Callaway Golf Company and Sumitomo Rubber Industries Ltd. Agree to a Smooth Transition in Japan

Callaway Golf Company announced today that it has signed an agreement with its Japanese golf club distributor, Sumitomo Rubber Industries, Ltd., providing for the transition of the Company's business from Sumitomo Rubber Industries, Ltd., to Callaway Golf's wholly-owned Japanese subsidiary. This subsidiary will be directly and solely responsible for the sale of Callaway Golf clubs and Callaway Golf balls in Japan beginning January 1, 2000.

Sumitomo Rubber Industries, Ltd., has been Callaway Golf's exclusive distributor in Japan since 1988. As part of the transition agreement, Sumitomo Rubber Industries, Ltd., and Callaway Golf will work together to assure a smooth transition of the business without inconveniencing retailers or consumers in Japan. "Sumitomo Rubber Industries, Ltd., has been a very good partner in our business in Japan," said Ely Callaway, Chairman and Founder of Callaway Golf. "We greatly appreciate the support we have received from Sumitomo Rubber Industries Ltd., throughout our 11-year relationship with this outstanding Japanese company."

"We feel that we will be in a good position to serve Japanese retailers and Japanese golfers directly through our Japanese subsidiary beginning next year, and we look forward to that opportunity," said Frederick Port, Senior Executive Vice President, International Sales, of Callaway Golf.