Global Edition

Counterfeit products seized in US raid

8.00am 27th May 2002 - Corporate

Callaway Golf Company (NYSE: ELY), has announced 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 8th May 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 13th May the U.S. District Court issued an order 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.

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.”

Callaway Golf www.callawaygolf.com

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