Coates Completes Arrangements with One of Our Key Suppliers

WALL TOWNSHIP, N.J.--([ BUSINESS WIRE ])--Coates International, Ltd. (the "Company" or "Coates") (OTCBB: COTE) – is pleased to announce that it has completed arrangements with Cummins Power Systems, LLC for the manufacture and supply of engine blocks and components, commonly referred to in the industry as "short blocks" for the Coates CSRV Industrial Engines. Coates has been formally notified by Well to Wire Energy, Inc. that it's approximate orders for more than 7,400 of these engines and generators over the next five years. Management at Coates views this as an important step for the Company's critical path to full production. These engines are intended to be used in various applications including electric power industrial generators including pumping and compression equipment used in the oil and gas industry. These engines are engineered to operate on an array of alternative fuels such as Liquid Natural Gas (LNG), Compressed Natural Gas (CNG), propane, butane and landfill gas, among many others.

We believe that the progress of our Company towards full production and deployment of Coates CSRV engines into the marketplace will help improve the US economy and provide substantial new employment opportunities in our own direct production facilities and in those of our licensees. The Company is reviewing plans for the creation of approximately 3,000 new jobs by the end of the first year of production and approximately 10,000 new jobs over five years.

The myriad benefits of applying the Coates CSRV technology to products and equipment powered by an internal combustion engine include:

The ability to optimize efficiency and reduce cost by selecting from a long list of alternative fuels
Reduced consumption of fossil fuels
Drastic reduction of harmful emissions
Contributing to the reduction of global warming progression
Contributing to the reduction of US dependency on imported foreign oil
Helping America get back to work
By exporting the Coates CSRV Power Units will help the US economy recover
All Coates CSRV Production Engines will carry a warranty.

About Coates International, Ltd.:

Coates has 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, and expects to have completed engines ready for pickup by Well to Wire, Energy, Inc. before the end of the year. The Company has recently completed the technological development of a diesel truck engine, which incorporates our CSRV system suitable for the trucking industry. We continue to make considerable progress with other important aspects of now retrofitting the diesel truck engine, including integration with the transmission and braking systems. After that, the engine will be fired up and tested with and without loads. The diesel truck engine is expected to achieve improved fuel efficiency and reduce harmful emissions.

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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Coates Completes Arrangements with One of Our Key Suppliers