Callaway Golf Partners with Retailers in New Online Consumer Initiative - Shop.CallawayGolf.com

November 8, 2006 at 6:02 AM EST

CARLSBAD, Calif.--(BUSINESS WIRE)--Nov. 8, 2006--Callaway Golf Company (NYSE:ELY) today launched Shop.CallawayGolf.com, an innovative alliance between Callaway Golf and its vast network of authorized U.S. retailers that provides a new level of service, security and convenience to online consumers. This breakthrough online shopping experience links consumers and superior golf retailers by permitting the consumer to place an order through Callaway Golf's website and have it fulfilled by a local participating retailer. The new site also will be accessible via the Company's main website, www.CallawayGolf.com.

A complete lineup of official Callaway Golf and Odyssey products will be featured at Shop.CallawayGolf.com, including the latest in drivers, fairway woods, hybrids, irons, golf balls, footwear, eyewear, apparel and accessories. Moreover, each and every product offering on the website is backed by the extensive inventories maintained by authorized retailers and Callaway Golf, making it far more likely that consumers will find what they want when purchasing through Shop.CallawayGolf.com.

"This is a breakthrough in retailer integrated e-commerce and an important step in the continued growth and evolution of Callaway Golf," said George Fellows, President and CEO. "It benefits consumers, retailers and Callaway Golf, adding confidence and convenience to the consumer's online experience while further enhancing Callaway Golf's market share and our partnership with our trusted retailers. Callaway Golf leads the industry with a commitment to innovation, and this superior online commerce tool furthers our leadership position."

"We are the first and only golf equipment manufacturer to act as the convenient and secure link between the growing number of online consumers and our vast network of authorized retailers," said Steve McCracken, Senior Executive Vice President. "With Shop.CallawayGolf.com, we will link consumers with local retailers who have what they want, backed by the reliability of Callaway Golf's complete customer service and support infrastructure."

The safety and security of dealing directly with the top brand in golf and its authorized retailers will be a major attraction for those online consumers who are intent on purchasing online, but do not already have a relationship with a trusted e-tailer.

When an order is placed, it is in turn presented electronically to participating authorized retailers via a user-authenticated and encrypted site. These retailers then have the opportunity to fulfill the consumer orders. Shop.CallawayGolf.com features an automated system that uses an algorithmic selection mechanism to determine the retailer that can most efficiently fulfill an order based on such attributes as geographic proximity and inventory availability. The selected retailer will ship the order directly to the consumer. Shop.CallawayGolf.com is only available to consumers in the United States.

"We are very excited about this opportunity to expand the electronic connection between online consumers and our solid network of authorized retailers," said Joe Urzetta, Senior Vice President of U.S. Sales. "Some of our retailers already have strong Internet websites, and Shop.CallawayGolf.com will provide those retailers with an additional online channel that can generate new business. For most of our retailers - including most of the vast network of green grass golf professionals -- who do not currently have Internet capability, Shop.CallawayGolf.com provides them with a presence on the web without the technological, marketing and customer service costs associated with e-commerce. Callaway Golf is the first golf manufacturer to build an electronic bridge between online consumers and the community of golf professionals that permits the two groups to do business with each other in a convenient and secure manner."

Shop.CallawayGolf.com will supplement the prevailing "brick and mortar" golf shopping experience, not replace it. While e-commerce in golf is growing, it still represents only a small percentage of total golf equipment purchases. Through focused marketing, Callaway Golf can ensure consumers who choose to shop online will receive excellent service and authentic products from trusted retailers accessible through Shop.CallawayGolf.com. At the same time, Callaway Golf is rewarding its loyal authorized retailers who support and promote its brand, the backbone of Callaway Golf's distribution mechanism, with incremental online revenue opportunities.

Callaway Golf already has experience in the online world - through CallawayGolfPreowned.com - that provides a foundation for Shop.CallawayGolf.com. But Shop.CallawayGolf.com is a much bigger and far more innovative undertaking.

"Shop.CallawayGolf.com is a service breakthrough for the golf industry and a big leap forward in online commerce," said David Schofman, CEO of Callaway Golf's wholly-owned subsidiary, Callaway Golf Interactive. "Fulfilling the online needs of golf consumers through this breakthrough platform that includes both the manufacturer and its retailers will enable Callaway Golf and its retail partners to identify market trends faster and respond to those trends quickly and collaboratively. This is the first truly integrated e-commerce solution in golf."

Through an unwavering commitment to innovation, Callaway Golf creates products and services designed to make every golfer a better golfer. Callaway Golf Company manufactures and sells golf clubs and golf balls, and sells golf accessories, under the Callaway Golf(R), Top-Flite(R), Odyssey(R) and Ben Hogan(R) brands. For more information visit www.callawaygolf.com.

CONTACT: DKC
Matthew Traub, 212-981-5207
Dave Donovan, 212-981-5240

SOURCE: Callaway Golf Company