SOURCE: Coastal Holdings, Inc.

October 11, 2006 11:20 ET

Coastal Holdings, Inc. Announces New Corporate Strategy

Company Returns to Original Business as a Biotechnology Holding Company

HOUSTON, TX -- (MARKET WIRE) -- October 11, 2006 -- Coastal Holdings, Inc. (PINKSHEETS: COHG) today announced that its Board of Directors has approved the main corporate strategy or direction of the Company. This strategy is to transform Coastal Holdings into a Biotechnology Holding Company and in doing so return to the original business and foundation of the Company. Coastal Holdings will function as an angel investor in several emerging biotechnology companies based in Israel.

Coastal Holdings will initially form an Israeli Consortium of advisors that will assist it in the evaluation and selection of investment-worthy biotechnology companies in the region. In the past couple of months, several Israeli biotechnology companies have requested that Coastal Holdings spearhead such a Consortium. In addition, these companies recommended that Coastal Holdings return to its roots as a biotechnology holding Company in order to effectively leverage its management expertise and extensive business network in Israel. The decision to adopt the new corporate strategy as outlined above was based in large part on the strong recommendations of these emerging Israeli biotechnology companies. Further details will be released to shareholders in short order with respect to the execution of this new corporate strategy.

For more information on Coastal Holdings and its new strategic growth initiatives, CEO Andrea Cortellazzi advises all shareholders to contact Mr. Yves C. Renaud, CA.

Forward-Looking Statements

Please be advised that statements made herein, other than historical data, constitute forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those stated or implied by such forward-looking statements. The potential risks and uncertainties include, among others, potential volatility in the company's stock price, increased competition, customer acceptance of new products and services offered by the company, and uncertainty of future revenue and profitability and fluctuations in its quarterly operating results. Please also be advised that the company's stock is not currently registered with the Securities and Exchange Commission.

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