SOURCE: S3 Investment Company

May 23, 2006 09:20 ET

S3 Investment Company Announces Third Quarter Results in 10-Q Filing

Consolidated Financial Results to Be Included in Upcoming 2006 Annual Report

TEMECULA, CA -- (MARKET WIRE) -- May 23, 2006 -- S3 Investment Company, Inc. (OTCBB: SEIH), a holding company with two subsidiaries doing business in the China market, has filed its quarterly report with financial results for the third fiscal quarter of 2006, which is the last period that S3 will report as a business development company (BDC). As a result of the withdrawal of its election to be regulated subject to the Investment Company Act of 1940, S3's future reports will include consolidated financial information on the company's two subsidiaries: SINO UJE, Ltd. and Redwood Capital, Inc.

"We look forward to presenting our shareholders with a more comprehensive picture of S3's position with the inclusion of detailed financial information on SINO UJE and Redwood Capital in our upcoming annual report," said chief executive officer Jim Bickel. "S3 provided critical resources to these subsidiary companies while it operated as a business development company and now looks forward to facilitating more significant growth and long-term value for shareholders."

For the three months ended March 31, 2006, S3 reported total assets of $1,128,268 (unaudited), compared to total assets of $920,503 (audited) for the period ended June 30, 2005. The increase in total assets was due to additional loans made to portfolio companies SINO UJE and Redwood Capital since the end of the 2005 fiscal year. The investments and loans made to SINO UJE and Redwood Capital are valued at a total of $1,124,889 as of the end of the period.

"We are currently working to increase the revenue potential of SINO UJE by expanding its relationships with premier western high tech equipment suppliers and increasing its distribution network in the steadily growing China market. Already profitable, SINO UJE is poised for even more significant growth in the coming fiscal quarters. We look forward to successfully executing a strategy that will maximize the long-term value of both of our subsidiary companies for the benefit of S3 shareholders," added Mr. Bickel.

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About The Company

S3 Investment Company, Inc. (http://www.s3investments.com) is an operating company with two subsidiaries doing business in the China market. S3 holds a 100% equity interest in Redwood Capital (http://www.redwoodcapinc.com), which assists private Chinese companies in accessing U.S. capital markets by utilizing a network of investment banking relationships, and a 51% equity interest in SINO UJE (http://www.sinouje.com), a non-stocking distributor of medical and industrial high-tech products to markets throughout China.

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.

Contact Information

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