Chris Bickel, Chief Executive Officer and Chairman of S3 Investment Company,
commented, "China is the fastest growing economy in the world and has been for
over 25 years. Redwood Capital services a nice niche in China by working with
private Chinese companies to allow them access to U.S. capital markets. The
management of S3 Investment has extensive experience in China, making this
acquisition an excellent match for the Company and for Redwood Capital, Inc."

Mr. Bickel has over 15 years experience both working and living in China where
he established worldwide distribution for a number of products, set up direct
offices for sales and marketing initiatives and cultivated an extensive network
of business contacts.

"China's growth demands access to capital for private companies that lack
funding resources in China, since state-owned companies have priority. It is the
opposite of the way our free market systems work in the West. Private Chinese
companies are now accessing foreign capital at all-time high levels, and the
number of companies seeking this type of financing is growing rapidly. The
acquisition of Redwood Capital is expected to allow S3 Investment to play a role
in this market and to do it immediately," added Mr. Bickel.

S3 Investment anticipates benefiting in the short, medium and long term from
this cash positive business and expects to leverage management's experience in
China, the fastest growing economic market in the world, to find investment
value and grow the Company's investment portfolio.

Company Profile

S3 Investment Company, Inc. (http://www.s3i.us) is a Business Development
Company regulated by the Investment Company Act of 1940. Its first operating
subsidiary, Securesoft Systems, Inc. (http://www.securesoftsystems.com) was
acquired in April 2003 and is a leader in compliance and risk management
software, services and Internet technologies for regulated industries. S3 is
currently seeking to acquire additional synergistic companies and is focused on
assembling a portfolio of investments that will provide value to its
shareholders.

S3 Investment Company Completes Acquisition of Redwood Capital

TEMECULA, Calif., Nov. 4, 2004 (PRIMEZONE) -- S3 Investment Company (OTCBB:SEIH) today announced that it has completed the acquisition of Redwood Capital in a stock-for-stock transaction. All outstanding shares of Redwood Capital were acquired by S3 Investment Company in exchange for 12,000,000 shares of S3 Investment Company stock. Under terms of the agreement, the 12,000,000 shares of S3 Investment stock are 144 restricted and cannot be sold into the market for a minimum of two years.

Chris Bickel, Chief Executive Officer and Chairman of S3 Investment Company, commented, "Redwood Capital is a perfect opportunity for S3 Investment Company to participate in the fast-growing investment banking market in China. Private Chinese companies need foreign capital to fuel their growth, and this need is real on a macro level where the Chinese economy relies more and more on foreign capital to fuel the country's economic growth. China's GDP growth has a 26-year track record of expansion and has averaged over 9% annual growth during this period. As China's economy matures, this need becomes more apparent."

S3 Investment Company now expects to work aggressively to meet the capital needs of private Chinese companies by providing access to U.S. capital markets through private placements, public capital markets and reverse mergers. Redwood Capital has a core group of management that has extensive experience in China providing investment services. Redwood Capital has direct offices and employees in China and relies on a wide network of clients and business contacts to source the investment opportunities that Redwood and S3 Investment Company will now focus on together. Growth and profitability are our company's goals and are the only solid ways to build shareholder value.

"During the course of our efforts to expand the S3 Investment Company business, we are careful to explore potential acquisitions that can allow short-term positive cash flow, have limited impact on our capital resources, are in significant growth industries, and have active management that will look to S3 Investment Company as the path to expansion and profitability. Redwood Capital is an ideal candidate for this acquisition and growth strategy and the existing management has agreed to a two-year lock up period for the S3 Investment Company stock that is the currency of this acquisition. With this type of cooperative effort and shared stake in the future of S3 Investment Company, building shareholder value is the highest priority, and as S3 Investment Company benefits, so does the current management of Redwood Capital," added Mr. Bickel.

Company Profile

S3 Investment Company, Inc. (http://www.s3i.us) is a Business Development Company regulated by the Investment Company Act of 1940. Its first operating subsidiary, Securesoft Systems, Inc. (http://www.securesoftsystems.com) was acquired in April 2003 and is a leader in compliance and risk management software, services and Internet technologies for regulated industries. S3 is currently seeking to acquire additional synergistic companies and is focused on assembling a portfolio of investments that will provide value to its shareholders.

This release contains forward-looking statements which involve a number of risks and uncertainties, which could cause actual results or events to differ materially from those presently anticipated. Such statements are based on currently available information which management has assessed but which is dynamic and subject to rapid change due to risks and uncertainties that affect our business, including, but not limited to, the impact of competitive products and pricing, limited visibility into future product demand, regulatory interpretation, and other risks detailed from time to time in the company's filings with the Securities and Exchange Commission.