Court Enters Order Against Former Callaway Golf Ball Executive Mark King / Callaway Golf Ball Company to Seek Appellate Relief to Prevent 'Inevitable Disclosure

CARLSBAD, Calif. (PROTEXT) - A Superior Court Judge in Vista,California, signed and entered a preliminary injunction todayagainst Mark King, the former Vice President, Sales, of CallawayGolf Ball Company. The court order requires that "Mark King andall those acting in concert with him are hereby restrained andenjoined from using, disclosing, copying or transmitting anytrade secrets of Callaway Golf Ball Company regarding the design,manufacture, sale and marketing of golf balls." Callaway Golf Ball Company, a wholly-owned subsidiary ofCallaway Golf Company (NYSE: ELY), sued Mr. King after heattempted to join a competitor, Taylor Made Adidas Golf. CallawayGolf Ball asked the Court to issue an order preventing Mr. Kingfrom disclosing or using Callaway Golf Ball's trade secrets.Callaway Golf Ball also asked the Court to order that Mr. Kingnot commence work for Taylor Made until there was a full hearingon Callaway Golf Ball's breach of contract claims before anarbitrator, as required by the written employment agreementbetween Callaway Golf Ball and Mr. King. Callaway Golf Ballbelieves that Mr. King's actions, including things he had done asan officer of Callaway Golf Ball while actively pursuing a job atTaylor Made, proved that he could not be trusted to preserve theconfidentiality of Callaway Golf Ball's secrets absent a courtorder. Callaway Golf Ball also believes that it would beinevitable that Mr. King would use or rely upon informationobtained while working at Callaway Golf Ball in his new position,even if he did not explicitly disclose such information toothers. The Court granted the injunction against Mr. King's use ordisclosure of Callaway Golf Ball's information. However, it didnot order that Mr. King forego reporting to work at Taylor Made. "We are pleased that the Court has issued an order preventingthe disclosure or use of our confidential information by Mr.King," said Steve McCracken, Executive Vice President and ChiefLegal Officer of Callaway Golf. "As a result of this action bythe Court, Mr. King operates in his new position at his ownperil, and he must be careful not to use or disclose ourinformation in any way. We intend to watch this very closely." "We also intend to appeal that part of the Court's ruling thatpermits Mr. King to commence work at Taylor Made," Mr. McCrackencontinued. "We intend to establish in the appellate courts thatthe legal doctrine of 'inevitable disclosure' -- which isrecognized in many jurisdictions outside California -- is the lawin this state as well. We are prepared to pursue this matter tothe California Supreme Court, if necessary." The Court's written order was signed four days following atelephonic ruling by the Court on September 23, 1999. At thattime Taylor Made issued a press release announcing the portion ofthe Court's ruling that permitted Mr. King to commence work atTaylor Made. However, the Taylor Made press release failed tonote that the Court had granted Callaway Golf Ball's request fora preliminary injunction against Mr. King's use or disclosure ofconfidential information. "Taylor Made's September 23, 1999 pressrelease may have given some people, including some of ourshareholders, the impression that our litigation against Mr. Kinghad not been successful to date," said Ely Callaway, Founder,Chairman and CEO of Callaway Golf. "In my opinion, Taylor Made'spress release creates a misleading impression, and I would liketo set the record straight. We have obtained a written courtorder against Mr. King 'and all those acting in concert with him'-- an order which cannot be ignored by either Mr. King or his newemployer. Our victory in obtaining this court order shows that wehave acted diligently and prudently to protect the Company'strade secrets and to insure the sanctity of the Company'scontracts -- and we intend to continue to pursue our legalrights." For more information abut Callaway Golf Company, please visitthe Company's website on the Internet at www.callawaygolf.com.ots Original Text Service: Callaway Golf Ball Company Internet:http://www.newsaktuell.de Contact: Larry Dorman of CallawayGolf, 760-931-1771 Company News On-Call:http://www.prnewswire.com/comp/124825.html or fax, 800-758-5804,ext. 124825 Web site: http://www.callawaygolf.com

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