;#8220;2010 Annual Report&amp;#8221;). We believe the unaudited consolidated condensed
   financial statements included herein reflect all adjustments (consisting of normal recurring
   adjustments) necessary for a fair presentation of the interim periods. The results of operations
   for the interim periods are not necessarily indicative of the results of operations to be expected
   for the full year. In the notes to the unaudited consolidated condensed financial statements, all
   dollar and share amounts in tabulations are in millions of dollars and shares, respectively, unless
   otherwise indicated.
   &lt;/div&gt;
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
 -Publisher FASB
 -Name FASB Interpretation (FIN)
 -Number 46R
 -Paragraph 4, 14, 15

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