Callaway Golf Company Declares Dividend and Announces Plans to Repurchase up to an Additional $50 Million of Common Stock

Callaway Golf Company (NYSE:ELY) announced today that
the Board of Directors has authorized the Company to repurchase up to
an additional $50.0 million of the Company's common stock in open
market or in private transactions. The Company will assess market
conditions and buying opportunities from time to time and will make
strategic repurchases as appropriate. The repurchases will be made
consistent with the terms of the Company's credit facility which
defines the amount of stock that can be repurchased in any one year.
The repurchase program will remain in effect until completed or until
terminated by the Board of Directors.
In November 2005, the Company had announced the implementation of
a $50 million stock repurchase program. To date, the Company has
repurchased under that program approximately 2.7 million shares at an
average cost of $15.99 for a total cost of approximately $42.9
million. With the new $50.0 million program announced today, the
Company has the aggregate authority to repurchase up to $57.1 million
of its common stock under these programs.
The Company also announced that the Board of Directors declared a
dividend of $.07 per share, payable July 6, 2006, to shareholders of
record as of June 19, 2006.

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.