SOURCE: Cavico Corporation

March 14, 2007 15:00 ET

Cavico Begins Work on US $6.25 Million Dong Nai 3 Hydropower Headrace Tunnel Project

LOS ANGELES, CA and HANOI, VIETNAM -- (MARKET WIRE) -- March 14, 2007 -- 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 Cavico Hydropower, a wholly owned subsidiary of Cavico Corporation, has begun tunnel construction at the US $195 million Dong Nai 3 hydropower project. Work has begun on the project's headrace tunnel, which will be 1,025 meters (approximately 3,362 feet) in length and 9.2 meters (slightly more than 30 feet) in diameter after completion. Cavico Corporation values the project at an estimated US $6.25 million.

The Dong Nai 3 hydropower plant is located in Bao Lam village, Lam Dong province, 280 kilometers (approximately 174 miles) north of Ho Chi Minh City. The project, which began in December 2004, is scheduled for completion in 2009. Cavico Hydropower expects to complete this project within 19 months -- three months ahead of schedule -- in order to put the plant into operation and begin generating electricity for the grid. Upon completion, Dong Nai 3 will have a capacity of 180 MW. The plant is owned by Electricity of Vietnam (EVN), which contracted Cavico to construct the tunnel.

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 about Cavico, please refer to the company's website at

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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.

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