S3 Investment Company Reaches Financing Goals and Discontinues Further Capital Raising

Business Wire, March 3, 2005

TEMECULA, Calif. -- S3 Investment Company (OTCBB:SEIH) today announced that the Company has raised sufficient capital to meet its short term needs and has discontinued its equity financing activity with the Company's investment partner for the foreseeable future.

Chris Bickel, Chairman and Chief Executive Officer of S3 Investment Company, commented, "With the unwinding of the TSPartner acquisition and the resulting elimination of an $80,000 per month cash drain on the Company's books, management decided to indefinitely suspend further capital raising. We have curtailed spending and have sufficient capital on hand to satisfy our existing obligations, liabilities and litigation. We have always been cognizant that it is in the best interest of both the Company and its shareholders to raise as little money as was necessary to fund operations and grow our subsidiary businesses. Were it not for the tremendous liabilities inherited from previous management, much less capital would have been required to finance the Company and still foster growth in its subsidiaries.

"Neither SINO UJE nor Redwood Capital requires anywhere near the funding that TSPartner did, and we expect both of these entities to be cash flow positive in a very short period of time. The financing we have completed provides sufficient breathing room while we assist these two subsidiaries to build revenues and increase value for our shareholders. We will also continue to find ways to develop and distribute the COMPLY product, specifically in the form of partnering, non-equity opportunities, which will therefore not impact the Company's cash needs. Of course, we will still react as the business environment dictates and may in the future raise additional capital with the goal of adding real value to S3 Investment's portfolio."

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 to participate in the fast-growing investment banking market in China and 51% of SINO UJE, 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.