TaylorMade-adidas Golf Company today gave its response to the August 6, 2002 joint announcement of The Royal and Ancient Golf Club (R&A) and the United States Golf Association (USGA). The new rules standardize the limitation on the coefficient of restitution (COR) of driving clubs, commonly referred to as "spring-like effect." The new ruling contains three major provisions: 1) the COR limit in the United States will remain at .830; 2.) from January 1, 2003 to December 31, 2007, the R&A will enforce a limitation of .830 on drivers as a condition of play at its Open Championship; and 3) the R&A will implement a COR limit of .830 on January 1, 2008 at all levels of play in the remainder of the world.

While the decision was by no means favorable to TaylorMade, who recently launched the "hot", high-speed version of its R500 Series drivers (greater than .830 COR) with great success in the United States, it was not entirely unexpected. "We had a contingency plan in place in the event that the USGA altered their May 9th proposal," said TaylorMade spokesperson, John Steinbach. "We would have preferred, of course, a different result and expected more notice of any substantial change in the proposed rules, but we certainly understand the importance of harmonizing the rules between the two governing bodies."

TaylorMade will proceed as follows:

1. TaylorMade has switched production from its current non-conforming version of the R500 Series to a USGA conforming version. This is the version that is currently used on the PGA tour and the driver used by Ernie Els to win the British Open, along with four additional events worldwide in the last five weeks.
2. All inventory and work-in-progress of "hot" COR R500 driver heads will be directed outside North America to our affiliates and distributors in R&A governed territories. Up until now, the product has had limited availability outside of the U.S.
3. TaylorMade will continue to market both the USGA conforming and non-conforming drivers under the R500 Series model name. From this point forward, USGA conforming product will be designated as such on the clubface and with a sticker or some other means of identification at the point of sale to differentiate it from R&A compliant product.
4. TaylorMade does not expect to alter its communications platform for the R500 drivers since the marketing story is about the new proprietary face and shaft technologies. TaylorMade maintains that the R500 driver is the longest, hottest club on the market today.
5. TaylorMade will post information on its Web site and create a consumer hotline to answer any consumer questions or concerns.

Said Steinbach, "We believe that the ruling will have no adverse effect on the momentum that our product has enjoyed to date. The R500 is without a doubt the most successful product launch in the company's history. USGA conforming versions of the R500 will be in the marketplace shortly. We are fortunate to be one of only a handful of companies that are capable of manufacturing and delivering both USGA and R&A conforming products to the global marketplace."

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