Ashworth Updates Fiscal Third Quarter and Provides Fiscal Year 2003 Earnings Guidance.

Business Editors

CARLSBAD, Calif.--(BUSINESS WIRE)--July 22, 2002

Ashworth Inc. (Nasdaq:ASHW), a leading designer of sportswear and golf apparel, today commented on operations as well as revenue and earnings expectations for its fiscal third quarter ending July 31, 2002 and the next fiscal year.

Randall L. Herrel, Sr., chairman and chief executive officer, noted, "We continue to be very pleased with the market's enthusiasm for our Fall and Holiday 2002 lines for Ashworth(R) and Callaway Golf apparel. Despite the softness in the golf industry generally, our strong product offerings have enabled us to grow revenues and positively position the Company for the future."

Terence Tsang, chief operating officer and chief financial officer, advised, "While two weeks remain in our third quarter, we are currently on track to achieve our previously announced guidance of an 18% to 22% increase in quarterly revenues as compared to last year as well as a 150-200 basis point improvement in gross margin. If we remain on track, this will mean quarterly revenues of $35.1 to $36.3 million and a gross margin of 39.9% to 40.4%."

Tsang continued, "Our quarterly earnings, however, will be adversely impacted by a substantial write off of up to $4.25 million of bad debt related to a single major account. As previously disclosed, approximately $2,000,000 of over 90-day receivables at April 30, 2002 was attributable to a national retailer which is also obligated to Ashworth on an unsecured promissory note with a principal balance of $2,500,000. While this customer made its scheduled payment of $500,000 in late March 2002, it missed its next scheduled payment, which was due July 15, 2002. Since July 15, 2002, we have learned that this customer is not currently able to make its scheduled payment. Though we are disappointed in this development, we believe it is prudent to make a substantial addition to our doubtful accounts reserve at this time. This write-off will result in a loss for the third quarter."

Tsang concluded, "Looking forward, however, we are enthusiastic about the Company's prospects for significant growth and solid profitability, and we believe that we are on target to earn $0.54 - $0.59 per diluted share for the next fiscal year ending October 31, 2003."

Ashworth Inc. is a designer of men's and women's golf-inspired lifestyle sportswear distributed domestically and internationally in golf pro shops, resorts and upscale department and specialty stores. Ashworth(R) products include four main brand extensions. Ashworth Collection(TM) is a range of upscale sportswear designed to be worn on and off course. Ashworth Authentics(TM) showcases the most popular items from the Ashworth line. Ashworth Weather Systems(R) utilizes technology to create a balance between fashion and function in any climatic condition. Ashworth 7(TM) addresses the demand for business casual sportswear. Callaway Golf is a trademark of Callaway Golf Company. Ashworth Inc. is an Official Licensee of Callaway Golf Company. To learn more, please visit our Web site at www.ashworthinc.com.

This press release contains forward-looking statements related to the Company's market position, finances, operating results, marketing plans and strategies. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. These statements involve risks and uncertainties that could cause actual results to differ materially from those projected. These risks include the timely development and acceptance of new products, as well as strategic alliances, the impact of competitive products and pricing, the success of the women's and corporate distribution channels, the preliminary nature of bookings information, the ongoing risk of excess or obsolete inventory, potential inadequacy of booked reserves and other risks described in Ashworth, Inc.'s SEC reports, including the report on Form 10-K for the year ended Oct. 31, 2001 and Form 10-Qs filed thereafter.