SOURCE: Coates International, Ltd.

May 13, 2008 07:00 ET

Coates International, Ltd. Is Pleased to Announce That It Has Completed the Design and Development of Its First Stand-Alone CSRV Electric Power Generator for Residential Use

WALL TOWNSHIP, NJ--(Marketwire - May 13, 2008) - Coates International, Ltd. (Coates) (OTCBB: COTE). The Coates Spherical Rotary Valve ("CSRV") Home Generator has been configured to operate on propane and can be powered with any combustible engine fuel, including Hydrogen. This CSRV Electric Power 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. A video demonstrating this new CSRV Home Generator in operation will be available for viewing on our websites shortly at www.coatesengine.com or www.mostadvancedengine.com. Management believes that because the CSRV Home Generator's unique features such as its ability to only supply the power required, and its adaptability to operate on alternative fuels, with ultra low emissions, and low consumption of fuels, that this new product will have significant demand in the marketplace.

The Company is also diligently working on other applications for its patented CSRV Engines. With the tremendous rise in gasoline and oil prices, and our CSRV System saving between approximately 18 to 30% in fuel consumption and low emissions, this opens up opportunities that are significant for our CSRV Engines. Discussions and negotiations are continuing with other companies to license our technology and products. Simultaneously, the Company is in the process of planning the next step towards the commencement of production.

About Coates International, Ltd.: Coates has recently completed development of its 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 http://www.sec.gov.

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