SOURCE: Cavico Corporation

October 27, 2006 11:00 ET

Vietnam's Military Bank Buys Minority Stake in Cavico Mining

LOS ANGELES, CA and HANOI, VIETNAM -- (MARKET WIRE) -- October 27, 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 Cavico Mining subsidiary, which is 50% owned by Cavico Corporation, sold a 7% stake to Military Bank. The bank paid face value of 2,951 million dong (US $184,000) for the stake.

Established in 1994, Military Bank has enjoyed strong financial performance and has been appraised by the Vietnam National Bank as one of the leading Joint-Stock Commercial Banks in Vietnam. At present, the chartered capital of Military Bank has reached 675 billion VND, among the largest in Vietnam. At the beginning of 2006, the total assets of Military Bank were over 11.500 billion VND. Military Bank ranks in the highest percentile regarding financial performance, with one of the highest pretax revenue results in the system of joint-stock commercial banks based in Hanoi. Considering the criteria of pretax revenue based on owner's equity, Military Bank has maintained an ROE above 20% over the past 11 years since its establishment.

Military Bank Financial Director Mrs. Pham Thi Ty said, "We have a long business relationship with Cavico Mining and have maintained detailed valuation ratios for its business and financial status. Considering the company's relatively short operating history, it has grown very quickly and impressively."

Cavico Mining Chairman Mr. Tran Manh Hung said, "Although we have a strong record of growth and achievement, management continues to build and strengthen the company's financial position. Maintaining a high rate of growth necessitates strong relationships with financial partners, such as Military Bank. Our strategic financial partners will provide Cavico Mining with the ability to continue building our assets, which will allow us to secure more projects, and undertake projects with a larger scope."

Mrs. Pham Thi Ty added, "Military Bank will continue cooperating with and supporting Cavico Mining. Through our investments across many different industries, with numerous companies, we have the knowledge and practical experience to support partners like Cavico Mining."

Military Bank has 36 branches and transaction offices in Vietnam's economic centers, including Hanoi, Hochiminh City and Danang. Military Bank's branch system has been expanded to more than 300 banks in 56 countries, guaranteeing worldwide transactions and payments.

Cavico Mining is 50% owned by Cavico Corporation. Cavico Mining specializes in mining and related construction. The company was established in 2002. Based on the official Vietnamese audited financials, in 2005 the company achieved revenue of 124 billion VND (U.S. $7.75 million). The company grew more than 280% in 2005, with total investment capital to date of over 120 billion VND. At present, the company has more than 400 employees.

Cavico Mining owns and operates advanced mining equipment from Caterpillar, Tamrock - Sanvic and Atlas Copco. The company has a long-term contract with Nui Beo Coal Company, belonging to the Vietnam Coal and Mining Corporation at Nui Beo mining field, one of the biggest coal fields in Vietnam.

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