SOURCE: Cavico Corp.

Cavico Corp.

June 23, 2010 08:00 ET

Cavico Signs Contract for the Second Portion of Ngan Truoi Reservoir

Contract Revenue Valued at $3.3 Million

HANOI, VIETNAM--(Marketwire - June 23, 2010) -  Cavico Corp. (NASDAQ: CAVO), a leading infrastructure development company based in Vietnam, today announced that its majority owned subsidiary, Cavico Mining signed a construction contract for construction of Portal No. 2 at Ngan Truoi reservoir of Ngan Truoi Irrigation Dam located in the Ha Tinh province. The expected revenue value of this contract is $3.3 million and has cost escalation clauses which may increase the revenues associated with this project. In May 2009, Cavico signed a contract for $8.5 million to construct Portal No. 1 at this project.

Cavico will be responsible for the construction of a diversion dam, water intake gates and a groin dam distributor. Ngan Truoi reservoir's Portal No. 2 will be 2.5 meters in diameter and 464 meters in length. Cavico expects to complete the construction within 24 months. 

The Ngan Truoi irrigation dam project is being developed by the Ministry of Agriculture and Rural Development with a total capital investment of approximately $167 million, raised mainly from the Vietnamese government bonds. The project, initially approved by the Vietnam Government Office in 2006, is considered to be the most critical project within the province. Upon completion, the dam will provide water to 35,000 hectares of farming land in the six provinces north of Ha Tinh. It should also help reduce the damages from the Song La River during flooding season and provide a 20 Megawatt capacity hydropower plant.

"Cavico is delighted to win the bidding for the second portion of this very critical project. Our high-quality and timely work related to Ngan Truoi reservoir's Portal No. 1 provided us the advantage to secure this second contract during this competitive bidding process," commented Mr. Hai Thanh Tran, vice president of Cavico. "Our team and equipment are already deployed at the site and we expect a smooth transition to begin this project, which is expected to be completed within the agreed time frame."

About Cavico Corp.
Cavico Corp. is focused on large infrastructure projects, which include the construction of hydropower facilities, dams, bridges, tunnels, roads, mines and urban buildings. Cavico is also making investments in hydropower facilities, cement production plants and urban developments in Vietnam. The company employs more than 3,500 employees on projects worldwide, with offices throughout Vietnam and a satellite office in Australia.

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, ports 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 3,500 full-time, part-time, and seasonal workers. For more information, visit http://www.cavicocorp.com. Information on the Company's Web site or any other Web site does not constitute a portion of this release.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to, the Company's ability to obtain the necessary financing to continue and expand operations, to market its construction services in new markets and to offer construction services at competitive pricing, the Company's ability to complete projects in the time frame specified; anticipated revenue from the projects to attract and retain management, and to integrate and maintain technical information and management information systems; the effects of currency policies and fluctuations, general economic conditions and other factors detailed from time to time in the Company's filings with the United States Securities and Exchange Commission and other regulatory authorities. These statements include, without limitation, statements regarding our ability to prepare the Company for growth; the Company's planned expansions, and predictions and guidance relating to the Company's future financial performance. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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