TaylorMade-adidas Golf announces record third quarter results

CARLSBAD, Calif. (November 5, 2003) - TaylorMade-adidas Golf today announced third quarter revenue of EUR 176 million, a 28% increase compared to the third quarter of 2002. On a currency-neutral basis, this represents an increase of 44%. Revenues were EUR 487 million for the nine-month period ended September 30, 2003, a 6% decrease compared to the same period in 2002 and an increase of 9% in constant currencies. Year-on-year revenue comparisons were negatively affected by the non-renewal of a license arrangement with Dunlop Slazenger that represented EUR 4 million of revenue in the third quarter of 2002 and EUR 21 million of the year-to-date revenue through September 30, 2002. Excluding the 2002 Slazenger Golf sales, underlying TaylorMade-adidas Golf sales increased 14% during the first nine months of 2003.

Third quarter growth was due primarily to TaylorMade-adidas' continued strength in the metalwoods category, substantial momentum in irons and continued success with the adidas Golf branded apparel and footwear. Triple-digit quarterly increases were seen in the TaylorMade iron and putter categories as well as double-digit growth in every other category: metalwoods, balls, footwear, apparel and bags. The enthusiastic reception for the new R540XD and R580XD drivers, which are product extensions of the R500 Series of drivers, has helped to fuel the ongoing success of the R500 Series. rac irons have sustained the momentum that has been building since the launch of this line in the fourth quarter of 2002. Increased putter sales were driven by a strong showing in Japan where third quarter revenues, driven by the success of the Monza putter that was launched during the quarter, more than doubled the prior year's level.

On a regional basis, underlying third quarter sales increased by strong double-digits in all regions, with particular strength in North America and Asia, where sales grew 55 and 35% respectively.

"The third quarter of 2003 was in many ways a watershed period for TaylorMade-adidas Golf," said President and CEO Mark King. "We realized significant growth in all of our major product categories and achieved market share numbers that we have not seen in many years. During the third quarter we became the market share leader for metalwoods in the US and Europe, and made significant share gains in Japan. The line of rac irons launched late in 2002 continued to build share in all markets and have brought us into reach of the market leader in this category. These results signal our commitment to solidifying TaylorMade, adidas Golf, Maxfli and Rossa as the best performance golf brands in the world."

Domination of the major international professional tours continued through the third quarter of 2003:

• Taylor Made has won the driver count on every United States PGA Tour event in 2003 (tied for 1st on the first event of the year).
• Players using TaylorMade R500 Series drivers won 23 events in the third quarter, including five wins on the European Tour and three wins on the Japanese Tour.

Market share information as of September shows significant increases over the prior year (Sources: US - Golf Datatech, Japan - Yano Research Institute, UK - Sports Marketing Services, Ltd.):
Metalwoods:

• TM took over the No. 1 metalwood market share position (both units sold, 18.7% and value, 23.3%) in the US for the first time since Golf Datatech, LLC began tracking the data in 1996.
• TM took over the No. 1 metalwood market share position (21.7% of units sold) in the UK.
• TM metalwood market share increased by 20% in Japan.

Irons:

• TM iron market share in the US increased 52% from the same time last year (to 8.4% of units).
• TM iron market share in the UK increased 84% from the same time last year (to 11.8% of units).
• TM iron market share in Japan increased 23% from the same time last year (to 8.8% of units).

"We have been strengthening our infrastructure to sustain our success in the marketplace and our market share is increasing. Market share growth in a difficult market can only mean one thing: that we are gaining share by taking it directly from our competitors," said President and CEO Mark King.