S3 Investment Company Releases August 2005 Investor Newsletter

Business Wire, August 8, 2005

TEMECULA, Calif. -- S3 Investment Company (OTCBB:SEIH) today released its August 2005 investor newsletter, which can be viewed on the company website at www.s3investments.com/newsletter.asp. A text-only version will be sent out electronically to those subscribed to the company's email alert system.

This month's issue includes a review of the noteworthy events in the month of July, including portfolio investment company SINO UJE, Ltd. surpassing $1 million in gross revenue for SINO through the first half of the calendar year. These numbers include a particularly strong performance in the second quarter of the calendar year.

Also featured is an article on DALIAN FUSHI Bimetallic Products, Ltd., an investment banking client of portfolio company Redwood Capital, embarking on a three-week road show in the United States to introduce DALIAN FUSHI to key investment contacts. The primary purpose for the road show was to allow DALIAN FUSHI management to meet with small cap and micro cap fund managers in the U.S. that are targets to fulfill the PIPE (Private Investment in Public Equity) financing that is part of the reverse merger/financing process. The road show included presentations in New York City, Boston, Dallas, Denver, Chicago, Los Angeles and San Francisco.

The newsletter discusses Redwood Capital initial investment banking agreement with Xingye Copper, which has now progressed further, with a definitive agreement anticipated in the coming days.

S3 Investments' chairman and chief executive officer, Chris Bickel, commented, "Upon my return from China, I expect to take the first opportunity to discuss recent events and the ongoing activities of our portfolio investments. I look forward to bringing S3 shareholders up to speed on the Company's current status and highlighting the increased value we expect as our subsidiaries continue to grow."

Anyone interested in receiving future newsletters directly by email can subscribe at www.s3investments.com/mailinglist.asp.> About The Company

S3 Investment Company Inc. (http://www.s3investments.com) 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. S3 Investments has subsequently acquired 100% of Redwood Capital (http://www.redwoodcapinc.com) to participate in the fast-growing investment banking market in China and 51% of SINO UJE (http://www.sinouje.com), a non-stocking distributor of medical and industrial high-tech products to markets throughout 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.

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.