S3 Investment Company comments on stock position; monitors CHNC’s business development

S3 Investment Company, Inc. (PINKSHEETS: SIVC) today commented on the stock position that its wholly owned Redwood Capital subsidiary holds in a client company, China Infrastructure Construction Corporation, which is listed on the Over-the-Counter Bulletin Board market under the symbol CHNC.

In October 2009, Redwood Capital acted as a financial advisor for USD$10 million equity offering completed by China Infrastructure Construction Corporation, which is one of the major U.S.-listed providers of ready-mix concrete in Beijing. As a result of its work on behalf of this client, Redwood Capital received over 92,000 shares of CHNC common stock, which has recently traded as high as $7.50.

China Infrastructure Construction Corporation recently announced its financial results for the second quarter of its fiscal year 2010, ended November 30, 2009. In the quarter reflected in the unaudited financials, the company reported that net revenue for the quarter was $19.16 million, as compared to $15.57 million the same period the previous year, an increase of $3.59 million or approximately 23.06%. Gross profit for the second quarter of fiscal year 2010 was $4.23 million as compared with $2.69 million the same period last year, an increase of $1.54 million or 57.03%. Adjusted net income was $2.96 million for the second quarter of fiscal year 2010, an increase of $0.88 million or approximately 42.47%, compared to the same period last year. Additional details of the financial report can be found in a press release issued by China Infrastructure Construction Corporation on January 14, 2010 or by looking up the company's financial filings with the U.S. Securities and Exchange Commission.

S3 Chairman and CEO Jim Bickel commented, "As with all of our closed clients with whom Redwood Capital holds a common stock position, S3 will continue to monitor and report on the progress of China Infrastructure Construction Corporation. The value of the shares that Redwood Capital received for its participation in CHNC's equity financing will be reflected in the consolidated financial reports that S3 posts to the Pink Sheets OTC Disclosure and News Service. In this case, the stock position will first be included in the financial report for the period ended December 31, 2009."

On January 11, 2010, China Infrastructure Construction Corporation also announced that it reached a three year agreement with the Institute of Building Materials, a subsidiary of the China Academy of Building Research. Under the Agreement, CHNC will work exclusively with the Institute of Building Materials to obtain technical research, development and support. The Institute of Building Materials will also provide training courses to CHNC employees. CHNC will feature the Institute of Building Materials as CHNC's technological partner in its corporate material. The Institute of Building Materials will use its relationships and brand influence in the construction industry to assist CHNC in business development.

SOURCE: S3 Investment Company