Mad Catz and Microsoft Corporation Sign Multi-Year License Agreement for Xbox 360(TM) Wireless Specialty Controllers

Mad Catz Interactive, Inc. (AMEX/TSX: MCZ), a leading third-party interactive entertainment accessory provider, announced today that it has signed a multi-year licensing agreement with Microsoft Corporation ("Microsoft") (MSFT: NASDAQ). Pursuant to the agreement, Mad Catz has global rights to manufacture, market and sell Xbox 360-branded wireless specialty videogame controllers.

"This agreement expands our relationship with Microsoft and we look forward to shipping a range of new wireless specialty controllers, the first of which will be our wireless Fender bass guitar for Rock Band, later this month," said Darren Richardson, President and Chief Executive Officer of Mad Catz. "The Xbox 360 platform is a key focus of our growing licensed accessories business and we look forward to bringing Xbox 360 fans a variety of innovative and distinctive wireless specialty controllers to enhance their gaming experiences."

About Mad Catz Interactive, Inc.

Mad Catz is a global leader in providing innovative peripherals for the interactive entertainment industry. Mad Catz designs and markets accessories for video game systems and publishes video game software, including the industry-leading GameShark video game enhancements, under its Mad Catz, GameShark and Joytech brands. Mad Catz also designs and markets mice, keyboards, headsets, PC gaming controllers and other PC peripherals through its Saitek brand, and recently began manufacturing and marketing proprietary portable earphones under its AirDrives brand. Mad Catz distributes its products through most of the leading retailers offering interactive entertainment products and has offices across Canada, Europe and Asia. For additional information please go to www.madcatz.com, as well as www.gameshark.com, www.airdrives.com, www.saitek.com and www.joytech.net.

Safe Harbor for Forward Looking Statements: This press release contains forward-looking statements about the Company's business prospects that involve substantial risks and uncertainties. The Company assumes no obligation to update the forward-looking statements contained in this press release as a result of new information or future events or developments. You can identify these statements by the fact that they use words such as "anticipate," "estimate," "expect," "project," "intend," "should," "plan," "goal," "believe," and other words and terms of similar meaning in connection with any discussion of future operating or financial performance. Among the factors that could cause actual results to differ materially are the following: the ability to maintain or renew the Company's licenses; competitive developments affecting the Company's current products; first party price reductions; the ability to successfully market both new and existing products domestically and internationally; difficulties or delays in manufacturing; or a downturn in the market or industry. A further list and description of these risks, uncertainties and other matters can be found in the Company's reports filed with the Securities and Exchange Commission and the Canadian Securities Administrators.

SOURCE: Mad Catz Interactive, Inc.

Mad Catz Interactive, Inc. Stewart Halpern, 800-831-1442 Chief Financial Officer or Jaffoni & Collins Incorporated Joseph Jaffoni, Jim Leahy, 212-835-8500 This email address is being protected from spambots. You need JavaScript enabled to view it.