Redwood Group International (RDWD)

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SIVC NEWS --

DANVILLE, Calif., May 17, 2010 (GlobeNewswire via COMTEX) -- S3 Investment
Company, Inc. (PinkSheet s:SIVC) today announced the signing of a new client for
its wholly owned Redwood Capital subsidiary, which acts as the Chinese merchant
banking advisor to its client as they pursue public listings and additional
financing in the North American capital markets. The new client is a retail
drugstore operator and medicine wholesale operator in western China.

Redwood Capital's new client has an integrated business chain ranging from
medicine manufacturing to medicine distribution to retail sale, with a
well-built brand name. The client's core product has ranked No.1 for several
years in China in its category of products and has a well-built market network
with more than 1,500 directly operated or franchised drugstores in just one
province. It has exclusive supply rights to products for over 1,800 healthcare
and medical institutions and distribution rights to healthcare and medical
institutions in one major and several secondary cities. The company,
headquartered in a superior geographic location with one of the largest drug
materials bases in China, also has highly experienced management and
professionals.

As a country with one fourth of the world population, the pharmaceutical
industry is an extremely important sector of China's national economy. With the
increasing demand in domestic market, China possesses one of the most rapidly
developing pharmaceutical markets in the world.

S3 expects to provide additional information about this client in future news
releases.

"We are pleased to announce another new Redwood Capital client and look forward
to the opportunity to bring this company to the North American capital markets,"
said S3 Investment Company Chairman and CEO Jim Bickel. "Redwood Capital's
management team continues to identify, conduct due diligence on, and bring under
contract high quality client companies that are judged to have significant
pot ential as public companies, and this new client is no exception. The
pharmaceutical market in China is large, and all signs point to higher rates of
growth as the demand for quality healthcare for a growing middle class increases
in most areas of the country."

S3 Investment Company also recently posted its Company Information and
Disclosure Statement for the period ended March 31, 2010 at www.otcmarkets.com.
The filing, which reports the value of the stock payments that Redwood Capital
receives from its clients' transactions, will allow S3 to maintain its "Current
Information" status at the OTC Markets site.

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.

This n ews release was distributed by GlobeNewswire, www.globenewswire.com

SOURCE: S3 Investment Company, Inc.


By Staff

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INDUSTRY KEYWORD: Business Services

SUBJECT CODE: BANKING

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