Redwood Group International (RDWD)

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NEWS --

DANVILLE, Calif., Oct 5, 2010 (GlobeNewswire via COMTEX ) -- S3 Investment
Company, Inc. (Pink Sheets:SIVC) today announced that as part of the expansion
of the company's subsidiary operations in China, a Redwood office has been
established in Hong Kong. The new office will provide the company's Redwood
subsidiaries another location in Asia to support the ongoing expansion of
operations, including the work of its private equity fund, The Redwood Asia
Fund, LP.

"Hong Kong is a vitally important market for Asian and global investment, and we
are pleased to have established a physical presence for The Redwood Asia Fund in
that city," said S3 Investment Company Chairman and CEO Jim Bickel. "The Hong
Kong office is another positive step in the expansion of our Redwood subsidiary
operations in China and other Asian markets. With offices in Beijing, Hong Kong,
Ulaanbataar, Mongolia, and the United States, Redwood has the capabilities to
provide services to an expanding client base. Our focus on Redwood Capital, The
Redwood Asia Fund, and Redwood Medical also provides us with the impetus to
undertake the planned re-branding of S3 under the Redwood name. We expect to
announce the specifics of this initiative very shortly."

S3 recently posted its Annual Report for the period ended June 30, 2010 to the
OTC Markets website at www.otcmarkets.com. By posting the Annual Report within
the required timeframe, the Company has maintained its "Current Information"
status through the site.

The Annual Report included updates on the activities of the company's
subsidiaries operating in Asia, including: Redwood Capital's work on behalf of
its current clients and the strengthening of its pipeline of additional
projects; Redwood Medical's progress in securing additional regulatory approvals
for the first product it will distribute in the China market; and the launch of
The Redwood Asia Fund. The report also provides additional details o n the
workings of the Fund, which carries a two percent management fee and twenty
percent carry and is designed to seek portfolio investments of
small-medium-enterprises (SMEs) or formerly state-owned enterprises (SOEs) from
Redwood Capital, Inc. and through established sources within China. The fund
will provide viable exit strategies for its portfolio companies through Redwood
Capital, Inc.'s network of partnerships such as investment banks, through either
an APO (Alternative Public Offering) or an IPO (Initial Public Offering).
Additional information on the Fund's goals, characteristics of its targeted
portfolio companies and targeted market sectors and subsectors are included on
page 6 of the Annual Report.

"I encourage all shareholders to read our posted Annual Report," said Mr.
Bickel. "It provides more detailed information on all of our subsidiary
operations, which is where the Company's revenues and assets are generated. The
ongoing expansion of our subsidiary structure is providing Redwood with more
opportunities in China and the other markets where these companies will operate,
and we look forward to announcing additional information as the expansion
continues."

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 several
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, ple ase 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: CONTACT: S3 Investment Company

Investor Relations
951-200-4107

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