SOURCE: Coastal Integrated Services

August 26, 2009 12:17 ET

Coastal Integrated Services, Inc. Executes Preliminary Purchase Agreement

LAFAYETTE, LA--(Marketwire - August 26, 2009) - Coastal Integrated Services, Inc. (PINKSHEETS: COLV) has executed a binding Preliminary Purchase Agreement with a company to acquire the business and assets of its pipeline coating removal business.

This coating removal system operates within a closed loop that strips all coating from the pipeline, separates the solids from the liquid, bags the solids for disposal and recycles the liquids for reuse. The total system operates under vacuum, and as nothing is discharged into the atmosphere this system is very "environmentally friendly."

The Pipeline Safety Improvement Act (PSIA) mandates significant changes and new requirements in the way that pipeline companies ensure the safety and integrity of their pipelines. Central to the law are the requirements it places on each pipeline operator to prepare and implement an "integrity management program," which requires operators to identify conduct risk analyses of "High Consequence Areas (HCA)," perform integrity assessments of each pipeline segment, and inspect the entire pipeline system according to a prescribed schedule using prescribed methods.

The US Department of Transportation estimated cost of the legislation's requirements to natural gas pipeline companies alone might reach $11 billion over the next few years; consequently, companies that perform pipeline integrity services should enjoy a robust business and a bright future.

About Coastal Integrated Services:

Coastal is a multi-faceted energy company that combines the experience of its people with the strength of its alliances to create profitable projects within the energy related areas of production of oil and gas, the reduction of nitrogen and sulfur compounds in motor fuel and lubricating oils, and reclamation of existing energy infrastructures.

Forward-Looking Statements:

Forward-looking statements are subject to risks and uncertainties that could cause results to differ materially from historical experience. Such forward-looking statements are inherently uncertain and actual results may differ from those expressed or implied. Consequently, readers should not place undue reliance on any forward-looking statements. Coastal undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof.

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