Mad Catz® Announces Shipping ofWireless Racing Wheel for Xbox 360®Video Game System

San Diego, August 18. 2010

Mad Catz ® Interactive, Inc. (“Mad Catz” or“the Company”) (AMEX/TSX: MCZ), a leading third-party interactive entertainment accessory provider, today announced that it has begun shipping the Wireless Racing Wheel for the Xbox 360 video game system, being launched under the Company’s Mad Catz brand. The new Racing Wheel is shipping now across select European territories and is expected to ship in North America later this year.

Designed for use with a wide variety of racing genres from arcade racer to serious racing simulations, the Mad Catz Wireless Racing Wheel delivers realism and excitement to Xbox 360 gamers everywhere. Complete with twin accelerator and brake racing pedals, the Wireless Racing Wheel features‘tiptronic’ style gear shift paddles alongside a unique interchangeable gear shift, allowing left or right handed drivers to play in comfort. Perforated rubber grips provide comfort and stability during prolonged play and 3 AA batteries (included) provide up to 40 hours of gaming.

Utilizing the same secure wireless technology featured in the official wireless Microsoft ® Xbox 360 controller, the Wireless Racing Wheel connects directly to the Xbox 360 with no need for an external dongle or adaptor. Dual-mounting option allows gamers to secure their wheel to a flat surface via the desk mount or play on the couch via lap-rest supports. Non-slip accelerator and brake pedals include a detachable foot rest allowing gamers to race in comfort at all times and integrated port for Xbox LIVE TM allows gamers to chat online during play.

Darren Richardson, President and Chief Executive Officer of Mad Catz commented,“This is the first wireless racing wheel we have developed for the Xbox 360. The design offers the quality, precision handling, and features that we believe the consumer wants while providing the most affordable licensed wireless solution on the market. It is a continuation of our broader strategy to create products that gamers are passionate about. We believe that the wireless racing wheel will prove popular with causal and core gamers alike.”

The Mad Catz Xbox 360 Wireless Racing Wheel is expected to launch with an MSRP of: $129.99 /£109.99 /€129.99.

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

Stewart Halpern: Chief Financial Officer

t. +1-619-321 3550

e. shalpern@madcatz.com

Joseph Jaffoni, Norberto Aja and Jim Leahy

Jaffoni and Collins Incorporated

t. 212/835-8500

e. mcz@jcir.com

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 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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