Tommy Armour Golf acquired by TearDrop Golf

Union, N.J.- TearDrop Golf Co. (NASDAQ:TDRP) has agreed to acquire the assets of Tommy Armour Golf Co., a subsidiary of U.S. Industries Inc. (NYSE:USI) for total consideration including $10 million cash, $10 million of preferred stock and one million shares of common stock of TearDrop.

The acquisition is subject to customary closing conditions.

Rudy Slucker, chairman and CEO of TearDrop Golf Co., stated: "We have gone from a small company in its infancy stage to acquiring an established major golf brand, thus repositioning TearDrop overnight. From the outset, part of our strategy has been to grow through acquisitions and Tommy Armour Golf presents the perfect complement to the TearDrop product line. We look forward to making Tommy Armour the number one iron in golf and we welcome Tommy Armour Golf's management and products to Team TearDrop."

Tommy Armour, one of the world's leading manufacturers of premium irons and woods will maintain its 95,000 square-foot facility in Morton Grove, Ill. TearDrop will maintain operations in Union.

"This acquisition places TearDrop among the elite in the industry," added Slucker. "Tommy Armour has an impeccable reputation in the golf industry and has one of golf's most successful iron franchises of all time in the 845s. Acquiring Armour at a time when the new 845s models are experiencing tremendous acceptance from the trade makes this alliance even more significant to both TearDrop and Tommy Armour."

"One of the great synergies this acquisition offers is our newly created TOUR. The TearDrop Professional Golf Tour will offer thousands of aspiring PGA Tour professionals and club professionals the unique opportunity to use Armour and TearDrop equipment, driver through putter. Our equipment will be tested in competition at the highest levels by the current and future stars of professional golf and we anticipate an overwhelming response."

The TearDrop putter continues to receive greater acceptance and is being used today by professional golfers on the PGA Tour, the Senior PGA Tour, the Ladies PGA Tour, and the Nike Tour. The company's objective is to become a leading supplier of high-quality specialty clubs, including putters and wedges. The company has implemented an aggressive marketing strategy that includes the creation of The TearDrop Professional Golf Tour, the signing of professional golfers, the production of an infomercial, the sponsorship of a weekly feature and advertisements on The Golf Channel as well as other advertisements and promotional events.