"Sonic is one of the videogame industry's most popular and enduring characters and we are thrilled to initiate this relationship with Sega to create Sonic-branded videogame accessories," said Darren Richardson, President and Chief Executive Officer of Mad Catz. "We look forward to offering unique and exciting accessories to fans of this truly iconic videogame and popular culture character."

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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 develops, 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 throughout North America and Europe, and is expanding its distribution reach in Asia. For additional information please go to www.madcatz.com, www.gameshark.com, www.airdrives.com and www.saitek.com.

About SEGA(R) of America, Inc.

SEGA(R) of America, Inc. is the American arm of Tokyo, Japan-based SEGA(R) Corporation, a worldwide leader in interactive entertainment both inside and outside the home. The company develops, publishes and distributes interactive entertainment software products for a variety of hardware platforms including PC, wireless devices, and those manufactured by Nintendo, Microsoft and Sony Computer Entertainment Inc. SEGA of America's Web site is located at www.sega.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.

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, Norberto Aja 
212-835-8500 
mcz@jcir.com