CALLAWAY GOLF, US MARSHALLS, CUSTOMS AGENTS
AND LOCAL POLICE SHUT DOWN KNOCK OFF
GOLF CLUB OPERATION

Callaway Golf Company announced today that US Marshalls, Customs Agents and local police in New York, New Jersey and Texas have carried out a series of successful raids against an importer and a distributor charged with trafficking in illegal knock-offs of Callaway Golf Clubs. The raids resulted in the forfeiture of thousands of golf club heads, as well as the seizure of documents and other evidence. The raids were conducted pursuant to orders issued by Judge John W Bissell of the US District Court in Newark, New Jersey.

In 1998 Callaway Golf learned that Fairway to Heaven Inc of Demarest, New Jersey, was selling copies of Callaway Golf's Big Bertha X-12 irons under the name of "Big Bursar V-12" and copies of Big Bertha Steelhead Metal woods under the name of "Big Bernard Steelclad". In December 1998 officials from Callaway Golf obtained a court judgement against Fairway to Heaven, its owner and its salesperson, Joe Opulski, prohibiting future sales of the products.

In April and May 1999, Callaway Golf received evidence of violation of the judgement. Based on that information, Callaway Golf obtained an order from Judge Bissell authorising raids of several separate locations in New York, New Jersey where the defendants were believed to be operating. On May 20 and 22, local law enforcement officials, accompanied by United States Marshalls and representatives of Callaway Golf, carried out raids. As a result, almost 350 Big Bernard, Big Bursar and other golf club heads and fully assembled clubs were seized.

On 2 June 1999, the Court entered an order confirming the seizure of the infringing products and turning over possession of those products to Callaway Golf for further proceedings or destruction. The Court's Order also held Opulski in contempt of court and awarded damages and attorney's fees of over $100,000. Further proceedings against Fairway to Heaven and its owner to determine their responsibility for the judgement and attorney's fees are scheduled for later this month.

Based on the evidence obtained from Fairway to Heaven, the US District Court authorised a raid against one of Fairway to Heaven's suppliers, Beta Company of Houston, Texas. On 8 June 1999, officials from US Customs and the US Marshalls Office, accompanied by representatives of Callaway Golf, raided a warehouse and storage facility and seized approximately 150 cases containing over 6000 club heads, including "Rident Big Brother" and "Stealth Wide Body II" metal woods and "Canterbury Big Bursar" irons. In addition to the club heads, customer lists were also seized. On 14 June 1999, the Court entered an order confirming the seizure from Beta Company. In addition to the forfeiture of the products, Beta Company and its owner, Chin Ku Chin, have been ordered to pay $164,000 in damages plus attorney's fees to Callaway Golf.

"Those that distribute illegal copies of our clubs in the United States are taking advantage of consumers, our employees and our shareholders," said Ely Callaway, Founder and Chief Executive Officer. "This activity is wrong, and we will continue to do what we can to stop it both here and abroad."

"We appreciate the efforts of the Court, the US Marshall's Office, the US Customs Service and local law enforcement in the fight against illegal copies," added Steve McCracken, Executive Vice President and Chief Legal Officer of Callaway Golf.