SAN DIEGO--(BUSINESS WIRE)--Feb. 19, 2008--Mad Catz Interactive, Inc. (AMEX/TSX: MCZ), a leading third-party interactive entertainment accessory provider, announced today that it has begun shipping its next generation of AirDrives(TM) designed specifically for the Apple iPhone. Based on proprietary InAir(TM) innovative personal audio technology, the new AirDrives for iPhone provides superior comfort, fit, and sound quality along with a high performance microphone which also serves as a send/end button for answering and terminating calls.

Darren Richardson, President and Chief Executive Officer of Mad Catz, commented, "In the six months since its release, Apple's iPhone is indisputably one of the most sought after consumer products worldwide and Mad Catz believes its innovative AirDrives headphones enhance the utility of this leading-edge platform. Combining voice capability with AirDrives' existing technology allows users the seamless integration of music selections, conversations and their surroundings. We look forward to bringing this virtual communication experience to consumers throughout 2008."

In conjunction with this new product offering, Mad Catz will move the pricing of its existing AirDrives and AirDrives for Kids headphones to $79.99 and $49.99, respectively.

The Airdrives for iPhone is currently available for purchase through the Mad Catz websites (www.madcatz.com, www.gameshark.com and www.airdrives.com).

The AirDrives for iPhone headset and Airdrives headphones feature a unique, outer-ear design that makes use of directional sound allowing users to remain alert and socially engaged while providing a distinctive listening experience. The patent-pending technology is designed with sound quality, overall comfort, and long-term ear health in mind and is compatible with iPods, Mp3 players, computers, portable DVD systems and now the iPhone. Testing indicates that AirDrives passes the House Ear Institute and OSHA (Occupational and Safety Health Administration) standards for all-day listening based on sound pressure levels detected at the inner ear. The retail price is $99.99 for the Airdrives iPhone headset, $79.99 for AirDrives headphones and $49.99 for AirDrives for Kids. For more information or for high definition photos of the products, please visit www.airdrives.com or www.madcatz.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 video game systems and publishes video game software, including the industry-leading GameShark video game 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 recently began manufacturing and marketing 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.

CONTACT: Mad Catz Interactive, Inc.
Stewart Halpern, 619-321-3550
Chief Financial Officer
or
Jaffoni & Collins Incorporated
Joseph Jaffoni, David Jacoby
212-835-8500
mcz@jcir.com
SOURCE: Mad Catz Interactive, Inc.