Callaway Golf, U.S. Marshals, Customs Agents and Local

Callaway Golf Company (NYSE: ELY) announced today that U.S. Marshals, Customs Agents and local police in New York, New Jersey, and Texas have carried out a series of successful raids against an importer and a distributor charged with trafficking in illegal knock-offs of Callaway Golf(R) clubs. The raids resulted in the forfeiture of thousands of golf club heads, as well as the seizure of documents and other evidence. The raids were conducted pursuant to orders issued by Judge John W. Bissell of the U.S. District Court in Newark, New Jersey. In 1998 Callaway Golf learned that Fairway to Heaven, Inc. of Demarest, New Jersey, was selling copies of Callaway Golf's Big Bertha(R) X-12(R) Irons under the name "Big Bursar V-17" and copies of Big Bertha(R) Steelhead(TM) Metal Woods under the name "Big Bernard Steelclad." In December 1998 officials from Callaway Golf obtained a court judgment against Fairway to Heaven, its owner, and its salesperson, Joe Opulski, prohibiting future sales of the products. In April and May 1999, Callaway Golf received evidence of violations of the judgment. Based on that information, Callaway Golf obtained an order from Judge Bissell authorizing raids of several separate locations in New York and New Jersey where the defendants were believed to be operating. On May 20 and 22, local law enforcement officials, accompanied by United States Marshals and representatives of Callaway Golf, carried out the raids. As a result, almost 350 Big Bernard, Big Bursar, and other golf club heads and fully assembled clubs were seized. On June 2, 1999, the Court entered an order confirming the seizure of the infringing products and turning over possession of those products to Callaway Golf for further proceedings or destruction. The Court's order also held Opulski in contempt of court and awarded damages and attorneys' fees of over $100,000. Further proceedings against Fairway to Heaven and its owner to determine their responsibility for the judgment and attorneys' fees are scheduled for later this month. Based on the evidence obtained from Fairway to Heaven, the U.S. District Court authorized a raid against one of Fairway to Heaven's suppliers, Beta Company of Houston, Texas. On June 8, 1999, officials from U.S. Customs and the U.S. Marshal's Office, accompanied by representatives of Callaway Golf, raided a warehouse and storage facility and seized approximately 150 cases containing over 6000 club heads, including "Rident Big Brother" and "Stealth II Wide Body" metal woods and "Canterbury Big Bursar" irons. In addition to the club heads, customer lists were also seized. On June 14, 1999, the Court entered an order confirming the seizure from Beta Company. In addition to the forfeiture of the products, Beta Company and its owner, Chin Ku Chin, have been ordered to pay $164,000 in damages plus attorneys' fees to Callaway Golf. "Those that distribute illegal copies of our clubs in the United States are taking advantage of consumers, our employees and our shareholders," said Ely Callaway, Founder and Chief Executive Officer. "This activity is wrong, and we will continue to do what we can to stop it both here and abroad." "We appreciate the efforts of the Court, the U.S. Marshal's office, the U.S. Customs Service and local law enforcement in the fight against illegal copies," added Steve McCracken, Executive Vice President and Chief Legal Officer of Callaway Golf. Callaway Golf Company makes and sells Big Bertha(R) Metal Woods and Irons, including Great Big Bertha(R) Hawk Eye(R) Titanium Metal Woods, Big Bertha(R) Steelhead(TM) Stainless Steel Metal Woods, Big Bertha(R) X-12(R) Stainless Steel Irons, and Bobby Jones(R) and Carlsbad Series(TM) putters. Callaway Golf Company also makes and sells Odyssey(R) putters and wedges with Stronomic(R) and Lyconite(R) inserts. For more information about Callaway Golf Company, please visit the company's web site on the Internet at ots Original Text Service: Callaway Golf Company Internet: Contact: Larry Dorman, Steve McCracken, or Krista Mallory, all for Callaway Golf Company, 760-931-1771 Web site:

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