SOURCE: Coates International, Ltd.

November 05, 2007 12:30 ET

Coates Moves Forward on Production

WALL TOWNSHIP, NJ--(Marketwire - November 5, 2007) - Coates International, Ltd. (Coates) (OTCBB: COTE)

The Coates CSRV engines will run on alternative fuels and a combination of any of the following fuels: Ethanol, Dry Processed Natural Gas, LPG, HD-5, Propane Gas, Digestive Gas, Land Fill Gas, Bio Diesel, Methanol and Hydrogen. We also use synthetic engine oil in the crank case. The Coates CSRV engines do not require or depend on imported foreign oil. (Management believes the CSRV engines will reduce the US dependency on imported foreign oil.)

Having completed our research and development efforts for our Coates Spherical Rotary Valve (CSRV) Electric Power Industrial Natural Gas Generator enables us to focus on rapidly entering the production phase of our business.

We have now completed a fourth CSRV Engine based on an 855(ci) cubic inch in line 6 cylinder block with Coates' Pistons and Coates' Heads, incorporating the CSRV system technology. This engine, which is turbo charged, has a 10:1 compression ratio. We have performed testing on this engine at 1800 RPMs under load during its "running in" or "break in" period. Well-to-Wire (WWE), our Canadian customer, was contacted and informed of the latest progress, and the President of WWE stated that he was anxious to take possession of both of these power units as soon as possible.

The President of WWE and other executives, including the CEO, have made tentative arrangements to visit Coates' facility on Thursday, November 8, 2007. They will spend four days inspecting the CSRV power units running under load on natural gas and switching to alternative fuel combinations. Arrangements are currently being made for the delivery of the latest two Coates CSRV Power Generators to Canada, where they will be installed on gas wells in the field. The President of WWE also reconfirmed to Mr. Coates that they will be requiring 11,000 CSRV Power Generators. This equates to approximately $1.3 billion USD of revenues for Coates from sales of CSRV generators over an estimated period of five years.

WWE has purchased a License from Coates for the exclusive right to use, sell, and lease the Coates CSRV Electric Power Industrial Generators in the territory of Canada. In connection therewith, WWE paid us aggregate deposits of $1,500,000 USD on both the License Agreement and the Research and Development Agreement covering the application of our patented CSRV technology. The remaining balance due to Coates on the agreements is approximately $8,500,000 USD.

About Coates International, Ltd.: Coates has just completed final refinements to a patented spherical rotary valve CSRV Internal Combustion Engine developed over a period of more than 15 years. The underlying CSRV technology was invented by George J. Coates and his son Gregory. The CSRV system is adaptable to combustion engines of many types. This technology is currently adapted to a number of practical applications, including industrial generators powered by engines incorporating the CSRV technology and designed to run on flare-off gas from oil wells, landfill gas and raw natural gas. The Company is actively engaged in planning for production and rollout of these engines.

This press release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. By their nature, forward-looking statements and forecasts involve risks and uncertainties because they relate to events and depend on circumstances that will occur in the near future. There are a number of factors that could cause actual results and developments to differ materially from forecasted results. These risks and uncertainties include market conditions, regulatory approvals, and other risks inherent in our operations. For a discussion of these risks and uncertainties, please see our filings with the Securities and Exchange Commission. Our public filings with the SEC may be viewed and printed on the website maintained by the SEC at http://www.sec.gov.

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