SOURCE: Cavico Corporation

May 15, 2007 09:30 ET

Cavico Corporation Receives US $20.7 M Tunneling Contract in Vietnam

Wholly-Owned Cavico Bridges and Tunnel Company to Complete the Project Within 25 Months

LOS ANGELES, CA and HANOI, VIETNAM -- (MARKET WIRE) -- May 15, 2007 -- Cavico Corporation (PINKSHEETS: CVCP) announced that on May 4, 2007, Cavico Bridges and Tunnel Company, a wholly-owned subsidiary of Cavico Corporation, signed an agreement valued at approximately US $20.7 million to construct a headrace tunnel, surge tank, and intake for the Thai An hydropower plant. The company estimates the project should be completed within 25 months.

"Cavico continues to win major infrastructure development projects," commented Mr. Ha Quang Bui, CEO of Cavico Corporation. "Our proven engineering expertise and record of on-time and within budget completion has established us as the premier private construction and engineering firm in Vietnam." He added, "We believe the opportunities within Vietnam are just beginning to develop. Vietnam needs to continue building its infrastructure to compete with other regional economies and Cavico is uniquely positioned to meet this need."

The plant is located in the Quan Ba and Vi Xuyen regions, Ha Giang province, 124 miles north of Hanoi capital. Upon completion the plant will have a capacity of 82 MW. The total investment into the project is expected to be approximately US $103.5 million. The Thai An Joint Stock Company is the main investor in the Thai An hydropower plant. Other investors include: Military Bank, HABUBANK and Bac A Bank.

Immediately after signing the agreement, Cavico Bridges and Tunnel Company arranged to transport equipment and resources to the location to begin the project.

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, visit 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. To receive free e-mail notification of future releases for this company, sign up at http://www.hawkassociates.com/email.aspx.

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