SOURCE: Cavico Corporation

July 11, 2006 07:30 ET

Cavico Corporation Begins Inlet Tunnel Excavation on the $333 Million Dong Nai 4 Hydropower Project

Value of Construction Contract Estimated to Be Over $26 Million

LOS ANGELES, CA and HANOI, VIETNAM -- (MARKET WIRE) -- July 11, 2006 -- Cavico Corporation (PINKSHEETS: CVCP) (www.cavicocorp.com), 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 been appointed by the Prime Minister (Viet Nam) under regulation 797, 400, to be the lead contractor for tunnel works construction on the Dong Nai 4 Hydropower Project. The project is located in Lam Dong province, 150 kilometers (93 miles) from Dalat City and 240 kilometers (149 miles) north of Ho Chi Minh City.

"After nearly five months of open works excavation, portal shotcrete, PC Anchoring and other preparations, we have begun the inlet excavation for the tunnel works on the Dong Nai 4 project," stated Pham Dinh Son, Head of Cavico's Planning & Marketing Department.

The project is projected to generate 270 Mega Watts of power with a total investment by EVN (Electricity of Viet Nam) estimated at 5,000 billion VND ($333.33 million USD equivalent). The value of the project to Cavico is approximately 400 billion VND ($26.6 million USD equivalent).

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