Acquisition Caps Off Two-Year Prototyping Relationship; Taylor Made Acquires Assets of Hansberger Precision Golf; Upgraded Facility To Manufacture New Golf Ball Line.

CARLSBAD, Calif.--(BUSINESS WIRE)--July 14, 1998--Launching a bold drive into the $1.1 billion worldwide golf ball industry, Taylor Made today announced it has purchased the industrial assets of Hansberger Precision Golf (HPG) and will significantly upgrade its Pontotoc, Miss. manufacturing facility to produce Taylor Made's much-anticipated golf ball line.

Taylor Made's acquisition includes a 122,000-square-foot golf ball manufacturing and testing facility, where HPG currently produces balls for the RAM Tour Golf Ball brand. A transition period is planned to bring in new production equipment and processes to manufacture the proprietary Taylor Made technology and increase future capacity. Financial terms were not disclosed.

"This acquisition represents a major step in Taylor Made's commitment to the golf ball market," said Taylor Made president and chief executive officer George Montgomery. "This move is a natural, because both companies share the same innovative spirit. HPG is a leaderin manufacturing. They've proven beyond a doubt they know how to manufacture a ball with the unique characteristics our ball line requires."

Montgomery said Taylor Made views the acquisition as a base from which to develop, rather than a turnkey business. "We will invest in new equipment for quality improvement and capacity increases, as well as new processes that are proprietary to our patented ball designs," Montgomery said.

Several factors led to Taylor Made's decision to purchase HPG. The companies have enjoyed a prosperous two-year relationship, during which time Taylor Made used HPG's Pontotoc facility for its golf ball prototyping program. In addition, the facility's central location and operating efficiencies made the acquisition a solid investment.

The ball division will be managed under the direction of Taylor Made Golf Ball director Benoit Vincent, a nine-year veteran with the company. The facility will be managed by Terry Pocklington, a 40-year industry professional and one of the most respected minds in the golf ball business. Taylor Made expects to introduce its ball line approximately 12 months after it converts the facility.

Taylor Made has several ball patents, and its technology currently is in the final stages of development. In addition, Taylor Made prototypes have been approved by the USGA and testing with tour pros is under way. "This will be a Taylor Made ball in every sense of the word," Vincent said. "We've developed our own technology and are adapting the manufacturing to suit our needs. The design, quality, technology and playability characteristics of our golf balls will be consistent with Taylor Made's reputation for superior performance."

Taylor Made recently moved into a new 203,000-square-foot world headquarters facility in Carlsbad, Calif. and has achieved the No. 1 position in metal wood market share at off-course retail stores. In addition, the company's retail market share in irons and metalwoods increased by 20 percent each in 1997 compared to '96. Taylor Made is a wholly owned subsidiary of the adidas-Salomon Group.

Founded in 1963 in Bay City, Mich., HPG moved to Pontotoc when its current facility opened in 1965. HPG was the first company to produce balls with a polybutadiene core in the mid '60s -- the same material used in most golf balls today. HPG was the first ball company to use Surlyn material in golf ball products, and also was one of the first companies to produce three-piece technology.

For the latest in Taylor Made news, visit the company's online media center at www.taylormadegolf.com/media.

To learn more about Taylor Made's golf equipment, apparel, tour staff and other information, visit the company's Web site at www.taylormadegolf.com. Taylor Made also offers a Web site designed especially for kids, www.taylormadekids.com, and an online version of its custom-published magazine, PURE, at www.puremagazine.com.

Golfers can also call Taylor Made directly at 1-800-TAYLOR-MADE.

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