Callaway Golf and Orlimar Settle Lawsuit

Carlsbad, Calif., and Hayward, Calif. (PROTEXT) - CallawayGolf Company (NYSE: ELY) and Orlimar Golf Equipment Company LLCannounced today that they have agreed to settle the case broughtby Callaway Golf against Orlimar in January 1999. In that lawsuitCallaway Golf charged that Orlimar had engaged in a nationwideadvertising campaign that portrayed Callaway Golf, its golf clubsand its technology in a false, misleading and damaging manner.Callaway Golf also charged that Orlimar had violated two of itspatents on iron golf clubs. Orlimar denied any wrongdoing in thematter and filed a counterclaim against Callaway Golf for unfaircompetition and false advertising. Pursuant to the parties' settlement agreement, a consentdecree and injunction have been entered in the United StatesDistrict Court. The injunction orders Orlimar not to falselyportray Callaway Golf or its products in Orlimar's futureadvertising or promotional materials; not to employ robot teststo compare the performance of Orlimar golf clubs with Callawaygolf clubs in the future; not to use professional golfers toendorse its products by displaying Orlimar logos on their bags orhats unless they actually use at least one Orlimar club; and notto make certain other specified statements in advertising whichCallaway contends could be misconstrued by, or misleading to, theconsumer. The patent issues were resolved pursuant to a separate licenseagreement. For more information about Callaway Golf Company, please visitits Web site at www.callawaygolf.com For more information about Orlimar Golf Company, please visitits Web site at www.orlimar.com ots Original Text Service:Callaway Golf Company Internet: http://www.newsaktuell.deContact: Larry Dorman, Steve McCracken, or Krista Mallory, ofCallaway Golf Company (USA) 760-931-1771; or Jesse Ortiz ofOrlimar Golf Equipment Company (USA) 510-476-5800 Web site:http://www.orlimar.com Web site: http://www.callawaygolf.com

Subscribers please note that material bearing the slug"PROTEXT" is not part of CTK's news service and is not to bepublished under the "CTK" slug. Protext is a commercial serviceproviding distribution of press releases from clients, who areidentified in the text of Protext reports and who bear fullresponsibility for their contents.

PROTEXT