Callaway Golf and Spalding Sports Worldwide Settle Golf Ball Trademark Dispute

Carlsbad, Calif., and Chicopee, Mass. (ots-PRNewswire) - Callaway Golf Company (NYSE: ELY) and Spalding Sports Worldwide, Inc., jointly announced today that trademark litigation filed in 1998 by Callaway Golf against Spalding in the United States District Court in Santa Ana, California, has been settled by mutual agreement of the parties. In the lawsuit, Callaway Golf had charged that Spalding had misused Callaway Golf's trademarks and brand reputation and had made deceptive claims of enhanced performance to market a Spalding golf ball - the Top Flite "System C" ball - that was said to perform particularly well with Callaway Golf's Big Bertha(R) metal woods. Without admitting any wrongdoing, Spalding agreed that it would phase out the ball, along with the disputed advertising and promotional material, from the market. All other terms of the settlement are confidential.

"When current management at Spalding approached me with the very rational suggestion that we put this mess behind us, I recognized the wisdom in the idea," said Ely Callaway, Chairman and CEO of Callaway Golf. "We believe that the settlement corrects the problem that we perceived and appropriately protects our Company, our customers and our shareholders. Going forward, we think that there are many things that our two companies can discuss that are positive and mutually beneficial," said Mr. Callaway.

"Spalding is now focused upon its worldwide golf ball brands -Top Flite and Strata - and sees no need to pursue some of the past decisions that may have diluted attention given to those brands," said Edwin L. Artzt, Chairman of Spalding Sports Worldwide. "We are happy to put this and other distractions behind us."

For more information about Callaway Golf Company, please visit its Web site at

www.callawaygolf.com.

For more information about Spalding Sports Worldwide, Inc., please visit its Web sites at

www.topflite.com and www.spalding.com.

ots Original Text Service: Callaway Golf Company
Internet: http://www.newsaktuell.de

Contact:
Larry Dorman, Steve McCracken, or Krista Mallory,
(USA) 760-931-1771, all of Callaway Golf Company

Web site: http://www.topflite.com
Web site: http://www.spalding.com
Web site: http://www.callawaygolf.com

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