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Collector’s Edition Includes the Saitek® Pacific AV8R™ FlightStick

San Diego– August 29, 2012– Mad Catz Interactive, Inc. (“Mad Catz”) (NYSE MKT: MCZ), announced today the shipping of? Damage Inc. Pacific Squadron WWII?(“ Damage Inc.”),?an exciting new air-combat game published by Mad Catz and available for the Xbox 360 ??video game and entertainment system from Microsoft, the PlayStation ?3 computer entertainment system from Sony ??and Windows PC.

Damage Inc. ?is part of our strategy of publishing key software titles which complement our hardware business.” said Darren Richardson, President and Chief Executive Officer of Mad Catz.?“We believe that when partnered with the? AV8R ? FlightStick , Damage Inc. , presents a unique gaming experience that will resonate with passionate gamers.”

Damage Inc. Pacific Squadron WWII ?takes place exclusively over the WWII Pacific Theatre, placing the gamer at the controls of more than 30 historically accurate aircraft as they fight for control of the skies following the attack of Pearl Harbor.? A robust single player campaign is complemented by extensive multi-player options, including four player campaign co-op and unique‘Scratch One Flat-Top’ mode which sees teams of up to four players attempt to destroy their opponents’ aircraft carrier while protecting their own.

Available in both standard and Collector’s Edition configurations (Xbox 360 and PS3 ™?only), the Collector’s Edition includes the game and the? Pacific AV8R? FlightStick, a WWII combat aircraft inspired flight stick controller, vintage nose art decal kit, and exclusive DLC Reaper Corsair fighter plane DLC.

Additional information is available at: http://www.damageincthegame.com

About Mad Catz

Mad Catz Interactive, Inc. (“Mad Catz”) (NYSE MKT: MCZ) is a global provider of innovative interactive entertainment products marketed under its Mad Catz ??(gaming),? Tritton ??(audio), and Saitek ??(simulation) brands.? Mad Catz also develops flight simulation software through its internal ThunderHawk Studios™; operates flight simulation centers under its Saitek brand; publishes games under its Mad Catz brand; and distributes games and videogame products for third parties.? Mad Catz distributes its products through most leading retailers offering interactive entertainment products and has offices in North America, Europe and Asia.? For additional information please go to? www.madcatz.com.

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This product is manufactured under license from Microsoft Corporation.? Microsoft, Kinect™ for Xbox 360?, Xbox, Xbox LIVE? online entertainment network, Xbox 360, and the Xbox logos are trademarks of the Microsoft group of companies.

Safe Harbor

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.


Mad Catz Interactive, Inc.

Mad Catz Communications:

Alex Verrey

Global PR and Communications Manager

averrey@madcatz.com?or??+44 (0) 1908 336 538

Investor Relations:

Joseph Jaffoni, Norberto Aja, Jim Leahy


mcz@jcir.com?or??+1 (212) 835 8500????

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