S3 Investment Company Comments on Another Completed Round of Financing for Redwood Capital Client Boyuan Construction

DANVILLE, CA, Jul 14 (MARKET WIRE) --
S3 Investment Company, Inc. (PINKSHEETS: SIVC) announced today that
Boyuan Construction Group, a client of its wholly owned Redwood Capital
subsidiary, has completed a non-brokered private placement offering with
gross proceeds of CDN$6,474,000. The net proceeds raised by the offering
will be used to fund new construction projects and for general working
capital purposes.

The private placement offering, effective June 30, consisted of 6,474
Units at a price of $1,000 per unit. Each unit consists of one secured
convertible debenture with a par value of $750, 125 common shares each
with a deemed value of $2.00, 250 warrants to purchase common shares at
$2.00 each for a period of up to four years, as well as 250
non-transferable rights and 250 non-transferable additional rights, each
entitling the holder to receive one share upon exercise of a "Make Good
Provision." The units will be subject to a four-month hold period from
the close of the offering.

Boyuan Construction Group, Inc., which trades on Canada's TSX Venture
Exchange under the symbol BOY, is a leading builder of commercial,
residential and municipal infrastructure projects in China's fast-growing
regions of the Yangtze River Delta and the city of Sanya on Hainan Island.
Boyuan Construction Group also recently reported that it had signed three
new commercial construction project agreements with a total value of US
$33.6 million.

Redwood Capital provides Chinese clients with U.S. corporate finance and
investment banking services and has acted as the China merchant banking
advisor for recent acquisition and reverse takeovers, including the
transaction that brought Boyuan Construction Group to the TSX Venture
Exchange.

"Each new round of financing completed by Boyuan Construction Group
represents another level of success for this client's entry into the North
American capital markets and provides additional benefit to Redwood
Capital," stated Jim Bickel, chairman and CEO of S3 Investment Company,
who recently traveled to China in support of the company's business
interests there. "Boyuan Construction Group continues to exceed our
expectations, and we will continue to provide support wherever possible
as this Redwood client grows as a public company."

About S3 Investment Company, Inc.

S3 Investment Company, Inc. (http://www.s3investments.com) and its wholly
owned Redwood Capital subsidiary are focused on assisting private Chinese
companies in accessing the North American capital markets by utilizing a
network of investment banking relationships to achieve reverse merger
transactions. For more information, please visit
http://www.redwoodcapinc.com.

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.

Contacts
For S3 Investment Company
Gemini Financial Communications, Inc.
(951) 677-8073
Email Contact

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