SOURCE: Cavico Corp.

Cavico Corp.

June 15, 2010 08:00 ET

Cavico Signs Road Construction Contract at Ban Chat Hydropower Plant

HANOI, VIETNAM--(Marketwire - June 15, 2010) - Cavico Corp. (NASDAQ: CAVO), a leading infrastructure development company based in Vietnam, today announced that its majority owned subsidiary, Cavico Mining, has signed a construction contract with Project Management Unit No.1 to construct an access road to avoid flooded roadways on Highway 279 at the Ban Chat Hydropower Plant.

Cavico Mining's scope of work will be to construct a 2,000 meter long access road, which will be used mainly for drivers as a detour from flooded roadways. The project is expected to be completed by the end of 2011 and the expected revenue value of this contract is $1.5 million.

The Ban Chat Hydropower Plant is located along the Nam Mu River in the Muong Kim village, in the province of Lai Chau, which is located in the northern most part of Vietnam. The 220-megawatt plant, owned by Electricity of Vietnam, is considered the second largest project in Lai Chau province. The project was started in early 2006 and is expected to be in operation by mid-2012 and will provide 1.3 billion kWh per year to the national grid. The 1.7-billion-cubic-meter Ban Chat reservoir plays a crucial role in supplying water to the of Red (Hong) River's drier lower-stream region during the dry season and reduces the frequent flooding which happens often in the Lai Chau and Son La regions. 

"We are very pleased to be awarded this road construction contract," comments Mr. Hai Thanh Tran, vice president of Cavico Corp. "Cavico brings a tremendous level of experience in road construction projects, specifically those relating to many critical national hydropower plants. We are confident that our team will complete the contract on schedule and we hope to win more contracts related to work at the Ban Chat Hydropower Plant."

About Cavico Corp.
Cavico Corp. is focused on large infrastructure projects, which include the construction of hydropower facilities, dams, bridges, tunnels, roads, mines and urban buildings. Cavico is also making investments in hydropower facilities, cement production plants and urban developments in Vietnam. The company employs more than 3,000 employees on projects worldwide, with offices throughout Vietnam and a satellite office in Australia.

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, ports 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 full-time, part-time, and seasonal workers. For more information, visit http://www.cavicocorp.com. Information on the Company's Web site or any other Web site does not constitute a portion of this release.

Cavico Mining, a majority-owned subsidiary of Cavico Corp., is currently trading on HCM Stock Exchange under ticker symbol MCV.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to, the Company's ability to obtain the necessary financing to continue and expand operations, to market its construction services in new markets and to offer construction services at competitive pricing, the Company's ability to complete projects in the time frame specified; anticipated revenue from the projects to attract and retain management, and to integrate and maintain technical information and management information systems; the effects of currency policies and fluctuations, general economic conditions and other factors detailed from time to time in the Company's filings with the United States Securities and Exchange Commission and other regulatory authorities. These statements include, without limitation, statements regarding our ability to prepare the Company for growth; the Company's planned expansions, and predictions and guidance relating to the Company's future financial performance. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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