Coates International, Ltd.: Coates Receives More Than $4,000,000 USD From Well to Wire Energy Inc.

Published in House and Home on Thursday, May 7th 2009 at 11:05 GMT, Last Modified on 2009-05-07 11:06:35 by Market Wire
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WALL TOWNSHIP, NJ--(Marketwire - May 7, 2009) - Coates International, Ltd. (OTCBB: [ COTE ]) -- The company has received non-refundable payments from Well to Wire Energy Inc. of Alberta, Canada. These payments are for licenses to the Coates CSRV patented technology for power units used in the oil and gas industry; payments to date total $4,003,183.03 because of these good faith continuous payments made to the company and considering the economic climax. The company has extended the payment date to July 31, 2009. However, Well to Wire must continue to pay down the remaining balance of the $11,000,000.00 USD of which is $6,996,817.00 and when these payments amount to 45% of the original $11,000,000 which is $5,000,000, their risk substantially diminishes. They do not lose their licenses; the license only becomes (non-exclusive) until the balance is paid in full.

Barry C. Kaye, CFO, stated, "These payments provide extra working capital to fund our initial production of our industrial natural gas CSRV electric power generators. The company expects to have a number of these power units installed in the field very soon. Sales of these products will generate more operating revenues that will be reinvested to fund the ramp up of our production to fulfill existing orders for the oil and gas industry."

George Coates, President and CEO, stated, "We have faith in Well to Wire and believe they will fulfill their obligations to the company and we look forward to working with them."

Well to Wire Energy Inc. has already delivered to us firm orders for over 7,400 CSRV industrial electric power generators with a value to our company of approximately $1,200,000,000 USD. Well to Wire has also secured financing for up to $1,600,000,000 to promptly purchase these CSRV power units from our company.

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 ].

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