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).