Federal Court Finds Knock Off Golf Club Distributor In Contempt, Orders $175,000 Payment to Callaway Golf

Callaway Golf Companyannounced today that the United States District Court for the District of New Jersey has issued a final consent judgment against Fairway to Heaven, Inc., a distributor of knock off golf clubs. The judgment orders the immediate payment of $175,000 to Callaway Golf from funds being held in a court-imposed escrow account.

A May 20, 1999, raid of Fairway to Heaven by U.S. Marshals resulted in the seizure of "Big Bursar V-17" irons and "Big Bernard Steelclad" metal woods, which are copies of Callaway Golf's Big Bertha(R) X-12(R) Irons and Big Bertha(R) Steelhead(TM) Metal Woods, respectively. Fairway to Heaven had been ordered not to sell such products pursuant to a permanent injunction entered in December 1998. The Court's order prohibits sales of illegal copies by Fairway to Heaven and any new business that may be established by the defendants. In June 1999, the Court held Fairway to Heaven salesperson Joe Opulski in contempt of court, and ordered him to pay Callaway Golf $100,000 plus attorneys' fees.

"We appreciate the quick action by the U.S. Marshals and by the Court," said Steve McCracken, Executive Vice President and Chief Legal Officer of Callaway Golf.