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|Mad Catz Acquires the Assets of V Max Simulation Corporation, a Leading Flight Simulation Company|
SAN DIEGO, Feb 28, 2011 (BUSINESS WIRE) --
Mad Catz Interactive, Inc. ("Mad Catz") (AMEX/TSX: MCZ), a leading third-party interactive entertainment accessory provider, announced today that it has acquired the assets of V Max Simulation Corporation ("V Max"), a privately-owned, California-based provider of flight simulation services. V Max designs, constructs, integrates, and operates flight simulation equipment and develops flight simulation software. Total consideration for the assets purchased includes (i) $378,000 in cash at closing ($170,000 of which will be used to finish 4 fighter jet simulators that will generate revenue on a pay to use basis in "Fightertown," a Southern California-based flight simulation center) and (ii) $260,000 in Mad Catz common stock, valued at the closing price on February 23, 2011. In addition, for fiscal years 2012 through 2016, Mad Catz will pay a commission equal to 5% of the profits generated from a discrete slice of the fighter flight simulation business to David Kinney, V Max's President and Founder.
Mr. Kinney will join Mad Catz as Vice President, Flight Simulation, to expand its position as a leader in the flight simulation category. Mad Catz, through its Saitek simulation brand, creates high-end, flight simulation accessories and peripherals for the worldwide PC-based gaming market. As an addition to the Saitek flight simulation hardware business, Mr. Kinney will oversee the development of PC simulation software and the creation of a fighter pilot flight community that will allow flight simulation enthusiasts to experience the thrills of being a fighter pilot.
Darren Richardson, President and Chief Executive Officer of Mad Catz, commented, "With this acquisition, Mad Catz strengthens and diversifies its Saitek simulation brand and offerings. Saitek is known for its realistic, high-end simulation products and the hiring of David Kinney to develop software and a dedicated community to complement our hardware is the natural next step in our strategy to further leverage the know-how and potential of this brand."
Mr. Kinney, added, "I am thrilled to be joining the Mad Catz organization. Mad Catz has the robust worldwide infrastructure that will allow us to leverage the Saitek simulation hardware brand into software and an on-line, fighter pilot community that will be second to none."
David Kinney is a Biomedical Engineer and former Marine Corps officer who has over twenty five years of experience designing, developing, and integrating a variety of high fidelity flight simulation products for both military and consumer markets. These products range from award wining simulation gaming software to fully interactive flight simulation centers.
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) and Eclipse (home and office) and TRITTON (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.
SOURCE: Mad Catz Interactive, Inc.
Mad Catz Interactive, Inc.
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