Replies to post #1412 on Redwood Group International (RDWD)

[scoobey-do]

Sloth97, Did you get the day off? I will work this weekend to come up with some question and will get them to you on Monday. Have a good weekend. scoob

[scoobey-do]

Sloth, Well I think I got my homework done, finally. Now it is time to go out and have some fun in the sun. lol I hope that you have a safe trip. Will you have to go to work once you get back in town, after the meeting, or will you have time to give us a report on the meeting? It will be interesting to hear about how many other shareholders attended the meeting and their reactions to what has been happening.

Sloth, I will be very happy to hear the answer to any of the following questions. Just put them in any order that suits you:

S3 Investments has requested an additional eight billion shares of authorized common and preferred stock. After the authorized shares are approved, these authorized shares (issued or not) will hang over current shareholders head because there is always the ability on the company’s part to issue the shares for additional capital and later do a reverse stock split. It is said that there are two ways to increase the price of a company’s stock, either by increasing profits or by a reverse stock split.

If S3 determines that the full eight billion are no longer required, will the excess authorized shares be cancelled? If S3 ends up issuing the majority of the eight billion shares, will S3 do a reverse split to lower the number of shares outstanding?

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According to the July newsletter, Equiti-trend was hired to bring additional public awareness to S3 Investments and to enhanced S3’s corporate image. The only difference that current shareholders are aware of, regarding Equiti-trend, is the opportunity to talk to Equiti-trend’s staff about S3 subjects that are already public knowledge.

What other awareness and/or enhancements has Equiti-trend accomplished to increase shareholder’s value?

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On the S3 Investment web site ( http://s3investments.com/ ), it states “the potential of dividends paid by the company to its shareholders.” It goes on to say “Certain portfolio companies may also become candidates for spin-out into the public markets as separate public entities. In this scenario, S3 would receive a stock position in the new public company based on its ownership interest, and S3 shareholders would receive a dividend of stock in the new public entity.”

S3 Investment currently has ownership in Redwood and SINO UJE. Are there plans to spin-out Redwood or SINO in the future? Are there plans to have shares acquired by S3, thought Redwood’s client projects, spin-out to S3 shareholders? What is the basis of the dividend comment in the S3 web site.

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In the June-July newsletter you state that “Sales of Ulrich product are expected to account for over 50% of SINO’s sales in 2006. According to the newsletter, S3 has at least six other SINO supplier, ie)Inter Medical GmbH, Fagus-GreCon Greten GmbH & Co., Weima GmbH, For Life GmbH of Berlin, PLAST-CONTROL, and Process Sensors Corporation.

Does any one of the other six supplier make up a majority of the remaining 50% of SINO’s sales or do they each represent approximately the same amount of supplies? What is the estimated sales of the Ulrich products? What is the Gross margin percentage of the SINO sales?

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S3 shareholders have not received any recent news on the Redwood operations, other than that Redwood closed on the Dalian-Fushi reverse merger project. Financial information on the Dalian-Fushi project have not been released.

Were there any other Redwood reverse mergers far enough along to be able to record progress payments in the June 30, 2006 10-K? Will S3 shareholders receive news on the results of the Dalian reverse merger before the 10-K is issued?

Thanks a lot Sloth. Have a safe trip. We will be waiting for your report. scoob