Cavico Corp. Received Approval for Laos’ Nam Kong Two Hydropower Plant

Tuesday, April 22, 2008
Cavico Corp. (Cavico) (OTCBB: CVIC - News) today announced that it has received approval from the Vietnam Government and the Ministry of Energy and Mines of the Laos People’s Democratic Republic to invest in the Nam Kong Two hydropower plant in the amount of $120 million. Cavico will construct the 80 megawatt plant, located in Attapeu province, south of Laos and 30 miles from Vietnam’s border. Cavico expects to perform all the construction work and complete the $120 million plant by 2012.
Cavico will have a 70% ownership interest in the plant and Electricity of Vietnam (EVN) will hold the remaining 30%. EVN will purchase the total electricity production from this plant to be resold within Vietnam. EVN is a Vietnamese state-owned entity which supplies and governs electricity in Vietnam. EVN currently produces 70 billion KW hours annually representing 82% of Vietnam’s electricity supply.
Hai Thanh Tran, vice president of Cavico Corp., commented, “Our reputation as Vietnam’s premier private hydropower plant construction and engineering firm has enabled us to solidify our relationships with strategic partners. Our expansion of our hydropower construction expertise to other countries in the Southeast Asia region is a logical progression for us. We intend to continue studying and pursuing other construction projects internationally. Vietnam’s rapidly expanding economy has increased in electricity demand by 17% annually which has left a deficit of 1 billion KW hours per year. EVN has historically purchased purchase electricity from China to meet this shortage. Once the Nam Kong Two hydropower plant is operational, we expect to supply about 400 million KW hours per year to ease this shortage.”
About Cavico Corp. (OTCBB:CVIC)
Cavico 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. Headquartered in Hanoi, with 3000 employees at projects worldwide, the company has 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 people. For more information, visit http://www.cavicocorp.com.
Forward-Looking Statements
The statements contained in this Release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including without limitation, statements regarding the Company’s expectations, hopes, beliefs, intentions or strategies regarding the future. These forward-looking statements are based on the Company’s current expectations and beliefs concerning future developments and their potential effects on the Company. There can be no assurance that future developments affecting the Company will be those anticipated by the Company. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond the control of the Company) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, the Company's ability to successfully and timely complete construction projects; the Company’s ability to convert backlog into revenue; the potential delay, suspension, termination, or reduction in scope of a construction project; the continuing validity of the underlying assumptions and estimates of total forecasted project revenues, costs and profits and project schedules; the outcomes of pending or future litigation, arbitration or other dispute resolution proceedings; the availability of borrowed funds on terms acceptable to the Company; the ability to retain certain members of management; the ability to obtain surety bonds to secure its performance under certain construction contracts; possible labor disputes or work stoppages within the construction industry; changes in governmental appropriations for infrastructure projects; possible changes or developments in worldwide or domestic political, social, economic, business, industry, market and regulatory conditions or circumstances; and actions taken or not taken by third parties, including the Company’s customers, suppliers, business partners, and competitors and legislative, regulatory, judicial and other governmental authorities and officials. 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, except as may be required under applicable securities laws. (BUSINESS WIRE)