SOURCE: Cavico Corporation

August 23, 2006 10:15 ET

Cavico Corporation Begins Final Stage of Construction for the USD $290 Million Buon Kuop Hydropower Project

Value of Contract to VINAVICO and Cavico Approximately USD $32 Million

LOS ANGELES, CA and HANOI, VIETNAM -- (MARKET WIRE) -- August 23, 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, today announced that it has completed more than 60% of the Headrace tunnel for the Buon Kuop Hydropower plant. The final stages of construction have begun and the company anticipates breakthrough of the tunnel by early 2007.

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. The project is owned by Electricity of Viet Nam (EVN) with a total investment of about USD $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 8600 meter long Headrace tunnel with a value of USD $32 million.

This project involves the largest amount of tunnel construction and the most complicated geological conditions in Viet Nam, demonstrating Cavico's ability to complete challenging engineering projects within budget and on time. The Buon Kuop project was started in December of 2003, and today after 2 years of work, Cavico and Vinavico have completed the surge tank sharp and excavated more than 60% of the Headrace tunnel.

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:
    Cavico Corporation Investor Relations:
    Cinapsys
    Mark Moline
    Phone: 760-458-4899
    Email: Email Contact

    For Cavico Corporation:
    Timothy Pham
    Phone: 714-843-5456
    Email: Email Contact