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CALLAWAY - Callaway Golf and Law Enforcement Officials Raid Newport Golf and Jimmy Lin to Stop Alleged Knock Off Golf Club Operation

CARLSBAD, Calif., May 20, 2002 (BUSINESS WIRE) -- Callaway Golf Company (NYSE: ELY), announced today a successful court-approved raid which resulted in the seizure of 28,000 "knock off" club heads and other components, over 100,000 golf club medallions, thirty-nine boxes of documents and the information stored on 18 computers, as well as the freezing of the defendants' bank accounts. The defendants in the lawsuit include Jimmy Lin, Wendy Peng, Newport Golf, Phoenix Golf, and Pro Line Alternative. Most of the seized products are marked with the brand name "Big Easy." The raid was conducted pursuant to a civil seizure order issued by the U.S. District Court in Santa Ana, California.

The seizure was carried out on May 8, 2002, when Callaway Golf attorneys, investigators and forensic computer experts raided two facilities in Orange County, California operated by the defendants. Federal, state, and local law enforcement officials also participated in the raid. After a hearing on May 13, the U.S. District Court issued an order on Friday, May 17 confirming the seizure, authorizing and ratifying the freeze of the defendants' bank accounts, and entering a preliminary injunction against the defendants and all persons acting in concert with them.

The specific products seized included Big Easy ERA II drivers, Big Easy Black Hawk II metal woods, Big Easy ERA drivers, Big Easy Steelwood metal woods, Big Easy Black Hawk Titanium metal woods, Big Easy II Black Hawk irons, Big Easy Black Hawk DFT irons, Big Easy Oversize BE-22 Pro irons, Big Easy Oversize irons and Big Easy III Oversize irons. It is expected that the investigation will spread to those who have done business with the defendants in the purchase and sale of these products.

"Those that distribute illegal copies 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 will continue to act swiftly and harshly to stop such conduct wherever possible."

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