Mad Catz Completes Previously-Announced Acquisition of Saitek(TM)



    SAN DIEGO, November 21 /CNW/ - Mad Catz Interactive, Inc. (AMEX/TSX:
MCZ), a leading third-party interactive entertainment accessory provider,
announced today that it has completed its previously announced $30 million
acquisition of Saitek, a leading worldwide provider of PC game accessories, PC
input devices, multimedia audio products, chess and intelligent games. Mad
Catz expects the acquisition to be accretive to its fiscal 2008 earnings and
cash flow.

    Commenting on the completion of the transaction, Darren Richardson,
President and Chief Executive Officer of Mad Catz, said, "Saitek immediately
advances Mad Catz' industry position as one of the world's leading games
peripherals companies and provides us with a strong and established presence
in the PC peripherals business. We are excited to move forward with the
combined Mad Catz and Saitek team to profitably grow both the console games
and PC peripherals businesses and, most importantly, to capitalize on the
opportunities our combined capabilities create to meaningfully grow
shareholder value."

    The $30 million purchase consideration was comprised of $15.5 million in
cash from Mad Catz' cash on hand and borrowings under the Company's existing
credit facility, as well as the issuance to the seller by Mad Catz of $14.5
million of convertible notes. The notes bear interest at a rate of 7.5%
payable at maturity and are convertible at the seller's option into common
shares of Mad Catz Interactive, Inc. at $1.42 per share. The conversion price
represents a 15% premium to the average closing price of MCZ shares over the
15 trading days prior to the announcement of the transaction. The notes mature
in two tranches with $4.5 million of the notes maturing in two years and $10
million of the notes maturing in three years.

    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, GameShark and Joytech brands for video game
systems, publishes video game software, including the industry leading
GameShark video game enhancements, and recently began shipping its AirDrives
and AirDrives for Kids interactive earphones. 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.

    About Saitek

    Saitek designs and manufactures consumer electronics products which work
together to improve the user's multimedia, gaming and communications
experiences. Constant innovation, superior technology and a high degree of
functionality make Saitek products the choice of computer users around the
world. The Saitek product range today includes mice, keyboards, headsets, PC
gaming controllers, as well as other PC peripherals. The latest addition is a
new family of innovative and practical audio products designed to improve
users' digital entertainment experiences. For additional information go to
www.Saitek.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; the ability to successfully integrate companies we acquire,
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.




For further information:

For further information: Mad Catz Interactive, Inc. Stewart Halpern,
800-831-1442 Chief Financial Officer OR Jaffoni & Collins Incorporated Joseph
Jaffoni/David Jacoby, 212-835-8500 mcz@jcir.com

Organization Profile

MAD CATZ INTERACTIVE, INC.

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