December 08, 2003

CYPRESS, CA…Cleveland Golf, with the cooperation and assistance of Chinese law enforcement agencies, recently conducted a series of successful raids in the People’s Republic of China that resulted in the seizure of thousands of pieces of counterfeit golf equipment. Counterfeit copies of Cleveland Golf, Taylor Made, Titleist, Cobra, Ping, Callaway, Nike and other manufacturers’ products were found at several locations in the Guangdong Province.

Earlier this year, Cleveland Golf discovered evidence that counterfeit versions of Cleveland products were circulating in China. A formal investigation was started to identify the sources of the counterfeit manufacturing. Investigators from the law firm of Baker & McKenzie determined that several locations were either manufacturing or warehousing counterfeit Cleveland Golf products. Law enforcement officials from China’s Technical Supervision Bureau (TSB) intervened and with the assistance of representatives from Cleveland Golf, simultaneous raids were conducted at seven different facilities. The TSB’s enforcement action was comprehensive and exposed assembly, warehousing and manufacturing operations of not only Cleveland Golf products, but also counterfeits of several other golf equipment manufacturers.

Counterfeit products and related assembly equipment discovered at the raid locations was confiscated and will be destroyed. Chinese authorities continue to investigate additional suspected counterfeiting operations in the region.

“The recovery and destruction of these counterfeit products is a significant step in our company’s counterfeit enforcement efforts,” said Greg Hopkins, President/COO of Cleveland Golf. “This is a very serious issue that has global consequences, and I believe we should try to resolve this problem as an industry. Counterfeit manufacturing undermines the integrity of all of our products. As soon as it was determined that the scope of the counterfeiting went beyond that of just our own company’s products, other U.S. manufacturers were notified immediately. Cleveland Golf will continue to vigorously pursue individuals and entities responsible for the manufacturing and distribution of counterfeit products.”