CALLAWAY SETTLES WITH SCHMIDT OVER CLUB DEVELOPMENT SUIT

          Callaway Golf named GLENN SCHMIDT Assistant to the
     President for Creative Design. Schmidt served as VP/Research
     & Development for Callaway from '90-'95.  Callaway and
     Schmidt also "reached a settlement of all former disputes
     and disagreements" between the two.  The settlement restored
     the value of Glenn's unvested stock options which he lost
     and he also receives a "one time" payment of $12M.  Schmidt
     was granted options on 600,000 shares of the company common
     stock (Callaway).  Schmidt had claimed that he "introduced
     Callaway to the concept of large metal woods" and other
     technology and was to go to trial October 20 after charging
     Callaway "with unjust enrichment, breach of contract,
     intentional misrepresentation, fraud and deceit and wrong
     termination, among other things" (UNION-TRIBUNE, 9/13).