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

Police Shut Down Knock Off Golf Club Operation CARLSBAD, Calif. (PROTEXT) - Callaway Golf Company (NYSE: ELY)announced today that U.S. Marshals, Customs Agents and localpolice in New York, New Jersey, and Texas have carried out aseries of successful raids against an importer and a distributorcharged with trafficking in illegal knock-offs of CallawayGolf(R) clubs. The raids resulted in the forfeiture of thousandsof golf club heads, as well as the seizure of documents and otherevidence. The raids were conducted pursuant to orders issued byJudge John W. Bissell of the U.S. District Court in Newark, NewJersey. In 1998 Callaway Golf learned that Fairway to Heaven, Inc. ofDemarest, New Jersey, was selling copies of Callaway Golf's BigBertha(R) X-12(R) Irons under the name "Big Bursar V-17" andcopies of Big Bertha(R) Steelhead(TM) Metal Woods under the name"Big Bernard Steelclad." In December 1998 officials from CallawayGolf obtained a court judgment against Fairway to Heaven, itsowner, and its salesperson, Joe Opulski, prohibiting future salesof the products. In April and May 1999, Callaway Golf received evidence ofviolations of the judgment. Based on that information, CallawayGolf obtained an order from Judge Bissell authorizing raids ofseveral separate locations in New York and New Jersey where thedefendants were believed to be operating. On May 20 and 22, locallaw enforcement officials, accompanied by United States Marshalsand representatives of Callaway Golf, carried out the raids. As aresult, almost 350 Big Bernard, Big Bursar, and other golf clubheads and fully assembled clubs were seized. On June 2, 1999, the Court entered an order confirming theseizure of the infringing products and turning over possession ofthose products to Callaway Golf for further proceedings ordestruction. The Court's order also held Opulski in contempt ofcourt and awarded damages and attorneys' fees of over $100,000.Further proceedings against Fairway to Heaven and its owner todetermine their responsibility for the judgment and attorneys'fees are scheduled for later this month. Based on the evidence obtained from Fairway to Heaven, theU.S. District Court authorized a raid against one of Fairway toHeaven'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 awarehouse and storage facility and seized approximately 150 casescontaining over 6000 club heads, including "Rident Big Brother"and "Stealth II Wide Body" metal woods and "Canterbury BigBursar" irons. In addition to the club heads, customer lists werealso seized. On June 14, 1999, the Court entered an orderconfirming the seizure from Beta Company. In addition to theforfeiture of the products, Beta Company and its owner, Chin KuChin, have been ordered to pay $164,000 in damages plusattorneys' fees to Callaway Golf. "Those that distribute illegal copies of our clubs in theUnited States are taking advantage of consumers, our employeesand our shareholders," said Ely Callaway, Founder and ChiefExecutive Officer. "This activity is wrong, and we will continueto do what we can to stop it both here and abroad." "We appreciate the efforts of the Court, the U.S. Marshal'soffice, the U.S. Customs Service and local law enforcement in thefight against illegal copies," added Steve McCracken, ExecutiveVice President and Chief Legal Officer of Callaway Golf. Callaway Golf Company makes and sells Big Bertha(R) MetalWoods and Irons, including Great Big Bertha(R) Hawk Eye(R)Titanium Metal Woods, Big Bertha(R) Steelhead(TM) Stainless SteelMetal Woods, Big Bertha(R) X-12(R) Stainless Steel Irons, andBobby Jones(R) and Carlsbad Series(TM) putters. Callaway GolfCompany also makes and sells Odyssey(R) putters and wedges withStronomic(R) and Lyconite(R) inserts. For more information about Callaway Golf Company, please visitthe company's web site on the Internet athttp://www.callawaygolf.com. ots Original Text Service: CallawayGolf Company Internet: http://www.newsaktuell.de Contact: LarryDorman, Steve McCracken, or Krista Mallory, all for Callaway GolfCompany, 760-931-1771 Web site: http://www.callawaygolf.com

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