SOURCE: Coates International, Ltd.

February 10, 2009 13:17 ET

Stockholders Update: Coates International, Ltd. Receives Written Proposal of Incentives Amounting to $787,526,057 U.S. Dollars and a Tax Credit Package of $779,158,557

WALL TOWNSHIP, NJ--(Marketwire - February 10, 2009) - Coates International, Ltd. (the "Company") (OTCBB: COTE) has received a written proposal from one of our states, to set up Coates' mass production and manufacturing operations in that state. These incentives will be spread over 10 years with the creation of new quality jobs, cash incentive of $787,526,057 U.S. Dollars and a tax credit package of $779,158,557. Management is also in direct contact with the Federal Government regarding start-up funding, etc. Management is carefully studying all proposals from all interested states and countries.

--  Company director, Gregory G. Coates, is now in China and will
    rendezvous with James Pang, our company's marketing liaison in Shanghai, to
    arrange presentations of the Coates CSRV engines and products to a number
    of prominent entities in that country.
--  Well To Wire Energy, Inc. of Canada has paid approximately $3,500,000
    in non-refundable payments to date. The remaining outstanding balance of
    $7,500,000 is to be paid on or before the 30th of April 2009. There is also
    a balance of $49,000,000 to be paid to Coates over 5 years, for the United
    States exclusive license which is in escrow until the balance of $7,500,000
    is paid in full.
--  Coates is proceeding with limited production in its plant in New
    Jersey as CSRV Generators are complete. Funds will be wired directly from
    Canada West Corporation Finance, Inc. to Coates International, Ltd. Finance
    is already in place specifically for the actuation of Coates products to
    Well To Wire Energy in the amount of $1,600,000,000 U.S. Dollars for the
    purchase of 7,404 CSRV Power Systems supplied over five years.
--  Heavy Truck Diesel CSRV retrofit engine has been completed for some
    time now. This engine is managed by computer systems.  Setting up, mapping,
    etc. is taking longer than anticipated. However, we expect more information
    on this project will be forthcoming as soon as testing starts.
--  Coates received two GM V8 engines used by Husky Oil of Canada for
    pumping and compression. These engines are converted to run on natural gas,
    but the poppet valves do not last, and maintenance is high and expensive.
    Coates will retrofit the CSRV System to these engines. We have been
    informed that there are more than 30,000 of these units in one oil rig
    section alone. This could mean significant revenues for Coates
    International, Ltd.
--  As the Company ramps up and enters mass production, management
    estimates the creation of over 10,000 new jobs at each Coates' production
    location. We anticipate production operations will be set up in four states
    in the United States.
--  Coates International, Ltd. has completed its five year Business Plan.
    All existing stockholders may receive a copy if they so desire.
    Stockholders that live local may pick-up a copy at our plant in New Jersey.
    Stockholders that are not in the vicinity must pay postage. Please contact
    Coates International at (732) 449-7717.
    

It is the Company's intention to continue to provide periodic, general updates to its shareholders and make specific announcements on matters of interest as they occur or when finalized.

Additional information, including photos and videos are available at our Coates News website, www.mostadvancedengine.com. Readers may also visit our corporate website at www.coatesengine.com.

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.

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