SOURCE: Cavico Corporation

July 31, 2006 09:00 ET

Cavico Corporation to Begin Tunnel Works Excavation for USD $24 Million Nam Chien Hydropower Company Project

LOS ANGELES, CA and HANOI, VIETNAM -- (MARKET WIRE) -- July 31, 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, has completed negotiations and signed a contract with Nam Chien Hydropower Company to begin construction on its tunnel works project. The value of this contract to Cavico is approximately 384 billion VND ($24 million USD equivalent).

The Nam Chien Hydropower project is located on the property of the Son La Hydropower Project, the largest Hydropower project in Vietnam, located 60 kilometers (37 miles) from Son La City and 350 kilometers (217 miles) north of Ha Noi Capital. This project is owned by Cavico Vietnam, Song Da Corporation, Petrol Vietnam and other partners following BOO form (Building - Owner - Operating), with a total investment of about 4,000 billion VND ($250 million USA equivalent).

Cavico Infrastructure Co. was sub-contracted for open works excavation and service roads. When all work has been completed, equipment will be transported to other sites for other projects. At present Cavico Transportation Co. and Song Da 10 Company are preparing to construct tunnel works approximately 10,000 meters long and 5.2 meters in diameter for the Nam Chien hydropower project. The project is scheduled to be completed within three years. At completion, the project will generate 200 Mega Watts of power.

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