Redwood Group International (RDWD)

[snowcloud]

NEWS --

DANVILLE, CA, Jan 25, 2010 (MARKETWIRE via COMTEX) -- S3 Investment
Company,
Inc. (PINKSHEETS: SIVC) today announced the current stock holdings of
its wholly
owned Redwood Capital subsidiary, which appear on the company's
consolidated
financial reports that are posted on the Pink Sheets OTC Disclosure and
News
Service. The totals include all common stock shares currently held,
regardless
of whether they are currently free trading. The value of those shares
fluctuate
based on the daily trading price of each respective stock.

Redwood Capital assists private Chinese companies in accessing the North
American capital markets by utilizing a network of investment banking
relationships to achieve reverse merger transactions and in accessing
additional
funding through equity offerings. As part of the compensation for its
services,
Redwood Capital receives client company stock, which forms the basis for
the
company's asset portfolio.

As of S3's last filed financial report, for the period ended September
30, 2009,
the majority of Redwood Capital's holdings were in the form of the
common stock
of three recent client companies, Energroup Holdings Corporation, listed
on the
Over-the-Counter Bulletin Board under the symbol ENHD; Boyuan
Construction
Group, listed on Canada's TSX Venture Exchange under the symbol BOY; and
China
Infrastructure Construction Corporation, listed on the Over-the-Counter
Bulletin
Board under the symbol CHNC.

The ENHD position of 327,278 shares has a current value of $1,112,745.20
based
on the closing price of $3.40 on Friday, January 22, 2010.

The BOY position of 691,203 shares has a current value of $2,267,145.84
based on
the closing price of $3.28 on Friday, January 22, 2010.

The CHNC position of 92,468 shares has a current value of 559,431.40
based on
the closing price of $6.05 on Friday, January 22, 2010. CHNC recently
traded as
high as $7.50, which would put the value of the position at almost
$700,000.

Taken together, the total value of these stock positions was
approximately $4
million, as of the close of trading on Friday, January 22, 2010.

"Despite very challenging market conditions in 2009, Redwood Capital was
able to
participate in the close of two additional client transactions, adding
significant value to its stock holdings," stated S3 Investment Company
Chairman
and CEO Jim Bickel. "No one has to wonder if the S3 business model is
working --
the proof is in the value of the assets held by Redwood Capital, and as
additional client transactions are closed, we expect the asset value to
continue
to grow. While the value of the holdings will change based on trading
price of
the client's stock on any given day, we believe that all of our recent
clients
are strong companies that will continue to grow as they did in 2009. As
they
reach their respective operations milestones and their revenues
increase, the
value of our holdings may become even more valuable."

"The asset value already shown on our consolidated financials, as well
as the
value we expect to be created in our Redwood Medical subsidiary, forms
the basis
for a legitimate per share valuation for S3 stock, which we believe
would be
significantly higher than where our stock currently trades," Mr. Bickel
added.

As noted in S3's financials posted at www.pinksheets.com, a portion of
the
Redwood Capital stock holdings may be used as collateral or otherwise
committed.
These shares will continue to be owned by the company until they are
required to
be surrendered in lieu of cash or other compensation. For more details,
please
see the financial filings.

To sign up to receive information by email directly from S3 Investment
Company
when new press releases, investor newsletters, SEC filings or other
information
is disclosed, please visit http://www.s3investments.com/investors/.

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.





Contacts:

For S3 Investment Company

Gemini Financial Communications, Inc.

951-200-4107

Email Contact





SOURCE: S3 Investment Company




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SUBJECT CODE: Financial Services:Commercial and Investment Banking

Financial Services:Venture Capital

Pharmaceuticals and Biotech:Equipment and Supplies

Medical and Healthcare:Surgery and Treatments

Medical and Healthcare:Medical Devices



Source: Comtex Wall Street News