GolfGear International, Inc. has initiated a strategic new operational and marketing plan that will shift the way the company manufactures, markets and sells its golf clubs.

According to Chairman Peter Pocklington, “These changes are taking place on the heels of recording outstanding sales for both the second quarter and the first six months of 2003, when sales increased 66% for the quarter compared to 2002, and 54% for the six-month period compared to a year ago.”

John Pierandozzi, president and chief operating officer, says, “Aggressive steps are being taken to reduce expenses and overhead, and, by the end of October, overhead is expected to be reduced by 50%. Importantly, the structure of the Company is being changed to outsource the majority of the manufacturing and assembly of GolfGear's products,” he says.

“By outsourcing our manufacturing, we will be able to reduce both our fixed overhead and our cost of goods sold,” explains Pierandozzi. “Sales and marketing activities also will be outsourced.”

Since coming on board as president in August, Pierandozzi already has made a substantial impact by further increasing sales, cutting expenses and by creating and putting into place a comprehensive sales, marketing and operational plan.

Other highlights of the plan are the following:

  • During October, GolfGear's headquarters will move to the Palm Desert/Indian Wells area of California where the Company will have a club-fitting center, an efficient showroom/sales facility and a small warehouse. More than 100 private, resort and public courses will be within a 30-minute drive of the new headquarters. The Company's current Huntington Beach facilities will be vacated within the next few weeks.
  • Regarding the Company's products, Pierandozzi says, “We will concentrate on our core competency that features the Tsunami line of drivers, fairway woods and irons. In the upcoming year, we will update and modernize our line of Leading Edge putters.” The entire line of Tsunami drivers, fairway woods and irons is made using GolfGear's unique, multi-patented “forged-face insert” technology.
  • In the next few weeks GolfGear will launch a new direct marketing TV campaign featuring an infomercial that will air on the Golf Channel and Fox Sports.
  • Cloud Water Co., Ltd., Seoul, Korea, has been appointed exclusive distributor of GolfGear International products in Korea. The GolfGear/Tsunami brand is being launched through elite distribution channels and “demo” days throughout Korea. Product shipments have begun, and an extensive advertising and marketing campaign already is under way.
  • Three executives have been elected to the Company's board of directors. They are Pierandozzi; Daniel Wright, GolfGear's vice president of finance and administration who has been named chief financial officer; and Donald Lucia, C.P.A.
  • M.C. Corporation, Tokyo, has invested an additional $250,000 in GolfGear. M.C. Corporation has had a business relationship with GolfGear since 1999 when the Company initially invested $2 million in GolfGear and became a distributor of its products.

Pierandozzi says, “We are working diligently to create opportunities for many of our outstanding employees to join the outsourcing companies with which we will do business.

“GolfGear historically has not been profitable,” states Pierandozzi. “However, our products are outstanding. The Tsunami driver is truly 'making waves' in the golf equipment marketplace.”

In 2002, GolfGear's 340 cc Tsunami driver was twice certified as the number one driver in distance according to testing done by Rankmark International, the golf industry's premier club testing company. Then, this past July, the Tsunami 400 driver finished at the top of the ratings and our Tsunami 360 finished in a tie for second place during comprehensive testing of dozens of drivers by Golf Test USA.

“With true forward thinking, an outstanding top management team in place, and products of the highest quality making an impact in the marketplace, I am more enthusiastic than ever that GolfGear will gain not just marketplace success, but the financial success that has eluded it,” Pocklington concludes.