SOURCE: Cavico Corporation

March 05, 2007 11:00 ET

Cavico Submits Request for Permission to Build the US $265 Million Dak My 1 Hydropower Project

Project Will Be 45 Percent Owned by Cavico and Its Subsidiaries

LOS ANGELES CA and HANOI, VIETNAM -- (MARKET WIRE) -- March 5, 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, today announced that it has submitted a request for permission to the Vietnamese government to begin initial planning and technical work on the Dak My 1 Hydropower Project.

Mr. Ha Quang Bui, CEO of Cavico, commented, "We have invested in other projects, however, Dak My 1 will be the first project where Cavico is operating in the capacity of a majority investor, contractor and owner/operator. This is in direct alignment with our stated goals of moving into the operation and ownership of large infrastructure projects." He added, "As an owner of this project Cavico will create a recurring revenue stream that will grow as Vietnam grows and prospers. We hope to gain approval quickly and begin planning and construction by early 2008."

Cavico and its partners have officially submitted documentation to the Ministry of Industry for permission to build Dak My 1. Cavico owns a 40% interest in the project, which will be its first owner/operator hydropower project. Other partners include: Petro Vietnam, which holds 10%; Vietnam Coal Mining and Mineral Corporation 10%; Providential Holdings Inc (OTCBB: PRVH) 15%; Vietnam Agricultural and Rural Development Bank 10%; Military Commercial Joint Stock Bank 5%; Hanoi Housing Commercial Bank (Habubank) 5%; and Cavico Mining 5%.

Dak My 1 will require a total investment of US $265.6 million. Dak My 1 has been submitted for approval to the Vietnamese Government under "Power Plan 5 (2005-2010)." The overall power plan calls for Dak My 1 to be the first "ladder" belonging to the power system of the Dak My river, located in Quang Nam province, approximately 80 km from Danang city, in central Vietnam.

Following the Dak My 1 project will be Dak My 2 and Dak My 3, located below the Dak My 1 plant. If approved by the Government, the timeline for the project, including documents, procedures, technical design and other auxiliary works, will be one year. Work would then be anticipated to commence at the beginning of 2008, with the plant providing power to the grid by 2011.

Cavico has received indications of interest from US financial institutions and investors for the Dak My 1 project. Further details on the project, approvals and funding will be released as they become available.

For more information about Cavico, please refer to the company's website at: http://www.cavicocorp.com.

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