Contact:
Morris Perlis
GTR Group Inc.
905-799-4700 x239

mperlis@gtrgroup.com

FOR IMMEDIATE RELEASE

Brampton, Ontario - August 9, 2001 - GTR Group Inc. (TSE: GTR, AMEX: GIG), a leading interactive entertainment company, announced today financial results for the first quarter ended June 30, 2001. GTR is the parent company of Mad Catz, a San Diego-based company, which designs, develops and markets a full range of accessories for video game consoles and PC gaming systems.

Mad Catz as a "Pure Play"
This quarter marks the first time that Mad Catz business results can be seen as a "pure play." As previously announced, GTR Group sold its value-priced video game inventory to GameStop Inc. and has disposed of all significant assets not directly related to its Mad Catz business. Reflecting this realignment, these financial results are comprised of the Mad Catz business and GTR Group overhead.

Also as part of this strategy and to help ease the understanding of the Mad Catz business, beginning with this quarter, all financial results will be reported in U.S. dollars.

GTR Group First Quarter Net Sales Increase 164%
(All amounts are in U.S. dollars)

Net sales from continuing operations for the first quarter ended June 30, 2001 increased 164% to $14.0 million, as compared to net sales of $5.3 million for the same period last year. Gross profit for the quarter was $3.4 million, or 24.2% of net sales, as compared to $1.5 million, or 27.8% of net sales, for the same period a year ago.

Accompanying a solid sales performance, EBITDA from continuing operations increased to $401,000 from a loss of $609,000 for the same period year ago. Sales and marketing expenses were $1.7 million, or 11.8% of net sales, as compared to $0.8 million, or 14.3% of net sales, for the same period last year. Administrative and engineering expenses for the period remained flat as compared to the previous year despite increased sales and the launch of the GameBoy Advance products. Net income before taxes and goodwill for the quarter was $19,000, or $0.00 per share, as compared to a net loss of $897,000, or $0.02 per share, for the same period in fiscal 2001.

There was no negative financial impact for the quarter from discontinued operations as compared to a $1.2 million loss for the quarter in fiscal 2001. GTR Group net loss after taxes and goodwill charges for the quarter was $0.3 million, or $0.01 per share, as compared to a net loss of $1.9 million, or $0.05 per share, in the first quarter of fiscal 2001.

Management Perspective and Analysis
Commenting on the results, Morris Perlis, President and CEO of GTR Group Inc., said, "We are very pleased with our record first quarter results. Typically, this is the weakest quarter of the year for Mad Catz and the industry as a whole. However, the growth in industry sales during the first fiscal quarter, by 47% according to the leading industry analyst, indicates that the industry is poised for a period of strong growth for the foreseeable future. Our record results demonstrate that not only are we participating in this industry trend, but that our market share is increasing as well. This performance validates our strategic decision to focus our resources behind the Mad Catz brand."

Mr. Perlis added, "We are aggressively managing our expense levels as demonstrated by the fact that we have held administration expenses to the same levels as last year. Traditionally, sales and marketing expenses are at their highest levels in the first quarter. However, as a percentage of sales, they are significantly lower than last year."

"Gross margin was below a year ago due to a very favorable product mix in the year ago period. However, at 24.2%, gross margin was significantly higher than the previous quarter at 18.5% and total fiscal year 2001 at 22.3%. Our expectations are that margins will remain strong for the remainder of the year. The first quarter also saw a strengthening of all aspects of the balance sheet."

Mr. Perlis continued, "During the quarter we received a strong vote of confidence from our largest shareholder when we announced that the Company has reached an agreement with its Board Chairman, Pat Brigham, allowing GTR Group to convert its subordinated debt to equity."

Reflecting on the achievements made by Mad Catz during the quarter, Darren Richardson, President and COO of Mad Catz stated, "Our complete line-up of accessories continued to do well. The increasing demand for and availability of PS2 and the robust launch of Game Boy Advance made for a quarter that exceeded our ambitious expectations.

"The potential opportunities for Mad Catz with regard to current and future platforms - Nintendo's recently launched GameBoy Advance, the upcoming launch of Nintendo's GameCube and Microsoft's Xbox - combined with the increased availability of PS2, should continue to drive overall demand and push Mad Catz' sales forward for the remainder of the year," he concluded.

About GTR Group
GTR Group Inc. (www.gtrgroup.com) is a leading interactive entertainment company and the parent company of Mad Catz, Inc. which designs, develops and markets a full range of accessories for video game consoles and PC gaming systems. Mad Catz is a worldwide leader of innovative peripherals in the interactive entertainment industry. Headquartered in San Diego, California, Mad Catz has offices in the U.S., Canada and Asia, as well as distributors in Europe, South America, Mexico, Australia, New Zealand, the Middle East, and Japan.

This press release contains forward-looking statements that involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are market and general economic conditions. Risk factors are detailed from time to time in the Company's periodic reports and registration statements are filed with the Securities and Exchange Commission.

GTR Group Inc.

Consolidated Balance Sheets
Expressed in United States Dollars
As at June 30, 2001 and March 31, 2001

Cash
Accounts receivable
Inventories
Prepaid expenses and deposits
Current portion of future income tax ssets
Income tax receivable

LIABILITIES and SHAREHOLDERS' EQUITY

Current liabilities:

Bank Loan
Accounts payable and accrued liabilities
Subordinated Debt

Future tax liability

Shareholders' equity

Capital stock
Retained deficit
Cumulative transition adjustment

GTR Group Inc.

Consolidated Statements of Operations - Unaudited
Expressed in United States Dollars

GTR Group Inc.

Notes to consolidated financial statements

Note 1

BASIS OF PRESENTATION AND DISCONTINUED OPERATIONS

The unaudited interim period consolidated financial statements as at June 30, 2001, have been prepared by the Company in accordance with Canadian generally accepted accounting principles for interim financial statements and do not include all information required for complete financial statements. The preparation of financial data is based on accounting policies and practices consistent with those used in the preparation of the audited annual consolidated financial statements, except as noted in Note 2. The accompanying unaudited consolidated financial statements should be read in conjunction with the notes to the Company's audited consolidated financial statements for the year ended March 31, 2001.

These unaudited interim consolidated financial statements reflect all adjustments, all of which are normal and recurring adjustments, which are, in the opinion of management, necessary for a fair presentation of the respective interim periods presented.

The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, 1328158 Ontario Inc. ("GTI"), Xencet Massachusetts Inc., Xencet U.S. Inc., Singapore Holdings Inc., Spoxt Pte Ltd., Mad Catz Inc. and Mad Catz (Asia) Limited.

During the year ended March 31, 2001 the Company adopted a formal plan to dispose of the assets and business operations of its GTI (previously played video game business) and ZapYou.com (internet distribution) business units. The Company is currently actively engaged in searching for a buyer for its ZapYou.com business unit. For this purpose the Company has hired a consultant to find a suitable buyer. It is anticipated that all assets of the GTI and ZapYou.com business units will be disposed of by August 31, 2001. During the period ended June 30, 2001 the Company recorded a net loss of nil (2000 - net loss of $1,186,538) net of income taxes of nil (2000 - income taxes of nil) in respect of GTI and ZapYou.com. Net sales applicable to GTI and ZapYou.com during the periods presented were $1,356,781 (2000 - $1,878,434). The assets of the GTI and ZapYou.com business units have been written down to their estimated net realizable value. The consolidated balance sheets include the following assets related to discontinued operations:

$ 729,622
1,125,190
571,771
107,766

$ 2,534,349

$ 4,647,765

$ 3,086,805

$ 4,556,204

The Company has adopted the United States dollar as its reporting currency for its financial
statements, commencing April 1, 2001. Comparative figures previously reported in Canadian dollars
have been translated at the exchange in effect on March 31, 2001.

The United States dollar is the functional currency of the Company’s United States operations. The Canadian dollar is the functional currency of the Company’s Canadian operations, which are translated to United States dollars using the current rate method.

Note 3
SEGMENTED DATA

The Company's sales and capital assets are attributable to the following countries:

$19,361,070

$19,262,707

Note 4

SUBSEQUENT EVENT

Subsequent to the period ended June 30, 2001, the Board Chairman, Pat Brigham, agreed to convert his outstanding loan to the Company of $3,338,719 into 4,247,478 shares of the Company's common stock at a price of Canadian $1.218 per share.

FOR FURTHER INFORMATION PLEASE CONTACT: GTR Group Inc., Morris Perlis, (905) 799-4700 Ext. 239, mperlis@gtrgroup.com, or, Adam Friedman Associates, Peter Casey, (212) 981-2529 Ext. 14, peter@adam-friedman.com

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