S3 Investment Company CEO Comments on Recent Progress of Redwood Subsidiary Businesses

S3 Investment Company, Inc. (PINKSHEETS: SIVC) today issued comment from Chairman and CEO Jim Bickel regarding the recent progress of its wholly owned subsidiary businesses, Redwood Capital and Redwood Medical, both of which operate in the China market.

"The last several weeks have seen important events for both of our operating subsidiaries," stated Mr. Bickel. "Not only have we added additional asset value to our consolidated balance sheet through another successful Redwood Capital project, but we are also positioning Redwood Medical to see the same type of success in future quarters.

"All indications are that China is now and is expected to remain one of the healthiest economies in the world. The World Bank recently raised its forecast for growth in China's economy and many economists have stated that they expect China to lead the world's economic recovery. Operating in the China market provides S3's subsidiaries with opportunities that other companies do not have."

Redwood Capital, which assists private Chinese companies in accessing the North American capital markets through reverse merger transactions and assists Chinese companies that are already listed in the U.S. public markets to raise additional capital, recently announced that a client completed a USD$10 million equity offering. China Infrastructure Construction Corporation, which is listed on the Over-the-Counter Bulletin Board market under the symbol CHNC, is one of the major U.S.-listed providers of ready-mix concrete in Beijing. The financing is twice as large as the amount originally planned and will allow China Infrastructure Construction Corporation to build on its strength as one of Beijing's major ready-mix concrete suppliers. Redwood Capital acted as a financial advisor for the equity offering and will receive cash and CHNC stock as a success fee for its participation.

"We expect to continue building the asset value on S3's consolidated financials through future Redwood Capital client closings," said Mr. Bickel. "Almost as important is that another successful close for a Redwood Capital client further enhances the company's reputation in China's business community and will allow us to raise awareness and build our pipeline of potential clients. Our pipeline is currently strong, but we will highlight the successful financing for CHNC, as well as the continued success of Redwood client Boyuan Construction, in updated Redwood Capital marketing materials. We are currently preparing the next edition of Redwood Capital's newsletter, which is sent to important contacts in China's business and finance communities."

S3 has also announced that its Redwood Medical subsidiary has announced that it has signed an exclusive long-term agreement to distribute the Piccolo xpress testing device developed and manufactured by Abaxis Inc., a U.S. based medical products company manufacturing point-of-care blood analysis systems. The Piccolo xpress product has received approval from China's State Food and Drug Administration, and Redwood Medical will distribute the Piccolo xpress and its disposable discs throughout China. S3's Redwood Medical subsidiary was formed to distribute Western medical technologies and products into China, which is experiencing a growing demand for the highest quality medical products and technologies.

"Abaxis is a first class company and the Piccolo xpress is a product that we believe can have great success in China," Mr. Bickel said. "The medical system in China is another area that is expecting tremendous growth in the coming years. This year, China's government announced a plan to spend more than $120 billion through 2011 on the first phase of a 10-year overhaul of the health-care system. Medical facilities need equipment upgrades and Redwood Medical will be focused on distributing the Piccolo xpress to as many customers as possible.

"Both of our Redwood Capital subsidiaries are performing well, especially considering the lingering challenges in the world economy. As our revenues and asset value grow, we will continue to work to ensure that the true value of S3 is reflected in our stock price, something that management believes is not the case at this point."

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About S3 Investment Company, Inc.

S3 Investment Company, Inc. (http://www.s3investments.com) and its Redwood Group International subsidiary are focused on facilitating the success of two subsidiaries operating in the China market. Redwood Capital, Inc. assists private Chinese companies in accessing the North American capital markets by utilizing a network of investment banking relationships to achieve reverse merger transactions. For more information, please visit http://www.redwoodcapinc.com. Redwood Medical, Inc. assists companies seeking to import and distribute Western medical technologies and products into the China market.

Any statements contained herein related to future events are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on forward-looking statements. S3 Investment Company, Inc. undertakes no obligation to update any such statements to reflect actual events.