Callaway Golf Company Releases Preliminary First Quarter 2008 Results

Callaway Golf Company (NYSE:ELY) today announced that, based on
current information, the Company estimates net sales for the first
quarter ended March 31, 2008 of approximately $366 million, an
estimated increase of approximately 10% as compared to the first
quarter of 2007, with a corresponding estimated increase of
approximately 25% in earnings per diluted share that is estimated to
range from $0.59 to $0.61 (on 64.8 million shares). These results also
include after-tax charges of approximately $0.01 per share related to
gross margin improvement initiatives announced in November 2006.

For the first quarter of 2007, the Company reported net sales of
$335 million and fully diluted earnings per share of $0.48 (on 68.3
million shares). Those results included after-tax charges of
approximately $0.01 per share related to the gross margin improvement
initiatives.

Business Update

"We are very pleased with our preliminary first quarter results,"
commented George Fellows, President and CEO of Callaway Golf. "We
continue to build upon the momentum we gained in 2007, including
additional improvements in our supply chain and product development
processes. The strong sell-in to the retail channel during the first
quarter reflects the strength of our brands and the quality of our
2008 product line."

"While sell-in of our new products has been encouraging thus far,"
continued Mr. Fellows, "the second quarter will be a better indicator
of how successful our year will be as it is driven by consumer
purchases of our products and resulting retail reorders. Additionally

we continue to monitor macroeconomic and competitive conditions
globally. Contingency plans we have developed this year, along with
business process improvements implemented over the past two years

provide us with greater flexibility to adjust to unforeseen
circumstances that might impact our business. At this point, we remain
optimistic that our full year financial results for 2008 will be
significantly higher than in 2007 and will be within our original
guidance."

Business Outlook

Earlier this year, the Company estimated that for 2008 net sales
would be in the range of $1.145 to $1.165 billion and that pro forma
fully diluted earnings per share would be in the range of $1.08 to
$1.18 per share, excluding estimated charges of approximately $0.08
per share for the Company´s gross margin initiatives. In light of the
many uncertainties surrounding the economy, second quarter consumer
sell-through, and competitor actions, the Company reaffirms this
estimate with the additional refinement that it is prudent at this
time to expect that sales and earnings likely will be at the lower end
of this range.

Conference Call

The Company will release actual first quarter financial results on
May 1, 2008. A conference call and webcast will also take place at
that time.

Disclaimer: Investors should be aware that the Company has not yet
finalized its results for the first quarter of 2008 and that the
Company´s "preliminary" estimates of net sales and earnings contained
in this press release reflect management´s estimates based upon the
information available at the time made. These estimates could differ
materially from the Company´s actual results if the information on
which the estimates were based ultimately proves to be incorrect or
incomplete. In addition, statements used in this press release that
relate to future plans, events, financial results, performance or
prospects, including statements relating to estimated sales and
earnings for 2008, and the estimated charges for the Company´s gross
margin initiatives, are forward-looking statements as defined under
the Private Securities Litigation Reform Act of 1995. These estimates
and statements are based upon current information and expectations.
Accurately estimating the Company´s future financial performance is
based upon various unknowns including consumer acceptance and demand
for the Company´s products as well as future consumer discretionary
purchasing activity, which can be significantly adversely affected by
unfavorable economic or market conditions. Actual results may differ
materially from those estimated or anticipated as a result of these
unknowns or other risks and uncertainties, including delays

difficulties or increased costs in the supply of components needed to
manufacture the Company´s products, in manufacturing the Company´s
products, or in connection with the implementation of the Company´s
planned gross margin initiatives or the implementation of future
initiatives; adverse weather conditions and seasonality; any rule
changes or other actions taken by the USGA or other golf association
that could have an adverse impact upon demand or supply of the
Company´s products; a decrease in participation levels in golf; and
the effect of terrorist activity, armed conflict, natural disasters or
pandemic diseases on the economy generally, on the level of demand for
the Company´s products or on the Company´s ability to manage its
supply and delivery logistics in such an environment. For additional
information concerning these and other risks and uncertainties that
could affect these statements and the Company´s business, see Part I

Item 1A of the Company´s Annual Report on Form 10-K for the year ended
December 31, 2007, as well as other risks and uncertainties detailed
from time to time in the Company´s reports on Forms 10-Q and 8-K
subsequently filed from time to time with the Securities and Exchange
Commission. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date hereof.
The Company undertakes no obligation to republish revised
forward-looking statements to reflect events or circumstances after
the date hereof or to reflect the occurrence of unanticipated events.

About Callaway Golf

Through an unwavering commitment to innovation, Callaway Golf
Company (NYSE:ELY) 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), Odyssey(R), Top-Flite(R), and Ben Hogan(R) brands in
more than 110 countries worldwide. For more information please visit
www.callawaygolf.com or www.shop.callawaygolf.com.