Redwood Group International (RDWD)

[snowcloud]

NEWS --

DANVILLE, Calif., Sep 28, 2010 (GlobeNewswire via COMTEX) -- S3Investment
Company, Inc. (Pink Sheets:SIVC) today commented on record financial results
recently filed by Boyuan Construction Group, a client of S3's wholly owned
Redwood Capital subsidiary. The financial results, which report revenue in
excess of $147 million for Boyuan Construction Group in fiscal year 2010,
reinforce the quality of the companies that Redwood Capital signs. Due to the
success and growing profile of Redwood Capital in the China market, S3 intends
to more closely associate itself with the Redwood name through a re-branding e
of the public company.

The financial results for Boyuan Construction Group, for which Redwood Capital
as the Chinese merchant banking advisor when it became listed on Canada's TSX
Venture Exchange, reflect the three- and 12-month periods ended June 30, 2010.
Revenue for the 12-month period ended June 30, 2010, was $147.3 million, up
almos t 45% from $101.7 million for the 2009 fiscal year. Gross profit was up 60%
to $25.5 million and gross profit margins grew to more than 17%. Boyuan also
exceeded its $12.4 million after tax net income target by more than 7%. Revenue
for the three-month period ended June 30, 2010 was $43.7 million, up 6.4% from
$41.1 million for the same period in 2009.

"The importance of these financial results for Boyuan Construction Group is
two-fold," said S3 Investment Company Chairman and CEO Jim Bickel. "First, as a
holder of Boyuan common stock, Redwood Capital benefits from the continued
growth of the company, which recently graduated from the TSX Venture Exchange to
the TSX Exchange. Additionally, the continued success of Redwood Capital
clients, once they have completed the process of going public, demonstrates that
Redwood targets very strong companies that will be successful once they have
entered the North American public markets. This giv es greater confidence to
investors who may participate in the financing transaction that go along with
the public market listings, and provides an excellent example to private
companies in China of how going public in North American can contribute to even
greater future success.

"Because Redwood Capital has been so successful, we are currently implementing a
plan to rename S3 Investment Company to more closely associate it with our
Redwood subsidiaries operating in China. The S3 name came from the company's
past operations and is no longer reflective of either its current businesses or
its tremendous upside potential. We not only have Redwood Capital and our
Redwood Medical subsidiaries, but we are also undertaking an expansion of
Redwood's subsidiary operations to include at least two additional Redwood
businesses.

"There will be more information on the re-branding and subsidiary expansion in
the near future. As a company th at is committed to full transparency as it
grows, we will continue to report our financial information through the OTC
markets system at www.otcmarket.com, where S3 has achieved 'Current Information'
status. This is an ongoing assurance to shareholders that up-to-date financial
information will remain available for their review and that we welcome the
closest scrutiny possible as the public company charts a more ambitious path
forward."

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
privat e 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 news release was distributed by GlobeNewswire, www.globenewswire.com

SOURCE: S3 Investment Company, Inc.


By Staff

CONTACT: &nb sp; CONTACT: S3 Investment Company

Investor Relations

951-200-4107

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INDUSTRY KEYWORD: Business Services

SUBJECT CODE: BANKING

CONSTRUCTION

CORPORATE

&nb sp; Product Services Announcement

Restructuring Recapitalization