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Coates International, Ltd.: Coates International, Ltd.: Stockholders' Update

^{Published on 2009-04-08 08:03:08, Last Modified on 2009-04-08 08:04:35 - Market Wire}
 

WALL TOWNSHIP, NJ--(Marketwire - April 8, 2009) - Coates International, Ltd. (OTCBB: [ COTE ]) received a second, modified agreement for the proposed joint effort with China covering initial research and subsequent business plan for the manufacture of Coates Spherical Rotary Valve ("CSRV") System technology engines for the China and Far East market. George Coates stated that "We are continuing to work with our advisers and attorneys to further refine this agreement. We anticipate translating and finalizing this agreement within the next 60 days."

 -- The Company is forging ahead in developing its 1600cc, 4 cylinder, CSRV test engine for the research phase in China, targeted for completion within the next 30-60 days. -- Last week, the Company filed its Form 10-K with the Securities and Exchange Commission and for the first time in the Company's history, it reported annual income from operations and net income of approximately $1,230,000 and $874,000, respectively, for the year ended December 31, 2008. Revenues reported for 2008 of approximately $3,308,000, included revenues from research and development of approximately $1,813,000 and gain on sale of land and building of approximately $ 1,495,000. -- The Company has finalized an agreement with the Executive Director, Secretary of Commerce of the State of Oklahoma for business and tax incentives of approximately $787,000,000. These incentives are earned by the Company over a period of 10 years, to the extent it creates new quality jobs and makes other qualified expenditures in that state. However, a critical element of this project is the availability of start-up funding for initial inventory, labor and overhead during the production "ramp-up" period until proceeds from sales of product can fund the Company's operations. At this point, Oklahoma has not offered to provide start-up funding. Funding the start-up costs will need to be addressed before the Company can consider setting up manufacturing operations in Oklahoma. Company management plans to visit with Oklahoma officials in the next 30-60 days to discuss this requirement in further detail. -- Company representatives are continuing discussions with other states. One of these states has advised that up to $150,000,000 of production start- up funding could be provided if the Company agreed to build a new production plant within the state. -- The Company's long-term planning envisions supporting its operations with as many as four production plants in the United States and possibly Canada for a variety of CSRV engines applications, such as heavy truck retrofit and new engines, buses, marine, locomotive engines and industrial generators. -- The heavy CSRV truck engine is complete and will be fired up shortly, after which observations made on the engine's performance will be announced. -- The natural gas fueled Industrial CSRV Electric Power Generators and a 35KW Propane Home Generator are being run regularly at the Coates facility in New Jersey. These units continue to show great promise and are based on highly effective CSRV designs. -- Well To Wire Energy is continuing its efforts to raise additional funds and has indicated that additional payments may be forthcoming in the near future. -- Well To Wire Energy has delivered to the Company a signed, firm order for 7,466 CSRV Industrial Generators along with a list of customers committed to taking delivery of CSRV generators in their oil and gas fields. Well To Wire Energy has paid approximately $3,528,000 in non- refundable payments to date leaving a balance due the Company of approximately $7,472,000 to be paid on, or before April 30, 2009. Well To Wire Energy also has in place a financing commitment from Canada West Corporate Finance, Inc. specifically for acquisitions of 7,466 CSRV Generators, which, at a price of US$159,000 per unit would represent a total value of approximately $1,187,000,000. 

Additional information about the Company, 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 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 [ http://www.sec.gov ].