SOURCE: Cavico Corporation

December 28, 2006 10:00 ET

Cavico Achieves Tunnel Breakthrough at Buon Kuop Hydropower Project

Tunneling Works Valued at Approximately US $18.5 Million

LOS ANGELES, CA and HANOI, VIETNAM -- (MARKET WIRE) -- December 28, 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 Viet Nam and the Pacific Rim, announced today that it has achieved a breakthrough of the headrace tunnel at the Buon Kuop hydropower project.

After 31 months of work on the 7600 meter long, 8.2-9 meter diameter headrace tunnel, the breakthrough was achieved and the tunnel was officially finished on December 15, 2006. The headrace tunnel is referred to as tunnel No. 2. Total tunnel works for the Buon Kuop project total 8,600 meters, with two 131-meter high, 21-meter diameter surge tanks. Cavico Bridge and Tunnel, wholly owned by Cavico; VINAVICO, a joint stock company of Cavico and Vinaconex; and VIMEXCO, a subsidiary of Vinaconex performed the work.

The Buon Kuop hydropower plant is located between the Cu Jut and Krong Kno districts of Dak Lak province, northwest of Ho Chi Minh City. The plant has a capacity of 280 MW, and will be capable of generating 1.458 million KWh per year. Electricity of Viet Nam (EVN) owns the project. Total investment in the project is approximately US $290 million. Vinaconex is the main contractor for the project. VINAVICO, a joint stock company of which Cavico and Vinaconex are the only shareholders, and Cavico, are the main subcontractors. The companies are constructing the 8,600-meter long headrace tunnel with a value of US $32 million, of which Cavico's share represents approximately US $18.5 million.

The remaining 1000 meters of tunnel work are expected to be finished on schedule by April of 2007. "Completion of the tunnel works has occurred on schedule despite complicated geological challenges, size requirements and an aggressive workload," commented Ha Quang Bui, CEO of Cavico Corporation. "All of the contractors involved in Buon Kuop have worked diligently to fulfill their roles on time and within budget. We are very pleased with the results thus far and look forward to completing the project as planned."

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.

For more information about Cavico, please refer to the company's website at: 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