TEMECULA, Calif., Nov. 8, 2004 (PRIMEZONE) -- S3 Investment Company (OTCBB:SEIH) today announced the signing of a two-year, $10 million Distribution Agreement with TS Partner, a leader in healthcare information technology, for distribution of Securesoft Systems' HIPAA compliance products and services. Under the terms of the agreement, TSPartner will serve as the master distributor of the Securesoft products for the healthcare industry. A photograph of representatives of both companies taken shortly after the signing has been posted at http://www.s3i.us/othermedia.asp.
This agreement will be among the topics discussed in S3 Investment Company's market conference call for shareholders on Wednesday, November 10, 2004 at 1:00 P.M. Eastern Standard Time. Individuals interested in participating should call 1-800-441-0022 at that time and reference S3Investment Company. A photograph of representatives of both companies taken shortly after the signing has been posted at http://www.s3i.us/othermedia.asp
Chris Bickel, Chief Executive Officer of S3 Investment Company, commented, "This is a significant milestone for S3 Investment Company and a critical step towards the path to growth and profitability. The company has spent a great deal of time and resources on the Securesoft products, and the culmination of this work is the ability to market and sell the product. With the signing of this agreement, we expect to begin realizing revenues in the first quarter of 2005 for the Securesoft products."
The majority of costs for any software-based product are generally in the design and development stage, and the agreement with TSPartner includes a sharing of costs component for the implementation and data center needs for support of this product. TSPartner plans to handle the entire implementation program for the products at all installations, both now and in the future.
"Securesoft overhead is low and is expected to remain low. Now that the product is near completion and we have our chosen distribution partner in place, we anticipate seeing the aforementioned revenues and positive cash flow in the first quarter of 2005 and to see significant revenue and cumulative cash flow for the entire year of 2005. This is significant positive cash flow in a short period of time and the type of value that we will continue to seek for our company and shareholder base," added Mr. Bickel.
S3I entered into the agreement for TSPartner to become the master distributors of the Securesoft products and services due to their ongoing work with hundreds of large healthcare facilities across the United States. The HIPAA compliance product is expected to fit well into TSPartner's existing work with these facilities, which are the targeted end users of the Securesoft products and services.
"We are excited to reach this agreement with Securesoft Systems and be in position to deliver the most comprehensive HIPAA Compliance Solution in the healthcare world. TSPartner expects to leverage its position to strategically distribute and support this product to hospitals and other healthcare organizations. This solution will be available to hospitals in the first quarter of 2005. We are in serious negotiations with IT Outsourcing Companies, law firms, accounting and consulting firms, software vendors, hardware vendors, service providers, and hospitals to deliver the compliance product to the healthcare community. This will meet a critical need for hospitals that are obligated to comply with HIPAA regulations, requirements, and laws and meet JCHACO certification criteria. With major fines and penalties facing these organizations, Hospital Boards of Directors need to be assured that their organizations meet these new regulations and then monitor compliance on an on-going basis. Securesoft HIPAA compliance products and services will meet these needs and set the industry standard for healthcare compliance," said Gregory Dawson, Chief Executive Officer of TSPartner.
TSPartner Inc. is a national Technology Services company headquartered in Southern California, with regional offices in Atlanta, Indianapolis, Chicago, and Portland. TSPartner's heritage comes from the Data General Professional Services Team, which specialized in healthcare, financial, and government products and services. TSPartner utilizes world-class people with world-class skill sets and counts over 4000 healthcare facilities, financial entities, and government institutions as its customers over the past fifteen years. All sales, technical, and support staff have a minimum of fifteen years of high-level performance in the Healthcare Information Technology industry. These skilled experts have worked for top technology companies such as Data General, IBM, HP, EMC, Misys Healthcare, and Per Se Software Solutions.
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 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.