Callaway Golf Halts Sale of Illegal 2-Ball Putter Knockoffs In Japan

March 17, 2003 at 3:02 AM EST

CARLSBAD, Calif.--(BUSINESS WIRE)--March 17, 2003--Callaway Golf Company (NYSE: ELY) announced today that Japan-based golf club sellers Kabushiki Kaisha Maruzen ("K.K. Maruzen") and Kabushiki Kaisha Seima ("K.K. Seima") have agreed to immediately cease the sale of their "White Shot New Wave Twin Ball" putter and to pay Callaway Golf an undisclosed amount of money to settle Callaway Golf's trademark and trade dress infringement claims.

In the settlement, K.K. Maruzen and K.K. Seima admitted that the use of the term "White Shot" infringed Callaway Golf's "White Hot" trademark, which is registered in Japan, the European Union, the United States and elsewhere. K.K. Maruzen and K.K. Seima also admitted that their "White Shot New Wave Twin Ball" putter was an imitation of the Odyssey White Hot(R) 2-Ball Putter and agreed to destroy their remaining infringing putters.

"Those that distribute infringing copies and knock-offs of our golf clubs are taking unfair advantage of consumers, our retail customers, our employees and our shareholders," said Steve McCracken, Senior Executive Vice President and Chief Legal Officer of Callaway Golf. "We appreciate K.K. Maruzen's and K.K. Seima's cooperation in resolving this matter in a way that avoids such problems."

Callaway Golf Company makes and sells Big Bertha(R) Metal Woods and Irons, including Great Big Bertha(R) II Titanium Drivers and Fairway Woods, Big Bertha Steelhead(R) III Stainless Steel Drivers and Fairway Woods, Hawk Eye(R) VFT(R) Tungsten Injected(TM) Titanium Irons, Big Bertha Stainless Steel Irons, Steelhead X-16(TM) and Steelhead X-16 Pro Series Stainless Steel Irons, and Callaway Golf Forged Wedges. Callaway Golf Company also makes and sells Odyssey(R) Putters, including White Hot(R), TriHot(R), DFX(TM) and Dual Force(R) Putters. Callaway Golf Company makes and sells the Callaway Golf(R) HX(R) Blue and HX Red balls, the CTU 30(R) Blue and CTU 30 Red balls, the HX 2-Piece Blue and HX 2-Piece Red balls, the CB1(R) Blue and CB1 Red balls, and the Warbird(TM) golf balls. For more information about Callaway Golf Company, please visit our Web sites at www.callawaygolf.com and www.odysseygolf.com.

CONTACT:
Callaway Golf Company, Carlsbad
Larry Dorman, 760/931-1771