Global Edition

Callaway Golf Wins $2.2 million verdict

12.30am 16th August 2004 - Corporate

A jury in Wilmington, DE, has returned a verdict of $2.2 million in favor of
Callaway Golf Company (NYSE:ELY) and against Dunlop Slazenger Group
Americas Inc. (Dunlop) based on a finding that Dunlop willfully
engaged in false advertising when it claimed in 2001 and 2002 that the
Maxfli A10 golf ball was the “Longest Ball on Tour.”
Additionally, the jury rejected Dunlop’s counterclaim that
Callaway Golf Company used any Dunlop trade secrets.
“We are very pleased that this hard-fought, three-year battle has
resulted in a jury verdict finding that Callaway Golf did not use any
of Dunlop’s trade secrets in the creation of our golf balls,” said
William Baker, Chairman and CEO of Callaway Golf. “We also are
grateful that the jury found that Dunlop falsely advertised the
performance of the Maxfli A10 golf balls. This verdict demonstrates
that false statements in advertising simply will not be tolerated. Our
thanks go to the judge and jury for their service over the course of
this 10-day trial. We also want to thank our trial team and the many
other folks who helped us achieve this victory.”
Callaway Golf Company


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