Mad Catz Gets V Max Simulation Corporation Assets

Mad Catz Interactive, announced today that it has acquired the assets of V Max Simulation Corporation (“V Max”), a privately-owned, California-based provider of flight simulation services. V Max designs, constructs, integrates, and operates flight simulation equipment and develops flight simulation software.

This is certainly an effort to continue their large flight simulation equipment work that is headed by the Saitek brand.

Total consideration for the assets purchased includes (i) $378,000 in cash at closing ($170,000 of which will be used to finish 4 fighter jet simulators that will generate revenue on a pay to use basis in “Fightertown,” a Southern California-based flight simulation center) and (ii) $260,000 in Mad Catz common stock, valued at the closing price on February 23, 2011. In addition, for fiscal years 2012 through 2016, Mad Catz will pay a commission equal to 5% of the profits generated from a discrete slice of the fighter flight simulation business to David Kinney, V Max’s President and Founder.

Mr. Kinney will join Mad Catz as Vice President, Flight Simulation, to expand its position as a leader in the flight simulation category. Mad Catz, through its Saitek simulation brand, creates high-end, flight simulation accessories and peripherals for the worldwide PC-based gaming market. As an addition to the Saitek flight simulation hardware business, Mr. Kinney will oversee the development of PC simulation software and the creation of a fighter pilot flight community that will allow flight simulation enthusiasts to experience the thrills of being a fighter pilot.

Darren Richardson, President and Chief Executive Officer of Mad Catz, commented, “With this acquisition, Mad Catz strengthens and diversifies its Saitek simulation brand and offerings. Saitek is known for its realistic, high-end simulation products and the hiring of David Kinney to develop software and a dedicated community to complement our hardware is the natural next step in our strategy to further leverage the know-how and potential of this brand.”