Callaway Golf Stops Internet Seller of Counterfeit Clubs

Callaway Golf Company (NYSE: ELY), announced today that it has settled a law suit filed on May 18, 2000, in the United States District Court in Santa Ana, California, against Taylor Golf Supply, of Detroit, Michigan. The suit alleges that Taylor Golf Supply operated a web site selling counterfeit Callaway Golf components. Under the terms of the settlement, Taylor Golf Supply will stop selling the offending clubs. Taylor Golf's owner also consented to the entry of a judgment and permanent injunction by the Court, and paid Callaway Golf an undisclosed sum of money.

Taylor Golf Supply's activities were identified by Callaway Golf's Internet monitoring program and by consumers and shareholders who complained to Callaway Golf about Taylor Golf Supply's web site. The web site offered a selection of counterfeit and knock off golf club components that infringed trademarks of Callaway Golf, including the "Galleray Golf Pro Tour Hawk" irons, "Callaway Tungsten Injected Titan Steel" irons, and "Gemini III" irons. Taylor Golf Supply also advertised and sold "Extensa" irons with a partial undercut infringing a Callaway Golf patent, and counterfeit Callaway Golf medallions to apply to the irons purchased from Taylor Golf Supply.

As part of the settlement, Taylor Golf Supply's owner voluntarily surrendered more than four hundred and fifty assembled golf clubs and counterfeit components to Callaway Golf. The web site has already been changed.

"We continue to challenge those who counterfeit our products because of the damage that such products cause to our company and to the golfing public," commented Steve McCracken, Executive Vice President and General Counsel of Callaway Golf. "Monitoring the Internet is an important part of our overall strategy to protect the intellectual property rights of Callaway Golf."