SOURCE: Cavico Corporation

October 16, 2006 10:47 ET

Agribank Vietnam to Provide 1.7 Million Euro Line of Credit for Cavico Mining

HUNTINGTON BEACH, CA and HANOI, VIETNAM -- (MARKET WIRE) -- October 16, 2006 -- Cavico Corporation (PINKSHEETS: CVCP), a major Vietnamese infrastructure development company involved in the construction of hydropower facilities, dams, bridges, roads, mines and urban buildings throughout Vietnam and the Pacific Rim, announced today that Vietnam's Agribank, Hoang Mai branch has contracted to provide Cavico Mining with a $1.7 million Euro line of credit. Cavico Mining, which is 50% owned by Cavico Corporation, will use the credit line to purchase equipment valued at approximately 2.1 million Euros. Cavico Mining will fund the remaining 400 thousand Euros.

Cavico Mining is engaged in many large-scale projects in Vietnam, including earth mucking and hauling at Nui Beo coal mine in Quang Ninh Province, construction of a hydro dam at Cua Dat hydropower plant in Thanh Hoa Province, and the construction of the Da Vi Bridge for the Tuyen Quang hydropower plant. The company also plans to begin work on the tunnel at the Nam Chien hydropower plant project soon.

Management believes that the purchased equipment will enhance its efficiency and ability to secure larger projects in the future. Timothy Pham, executive vice president of Cavico Corporation said, "Cavico Mining has projected a revenue goal of more than US $10 million in 2006. This line of credit will solidly position the company to finance more projects and help us reach that goal."

About Cavico Corporation

Cavico (www.cavicocorp.com), founded in 2000, is a major infrastructure construction, infrastructure investment, and natural resources conglomerate headquartered in Hanoi, Vietnam. The company is highly respected for its core competency in the construction of mission-critical infrastructure including hydroelectric plants, highways, bridges, tunnels, and urban community developments. One of the company's primary competitive advantages is its ability to nurture a project "from concept through completion" with a vertical portfolio of interrelated investment, permitting, design, construction management, and facility maintenance services. Cavico's project partners often include top multi-national corporations as well as government organizations. The company currently employs more than 3,000 people.

A profile for investors can be accessed at http://www.hawkassociates.com/cvcpprofile.aspx.

For investor relations questions regarding Cavico, contact Frank Hawkins or Julie Marshall, Hawk Associates, at (305) 451-1888, e-mail: info@hawkassociates.com, or visit http://www.americanmicrocaps.com or http://www.hawkassociates.com. Investors can also contact Mark Moline at (760) 458-4899, e-mail: mark@cinapsys.com.

"Safe-Harbor" Statement

This press release contains forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), including statements regarding potential sales, the success of the company's business, as well as statements that include the word "believe" or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Cavico Corporation to differ materially from those implied or expressed by such forward-looking statements. Such factors include, among others, the risk factors included in reports filed with the SEC under the Exchange Act. This press release speaks as of the date first set forth above and Cavico Corporation assumes no responsibility to update the information included herein for events occurring after the date hereof. Actual results could differ materially from those anticipated due to factors such as the lack of capital, timely development of products and services, inability to deliver products and services when promised, inability of potential customers to pay for ordered products and services, and political and economic risks inherent in international trade.

Contact Information

  • Contacts:
    Cavico Corporation Investor Relations:
    Hawk Associates, Inc.
    Frank N. Hawkins, Jr.
    305-451-1888
    Email Contact

    Media and Communications
    Cinapsys, Inc.
    Mark Moline
    760-458-4899
    Email Contact

    For Cavico Corporation:
    Timothy Pham
    714-843-5456
    Email Contact