SOURCE: Coates International, Ltd.

June 10, 2008 07:00 ET

Coates International, Ltd. Announces General Stockholders' Update

WALL TOWNSHIP, NJ--(Marketwire - June 10, 2008) - Coates International, Ltd. (the "Company" or "Coates") (OTCBB: COTE) is pleased to announce that according to our Escrow License Agreement with Well to Wire Energy, Inc. of Canada, the balance of the Canadian exclusive license and development costs must be paid on or before the 30th of June 2008. The total amount due including the deposit on the USA exclusive license was $11,000,000 USD. Well to Wire has paid our company non-refundable payments to date, totaling $2,200,000 USD, leaving a balance of $8,800,000 to be paid to Coates. Well to Wire Energy has secured a $1.1 billion USD equipment lease finance commitment from Canada West Corporate Finance, Inc., which is to be utilized only for the purchase of the Coates Industrial CSRV Electric Power Generators over the next five years, pursuant to its License Agreement with Coates. The five year Well to Wire Business Plan, on which this commitment was based, provides for the purchase of approximately 7,400 Coates CSRV Electric Power Industrial Generators at a price per unit of $150,000.

This project of designing and building the Coates CSRV Industrial Generators for Well to Wire Energy, Inc. is completed, and as soon as our company receives the outstanding balance in full, production of this product will start. Coates utilizes approximately 40 outside companies for manufacturing its components to produce its products, assembly of the CSRV Engine Systems is relatively easy; production should go smoothly.


Coates International, Ltd. has completed the design and development of its stand-alone CSRV Electric Power Generator for residential use. This (CSRV) Home Generator is configured to run on Propane and can also be powered by any combustible fuel including Hydrogen. This CSRV Generator is a synchronous system that only produces the amount of electric power that is being used or required at any given time from 1 KW up to 35 KWs. It incorporates a CSRV in line 4 cylinder power unit. (This Project is complete.) Marketing has started.


The initial design of the land speed racing car is complete. The wind tunnel is ready for airflow tests. Company officials are talking and negotiating with potential sponsor for this project and as soon as the car and engine are complete, the land speed race trials will start.


The CSRV Retrofit System and Heads are complete and now being fitted to the heavy truck engine. Management and staff are excited about this project and believe that it will be one of the most lucrative for Coates International, Ltd.


A number of these engines were built and were tested in a Coates' Motorcycle by an independent EPA approved testing laboratory. Test results showed 47 miles to the gallon, tested over a 2,000 mile run and achieved less than 50% of the EPA's Emission Standards.

It was later tested by Coates for speed achieved 137 MPH with plenty of throttle left for higher speeds. This project is complete and is now under review by management.

There are a number of other projects underway at Coates and we will be announcing them in the near future.

Coates International, Ltd. tries its best to keep its stockholders fully informed of what's happening in the company. Many of our thousands of stockholders are contacting the company for more information and most of these questions cannot be answered because of the SEC Rules and Regulations regarding insider information.

It must be understood that Coates is a fully reporting public company trading on the NASDAQ OTCBB - COTE and must abide by the SEC Rules and Regulations.

When our company divulges information regarding the names of other entities that we are talking to or negotiating with, some of our unsophisticated stockholders are contacting these potential customers and Licensees and interfering with our company's business and procedures. (This we cannot tolerate), so in the future management has decided not to divulge the names of the entities and companies it is in negotiations with until deals are signed, sealed, and delivered. However, the company is in negotiations continuously with numerous companies and entities at this time, and will release information, as it deems appropriate.

About Coates International, Ltd.: Coates has recently completed final refinements to a patented spherical rotary valve CSRV Industrial Internal Combustion Engine developed over a period of more than 6 years and other CSRV applications over 10 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

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