SOURCE: Coates International, Ltd.

August 09, 2007 13:02 ET

Coates Confirms Viability of Technology

WALL TOWNSHIP, NJ--(Marketwire - August 9, 2007) - Coates International, Ltd. (OTCBB: COTE) -- In response to communications directed to the Company inquiring about the status of our CSRV technology, George J. Coates, Chief Executive Officer announced that the viability of the technology has been convincingly demonstrated for a number of applications.

The CSRV technology has been successfully retrofitted into certain vehicles, including a 280 SE Mercedes Benz, which was duly registered and driven on public roads in the U.S. for ten years. Tailpipe tests on this vehicle did not detect the presence of carbon monoxide or hydrocarbons. Fuel savings achieved averaged approximately 18%. The engine was successfully revved up to 10,000 RPMs on various occasions. This engine has been temporarily removed from the vehicle for inspection and it is expected to be reassembled into the vehicle in the near future for further testing. We should point out that this vehicle is fueled by gasoline and is water-cooled.

In addition, Coates Motorcycle Company, Ltd. ("CMC"), our affiliate, has also developed the Coates CSRV V-Twin Air Cooled 1,600 cc Motorcycle which has successfully been incorporated into the first three motorcycles manufactured. One of the motorcycles, when tested under full load, achieved a speed of 137 miles per hour, with ample throttle remaining for even further acceleration. This motorcycle has undergone testing by a federal Environmental Protection Agency-recognized, independent testing facility. According to this testing facility, this bike not only achieved 47 miles per gallon, but it also complied with current applicable governmental emissions standards. While the governmental emissions standards for a V-Twin 1,600 cc motorcycle are a maximum of 5.0 parts per million ("PPM") of hydrocarbons and a maximum of 10.0 - 20.0 PPM of carbon monoxide, the emissions from the CMC bike using the CSRV engine indicated a presence of only 1.5 PPM of hydrocarbons and 6.8 PPM of carbon monoxide.

Our primary focus is on applying the CSRV technology to engines fueled by raw natural gas in connection with fulfilling our agreement with Well-to-Wire Energy, Inc. ("WWE"). We have already delivered two raw natural gas prototype CSRV engines to WWE and are in the testing phase of the third prototype CSRV engine generator powered by raw natural gas. Raw natural gas does not generate the same level of BTUs or volumetric density as other fuels more commonly used for engines such as diesel or gasoline. Additionally, filtering systems have to be incorporated into the design to counteract the acidic components present in raw natural gas. We have determined that our design is viable and are making final refinements to optimize performance.

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 http://www.sec.gov.

Contact Information