Cavico Corp. Received Decision to Invest and Construct Hoa Binh Ecological and Cultural Zone

Tuesday, May 6, 2008
Cavico Corp. (Cavico) (OTCBB:CVIC) today announced that Luong Son International Tourism Investment JSC, its wholly own subsidiary, has been authorized by Hoa Binh People’s Committee to invest and construct the Hoa Binh ecological and cultural zone known as “Ecozone.”

This announcement is made in conjunction with the Vietnamese government’s announcement that it has approved a plan to expand the capital city of Hanoi in its effort to create a national center for politics, culture, economy and science, noted the Vietnam Investment Review.

Cavico’s project will be located within the newly announced boundaries of Hanoi. Under the plan, Hanoi will be expanded to the west and will cover all of Ha Tay province, the Me Linh district of Vinh Phuc province, and four communes in Luong Son district of Hoa Binh province. The expansion will triple the geographic size of Hanoi and expand its population to over 6.2 million people.

The plan will be submitted to the National Assembly, the country's top legislature, for final approval at its session to be held this month. "If the plan is approved, the process of merging Hanoi with other areas will start on July 1," said Minister of Home Affairs Tran Van Tuan.

In conjunction with this plan Cavico Corp.’s future construction site will be located in Luong Son village, Hoa Binh province. This site is located along Highway Six, which will be the main artery connection from Hanoi to the northwest provinces. The 1.3 square-mile zone will be constructed over a four year period beginning in 2010, at a total investment cost of $930 million. Net profits are anticipated to be around $150 million. The zone, the first of its kind in the nation, will be divided into nine sub-centers including Cavico Center, a recreational park, entertainment and convention center, Muong Village, Friendship Village, World Village, high-end homes, a restaurant and hotel.

“We intend to build a world-class international tourism zone to meet both domestic demand and to attract national and international vacationers,” stated Hai Thanh Tran, Cavico Vice President. “Also within this zone we would like to preserve the unique Muong culture, which represents 1.5% of Viet Nam’s population. The Cavico Tower, Chieng Ngan Urban, Ngo Sai Urban and the Hoa Binh projects will enable us to significantly expand our real estate holdings in Vietnam and will enlarge our profit potential.”