CHAMPIONS TOUR FIRST TEE OPEN AT PEBBLE BEACH ANNOUNCEMENT

December 8, 2003

George H.W. Bush

Tom Coughlin

Clint Eastwood

Tim Finchem

Arnold Palmer

CLINT EASTWOOD: Good morning.

ARNOLD PALMER: Hi.

COMMISSIONER FINCHEM: Thank you. Good day, ladies and gentlemen. What an exciting day it is, just six years ago, a simple idea to try to create affordable acceptable golf for any kid who wanted to play golf. And now six years later we've made a lot of progress and today what we are going to announce is really going to step up what we can do for the First Tee. Let me just mention, before I go any further, however, that a couple of other reasons why we are here in Houston. We decided to make this announcement here because this was part of the announcement when we announced the program for the First Tee six years ago, but also it is the home of our founding corporate partner for the World Golf Foundation, Shell Oil, and I'm delighted that today Jeff Noogin (ph) the CEO of Shell Gas and Power, sitting up here in front, thank you for all you've done. Through Shell's sponsorship and partnership we have made great strides these last years. I'd also like to recognize the fact that today involves -- today's announcement involves the Champions Tour. Champions Tour golf will be coming back here to Houston, as all of you know starting in 2004. I'm delighted that our new tournament here at the Augusta Pines Club, the Champions Tour at Augusta Pines will be kicking off in 2004, and the tournament director Brian Nautla (ph) is here with us today. I'd like to recognize Brian and ask him to stand up. The original conversations between the chairman of the tournament and Dennis Wilkerson were really commenced because of the interest of one of our then members of the Champions Tour board, a player all of you know and who is with us today, John Mahaffey. John, thanks for being here. And now for the business at hand. We are delighted to today to announce a new partnership between the PGA TOUR and Wal-Mart. It promises to elevate the profile of the First Tee and encourage kids to utilize the First Tee nationally and take advantage of the First Tee's Life Skills experience. This is a major partnership that will join together the division of the First Tee, the commitment of the PGA TOUR and with the assistance of Wal-Mart, to improve the opportunity for kids in the future, and assistance that has taken the form of a number of other commitments that Wal-Mart has made over the years, but this takes us to a different level. It is part of that partnership and with the support of that sponsorship, we are delighted today to be able to announce the first piece of what this relationship is going to mean; and that is, a new tournament, a tournament on the Champions Tour to be held at Pebble Beach. It's called the First Tee Open at Pebble Beach, which will showcase the great players of the Champions Tour on the greatest golf course in the world. And First Tee kids qualifying to play in that tournament from all over the country. We will inaugurate this tournament next September on September 3-5 and it will be conducted over Pebble beach golf links on those days, as well as the Bayonet Golf Course. I would like to recognize the executive vice president of the Monterey Peninsula Foundation, Ollie Knut (ph), who is here with us and who manages the tournament out there. And the executive vice president of the Pebble Beach Company, David Stivers is with us, as well and I'd like to recognize David. This unique tournament will showcase 78 members of the Champions Tour, each paired with two amateurs and a junior player who will be organized by a number of qualifiers around the country that will be managed by the First Tee in association with the Champions Tour and Wal-Mart. I can only envision that just in a couple of years' time, every kid who has taken up First Tee as their first opportunity to become a golfer will be focused on trying to get to Pebble Beach and trying to make it to this prestigious tournament. If we look at this announcement and the unique relationship between PGA TOUR and Wal-Mart that's being announced today, I see three major things that make it very special. One is for the First Tee. This is a dynamic platform that's being created today and which will really take to another level, our ability to communicate with kids everywhere that golf is affordable, acceptable and available to you. It's a platform that can lead to thousands more kids and hundreds of thousands over the years to come learning life skills and life values through golf. And we know that it's a program that will create a golf tournament will be a beacon to kids in their formative years as they think about the game of golf. Secondly, from a Champions Tour standpoint, it creates the opportunity for us to showcase our great Champions Tour players at Pebble Beach Golf Links. When you think about it, Tom Watson, Tom Kite, Jack Nicklaus, players who have won at Pebble Beach, walking down the fairway with a 15-year-old kid from Houston who has managed to learn golf through the First Tee program here, qualifying to play, that vision will soon become a reality. Finally, from a Wal-Mart perspective, the PGA TOUR will be able to enter into a partnership with this company, which means that we now have a partnership between two organizations that share the fundamental values that we recognize and a passion, a real passion to better the lives of young people. We have seen what Wal-Mart has been able to do in supporting other programs for kids. We are only beginning to understand the enormity of what they will do to make First Tee happen, all around the country and around the world. And with that, I'm delighted to present to you a good friend and individual who has championed this with us and made this relationship happen, vice chairman of Wal-Mart, Tom Coughlin. Tom?

TOM COUGHLIN: Thank you very much. We are very proud to be here representing not only the Wal-Mart Corporation, but the Wal-Mart organization. We are a enthusiastic bunch that always do what is right in the community and have quite a reputation of getting involved with anything that has to do with kids and. We are not involved in very many sponsorships. When we are, we look for those that would closely mirror our charitable giving focus, which is primarily on education and local community support, whatever needs there may be. The First Tee's goal of providing young people of all backgrounds an opportunity to develop through golf and character education skills like honesty, integrity, respect and sportsmanship which are so important to all of us. We understand the importance of these skills at an early age because they are the skills that are instilled in us from our earliest state and we see that through our associates. These are skills these young people will use throughout their entire life. By sponsorship in the First Tee, this is another way we can give something back to the communities that would serve. We are really looking forward to working with the First Tee Chapters, like this one in Houston. And Wal-Mart has some enterprises in and around Houston and we think that the qualifying programs around the United States, and with the enthusiasm you see in these associates, I can promise you that all of us are grateful all around the country for this opportunity to be involved. Thanks, Tim.

CLINT EASTWOOD: Good morning. I just wanted to tell you the Monterey Peninsula Foundation is going to be very proud to be associated with First Tee and with Wal-Mart and this particular tournament. We feel we've got a great golf course out here to offer with Pebble Beach and Bayonet, which is certainly no easy track and we will be associated with the First Tee. We are in the process of putting in our own First Tee organization out here to be like some of the ones you have down in Houston. It feels great to be with the association. I'll turn it over to Arnold, who is the king of it all here, and let him give you his thoughts on it.

ARNOLD PALMER: Well, thank you, Clint. And it's nice to be there, here, and to say hello to President Bush and to all of the people who are connected with the First Tee Program, and it would be remiss for me not to talk a little bit about the Champions Tour and what this is going to mean to the Champions Tour, as well as the First Tee and playing golf with the juniors, which I had a little experience this week with my grandson. I can tell you that the enthusiasm among the players -- and of course to support the First Tee Program is something that certainly the Champions Tour is very much dedicated to doing, and as well as the PGA TOUR and their support of the First Tee. So to be a part of this, with Clint and with part of the Pebble Beach Company, this is a great pleasure. It's something that I think all of us are going to be very excited to participate in and to join Wal-Mart and all of the people, Joe, and the executive director of the First Tee and the people that helped make it work. And I thank you for the opportunity to say thanks for all you do for the game of golf and the Champions Tour participating in this. It is a great privilege.

PRESIDENT BUSH: Thank you all very much. Thank you. It's a great thrill to be out here at this wonderful park and I want to thank, first of all, Joe Barrow, who really runs this thing day-to-day. He's our executive director and does a magnificent job. Tim Finchem as most of you know, I don't know if you kids know it, he runs the Tour. When you see all of these players on Sundays and Saturdays, he's the guy that gets them all lined up there and really runs this tour that has brought so much golf into every home and has done so much by the way of charity. And of course, with Tom Coughlin now taking over and sponsoring this wonderful new program. I can't imagine the thrill of kids getting to play with one of these senior players out there at Pebble Beach. They will think they have died and gone to heaven if they like the game as much as we all do. I'm pleased to be a part of this unbeatable lineup. Any time you can get the King, Arnold Palmer, and Dirty Harry together at the same time, both of them do so darned much for golf; that's a fantastic thing for this game, and of course for First Tee. And I'm also happy to help welcome Wal-Mart as a national sponsor of this program, particularly of its Life Skills Program. As Tim properly noted, this worthwhile cause has a number of strong corporate sponsors, very proud of what Shell does, I don't want to get started because I'll hurt feelings here, because others have joined Shell here in Houston in sponsoring the First Tee Program. Not only does this program offer an outlet, a constructive outlet for kids that might not have had a shot at playing golf or might be underprivileged kids all together, but it offers them a wonderful opportunity to learn, put into practice and eventually restore golf's timely values, sportsmanship, honesty, playing by the rules and let's not forget, fast play. I will leave the golf lessons to the pros, but I can give kids one tip. I don't want to see any of you guys when you're learning getting out there trouble-bobbing (ph) a three-foot putt and walking back and forth trying to figure out where it goes. Get up there and hit it and get on to the next hole. That's my advice from a lousy golfer whose handicap is spiraling up near 30 now. Now it's not very easy for me to see, but one of you kids told me you wanted to be president, I can't remember what her name was, but she's back here somewhere, said she wanted to be President. I'll give you a little advice. When you're President, you get a putt this long out there: "That's good, Sir, put it in your pocket," you know how it is. But then when you stop being President, you get: "Hole it out, George, will you?" So when you're President, take everything they will give you because you're not going to get anything after that. In terms of supporting this tour and this wonderful First Tee Program, we ought to be doing it, we're helping kids, we're being what I used to call and still call a true point of light, one of a thousand points of light -- no definition does not include service to others and you knowing this, that's what this First Tee Program is all about. Clint and Arnold, thank you, by this remote control, weighing in here, you're beloved by every golfer, both of you. And I want to again thank you, the sponsors of the program, particularly Wal-Mart on this very special day, and also my friend, Tim Finchem, that does so much for the game. Thank you all very much.

STEVEN FRASIER: Good afternoon. I'm Steven Frasier, and first of all would I like to express how honored I am and how much of a privilege it is for me to represent the City of Houston and the First Tee and now Wal-Mart who gives me this opportunity to speak before you. First off, the First Tee, oh, man, it's given me so much. I can recall going to Kansas State University one year and for one week, me and about 200 other kids, we received some of the most unbelievable training and leadership in Life Skills. I'm still using all of the skills and techniques that I learned that year and it's have very beneficial. The First Tee is also responsible for me in competing all around this country at the national level against some of the best players in the nation and possibly the world. One person that really comes to mind is the guy whose name is Robert Olsen. He's the former director of this program here in the First Tee of Houston. Now, we would have these meetings before we'd go off to another city and he would always tell us: "Kids, remember, carry yourself with dignity and respect because you are representing your family, the City of Houston and the First Tee." And that goes for everybody standing behind me and. I could go on and on what this guy used say but I only have one minute left. Another thing, the First Tee community, you really get to meet all kinds of people, different people from different walks of life. And it turns out like I was given opportunity to attend one of the more prestigious opportunities in the city. And now my senior year is about to come to an end and it's time to move on to the next level which is Division I golf. Now, I would like to thank Mr. President, Mr. Finchem, Mr. Barrow, my dad who is standing back there taking a picture of me (laughs) and Wal-Mart. Thank you for your time. I've enjoyed it. Thank you.

TOM COUGHLIN: Well, I had the good fortune of meeting Tim Finchem through a mutual friend who is here today as well, Roy Ott (ph) of Austin, and we got together one weekend and just started talking about what was going on. And Tim sensed my interest, I think it would be fair to say, and told me more about it. I think that it resonated with me right away because it takes many of the things that we've done through our associates, getting involved and a way of getting traction and really working out well in the community and getting involved -- Colin Powell asked us to get involved in the Groundhog Shadow Day Program (ph) with kids. The first time we put it out to our stores and associates, 100 percent of the stores around the country had kids participate in -- some 48,000 kids participated in that one-day activity. As I said earlier, what we think is important, and our associates always stand up to those things, really feel the same way and that's what brought it together.

COMMISSIONER FINCHEM: Just briefly, we'll announce the purse sometime in the next couple of months. The details of the business plan are being worked out. It will be a competitive purse on the Champions Tour. The relationship with Wal-Mart is beyond the tournament into other areas of First Tee some of which will be announced as we go forward. But the specific relationship to the tournament is a multi-year commitment which will allow us to go to the tournament the next few years we believe. The format will be 78 Champions Tour players each of whom will be paired with two amateurs and one junior who has qualified for participation, and that will be multiple competition going on within the competition which will be spelled out, I think in the release today, and then a cut on Sunday. We'll play the Bayonet course and Pebble Beach Golf Links on Friday and Saturday, and then play the final round on Pebble Beach on Sunday. Not too dissimilar to the AT&T tournament, but somewhat unique and different but we'll get you those details forthwith.

COMMISSIONER FINCHEM: Actually, it will be three tournaments within the competition but we'll have one tournament involving the Junior players, one tournament involving the Amateurs and then another individual tournament. So it's a little more complicated than AT&T, but basically the same concept that they play together and will be playing in multiple competition.

TOM COUGHLIN: We are still working out the details on our relationship. Clearly we want to be actively involved throughout the Wal-Mart network, and then we are contemplating excerpts of this media conference that will be shown throughout the Wal-Mart stores, in store video and television networks. Activities of when associates are associated with our individual chapters I'm sure will be captures and shared, as well. So we are very excited about this, and this day kicks it off, and in the coming weeks we'll hear more and more about it. It's not just this tournament, but at the very local level which is the most important level for us at the First Tee as well as all of these wonderful smiling faces of associates that I'm looking at right now.

COMMISSIONER FINCHEM: Forever . (Laughter.) Well, as contracts go, the contracts differ between the PGA TOUR and Champions Tour and Pebble Beach company and Wal-Mart. Suffice it to say, it's a multi-year commitment, and, you know, as we did with every other tournament we play, we'll evaluate its progress and with our partners. But I have to believe this is a very positive relationship that involves an awful lot of other moving parts, and this is just sort of a high-profile piece. But I'm very confident that this is a relationship and a structure that's going to carry on well into the future.

ARNOLD PALMER: Most of them did not know about this event. This is really the first announcement officially. But the excitement I saw in playing this weekend, I would certainly think there will be a lot of excitement and the fact that they will be able to play there with these jurors.

ARNOLD PALMER: Well, that's a good question. I think I'll leave it that I might play.

ARNOLD PALMER: It helps a lot.