Coates International Provides Corporate Update

WALL TOWNSHIP, N.J., July 19 /PRNewswire-FirstCall/ -- Coates International, Ltd. (OTC Bulletin Board: COTE) is pleased to provide current and prospective shareholders and business partners with a corporate update.

• A number of stockholders have contacted the Company for information on the scheduled shipment of the first production CSRV engine power units. Our efforts were delayed by unexpected and uncontrollable events in the shipment of the production version of CSRV heads for our engines. Our supplier, Unique Machine Company, located in Montgomery, PA suffered the loss of a key employee, which resulted in the supplier being unable to retrieve the software program for the final machining of the heads. We have just now received the production version of the CSRV heads.
• During this delay period in which we reprogrammed the software for CSRV head machining, we also built our first production electric power industrial CSRV power generators using prototype heads and have been running and testing these power units. These units are not suitable for shipment because of the prototype heads. We are pleased to report that we are now past this hurdle and will immediately begin to incorporate the new production CSRV heads into our power units for shipment. We would like to point out that many of our stockholders attended the technology demonstrations last year and were able to observe first-hand that the prototype engines operated efficiently and delivered the expected technological benefits.  The power units will be shipped as soon as possible; however, rest assured that no shipments will occur until the power units are properly tested and determined to perform to our exacting standards.
• We also wish to clarify a point of continuing confusion to many stockholders. At this time, we are not offering shares of our stock for sale and, in fact, have not undertaken any public or private offerings of our stock in more than four years.
• We plan to continue to actively working on our arrangement with China and will deliver CSRV engines as soon as practicable, provided that these activities do not interfere with the timing of the completion of our first CSRV power units for shipment. Mr. James Pang, our exclusive liaison agent is still in China continuing his efforts to diligently pursue our business interests.
• The manufacturing facility in Oklahoma, combined with a package of business and tax incentives, continues to represent a viable option for the Company once we are ready to commence larger scale production. We will carefully consider this proposal along with other options before committing to a final decision. A copy of the executed offer letter from the State of Oklahoma is being posted on our website at www.coatesengine.com.
• We are also working with two agents, Mr. Mohammed Abdul Mubassir and Mr. Syed Faiyazuddin who are actively working on marketing our products in the United Arab Emirates.
• We intend to provide timely updates on future developments resulting from our efforts to secure additional business opportunities as they are put into place.

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 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.

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SOURCE Coates International, Ltd.