Mad Catz and Microsoft Execute License Agreement for Xbox 360 Video Game Accessories

Business Wire, May 17, 2005

SAN DIEGO -- - Controllers, Steering Wheel and Arcade Stick Among Initial Xbox 360(TM) Launch Offerings -

Mad Catz Interactive, Inc., (AMEX/TSX: MCZ), the world's leading third-party video game accessory provider, today announced that it has signed an agreement to become an official peripheral licensee for Microsoft's upcoming Xbox 360(TM) gaming system in North America and Europe. Under the agreement, Mad Catz will produce a full-range of Mad Catz branded products that will be officially endorsed by Microsoft and carry the Xbox 360 license logo. Available at the launch of the new game platform, Mad Catz plans to distribute a full range of high quality Xbox 360 peripherals including game controllers, an arcade stick, a dance mat, and a steering wheel. Additional licensed products will be launched to coincide with software releases.

"This agreement is very significant for Mad Catz since it marks the beginning of the next console hardware cycle," said Darren Richardson, President and CEO of Mad Catz. "As video game technology becomes more complex, it is critical that peripheral companies work closely with the first party game system manufacturers to ensure compatibility and consumer satisfaction. We are committed to providing high quality peripherals to diversify the Xbox 360 platform and help make the launch a huge success."

Mad Catz will preview prototypes of all the above-named Xbox 360 game peripherals at the Electronic Entertainment Expo (E3), May 18-20, 2005. For more details on Mad Catz' official Xbox 360 licensed products as they become available, go to www.madcatz.com.

About Mad Catz Interactive, Inc.

Mad Catz is a worldwide leader of innovative peripherals in the interactive entertainment industry. Mad Catz designs and markets a full range of accessories for video game systems and publishes video game software, including the industry leading GameShark brand of video game enhancements. Mad Catz has distribution through most leading retailers offering interactive entertainment products. Mad Catz has its operating headquarters in San Diego, California and offices in Canada, Europe and Asia. For additional information go to www.madcatz.com.

Xbox 360 is a registered trademark of Microsoft Corporation in the United States and/or other countries.

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.

Editor's Note:

At E3 Mad Catz will be located in the West Hall, Room 513 of the Los Angeles Convention Center. If you don't already have an appointment to meet with Mad Catz, editors may stop by to view the initial Xbox 360 peripheral prototypes.