CARLSBAD, Calif.--(BUSINESS WIRE)--Aug. 26, 2003--Callaway Golf Company (NYSE: ELY) today announced the creation of a standalone website for its innovative and successful Trade In! Trade Up!(TM) Program. Consumers are encouraged to log onto www.TradeInTradeUp.com to learn more about the program and find participating retailers. The Trade In! Trade Up! Program gives golfers the opportunity to trade in their used Callaway Golf(R) clubs at all authorized Callaway Golf retailers for credit toward the purchase of new Callaway Golf equipment. The first such manufacturer-sponsored program in the golf industry, Trade In! Trade Up! has resulted in tens of thousands of trades in the United States, at more than 2,000 retailers, creating millions of dollars in discounts for consumers.

"Trade In! Trade Up! has made a strong market impact on our retail customers and the golfing public," said Patrice Hutin, Executive Vice President of Global Sales and Advertising for Callaway Golf. "By providing discounts to loyal Callaway Golf consumers, we've made it easier for golfers to buy our newest, most technologically advanced products. Both the trade-in volume and the retailer participation to date underscore the effectiveness of this program."

Callaway Golf and its affiliate in the program, Trade Up Commerce, launched Trade In! Trade Up! late last year. The program is designed to be user-friendly and risk-free for consumers and retailers alike. A consumer can take their used Callaway Golf equipment to a participating retailer and get a predetermined credit for it. The consumer can then apply that credit toward the purchase of new Callaway Golf clubs. Both consumers and retailers can use the online value guide at www.TradeInTradeUp.com to find trade-in values for Callaway Golf clubs, based on current trade-in demand. The retailer receives full reimbursement for the trade-in credit given to the consumer, allowing retailers to obtain full margin from having sold the new clubs.

Information about the program was previously available through the www.CallawayGolfPreowned.com website. By establishing a website dedicated solely to Trade In! Trade Up!, Callaway Golf hopes to make the process even more user-friendly. Consumers can now use www.TradeInTradeUp.com to conveniently find the current value of used clubs, determine the condition of a club, learn how the program works and find participating retailers. A link to the new website will also be available through www.CallawayGolf.com.

The Trade In! Trade Up! program is also being expanded into Canada. Golfers in Canada are now able to participate in the program by trading in their current Callaway Golf clubs for a credit towards the purchase of new Callaway Golf Product. The new www.TradeInTradeUp.com website will also list trade values in Canadian dollars, for the convenience of Canadian consumers.

"We're thrilled to provide the benefits of the Trade In! Trade Up! program to our retailers and consumers in Canada," said Jamie MacKenzie, President and Managing Director of Callaway Golf Canada. "This is a great opportunity for retailers to create sales opportunities, and a chance for golfers to buy our latest golf clubs at a discount."

Callaway Golf Company makes and sells Big Bertha(R) Metal Woods and Irons, including Great Big Bertha(R) II Titanium Drivers and Fairway Woods, Big Bertha Steelhead(TM) III Stainless Steel Drivers and Fairway Woods, Hawk Eye(R) VFT(R) Tungsten Injected(TM) Titanium Irons, Big Bertha Stainless Steel Irons, Steelhead X-16(TM) and Steelhead X-16 Pro Series Stainless Steel Irons, and Callaway Golf Forged Wedges. Callaway Golf Company also makes and sells Odyssey(R) Putters, including White Hot(R), TriHot(R), DFX(TM) and Dual Force(R) Putters. Callaway Golf Company makes and sells the Callaway Golf(R) HX(R) Blue and HX Red balls, the CTU 30(R) Blue and CTU 30 Red balls, the HX 2-Piece Blue and HX 2-Piece Red balls, the CB1(R) Blue and CB1 Red balls, and the Warbird(TM) golf balls. For more information about Callaway Golf Company, please visit our Web sites at www.callawaygolf.com and www.odysseygolf.com.

Trade Up Commerce, Inc. (formerly FrogTrader, Inc.) is an innovative e-commerce company that develops Internet and retail based programs for end-of-cycle, used and refurbished products for leading consumer hard goods companies. Trade Up Commerce has partnered with Callaway Golf Company to develop and operate the Callaway Golf Pre-Owned product line and retail trade-in service using Trade Up Commerce's Trade In! Trade Up! platform. CallawayGolfPreOwned.com is the exclusive destination for Certified Pre-Owned Callaway Golf equipment.

CONTACT:
Callaway Golf Company
Larry Dorman or Patrice Hutin,
760-931-1771

SOURCE: Callaway Golf Company