SOURCE: Cavico Corporation

December 01, 2006 09:56 ET

Cavico Signs New US $4.3M Agreement to Complete Major Hydropower Tunnel Project

Cavico Power Line Installation and Cavico Infrastructure, Wholly Owned Subsidiaries of Cavico Corporation, to Perform Tunnel and Open Work Construction for the Plant's Powerhouse

LOS ANGELES, CA and HANOI, VIETNAM -- (MARKET WIRE) -- December 1, 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, announced today that its wholly owned subsidiaries, Cavico Power Line Installation and Cavico Infrastructure, have signed a contract valued at US $4.3 million (VND 69 billion) to complete tunnel and open works constructions at the Za Hung Hydropower project under a new contract with Za Hung Joint Stock Company.

The Za Hung hydropower plant will have a capacity of 30 megawatts upon completion. The project is located at Za Hung Village, Dong Giang District, Quang Nam province, approximately 75 kilometers (45 miles) west of Da Nang city. The owner of the project is the Za Hung Joint Stock Company. Cavico Power Line Installation has been assigned to complete the work under the new contract, which includes a 1,560-meter tunnel 6 meters wide. Cavico Infrastructure has been assigned to complete the open works construction of the plant's powerhouse.

Ha Quang Bui, CEO of Cavico Corporation, said, "The results of the initial work on this project have come in on time and on budget with no work-related accidents. This project is indicative of Cavico's capabilities, which extend from construction of the tunnel and surge systems through to the build-out of the plant's powerhouse and personnel facilities. We are extremely proud of our employees' dedication to provide exceptional service for our customers."

After completing the breakthrough at the Bac Binh tunnel hydropower project, Cavico Power Line Installation began transporting equipment, labor and engineering staff to the Za Hung plant location. The work is scheduled to be completed within 18 months.

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.

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