Ashworth, Inc. Announces Engagement of Financial Advisor, Warns on Fourth Quarter 2005 Financial Results, and Affirms Fiscal 2006 Guidance for Net Revenues

Ashworth, Inc. (Nasdaq:ASHW), a leading designer ofgolf-inspired lifestyle sportswear, today announced that it willexplore a full range of strategic alternatives and options to enhanceshareholder value. The Company also commented on expected financialresults for the fourth quarter ended October 31, 2005 and affirmed itsnet revenue guidance for fiscal year 2006.

Exploration of Strategic Alternatives

The Company has retained Houlihan Lokey Howard & Zukin ("HoulihanLokey"), an international investment bank, to advise the Company inidentifying and evaluating strategic alternatives and options. Giventhe Company's growth in its Ashworth(R) and Callaway Golf apparelbrands and the development of its multi-channel business model, theCompany believes it is well positioned to increase shareholder valuedespite general softness in the golf industry. Management alsobelieves the Company's current stock price does not reflect the truevalue of the Company and its prospects. With the assistance ofHoulihan Lokey, the Company will assess its position in the market andevaluate a wide range of strategies and alternatives to increasefuture shareholder value. No assurance can be given, however, that anytransaction will be entered into or consummated.

Fourth Quarter 2005

Net revenues for the fourth quarter of 2005 are expected to growapproximately 15% to approximately $55 million, up from $48 million innet revenues for the same period a year ago. However, the Companywarned that it expects a loss of approximately $2.1 million to $2.4million or $0.15 to $0.17 per diluted share for the fourth quarterended October 31, 2005.

Gross margins and earnings were adversely impacted by lower thananticipated sales of full-margin products. Gross margins and earningswere also impacted by special promotional programs and by aggressivesales of low-margin product during the quarter as the Company wassuccessful in reducing inventories to a level below that of a yearago.

Accounts receivable were below levels of a year ago despite theincrease in sales. The Company's new Embroidery and DistributionCenter ("EDC") also demonstrated increased operating efficiency in thequarter. Long-term debt is below last year's level and the Company'scommercial banks remain supportive of the Company.

The Company's selling, general and administrative expenses("SG&A") were higher due to increased selling and promotional costsand expenses related to Sarbanes Oxley compliance. The SG&A expenseswere also impacted by several costs associated with management changesand personnel reductions to improve product, financial and operationalperformance in 2006.

With the Company's new U.S. EDC operating more efficiently and itsinventories in line with plans and below last year's levels, theCompany has now focused many of its domestic initiatives on improvinggross margins and reducing promotional expenses in 2006 so as toincrease margins and profitability.

2006 Fiscal Year Guidance

Based on increases in 2006 Spring/Summer pre-book orders ascompared to a year ago and other current information, the Companyexpects an increase in net revenues for fiscal year 2006 toapproximately $210 million to $220 million, up from approximately $205million in fiscal year 2005. The Company also expects improvement inoperational execution and financial performance in each of itsdistribution channels, with resulting contributions to earnings infiscal year 2006.

Conference Call and Webcast

Ashworth management will conduct a conference call and webcastproviding details on its fourth quarter results and outlook for fiscal2006 on Thursday, December 15, 2005, at 4:30 p.m. ET (1:30 p.m. PT).The call will be broadcast live over the Internet atwww.ashworthinc.com. Randall Herrel, Chairman and Chief ExecutiveOfficer, and Peter Case, Executive Vice President and Chief FinancialOfficer, will host the call.

An online archive of the broadcast will be available after thecompletion of the call and will be accessible on the Company's websiteuntil December 30, 2005. Additionally, a telephone replay will beaccessible for 48 hours by calling 1-877-519-4471 or 1-973-341-3080for international callers; enter conference ID 6777180.

About Houlihan, Lokey, Howard & Zukin, Inc.

Houlihan, Lokey, Howard & Zukin provides a wide range of services,including mergers and acquisitions, financing, financial opinions andadvisory services, and financial restructuring. In 2004, HoulihanLokey ranked as the No. 1 M&A advisor, as ranked by number oftransactions, for U.S. transactions under $500 million and the No. 5advisor for all U.S. announced transactions, according to ThomsonFinancial. The firm has over 600 employees in nine offices in theUnited States and United Kingdom. The firm annually serves more than1,000 clients ranging from closely held companies to Global 500corporations. For more information, visit Houlihan Lokey's Web site athttp://www.hlhz.com/.

About Ashworth, Inc.

Ashworth, Inc. is a designer of men's and women's golf-inspiredlifestyle sportswear distributed domestically and internationally ingolf pro shops, resorts, upscale department and specialty stores andto corporate customers. Ashworth products include three main brandextensions. Ashworth Collection(TM) is a range of upscale sportsweardesigned to be worn on and off course. Ashworth Authentics(TM)showcases popular items from the Ashworth line. Ashworth WeatherSystems(R) utilizes technology to create a balance between fashion andfunction in a variety of climatic conditions. Callaway Golf is atrademark of Callaway Golf Company. Ashworth, Inc., 2765 Loker AvenueWest, Carlsbad, CA 92008 is an Official Licensee of Callaway GolfCompany.

In July 2004, Ashworth, Inc. acquired Gekko Brands, LLC ("Gekko"),a leading designer, producer and distributor of headwear and apparelunder The Game(R) and Kudzu(R) brands. This strategic acquisitionprovides opportunity for additional growth in three new, qualitychannels of distribution for the Ashworth(R) and Callaway Golf apparelbrands as well as further growth from The Game and Kudzu brands' salesinto the Company's three traditional distribution channels. The Gamebrand products are marketed primarily under licenses to over 1,000colleges and universities, as well as to the PGA TOUR, resorts,entertainment complexes and sporting goods dealers that serve the highschool and college markets. The Game brand is one of the leadingheadwear brands in the College/Bookstore distribution channel. TheKudzu brand products are sold into the NASCAR/racing markets andthrough outdoor sports distribution channels, including fishing andhunting.

To learn more, please visit our Web site at www.ashworthinc.com.

Forward-Looking Statements

This press release contains forward-looking statements related tothe Company's market position, finances, operating results, marketingplans and strategies. Readers are cautioned not to place unduereliance on these forward-looking statements, which speak only as ofthe date hereof. These statements involve risks and uncertainties thatcould cause actual results to differ materially from those projected.These risks include the timely development and acceptance of newproducts, as well as strategic alliances, the integration of theCompany's recent acquisition, the impact of competitive products andpricing, the success of the Callaway Golf apparel product line, thepreliminary nature of bookings information, the ongoing risk of excessor obsolete inventory, potential inadequacy of booked reserves, thesuccessful operation of the new distribution facility in Oceanside,CA, and other risks described in Ashworth, Inc.'s SEC reports,including the report on Form 10-K for the year ended October 31, 2004and Form 10-Q's filed thereafter. The Company undertakes no obligationto publicly release the results of any revision of the forward-lookingstatements.