Articles

January 23, 2003

News Release: Mad Catz Acquires Industry Leading GameShark Brand From Interact For $5 Million; Acquisition Will Ensure Continuity of Supply

Mad Catz Interactive, Inc. (AMEX/TSE: MCZ), the world's leading third party video game accessory manufacturer, announced today that, effective immediately, it has acquired the rights to the GameShark brand and the www.gameshark.com web site URL from InterAct, a subsidiary of Recoton Corporation (Nasdaq: RCOT) for $5 million (U.S. dollars).

GameShark is the industry leader in video game enhancement software, which enables players to take full advantage of the secret codes, short cuts, hints and cheats incorporated by video game publishers into their game offerings. In the twelve month period ended December 31, 2002, GameShark generated revenues in excess of $30 million. Mad Catz anticipates shipping GameShark products powered by an extensive range of software cheats and hints in March, ensuring continuity of supply at retail locations. The Company has also assumed the management of the highly popular GameShark web site, one of the highest traffic gaming sites on the Internet.

Commenting on the acquisition, Morris Perlis, Mad Catz Interactive, President and CEO, noted, "The GameShark acquisition is attractive and significant to Mad Catz for several reasons. First, it enables us to increase the breadth of high-quality offerings available to leading retailers and the gaming community. Second, it further strengthens our position as the leading third party accessories provider in the world, as GameShark is one of the most popular interactive entertainment accessories among consumers. Finally, we believe the acquisition supports our goals for margin enhancement and financial growth. We are delighted to welcome GameShark to the Mad Catz family of products."

Darren Richardson, President and COO of Mad Catz Inc., added, "GameShark is an excellent strategic fit with Mad Catz as it is the undisputed brand leader in video game enhancements and will benefit from our position as the leading third party designer, manufacturer and distributor of video game accessories. In addition, the GameShark.com web site provides Mad Catz with a significant marketing vehicle which reaches a highly targeted gaming audience. We look forward to developing and offering new GameShark products which extend the solid reputation of the brand while incorporating the same level of innovation, value, design, and quality to our new video game enhancement offerings, that have made Mad Catz the category leader in third party accessories."

About GameShark

Introduced by Recoton in 1995, GameShark has enhanced the video game experience for millions of gamers by enabling them to access secret codes, short cuts, hints and cheats in thousands of video games on numerous platforms. The GameShark web site is one of the most popular sites on the Internet for video gamers

About Mad Catz Interactive, Inc.

Mad Catz Interactive, Inc., (www.madcatz.com), designs, develops, manufactures and markets a full range of high quality, competitively priced accessories for video game consoles and portables. Mad Catz is a worldwide leader of innovative peripherals in the interactive entertainment industry, with distribution through nine of the top ten U.S. retailers offering interactive entertainment products. With operating headquarters in San Diego, California, Mad Catz has offices in Canada, the U.K. and Asia, as well as distributors in Europe and Australia.

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," "plan," "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 our current products; first party price reductions; the ability to successfully market both new and existing products domestically and internationally; difficulties or delays in manufacturing; market and general economic conditions. 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.

Mad Catz Interactive, Inc., San Diego
Darren Richardson
(619) 683-9830
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or
Jaffoni & Collins Incorporated, New York
Nathan Ellingson or Joseph Jaffoni
(212) 835-8500
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