SOURCE: Coates International, Ltd.

July 10, 2007 07:00 ET

Coates Addresses Continuing Inquiries About China

WALL TOWNSHIP, NJ--(Marketwire - July 10, 2007) - Coates International, Ltd. (OTCBB: COTE) has received numerous inquiries requesting more information regarding potential business opportunities in China. In the interest of being responsive to the large number of interested parties, the Company has issued this press release.

George J. Coates, President & CEO, confirmed that the Company is in discussions with a China-based business entity that has expressed interest in securing a Use and Sale License in the territory of the country of China, covering the Coates CSRV Electric Power Industrial Generator Set, to be powered by landfill gas. In the event that we enter into any definitive agreement, a press release would be issued promptly. Our Board of Directors will evaluate the merits of such a transaction before it would be finalized.

We continue to conduct discussions with numerous parties related to viable applications of the CSRV technology. Investors and other interested parties are encouraged to rely on communications directly from our Company in the form of press releases and filings with the Securities and Exchange Commission (the "SEC") generally on Forms 10-KSB, 10-QSB, and 8-K.

About Coates International, Ltd.: Coates has been developing over a period of more than 15 years a patented spherical rotary valve CSRV Internal Combustion Engine, 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 making final refinements and performance testing in preparation for its launch of this product.

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

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