Cyborg Gaming Lights with amBX technology

San Diego, January 06. 2011

Mad Catz® Interactive, Inc. (“Mad Catz” or “the Company”) (AMEX/TSX: MCZ), a leading third-party interactive entertainment accessory provider today announced that it expects to ship the Gaming Lights with amBX Technology ^, being released on PC under the Company’s Cyborg professional gaming brand by the end of January 2011.

amBX ( short for "ambient experiences") technology delivers ‘sensory surround’ entertainment, enabling gamers to enjoy a more immersive experience by incorporating dynamic light and color effects into their game play.  amBX hardware can be used with games, movies and music. Media comes to life when used with amBX scripted media to deliver a richer interactive sensory environment.

The first ‘amBX’ compatible product to be launched by the Company, the new Gaming Lights with amBX Technology consist of twin light pods which can be positioned wherever and however best suits the gaming environments (traditionally to either side of the monitor).  Plugging directly into the PC via USB, the Cyborg Gaming Lights work best when used with amBX scripted software, where they react in synchronization to in game’s amBX commands or the effects can be customized by the gamer. Enveloping the user in up to 16 million colors, the lights provide atmospheric, directional lighting effects such as tracking enemy fire and an enhanced ambient gaming environment.

The Gaming Lights feature multi-hinge design which allows for flexible positioning of the Gaming Lights to maximize the spread of color.  In addition, the Gaming Lights have been designed to facilitate simultaneous use of multiple sets of lights.  Up to twenty-four set of lights can be positioned at different compass points around the room to create surround effects. When positioned in different areas of the room, the Gaming Lights will react with different default or gamer defined effects giving the gamer a fully directional, spatial and sensory surround lighting experience. 

amBX is also compatible with many PC applications, when used with non amBX coded software or with other forms of media, the amBX software engine detects the colors in the game or media and creates amBX scripts automatically so the Gaming Lights react to dominate on-screen colors to provide a highly effective lighting ambiance and enhances virtually any form of media.  In addition, the Gaming Lights ship with customization software which allows users to program custom amBX effects for movies, games or music, program or retrieve custom profiles or simply choose from a range of pre-programmed effects.

Included with the Gaming Lights is a 30 day trial of the hit game: Age of Conan™: Hyborian Adventures (Funcom®), featuring full amBX compatibility and serving as the perfect introduction to the amBX experience.

The Gaming Lights with amBX Technology are perfect when used alone or ideal for use in conjunction with the forthcoming Cyborg Gaming Keyboard with amBX Technology, expected to ship summer 2011.

Darren Richardson, President and Chief Executive Officer of Mad Catz commented, “Last year we unveiled the amBX Hardware Development Kit which continues to assist developers in maximizing the potential of this groundbreaking technology.  Through working alongside our partners at amBX we are able to advance our strategy of using our Cyborg professional gaming brand to deliver new and enticing gaming experiences which continue to push the technology envelope.” 

Neil MacDonald, CEO of amBX UK Ltd commented, “We're extremely pleased that our relationship with Mad Catz has resulted in the release of this exciting new product which we firmly believe will bring new dimensions of immersive gaming to PC players.  We believe that playing games with amBX represents a leap ahead for the gaming experience and look forward to continuing our work with Mad Catz to enhance the gaming future for all.”

The Gaming Lights with amBX Technology will be available exclusively on the Mad Catz web store at www.store.gameshark.com .

For further information please contact:

Media

Alex Verrey: Global PR & Communications Manager

t. +44 (0) 1908 336 538

e. averrey@madcatz.com

Michael Greco: Vice President of Marketing

t. + 1-619-321-3564

e. mgreco@madcatz.com

Investors

Allyson Vanderford : Interim Chief Financial Officer

t. +1-619-321 3545

e. avanderford@madcatz.com

Joseph Jaffoni, Norberto Aja and Jim Leahy

Jaffoni and Collins Incorporated

t. 212/835-8500 

e. mcz@jcir.com

Track Mad Catz via the following social media:

Facebook® Page:                http://www.facebook.com/MadCatzInc

Twitter® Page:                      http://twitter.com/MadCatzInc

YouTube® Channel:           http://www.youtube.com/MadCatzCompany

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), Eclipse (home and office) and Tritton (gaming 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