S3 Investment Company Announces Shandong Yiteng Chemical as New Reverse Merger Client for Redwood Capital Subsidiary

DANVILLE, CA, Apr 16 (MARKET WIRE) --
S3 Investment Company, Inc. (PINKSHEETS: SIVC), a holding company with
two subsidiaries doing business in the China market, today announced that
Shandong Yiteng Chemical Co., Ltd. has been signed as a new reverse merger
client for its Redwood Capital subsidiary, which assists private Chinese
companies in
accessing the U.S. capital markets through reverse mergers into U.S. public
companies.

Shandong Yiteng Chemical Co., Ltd. (http://www.sdytjt.com), based in China's
Shandong province, is a leading manufacturer of chemicals in China, including
hydroxypropyl cellulose and polyanionic cellulose.

Redwood Capital participated in a recently closed acquisition transaction
involving
Dalian Chuming, a pork processing company that trades in the U.S. as Energroup
Holdings Corporation under the symbol ENHD. As part of the transaction,
Energroup Holdings Corporation, a Nevada corporation, acquired all of the issued
and outstanding capital stock of Precious Sheen Investments Limited ("PSI"), a
British Virgin Islands corporation and parent company of PRC-based Dalian
Chuming.

Redwood Capital was issued 428,095 shares of Energroup Holdings
Corporationas the equity portion of its payment for provided advisory services
for
thetransaction. Institutional and accredited investors participated in a
$17.0 million private placement with Energroup Holdings Corporation,
paying$4.40 per share. At the placement price, the value of Redwood Capital's
equity
position would exceed $1.8 million. At the most recent trading price of
Energroup Holdings Corporation's common stock, the value of the equity position
would exceed $2.1 million.

"The addition of another quality Chinese private company client further
strengthens the position of Redwood Capital and S3 Investment Company in the
reverse merger sector," said S3 chairman and chief executive officer Jim Bickel.

"Our participation in the successful close of the Chuming transaction
significantly increased our profile in China, and we continue to see a
consistent
flow of potential clients for Redwood Capital to consider."

"Redwood Capital now has three active reverse merger clients in China and is
considering several additional candidates. We look forward to future
transaction closings and the significant equity value that they bring to the
company's balance sheet," he added.

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Company when
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About S3 Investment Company

S3 Investment Company, Inc. (http://www.s3investments.com) is a holding
company
with two subsidiaries doing business in the China market. S3 holds a 100%
equity interest in Redwood Capital (http://www.redwoodcapinc.com), which assists
private Chinese
companies in accessing U.S. capital markets by utilizing a network of investment
banking relationships to achieve reverse merger transactions, and a 51% equity
interest in SINO UJE (http://www.sinouje.com), a non-stocking distributor of
medical and industrial high-tech products to markets throughout China.

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.

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

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