Cavico Subsidiary Awarded a $6.2 million Contract at the Theun HinBoun Expansion Project (Laos) Hydropower Plant
LOS ANGELES & HANOI, Vietman, Feb 05, 2009 - Cavico Corp. ("Cavico" or "the Company") (OTC BB: CVIC), a leading infrastructure development company in Vietnam, today announced that on January 22, 2009 the Company's wholly owned subsidiary, Cavico Bridge and Tunnel Construction ("Cavico Bridge"), was awarded a $6.2 million contract by Cooperativa Muratori e Cementisti - CMC di Ravenna ("CMC"), an Italian leading construction company, for tunnel construction work at Theun HinBoun Expansion Project in Laos.
Cavico Bridge and Tunnel will be responsible for constructing a 1000 meter long tunnel and a 45 meters deep dismantling shaft. The company expects to complete the construction in 24 months and the first phase of the project will involve road preparation to transport Tunnel Boring Machine (TBM), which is expected to be completed by July 2009.
Theun HinBoun Power Company ("THPC") is the owner and operator of the existing 220-Megawatt Theun HinBoun hydropower, which is currently in operation in Bolikhamsai province. In September 2008, THPC contracted CMC as the main contractor for Theun HinBoun Expansion Project after receiving approval from the Laos government to construct an additional hydropower plant in the same area of the existing plant. Electricity generated from this plant will be sold to the neighboring country, Thailand.
"The Laos government has demonstrated significant encouragement to Vietnam for exploring hydropower opportunities in the country. The government plans to build about 50 to 60 large and small sized plants in this country," commented Mr. Hai Thanh Tran, vice president of Cavico. "Laos has gained increased importance for contractors like Cavico and we see this as a great opportunity and a potential market place. We believe contracting with Theun HinBoun Expansion Project will open new doors of prospects for Cavico to enter other markets in addition to Vietnam, both as an investor and contractor."
About Cooperativa Muratori e Cementisti - Cmc di Ravenna
Founded in Ravenna in 1901, Cooperativa Muratori e Cementisti - Cmc di Ravenna is an Italian leading construction company. CMC has operations across Italy and overseas. CMC realizes 90% of its consolidated annual turnover, of about EUR 640 million in 2006, from construction works. Due to technical and management ability, economic and financial stability as well as to the extensive experience acquired all over the world in great infrastructure works, CMC ranks among the few Italian general contractors qualified for executing the highest class of contracts. CMC has a permanent staff of about 500 people and currently employs over 5,000 people worldwide.
About Cavico Corp. (OTCBB: CVIC)
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 3000 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.
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, 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.
Cavico Corp.
Timothy Pham
714-843-5456
Vice President and Director
cavicohq@cavico.us
or
CCG Investor Relations Inc.
Roger Ellis
310-477-9800
Senior Vice President
Roger.ellis@ccgir.com
http://www.ccgir.com
