SOURCE: Cavico Corporation

October 30, 2006 09:00 ET

Cavico Achieves Tunnel Breakthrough at Bac Binh Hydropower Plant

U.S. $7.5 Million Project 45 Days Ahead of Schedule

LOS ANGELES, CA, and HANOI, VIETNAM -- (MARKET WIRE) -- October 30, 2006 -- Cavico Corporation (PINKSHEETS: CVCP), a Vietnamese company working in the fields of infrastructure development, including the construction of hydropower facilities, dams, bridges, roads, mines and urban buildings throughout Vietnam and the Pacific Rim, announced today that it achieved a tunnel breakthrough at the Bac Binh Hydropower project. The breakthrough was the result of 17 months of work on the 2,644-meter (1.64 miles) tunnel. The project is 45 days ahead of schedule, with completion estimated in November of 2007. Pictures of the project can be viewed at the company's website: http://www.cavicocorp.com/tunnel_bb.html.

The Bac Binh Hydropower project, located in Bac Binh province, 100 km. (62 miles) from Da Lat city and 80 km. (50 miles) from Phan Thiet city, has a planned capacity of 33 MW. Total investment capital of US $31.5 million from Viet Nam Electricity Development Joint Stock Company has been allocated for this project.

Viet Nam Electricity Development Joint Stock Company has assigned the tunnel and surge tank work to Cavico Power Installation Company (a wholly owned subsidiary of Cavico Corporation) with a total estimated contract value of US $7.5 million. Cavico Power Installation Company has moved rapidly to complete the project ahead of schedule.

"The tunnel breakthrough is the first step in the process that leads to early operation of the plant, which is expected to begin generating power in 2008. Maintaining the construction schedule will help ensure the project begins operations as planned," said Cavico Chairman and CEO Mr. Ha Quang Bui.

Investors may also view photos of the tunnel breakthrough on the Hawk Associates website at: http://hawkassociates.com/cvcpmore.aspx.

About Cavico Corporation

Founded in 2000, Cavico is a major infrastructure construction, infrastructure investment and natural resources conglomerate headquartered in Hanoi, Vietnam. Cavico 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 include top multi-national corporations and government organizations. The company employs more than 3,000 people. For more information, visit http://www.cavicocorp.com.

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

For investor relations questions, 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