Golf News: - Posted 17th October 1998

Dye resigns as president and CEO of Callaway

Carlsbad, California - Callaway Golf Company today announced that Ely Callaway, the Company's Founder and Chairman, will reassume the additional roles of President and Chief Executive Officer, effective immediately. Mr. Callaway, 79, had held those positions from the time of the Company's 1982 founding until May of 1996.

"We feel very fortunate that we can call upon the Company's Founder at such an important time," said Richard Rosenfield, Vice Chair of the Executive and Compensation Committee of the Company's Board of Directors. "Ely Callaway's vision and leadership are among our most valuable assets and the board believes that the man who built the company is the man to lead it now."

The Board and Donald H. Dye agreed that he would step aside as President and Chief Executive Officer and as a Director effective immediately. Mr. Dye, who had assumed the role of CEO in May of 1996, will continue to serve as a consultant to the Company.

"The first thing I want to say is that I have the utmost regard, respect and affection for Don Dye and the job that he has done for Callaway Golf," Mr. Callaway said. "Under his leadership, the Company enjoyed tremendous growth, from $553 million in sales to a record $843 million in 1997. I am honored that the Board has seen fit to ask me to serve for approximately the next two years as the CEO. With lots of confidence, I am looking forward to meeting the challenges that we face as a Company.

"At Callaway Golf, I believe that we have the best people, the best facilities and the most powerful brand in the industry. All of these exceptional factors will be working together to continue to move the company forward successfully."