SOURCE: Cavico Corporation

January 16, 2007 10:30 ET

Cavico Forms Corporate Governance Committees in Anticipation of Completion of U.S. GAAP Audits

Company Appoints Internal and Outside Directors to Newly Formed Audit, Compensation and Nominating Committees in Preparation for Listing of Its Shares on a Senior U.S. Exchange

LOS ANGELES, CA and HANOI, VIETNAM -- (MARKET WIRE) -- January 16, 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 the company has created audit, compensation and nominating committees. Staffing for the committees has come from within Cavico and also from outside, non-affiliates of the company. Management formed the committees in anticipation of completing the company's U.S. GAAP audits for 2004, 2005 and 2006, which have been underway for several months, and in preparation for listing of its shares on a senior reporting exchange. Cavico's fiscal year ended as of December 31, 2006, and information from the fourth quarter is currently being prepared for the auditors.

"We are sensitive to the concerns of our U.S. investors that the company completes its GAAP audits as quickly as possible," stated Mr. Ha Quang Bui, CEO of Cavico. "There are differences between the GAAP accounting used in the U.S. and the accounting used in Vietnam. We have taken every measure necessary to cooperate fully with our auditors, Jaspers & Hall, to ensure accuracy and completeness, and are working as quickly as possible to finish the process. We appreciate the patience and understanding of our investors." He added, "Representatives from Jaspers & Hall have already traveled to Vietnam for the physical audit and have spent a lot of time working with our team to provide everything necessary. This is the first case that we know of, involving conversion of Vietnamese accounting to U.S. GAAP for a publicly trading company. We are pleased at the progress and are confident that the process will be completed soon."

Cavico management recently completed a trip to New York and Washington, D.C. to introduce the company to investment banking and portfolio management professionals. The company's focus was to gain exposure and create interest in its permitted cement and proposed hydropower ventures in Vietnam. "We were very pleased with the reception that Cavico received on Wall Street," commented Timothy Pham, Executive VP of Cavico. "There appears to be great awareness of the investment potential within Vietnam at this time, and we received indications of interest from several investment banking firms who wish to work with Cavico." Pham added, "Even considering Cavico's status as a Pink Sheet company, institutions were still eager to meet with us and did not indicate much concern over the junior listing at this time, which was very encouraging to us."

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

A profile for investors can be accessed at

For investor relations questions, contact Frank Hawkins or Julie Marshall, Hawk Associates, at (305) 451-1888, e-mail:, or visit or Investors can also contact Mark Moline at (760) 458-4899, e-mail:

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. or Julie Marshall
    (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