Cavico Corp. (NASDAQ: CAVO), a leading infrastructure development company based in Vietnam, today announced that its majority-owned subsidiary, Cavico Mining, listed on Hochiminh Stock Exchange (HOSE: MCV), signed a construction contract with Investment & Development Management No.4 to construct a diversion canal for Ban Mong Reservoir. The revenue for this contract is estimated to be $4.3 million. Cavico Mining expects to complete this construction contract within ten months.

The Ban Mong Reservoir, owned by the Investment & Development Management No.4 of the Ministry of Agriculture and Rural Development, is located in the Quy Hop district, in the Nghe An province which is southwest from Hanoi. This project is considered to be the largest water reservoir project in the western region of Nghe An province. According to the reservoir’s architectural design, the Ban Mong Reservoir will be 671 meters long, be built on 2800 square kilometers of land and have 235.5 million cubic meters of capacity. The main construction work associated with this project includes the primary dam that is 340 meters long, 44 meters high and 11 meters wide; and an auxiliary dam that is 164 meters long and 10-meter wide surface; and a 5-gate overflow spillway.

In addition to minimizing damages caused by flooding, the Ban Mong Reservoir will increase water supply during the dry seasons. The project’s owner has plans to build water pump stations on the Dinh and Hieu Rivers to irrigate 30,600 hectares of rice field and fruit trees. A future hydropower plant to be built at the reservoir will have a 42 MW daily capacity to provide an average of 160 million KWH per year.

“There is a tremendous potential and demand for water reservoirs and dams in Vietnam. This sector receives a lot of focus and financial support from the government,” stated Mr. Hai Thanh Tran, vice president of Cavico. “Cavico’s expertise allows us to leverage our overall skills and diversify into this promising sector, while strengthening our traditional hydropower construction, and is in line with our overall long-term growth strategies. We are confident that our success and experience at Cua Dat, Ta Trach, Ngan Truoi, and Ban Mong projects will enable us to win additional contracts for the Ban Mong Hydropower Plant and contracts in the field of dam and reservoir construction.”

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 3,000 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, 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.

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