AirDrives(TM) Interactive Earphones for iPhone Now Available

SAN DIEGO--(BUSINESS WIRE)--Mad Catz Interactive, Inc. (AMEX: MCZ) (TSX: MCZ), a leading third-party interactive entertainment accessory provider, and the creators of AirDrives™ Interactive Earphones, announced today that the company has begun shipping its next generation of AirDrives designed specifically for use with the Apple iPhone.

“While we initially created AirDrives for iPhone as a way to provide users a seamless integration of music and mobile capabilities, we are seeing an even greater need for them as several states currently restrict or will be restricting cell phone use while driving in the coming months”

Like the original AirDrives earphones, the new iPhone model features an outer-ear design powered by InAir Technology™, a breakthrough personal audio technology that enables users to hear what’s going on around them. The iPhone compatible AirDrives earphones include a microphone and one-touch music-to-phone capability that together enriches the listening experience while optimizing convenience and communication for iPhone users. AirDrives for iPhone is also compatible with Blackberry’s new Pearl and Curve cell phones.

“While we initially created AirDrives for iPhone as a way to provide users a seamless integration of music and mobile capabilities, we are seeing an even greater need for them as several states currently restrict or will be restricting cell phone use while driving in the coming months,” said Ken Wright, creator and designer of AirDrives.

AirDrives for iPhone joins the existing line of AirDrives and AirDrives for Kids Interactive Earphones. All AirDrives earphones exceed the House Ear Institute and Occupational Safety & Health Administration (OSHA) standards for all-day listening based on sound pressure levels detected at the inner ear.

AirDrives for iPhone are shipping now for the suggested retail price of $99.99. AirDrives are compatible with iPod, MP3 Players, computers and portable DVD systems, and are available now. The new suggested retail price for AirDrives is $79.99, and $49.99 for AirDrives for Kids. Both models are available for purchase online at www.BestBuy.com or www.AirDrives.com. AirDrives are also available at Sharper Image stores and www.Hammacher.com.

About InAir™ Technology

AirDrives™ interactive, stereo earphones utilize the proprietary InAir™ Technology. For more information on this technology, please visit www.inairtechnology.com. In 2006, the InAir Technology was acquired by Mad Catz, Inc., (“Mad Catz”) whose parent company is a publicly-traded company listed on the American and Toronto Stock Exchanges (ticker symbol MCZ). Mad Catz is headquartered in San Diego, California. Patents pending.

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 under its Mad Catz, Joytech and GameShark brands 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. CONTACT: Mad Catz Interactive, Inc. Stewart Halpern, Chief Financial Officer, 800-831-1442 Or Jaffoni & Collins Incorporated Joseph Jaffoni/David Jacoby, 212-835-8500 mcz@jcir.com SOURCE: Mad Catz Interactive, Inc.