TEMECULA, Calif., Nov. 23, 2004 (PRIMEZONE) -- S3 Investment Company (OTCBB:SEIH) today announced that the Company has entered into an agreement to acquire a 51% controlling interest in SINO UJE, Ltd., a non-stocking distributor of medical and industrial high-tech products to markets throughout China. SINO UJE is a three-year old company that has achieved over $1 million in sales for 2004.
S3 Investments will acquire a controlling interest in SINO UJE from YaSheng Group (Pink Sheets:YHGG) in exchange for the issuance of restricted stock representing a non-dilutable 4.9% interest in S3 Investments. The restriction on the S3 Investment Company, Inc. stock is effective for 3½ years. The acquisition is expected to close by the end of November, and additional details of the transaction will be disclosed in an 8-K informational filing with the SEC.
YaSheng Group is a diversified industrial conglomerate that operates in hi-tech agriculture, salt chemistry and biological technology as its core business. Through its 136 subsidiaries, the company operating categories include: chemical engineering, agricultural production, biotech, pharmaceuticals, textile products, printing and dyeing, commercial trading, beverages and inorganic salt manufacturing.
S3 Investments CEO and Chairman Chris Bickel helped found SINO UJE before selling the company in 2003. SINO currently has over 20 employees and offices in Shanghai, Guanzhou, Hong Kong, France, and the U.S.
"YaSheng expressed an interest in selling a portion of its ownership position in SINO UJE to S3 Investments in order to incorporate former management back into the company and to participate in the anticipated growth of S3 Investments. YaSheng Group are quality partners who will facilitate many opportunities for S3 Investments in China through their over 130 companies and divisions. We believe this acquisition fits well into our plans and expect that this relationship will expand our opportunities in the China market and worldwide," commented Mr. Bickel.
"We will be discussing more of the potential of SINO UJE in the coming weeks, including how we will execute our strategy to grow the revenues of this investment and add value to the S3 portfolio," added Mr. Bickel.
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 Investments has also acquired 100% of Redwood Capital to participate in the fast-growing investment banking market in China. The Company anticipates acquiring additional 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.
-0- Gemini Financial Communications A. Beyer, Investor Relations (951) 587-8072 investors@s3i.us