Mad Catz Secures Extended License to Produce NBA Controllers and Related Accessories

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- Multi-Year Agreement Allows Mad Catz to Produce Customized NBA Team
Controllers and Accessories for All Current Generation Consoles -

SAN DIEGO, October 17 - - Mad Catz Interactive, Inc. (AMEX/TSX: MCZ),
a leading third-party interactive entertainment accessory provider, announced
today that it has entered into a new license agreement with the National
Basketball Association Properties, Inc. (NBA) which allows the Company to
produce customized team video game controllers and related accessories for the
Nintendo(TM) Wii, Nintendo DS Lite, Xbox 360(TM), PlayStation(R)3, PSP,
PlayStation(R)2 and the Xbox(R) gaming consoles. The new agreement replaces
the existing license agreement with the NBA that Mad Catz announced in April
2007 and extends the length to a multi-year term.

Darren Richardson, President and Chief Executive Officer of Mad Catz,
commented, "Mad Catz initially launched its line of NBA video game controllers
and accessories during the 2004-2005 NBA season and these products have proven
to be an important part of our strategy to offer gamers the opportunity to
personalize their video game accessories with the world's leading sports,
video game and entertainment images and brands. The extension of this
agreement with the NBA ensures that this valuable sports franchise will remain
with Mad Catz for the next several years. We look forward to continuing to
provide gamers and NBA fans with high-quality controllers and accessories for
all current and prior generation consoles that bring the NBA arena excitement
into the living room."

Pursuant to the new agreement, Mad Catz can continue to develop new,
stylish video game controllers and faceplates for all 30 NBA teams, each
featuring the team's colors and logos. These controllers and related
accessories will be available through NBAstore.com, NBA arena stores, online
video game retailers and wherever video game accessories are sold.

Mr. Richardson added, "Our full suite of sports licenses, combined with
our ability to secure marquee licenses for highly anticipated software brands,
reflects the Company's ongoing success with our initiative to align ourselves
with mass appeal content. Our broad license portfolio uniquely positions Mad
Catz in the industry to provide retailers and fans with compelling, stylish
and entertaining themed video game controllers and accessories."

For more information or for high definition photos of the products,
please visit www.madcatz.com or www.nba.com.

About Mad Catz Interactive, Inc.

Mad Catz is a leading provider of innovative peripherals for the
worldwide interactive entertainment industry. Mad Catz designs and markets
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.

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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