Coates CSRV Technology Already Exceeds Proposed New Government Fuel Efficiency Standards

WALL TOWNSHIP, N.J., Nov. 3, 2010 /PRNewswire/ -- Coates International, Ltd. (OTC Bulletin Board: COTE) – Coates International Ltd. (the "Company") has made a number of attempts to capture the attention of Federal and state officials to arrange a demonstration of how our existing Coates Spherical Rotary Valve ("CSRV") patented system technology has already been incorporated into available engine designs. This means that the CSRV system technology can be readily adapted to achieve their stated objectives for cleaner burning and more fuel efficient internal combustion engines, while offering a significant potential for significant new job creation. Test results achieved already easily exceeded recently announced proposed first-ever fuel efficiency standards for trucks.

The Federal Environmental Protection Agency and the Federal Transportation Department released proposed fuel economy requirements and reductions in tailpipe emissions for medium- and heavy-duty trucks, beginning with those sold in the 2014 model year and into the 2018 model year. The proposal which is expected to be finalized by next summer, seeks a 20 percent reduction in carbon dioxide emissions and fuel consumption from big rig combination tractors by 2018. Heavy duty pickup trucks and large vans would face separate gasoline and diesel truck standards which would phase in beginning in the 2014 model year. Vehicles running on gasoline would need to cut fuel consumption and emissions by 10%, while vehicles running on diesel fuel would need to achieve a 15% cut by 2018. While representing only about 4% of the vehicles on the road, they consume about 20% of the transportation fuel in the U.S.

Coates' CSRV system technology has been adapted to operate engines running on almost any type of fuel. We intend to continue to vigorously pursue this opportunity with government officials and vehicle manufacturers as a readily available solution to achieving these targeted government mandates for cleaner and more fuel efficient vehicle engines. The management of Coates anticipates that this could represent a substantial potential market application for the Coates CSRV system technology.

While the Federal and state governments have been slow in responding to our overtures, we have just received confirmation that a delegation from China has received its travel visas and is very enthusiastic about traveling half-way around the globe to our headquarters in New Jersey for the purpose of exploring future business opportunities to apply our patented CSRV system technology within the Chinese marketplace. Based on the actions taken so far, it would appear that China's commitment to pursuing disruptive technologies for cleaner burning and more fuel efficient technologies is more genuine than the verbal comments towards this goal from our own government.

Coates is also pleased to announce that recent testing demonstrated that the company has satisfactorily resolved the conditions that resulted in the previously announced formation of green oxides of tungsten during operation of its natural gas fueled CSRV engine generators. This condition has been addressed by incorporating new component materials which are in extremely scarce supply. As a result, these component materials require longer lead times from our suppliers. It is currently anticipated that delivery of these new component materials will commence towards the end of the year and that the Company will be able to begin shipment of production engines to Almont Energy, Inc., shortly thereafter.

Updated information and a video recording of the final testing progress on production will be posted on the Coates News Website.

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 engaged in building the initial production version of its CSRV power units for shipment.

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/

SOURCE Coates International, Ltd.