SOURCE: Coates International, Ltd.

June 17, 2009 09:58 ET

Coates International, Ltd. Announces Repurchase of Its Headquarters and Research and Development Property

WALL TOWNSHIP, NJ--(Marketwire - June 17, 2009) - Coates International, Ltd. (OTCBB: COTE) (the "Company") is very pleased to announce that it closed on the repurchase of the property in Wall Township, NJ which has served as its headquarters and research and development facility. The purchase price of approximately $2,137,000 was partially funded by a $1,750,000 mortgage loan. The Company originally sold the property in 2005 for $4.2 million. The severe downturn in the real estate market created a unique opportunity, which the Company capitalized on, to buy it back for a little more than half of what it sold for in 2005. Barry C. Kaye, CFO stated "I am extremely pleased that the Company was able to reacquire this property while at the same time being able to realize actual monthly cash savings in excess of $21,500 going forward. These savings will be achieved because the Company is relieved of its obligation for the monthly rent payments of $32,500 for the remaining term of its operating lease, which effectively terminated when the Company again became the owner of the property. The annual savings of approximately $259,000 represents 20% of the Company's total general and administrative expenses incurred for the year ended December 31, 2008. The effective termination of the operating lease also enables the Company to recognize the remaining unamortized balance of the deferred gain of approximately $895,000 from the original sale of the property in 2005."

This transaction was initiated, negotiated and consummated by George J. Coates, President and CEO.

The mortgage loan provides that monthly interest-only shall be paid in the first year at an annual interest rate of 7.5%. The term is for one year with option to renew under specified conditions for an additional year. Monthly payments in the second year consist of interest, plus $1,200 per month of principal amortization. The mortgage loan is secured by all of the assets of the Company, the personal guaranty of George J. Coates, President and CEO, and a pledge of 5 million shares of the Company's common stock owned by George J. Coates.

Fax: 732-449-7736

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 operate on flare-off gas from oil wells, landfill gas and raw natural gas. The Company is actively engaged in preparing for the commencement of manufacturing of products utilizing this technology.

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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