MAD CATZ AND MICROSOFT CORPORATION ENTER INTO EXCLUSIVE AGREEMENT TO PRODUCE LICENSED, CO-BRANDED WIRELESS HEADPHONES FOR X

San Diego– February 2, 2011– Mad Catz ® Interactive, Inc. (“Mad Catz”) (AMEX/TSX: MCZ), a leading third-party interactive entertainment accessory provider, announced today that it has entered into an agreement with Microsoft ® Corporation (“Microsoft”) to produce a range of licensed, co-branded audio headphones under Mad Catz’s Tritton brand and Microsoft’s Xbox 360 brand. Under the agreement, Mad Catz has the worldwide rights to manufacture, market and sell licensed, co-branded wired stereo headphones and exclusive rights to produce licensed, co-branded wireless stereo and Dolby 5.1 headphones for the Xbox 360 videogame and entertainment system.

Through this agreement, Mad Catz and Microsoft will work closely together to jointly design and brand wired and wireless headphones, resulting in a range of headphones that will bear the Tritton and Xbox logos on both the packaging and the headphones.  This will also mark the first time that wireless, licensed and co-branded headphones will be available for Xbox 360. 

Commenting on the agreement, Darren Richardson, Mad Catz’s President and Chief Executive Officer, stated,“We are delighted to be working so closely with Microsoft to design and brand a range of high performance headphones.  The headphone category is the fastest growing category in the video game space - and this agreement assists Mad Catz’s Tritton brand in furthering its leadership to provide high-quality, innovative headphones that allow gamers and audio enthusiasts alike to enjoy a superior gaming and listening experience.”

Zulfi Alam Microsoft Senior Director, Xbox 360 Accessories, added,“We are pleased to be working in close collaboration with Mad Catz to design and brand products that we believe will deliver a high quality audio experience to Xbox 360 fans.  Whether playing games or

enjoying music, movies or sports available on the Xbox 360, we are confident that gamers everywhere will react enthusiastically to this new range of wired and wireless headphones.” 

Mad Catz expects that the range of licensed, co-branded headphones will be available for the 2011 holiday shopping season.

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

Allyson Vanderford : Interim Chief Financial Officer

t. +1-619-321 3545

e. avanderford@madcatz.com

Joseph Jaffoni, Norberto Aja and Jim Leahy

Jaffoni and Collins Incorporated

t. 212/835-8500 

e. mcz@jcir.com

Track Mad Catz via the following social media:

Facebook® Page:                http://www.facebook.com/MadCatzInc

Twitter® Page:                     http://twitter.com/MadCatzInc

YouTube® Channel:            http://www.youtube.com/MadCatzCompany

Microsoft, Xbox, Xbox 360, Xbox LIVE, the Xbox logos, and the Xbox LIVE logo are either registered trademarks or trademarks of Microsoft Corporation in the U.S. and/or other countries.

About Mad Catz Interactive, Inc.

Mad Catz is a leading global provider of innovative products for the interactive entertainment industry.  Mad Catz develops and markets accessories for videogame systems and PCs under its Mad Catz (casual gaming), Saitek (simulation), Cyborg (pro gaming), Eclipse (home and office) and Tritton (gaming audio) brands.  Mad Catz also operates e-commerce and content websites for videogame and PC products under its GameShark brand, develops, manufactures and markets proprietary earphones under its AirDrives brand, and publishes and distributes video/PC games.  Mad Catz distributes its products through most of the leading retailers offering interactive entertainment products and has offices in North America, Europe and Asia.  For additional information please go to www.madcatz.com , as well as www.store.gameshark.com, www.saitek.com, www.cyborggaming.com, www.eclipsetouch.com, www.trittontechnologies.com, www.gameshark.com  and www.airdrives.com.

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 except as required by law 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 fulfill our filing our stated requirements with the Securities and Exchange Commission and Ontario Securities Commission; 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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