S3 Investment Company Announces Contract with Queen of the Valley Hospital for Installation of COMPLY Enterprise HIPAA Compliance Solution Product

Business Wire, Dec 10, 2004

TEMECULA, Calif. -- S3 Investment Company (OTCBB:SEIH) today announced that TSPartner has reached an agreement with Queen of the Valley Hospital to implement the Securesoft COMPLY enterprise software solution as the comprehensive HIPAA compliance program for the hospital. The installation and implementation of the COMPLY product will take place over the next two weeks and be performed by the TSPartner technology implementation team headed by Chief Technology Officer Michael Salas.

Chris Bickel, CEO of S3 Investment Company, the parent company of Securesoft, stated, "This installation is a significant milestone in the Securesoft business. After three years of research and development, we have begun the delivery of this special product. Queen of the Valley is the first of five installations that we will work with TSPartner to accomplish by the end of this month. We are confident that the COMPLY product will fill a significant need in the healthcare industry as it is the only truly comprehensive HIPAA solution."

According to Greg Dawson, CEO of TSPartner, "The response to this solution, as a result of our initial sales and marketing effort, has been extremely positive. This response demonstrates the current need for a comprehensive solution for HIPAA and other compliance needs. We are gratified that we are delivering the 'right solution' at the 'right time' to this large marketplace. We are very close to completing contracts for the remaining four hospitals that we committed to deliver as part of our partnership with Securesoft."

Queen of the Valley Hospital is located in West Covina, California. The hospital has more than 500 beds and serves a population of more than 880,000 in the San Gabriel Valley. Queen of the Valley is a comprehensive full-service health care facility, well known for its Family Birth & Newborn Center, with more deliveries than any other healthcare facility in the East San Gabriel Valley.

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 Investments has also acquired 100% of Redwood Capital to participate in the fast-growing investment banking market in China. 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.