Cavico Signs Additional Contract for Hua Na Hydropower Plant

HANOI, Vietnam--(BUSINESS WIRE)--Cavico Corp. (NASDAQ: CAVO), a leading infrastructure development company based in Vietnam, today announced that it signed an additional construction contract at the Hua Na Hydropower plant with Lilama, a state-owned company owned and operated by the Vietnamese Ministry of Construction. The revenue for this additional contract is expected to be $11.9 million. Cavico signed the initial contract for $4.9 million with Lilama for construction work at this project in April 2009.

“The sub headrace tunnel, diversion tunnel and surge sharp tank are all critical components of a hydropower plant”

According to the term of this new agreement, Cavico’s majority-owned subsidiary, Cavico Power & Resource, will be responsible for the construction of the sub headrace tunnel No. 2, a water diversion tunnel and a surge sharp tank. The Hua Na Hydropower plant, a twin turbine plant which requires a capital investment of approximately $250 million is located on a 20.6 square kilometer property in the Dong Van village of the Nghe An province near the Chu River. Once completed, the hydropower plant is expected to generate approximately 180 megawatts of power and will supply 706 million kilowatt hours annually. The plant will help meet a material electricity demand in Vietnam and significantly alleviate shortages currently experienced in the Central provinces, which includes the Nghe An, Ha Tinh and surrounding provinces. Cavico expects to complete this project in five years.

“The sub headrace tunnel, diversion tunnel and surge sharp tank are all critical components of a hydropower plant,” commented Mr. Hai Thanh Tran, vice president of Cavico. “Once again, we are pleased that this client has entrusted us with the most critical parts of the overall project. This additional work builds on the successful completion of Cavico’s initial scope of work, the construction a diversion tunnel and coffer dam, which validates Cavico’s strength and capabilities in the field of underground construction. We look forward to continuing our close working relationship with the project owner and other contractors at the plant to complete this project on time and in a quality manner.”

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 3,500 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 3,500 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, 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.