Callaway and Topgolf to Combine, Creating a Global Golf and Entertainment Leader

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Highly Complementary Businesses with Reach Across the Entire $80 Billion Global Golf Industry1
Compelling Family of Brands Well Positioned to Capitalize on Outdoor Consumer Trends
Combined Businesses Create Clear Line of Sight to More Than $1 Billion of Adjusted EBITDAS
Callaway Announces Record Preliminary Results for the Third Quarter 2020

CARLSBAD, CA and DALLAS, TX — Callaway (NYSE:ELY) and Topgolf Entertainment
Group ;͞Topgolf͟ today announced that the companies have entered into a definitive merger
agreement. Under the terms of the agreement, Callaway and Topgolf will combine in an all-stock
transaction creating a global golf and entertainment leader. The number of shares to be issued is based
upon an implied equity value of Topgolf of approximately $2 billion, including the 14% already owned by
Callaway.

Topgolf is the leading tech-enabled golf entertainment business, with an innovative platform that
comprises its groundbreaking open-air venues, revolutionary Toptracer technology and innovative
media platform with a differentiated position in eSports. Topgolf generated approximately $1.1 billion in
revenue in 2019 and has grown at a 30% compound annual rate since 2017. Callaway is a leader in the
global golf equipment market with a scale position in active-lifestyle soft goods and a proven ability to
deliver strong returns, including company growth that has exceeded golf market growth for seven
consecutive years.

The companies together will be able to accelerate growth, including through:
x Fully Funded High Growth Opportunities: Topgolf is a high-growth platform with attractive unit
economics across its businesses that will benefit from Callaway strong financial position that
can fully fund Topgolf͛ growth plans at an attractive cost of capital.

x A Highly Complementary Fit: The two companies share a focus on golf and active-lifestyle
consumers. With Topgolf͛ 90 million consumer touch points a year, the combined company will
benefit from a compelling family of brands with reach across multiple channels including retail,
venues, e-commerce and digital communities. Topgolf is introducing new players to the game of
golf, a powerful trend that benefits Callaway golf equipment and soft goods businesses.

x Enhanced Resources to Accelerate Growth: The combined company industry-leading sales,
marketing and partnership infrastructure will drive traffic, increase same venue sales and
accelerate conversion of new business opportunities. Together, Callaway and Topgolf͛
significantly expanded consumer reach will drive increased promotion, exposure and sales of
equipment and apparel to golfers and non-golfers alike.

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Glen Turk is a Wisconsin native who has been the Senior Writer/Editor of Midwest Golfing Magazine since 2006. Besides being an avid golfer, Glen enjoys traveling, music, and cheering on the finest professional sports team of all-time, the Green Bay Packers. Glen’s ultimate golf goal is to play in all fifty states and currently he is more than half way there. His other dream, albeit far-fetched, it to record an ace in all seven states of our distribution area. Thanks to an ace in Illinois in 2015, and one in Michigan in 2016, he has three down, four to go!

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