SOURCE: Cavico Corporation

August 07, 2006 06:30 ET

Cavico's Tunnel Boring Machine (TBM) Breaks Through and Completes the Initial Boring for the Dai Ninh Hydropower Project Tunnel

LOS ANGELES, CA and HANOI, VIETNAM -- (MARKET WIRE) -- August 7, 2006 -- After nearly 16 months of work on the Headrace tunnel of the Dai Ninh Hydropower project, Cavico Corporation (PINKSHEETS: CVCP) announced that the tunnel has broken through. The Headrace tunnel is 11000 meters in length, of which 4000 meters were excavated using drill and blast method of New Austrian Tunneling Method (NATM) and 7000 meters were constructed using Tunnel Boring Machine (TBM). Pictures of the project are available on the company's website at: http://www.cavicocorp.com/tunnel_dn.html.

The Dai Ninh Hydropower Project is being constructed through a Bank Loan from the Japan Bank of International Cooperation (hereinafter referred to as "JBIC") and by Japan's joint venture main contractors, KAJIMA-KUMAGAI. CAVICO is working as a subcontractor on the project and is responsible for the Headrace tunnel and the Surge Tank construction. CAVICO has provided approximately 300 Engineers and technicians to the KAJIMA-KUMAGAI Joint Venture to operate and oversee the TBM.

"The Da Ninh Hydropower Project is the first project in Vietnam to utilize the Tunnel Boring Machine," commented Mr. Son D Pham, Chief of Cavico's Planning and Marketing Department. "This is the newest, state-of-the-art technology for constructing tunnels, and we are proud to be applying it successfully in Vietnam."

For more information about Cavico, please refer to the company's website at: http://www.cavicocorp.com.

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.

Vietnam's transition to a market economy has generated rapid economic growth. The country's impending ascension to the World Trade Organization is likely to provide an additional boost to economic growth and a further acceleration in the country's current infrastructure construction boom. The aggressive development of Vietnam's energy, transportation, and urban infrastructure is absolutely essential to the country's ability to compete internationally, and this aggressive build-out is creating huge growth opportunities for infrastructure construction companies such as Cavico.

"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:

    For Cavico Corporation:

    Timothy Pham
    Phone: 714-843-5456
    Email: Email Contact

    Cavico Corporation Investor Relations:

    Cinapsys, Inc.
    Mark Moline
    Phone: 760-458-4899
    Email: Email Contact