Taylor Made Says Callaway Appeal of Loss in Superior Court a Waste of Court Time, Money; Action Seen As Combination of Machiavelli and Caddyshack.

CARLSBAD, Calif.--(BUSINESS WIRE)--October 5, 1999--

Taylor Made-adidas Golf today said the appeal by the Callaway Golf Ball Co. seeking to overturn a Superior Court decision allowing Mark King to rejoin Taylor Made from Callaway is a tremendous waste of court time and money.

"Given that the lower court made it clear there was no likelihood of success on the merits of the preliminary injunction, one must question the Callaway strategy," said Robert Erb, vice president and chief legal officer. "At its worst, it appears Machiavellian; aimed at sending a message to Callaway employees about what will happen to them if they choose to leave. On the other hand, a lot of people think this is the legal version of Caddyshack, where someone goes from legal zealotry to absurdity. Some would say it's a vendetta. Whatever it is, Taylor Made-adidas Golf has made it clear we are going to fight for Mark's right to work wherever he wants."

Mark King worked for Taylor Made for 15 years before being recruited as vice president of sales of Callaway's fledgling golf ball operation in January 1998. He resigned from Callaway in August 1999 to rejoin Taylor Made as president of the new Taylor Made-adidas Golf Company. Callaway initially sought a temporary restraining order against King to prevent him from working at Taylor Made. The judge ruled in favor of King and his rights under U.S. and California law to pursue any calling, business or profession he chooses. Callaway also asked the court to enjoin King from revealing any trade secrets from Callaway Golf Ball Co., which was granted.

"That court ruling is simply reminding Mark that he has an obligation under California law not to reveal trade secrets," Erb said.

"Mark is a man of principle and we are surprised Callaway is trying to make an issue of his integrity," Erb said. "We have to believe Callaway hired him because of his capabilities, and not because he would disclose trade secrets from Taylor Made. We hired him for the same reason. At the time Mark left Taylor Made, Callaway assured us that they were taking reasonable steps to ensure Mark would not inadvertently disclose any trade secrets from Taylor Made, since Taylor Made was a year ahead in the golf ball business. Now, they are using the doctrine of `inevitable disclosure', which unfairly paints Mark as untrustworthy. This is ridiculous. Mark's contract with Taylor Made is clear; he can't speak to anyone about Callaway trade secrets. Our employees have been told not to ask him about Callaway secrets under threat of disciplinary action. Some might consider it a moot point anyway since Taylor Made successfully launched its patented golf ball earlier this year."

Erb said the Taylor Made InerGel(TM) golf ball has a 2.7 percent market share and is gaining popularity.

"Our R&D team has informed me that InerGel is materially superior to anything on the market," Erb said. "Based on incredibly positive response from golfers all over the world, projections are for continued growth in 2000 and beyond. Why would anyone want to tinker with a winning formula?"

ABOUT TAYLOR MADE-ADIDAS GOLF

Taylor Made Golf has been a leader in the technological evolution of golf since 1979. For more than 20 years, the company has maintained its philosophy of continuous innovation to help all golfers improve their game. It recently combined operations with adidas Golf, manufacturer of performance golf footwear, apparel and accessories. Global headquarters for the new Taylor Made-adidas Golf is in Carlsbad, Calif., where it develops superior products for the committed golfer. Taylor Made-adidas Golf is a wholly owned subsidiary of adidas-Salomon AG, a $6-billion company. Detailed information on the company and its products can be found at 800-888-CLUB, on its Web site at www.taylormadegolf.com, or, at www.adidasgolf.com.