Mad Catz® launches PC Cyborg™ X Flight Stick

San Diego, January 7, 2009

Mad Catz® Interactive, Inc. (“Mad Catz” or“the Company”) (AMEX/TSX: MCZ), a leading third-party interactive entertainment accessory provider, announced today the launch of the Cyborg™ X Flight Stick under the company’s Saitek™ brand on PC.

Marking the tenth anniversary of the Cyborg range of Flight Sticks, the new Cyborg X represents the flagship of the range, offering state-of-the-art design and a host of innovative new features providing PC gamers with groundbreaking levels of comfort and flexibility. The Cyborg X Flight Stick is compatible with most flight simulator and air combat games.

The Cyborg X delivers impressive levels of adjustability, allowing gamers to find their optimum positions for maximum comfort and control. Handle length can be increased or decreased to fit the gamer’s hand, the angle of the handle itself can be pivoted forwards or back, and the head can also be angled forwards or backwards to optimize button positions for extended game play. Another adjustment screw also allows the buttons on the stick head to be brought closer to or further from the fingers. For convenience, one of the Cyborg X’s feet features a compartment which houses the tool used to loosen or tighten the adjustment screws.

As well as multiple adjustment options, the Cyborg X features a heavy duty trigger and eleven programmable buttons with a shift function to double the number of programming options. Controls also include twin levers which can function as throttles for multiple engine aircraft or as a combination of throttle/flaps, as well as a scroll wheel for functions such as flaps or trim. For complete customization, the Cyborg X buttons can easily be remapped using Saitek’s SST (Saitek Smart Technology) software, included in the pack.

A first for the range, the Cyborg X utilizes components which detach or fold away, saving space and enhancing ergonomics when not in use. The Flight Stick handle attaches to the base with a secure screw collar and the left and right feet of the tripod base fold in and out of the body using an ingenious gear mechanism. When extended, the legs click into place to create a secure and stable platform for the stick.

Darren Richardson, President and Chief Executive Officer of Mad Catz commented“The Cyborg X is the culmination of ten years of Saitek innovation and engineering, and one of many new products planned for 2009. The Cyborg brand is reserved for those products designed for hardcore gamers that demand best-in-class features and durability. The Cyborg X Flight Stick will compliment our portfolio of console and PC compatible flight sticks and reinforces our market leading position.”

The new Cyborg X Flight Stick (model: PS38) is expected to begin shipping worldwide in Q1 of 2009 with a U.S. MSRP of $49.99.

For further information please contact:

Media

Alex Verrey: Global PR&Communications Manager - t. +44 (0) 1908 336 538

e. averrey@madcatz.com

Michael Greco: Vice President of Marketing– t. +1-619-321-3564

e. mgreco@madcatz.com

Investors

Joseph Jaffoni, David Jacoby - Jaffoni&Collins Incorporated - t. 212/835-8500

e. mcz@jcir.com

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 videogame systems and publishes videogame software, including the industry-leading GameShark videogame 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 designs, manufactures and markets 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.


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