Bruce Simmonds, President & Chief Executive Officer of ClubLink said “ClubLink, in addition to being the largest operator of private golf clubs in Canada, is now also the largest operator of daily fee golf clubs in Canada. Our significant entry into the daily fee market is another key component of ClubLink’s strategic plan. The increased base of operations will lead to enhanced opportunity to continue to generate operating, administrative and marketing economies. The excellent locations, the potential for improvement and expansion and the inclusion of lands for residential development, make these properties exciting additions to ClubLink.”

Mr. Simmonds went on to say, “The reputation for quality and service that the ClubLink name has come to represent, gives daily fee golfers the confidence that they will enjoy a superior golf experience.”

These acquisitions represent an additional investment by ClubLink of approximately $43,000,000 which will be paid from existing cash and debt capacity, together with approximately $3,500,000 being satisfied with common shares issued at $12.50 per share.

Mr. Simmonds said, “ClubLink intends to make changes to improve each of these well regarded properties to a best in class standard.”

The acquired properties include the following: -0-

– Blue Springs Golf Club – comprising one 18-hole, and one
9-hole golf course, located just minutes north of ClubLink’s
Greystone Golf Club and RattleSnake Point Golf Club;
- Gormley Green Golf Club and Rolling Hills Golf Club -
comprising, in the aggregate, five 18-hole golf courses,
each of which is just south of ClubLink’s Emerald Hills Golf
Club and minutes east of ClubLink’s DiamondBack Golf Club;
and
- Georgetown Golf Club and Bolton Golf Club – comprising, in
the aggregate, two 18 hole and one 9-hole golf courses,
located northeast of ClubLink’s Greystone Golf Club and
RattleSnake Point Golf Club.

Author: Array

The government raids took place after six US golf equipment manufacturers filed complaints with Chinese anti-counterfeiting enforcement authorities. Agents encountered and seized counterfeit golf equipment at 10 retail golf outlet locations, carting away in excess of two thousand counterfeit products, including copies of clubs and equipment manufactured by Acushnet Company (Titleist and Cobra Golf), Callaway Golf, Cleveland Golf, Nike, Ping and TaylorMade- adidas Golf. The products seized included counterfeit golf clubs, golf gloves, golf bags, travel covers and accessories. The estimated value of the seized goods is more than $300,000.00.

The American companies praised Chinese authorities for their cooperation in enforcing the law. Rob Duncanson, an attorney coordinating efforts in China on behalf of the industry, observed that Chinese counterfeit golf clubs have proliferated considerably in the past year, causing confusion and harm to the consumer in the marketplace and injuring the reputations of major American golf club companies. “The counterfeit clubs often don’t perform, and may break or become unplayable after only a few uses,” said Duncanson. “The sale of this counterfeit product is not only unlawful, but it damages the reputations of the U.S. branded companies.”

Concerning the Shanghai raids, Duncanson said, “The joining together of these golf equipment manufacturers to tackle the counterfeiting problem at its source in China is a new approach. By working together, the companies leverage their anti-counterfeiting resources, which enables them to have a broader and more powerful impact in addressing the counterfeit problem at both the retail and manufacturing levels in China. In addition to receiving significant support from Chinese authorities, the United States Customs Service continues to provide invaluable ongoing assistance by intercepting counterfeit goods coming into the United States.”

Author: Array

Subject to customary conditions, the transaction is expected to close on or before March 31, 1999.

Upon the closing of the transaction, American Golf and ClubCorp will divide the Cobblestone portfolio of 45 premier properties with American Golf allocated 23 owned and leased golf courses. American Golf is negotiating to transfer substantially all of these courses to its publicly traded affiliate, National Golf Properties Inc. (NYSE:TEE).

“This acquisition, the largest in the history of the golf course industry, is a testament to the unparalleled acquisition experience and operating expertise presented by the combined efforts of American Golf, National Golf and ClubCorp.”

The 23 golf courses allocated to American Golf include eight courses in Texas, six courses in California, four courses in Arizona, three courses in Virginia and two courses in Georgia.