Cavico Reports Third Quarter Fiscal 2009 Results.

Backlog Increases to $290.3 Million at September 30, 2009

HANOI, Vietnam -- Cavico Corp. (NASDAQ: CAVO), a leading infrastructure development company based in Vietnam, today reported its financial results for the third quarter ended, September 30, 2009.

Total revenues grew 17.0% to $17.2 million in third quarter, from $14.7 million in the third quarter of fiscal 2008. The increase in third quarter total revenues was primarily the result of increased revenue in Civil Construction, which accounted for 87.0% of total revenues and Commercial Activities. On a sequential basis, total revenue increased 23.7% from $13.9 million reported in the second quarter of fiscal 2009.

"As Vietnam's largest engineering and construction contractor with a national presence servicing almost exclusively public sector clients, our third quarter results reflects the continuing rebound in the country's economy after last year's global recession," said Mr. Ha Quang Bui, chairman and chief executive officer of Cavico Corp. "We are pleased with our robust top-line growth, benefiting from the progress of our Civil Construction projects involving tunnels, ports and highways. The construction boom in Vietnam was in response to the government stimulus. Also, the country's soaring car ownership has spurred the need for better infrastructure. According to a recent research report by Credit Suisse, Vietnam's GDP is forecast to grow 5.3% this year and 8.5% in 2010, after averaging around 7.5% each year for the past decade."

Mr. Bui continued, "Against this favorable macro economic backdrop, Cavico is well positioned with our long history of operations in civil projects and our recent foray into mining and power plant construction. On September 18, Cavico became the first Vietnamese company listed on a U.S. national securities exchange. With a presence on the NASDAQ Capital Market, we are able to gain much more visibility among growth-oriented emerging market investors around the world. We will continue to improve corporate governance and our transparency and focus on creating long-term value for shareholders."

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Revenues for the Civil Construction segment increased by 13.0% to $14.9 million during the third quarter of 2009, compared with $13.2 million in the same period in fiscal 2008. The increase in the Civil Construction segment was mainly due to new tunnel and dam projects coming online, such as Ta Trach, Dambri, Ngan Truoi and HuaNa, as the Company continues to recognize revenue from these projects based on progress completion basis. In addition, one mature project, the A Luoi Tunnel project, contributed $2.5 million to the overall Civil Construction revenues. Revenues from the Mining Construction segment decreased slightly by 4.0% to $821,093 during the third quarter of fiscal 2009 compared to $851,672 in the same period in 2008. This slight decrease was due to a reduction in mining activity at the Nui Beo Mine as the projects are coming close to completion and, as a result, the Company redeployed some of its equipment to other civil engineering projects, primarily new hydro power construction projects. Revenues from Commercial Activities (leasing machinery and equipment, selling materials, steel fabrication) increased $832,729, or 129.3% to $1.5 million during the third quarter of fiscal 2009 versus $644,162 for the same period in 2008. This was primarily a result of rising demand for construction materials as Vietnam's economy began its recovery from last year's global recession.

Gross profit decreased to $1.3 million in the third quarter of fiscal 2009, or 7.5% of revenue versus gross profit of $1.6 million, or 10.6% of total revenues for the same period of 2008. The decrease in gross profit was primarily due to a lower rate of increase in net sales than the increase in cost of goods sold.

Operating expenses increased $954,000 to $2.7 million in the third quarter of fiscal 2009 compared to $1.7 million reported in the same period of fiscal 2008. The increase in operating expenses was due primarily to administrative expenses associated with the corporate office and professional fees required to establish Cavico's status as a listed company. In addition, the Company recorded bad debt expense of $250,386 which was a result of an increase in the reserve for accounts receivable and work in progress. The Company continues to work diligently to implement cost control measures.

In the third quarter of 2009, the Company recognized a non-cash charge for an other-than-temporary loss on marketable securities of $978,880, compared to none in the same period of 2008. The Company recognized losses on available-for-sale securities for Habubank and Providential Holdings Inc. as their reduced values were determined as other than temporary.

Net loss for the third quarter of fiscal 2009 was $2.6 million, or ($0.85) per share, versus a net income of $148,984, or $0.05 per share, in the same quarter a year ago. In 2008, the Company recorded a tax benefit of $1.8 million compared to $86,285 in tax benefits in the third quarter of 2009.

Nine Months Fiscal 2009 Results

For the nine months ended, September 30, 2009, total revenues were $43.3 million, an increase of $854,426 from consolidated revenues of $42.5 million for the same period of fiscal 2008.

Revenues for the Civil Construction segment for the nine months decreased to $37.4 million versus $37.6 million same period in fiscal 2008. The slight decrease in Civil Construction revenue was caused by our new contracts started in early 2009. In the early stages of projects, the revenues are normally lower due to the preparation of projects such as roads, infrastructure and building of employee housing. Revenues from the Mining Construction segment for the nine months decreased to $2.8 million from $3.0 million compared to the same period in 2008. The decrease in the mining construction segment was mainly due to reduction in mining activities at Nui Beo Mine and the redeployment of equipment to other projects. Revenues from Commercial Activities (leasing machinery and equipment, selling materials, steel fabrication) increased by $1.2 million, or 67% to $3.1 million during the nine months of fiscal 2009 compared to $1.8 million recorded during the same period in 2008. The increase was primarily a result of rising demand of construction materials as Vietnam's economy began its recovery from last year's global recession.

Gross profit for the nine months was relatively the same at $7.2 million compared to the nine months of fiscal 2008. The slight decrease in gross profit was primarily due to a lower rate of increase in net sales compared to a higher increase in cost of goods sold.

Operating expenses increased by $1.4 million to $6.3 million for the nine months of fiscal 2009 compared to $4.9 million reported in the same period of fiscal 2008. The increase in operating expenses was due primarily to administrative costs with the corporate office and professional fees related to audit, legal, consulting services. In addition, the Company recorded a bad debt expense of $359,290 which was a result of an increase in the reserve for account receivable and work in progress.

Net loss attributable to Cavico Corp. for the first nine months of 2009 was $2.3 million, or ($0.75) per share, versus a net income of $745,098, or $0.26 per share, in the same period of 2008. For the nine months ended September 30, 2008, the Company recorded a tax benefit of $1.1 million compared to a tax expense of $335,605 for the same period in 2009.

In the nine month period ended September 30, 2009, the Company recognized a non-cash charge for other-than-temporary loss on marketable securities of $978,880, compared to none in the same period of 2008. The Company recognized losses on available-for-sale securities for Habubank and Providential Holdings Inc. as their reduced values were determined as other than temporary.

Financial Position

During the third quarter of 2009, the Company's cash balance was $1.6 million at September 30, 2009 compared to $3.8 million at June 30, 2009, with accounts receivable of $11.6 million and construction work in progress of $35.9 million. Total current liabilities were $95.5 million, which included advances from our customers of $9.2 million. As of September 30, 2009, total shareholders' equity $18.8 million.

Summary of Contract Wins During Third Quarter

During the third quarter of fiscal 2009, Cavico announced the following contracts wins:

* Cavico Transport signed a $2.8 million contract with Dakdrinh Hydropower for stone stripping and processing and bridge construction;

* Cavico Transport signed additional scope of work contract with Dakdrinh Hydropower Plant valued at $12 million;

* Cavico Transport signed a $16 million contract to construct a tunnel for Dakdrinh Hydropower; and

* Cavico awarded a service road and tunnel construction contract at Thuong Kon Tun Hydropower Plant. Expected revenue value of contact is $12 million. The 16 kilometer long tunnel will make this the longest tunnel ever constructed in Vietnam.

Backlog and Business Outlook

Backlog as of September 30, 2009 was $290.3 million compared to $265.3 million at the end of the second fiscal quarter. The backlog figure is based as of the end of the second quarter backlog minus work completed plus new contracts signed during the third quarter. Cavico expects that it will provide periodic updates when additional major contracts are confirmed.

Mr. Bui concluded, "The Vietnamese government is expected to put more electric power plants into operation at a faster pace in the near future. As one of Vietnam's leading contracting and construction companies, Cavico expects to bring more major civil construction contracts into our pipeline while actively pursuing business opportunities in capital equipment leasing and steel fabrication, which are currently our fastest-growing segments currently as a result of Vietnam's soaring demand for construction materials. We look forward to updating our shareholders with any new contract wins which will be added to our backlog."

Conference Call Details

Cavico Corp. will host a conference call with Mr. Hung Manh Tran, vice president and director; Ms. June Kim, chief financial officer and Mr. Timothy D. Phan, vice president and director. The call will take place at 9:00 am (Eastern) on Tuesday, November 17, 2009.

Interested parties may participate in the conference call by dialing 877-407-9210 (in the U.S. or Canada) or [phone] (international). The conference call will also be simultaneously broadcast live over the Internet at www.cavicocorp.com or www.vcall.com.

Please allow extra time prior to the call to visit the site and download the streaming media software required to listen to the Internet broadcast. The online archive of the broadcast will be available within one hour of completion of the live call.

The online archive of the Web cast will be available shortly after the conference call, or investors can listen to the replay by dialing 877-660-6853 (in the U.S. or Canada) or [phone] (international) and entering account number 286 and conference ID number 337972. Please allow for some time post conference call to access the archive of the Web cast.

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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