REPEAT/Arnold Palmer Golf and Nevada Bob's enter into exclusive agreement; Palmer purchases $5 million in stock

Business Wire, August 26, 1996

OOLTEWAH, Tenn.--(BUSINESS WIRE)--Aug. 23, 1996--The Arnold Palmer Golf Company (NASDAQ:APGC) and Nevada Bob's Holdings, Inc. have entered into a marketing and distribution agreement and sub-license agreement in which an Arnold Palmer boutique will be featured in each of Nevada Bob's 30 corporate stores and offered to the 250 Nevada Bob's franchisees worldwide as of August 21, 1996, announced George H. Nichols, president and chief operating officer of The Arnold Palmer Golf Company.

In addition, The Arnold Palmer Golf Company purchased $5 million of preferred stock in Nevada Bob's, said Nichols.

"This is a logical extension of the dollars we are spending toward brand building and awareness," he said. "We are committed to creating demand for our products and this agreement makes them available where a great number of golfers shop. With the `Palmer Boutique,' we will be able to effectively leverage our brand-building expense."

The company will sell its Palmer pro line golf equipment and Hot-Z golf bags in the stores as well as a signature series of Arnold Palmer clubs and bags that will be proprietary to Nevada Bob's, said Nichols. Nevada Bob's has also licensed the rights to manufacture and market Arnold Palmer golf balls, shoes, gloves and accessories.

"For us, it is a great opportunity," said John Baldwin, president Nevada Bob's. "The Arnold Palmer Golf Company is one of the best companies in the golf industry and we are excited to partner with them in this unique way."

Nevada Bob's currently has approximately 30 company owned and 250 franchised stores, including 87 in 16 countries outside of the United States.

In connection with the transaction, The Arnold Palmer Golf Company sold 833,333 shares of its newly issued series NB stock to an affiliate of the company for $5 million. The preferred shares are convertible into an equal number of shares of common stock of The Arnold Palmer Golf Company at the holder's request, and represent 23 percent of the company's outstanding equity.

The terms and sale of the series NB preferred stock by The Arnold Palmer Golf Company to the company's affiliate were approved by its disinterested directors and supported by an opinion from an investment banking firm that the transaction is fair to the company and its shareholders from a financial perspective.

Based in Ooltewah, Tenn., The Arnold Palmer Golf Company manufactures, markets and distributes a full line of golf products including Palmer Golf Equipment and Hot-Z bags and luggage. It is publicly traded on the NASDAQ SmallCap Market under the symbol "APGC."

CONTACT: Alday Communications, Franklin

Mike Alday, 615/791-1535