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Contacts:
Randall L. Herrel, Sr., CEO
Winston E. Hickman, CFO
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Exhibit 99.1 |
(760) 929-6100
FOR IMMEDIATE RELEASE:
ASHWORTH, INC. ANNOUNCES RESIGNATION OF CEO AND OTHER
ORGANIZATIONAL CHANGES
CARLSBAD, Calif. September 12, 2006 Ashworth, Inc. (NASDAQ: ASHW), a leading designer of
golf-inspired lifestyle sportswear, today announced several Board of Directors and executive
officer changes to be fully implemented over the next five weeks.
After ten years of service as Ashworths CEO and six years as Chairman of the Board, Randall L.
Herrel Sr., today announced his resignation effective October 17, 2006. During the interim Mr.
Herrel will work closely with the new Chairman of the Board to ensure a smooth, graceful transition
as the fiscal year comes to a close. A search for a new CEO will commence immediately.
Mr. Herrel commented, During the last 10 years, Ashworth, Inc. has grown into a clear industry
leader in the design and marketing of golf-inspired lifestyle
sportswear. The Ashworth® golf
shirt has been acknowledged for each of the past 10 years as the most popular golf shirt brand in
the United States, combining classic design with performance. Other accomplishments include one of
the most successful apparel launches ever, as Ashworth and Callaway Golf Company aligned to
introduce new lines of Callaway Golf apparel in the US and Europe. Also noteworthy is the
successful acquisition of Ashworth East (Gekko Brands, LLC) which added headwear to the Companys
product line and expanded the Companys distribution channels and cross-selling opportunities.
These and other achievements have served our customers well and enabled the Company to develop its
global multi-brand, multi-channel growth strategy.
The Company announced that James B. Hayes has been elected Chairman of the Board, effective
immediately. Mr. Hayes previously served as the Companys Lead Independent Director.
The Company also announced that Gary I. (Sims) Schneiderman has today been named President of
Ashworth, Inc. Mr. Sims previously served as the Companys Executive Vice President of Sales,
Marketing and Customer Service and has over 20 years of experience in the apparel industry.
To assist in the executive transition process, the Company has created a new Office of the Chairman
which will report directly to the Chairman of the Board. The initial members of the Office of the
Chairman will be Mr. Herrel and Peter M. Weil, a current Director of the Company.
Upon Mr. Herrels departure, Mr. Sims and Winston E. Hickman, the Companys Chief Financial
Officer, will become members of the Office of the Chairman. Mr. Weil has also entered into a
separate agreement with the Company to provide additional resources and expertise to the Companys
management team as it moves forward.
Mr. Hayes noted, We believe the structural and organizational changes announced today will help
ensure a smooth transition as the Company maintains its focus on continued operational improvement
and enhanced financial results. Gary Sims is a proven executive with keen insights into our
business and industry, while Peter Weils breadth of retail and apparel experience will be of great
value in his new role. We also greatly appreciate Randy Herrels leadership over the last 10 years
and congratulate him on his many noteworthy accomplishments in developing and implementing the
Companys strategic growth plan.
About Ashworth, Inc.
Ashworth, Inc. (NASDAQ: ASHW) is a leading designer of mens and womens golf-inspired lifestyle
sportswear distributed domestically and internationally in golf pro shops, resorts, upscale
department and specialty stores and to corporate customers. Ashworths three market-leading brands
include: Ashworth Collection (TM), a range of upscale sportswear designed to be worn on and off
course; Ashworth Authentics (TM), which showcases popular items from the Ashworth line; and Ashworth
Weather Systems®, a technical performance line. Ashworth is also an official apparel licensee of
Callaway Golf Company.
Ashworth is also a leading designer, producer and distributor of headwear and apparel under The
Game® and Kudzu® brands. The Game® is a leading headwear brand to collegiate bookstores and
Kudzu® products are sold into the NASCAR/racing markets and through outdoors sports distribution
channels, including fishing and hunting. Ashworth is also the exclusive on-site event merchandiser
for the Kentucky Derby.
For more information, please visit the Companys Web site at www.ashworthinc.com.
Forward Looking Statements
This press release contains forward-looking statements related to the Companys market position,
finances, operating results, marketing and business plans and strategies within the meaning of
Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as
amended. These forward-looking statements may contain the words believes, anticipates,
expects, predicts, estimates, projects, will be, will continue, will likely result,
or other similar words and phrases. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date hereof. The Company undertakes no
obligation to update any forward-looking statements, whether as a result of new information,
changed circumstances or unanticipated events unless required by law. These statements involve
risks and uncertainties that could cause actual results to differ materially from those projected.
These risks include the uncertainties associated with implementing a successful transition in
executive leadership, the evaluation of strategic alternatives that may be presented, timely
development and acceptance of new products, as well as strategic alliances, the integration of the
Companys acquisition of Gekko Brands, LLC, the impact of competitive products and pricing, the
success of the Callaway Golf apparel product line, the preliminary nature of bookings information,
the ongoing risk of excess or obsolete inventory, the potential inadequacy of booked reserves, the
successful operation of the new distribution facility in Oceanside, CA, the successful
implementation of the Companys ERP system, and other risks described in Ashworth, Inc.s SEC
reports, including the annual report on Form 10-K for the year
ended October 31, 2005, quarterly reports on Form 10-Q filed thereafter and amendments to any of
the foregoing reports, including the Form 10-K/A for the year ended October 31, 2005.