Coates International Ltd. to Issue for $300,000,000 USD

WALL TOWNSHIP, N.J., Oct. 21 /PRNewswire-FirstCall/ -- Coates International, Ltd. (OTC Bulletin Board: COTE.OB) - Coates International, Ltd. (the "Company"). After many months of intense negotiation the company on October 20, signed a Joint Venture (Entity) to process a bond offering, that the net proceeds will be $300,000,000 USD for the company. This funding is specifically for the start up of two manufacturing and production facilities, one in Miami, Oklahoma and the other in New Jersey not far from the existing Coates world headquarters facility in Wall Township, New Jersey. This transaction was initiated by George J. Coates, President, CEO and Barry Kaye, CFO.

George J. Coates, President and CEO, stated this is a very exciting and important prospect for our company. These funds will facilitate large scale manufacturing of our Coates CSRV Industrial Electric Power Natural Gas Generators and the 18 Wheeler Tractor Trailer Diesel CSRV Engines, of which the company has large orders for both of these products.

The Company's large scale manufacturing plans will require the creation of thousands of new quality permanent jobs and substantial capital expenditures that we believe will help boost the U.S. economy. Our world-wide patented Coates Spherical Rotary Valve (CSRV) System technology lowers the consumption of fossil fuels and will reduce the U.S. dependency on imported foreign oil, while lowering harmful exhaust emissions that are released into our atmosphere.

We have previously entered into an agreement with Oklahoma which would enable us to qualify for a package of business and tax incentives by hiring plant workers and making capital expenditures in the state that could amount to as much as approximately $750 million. Barry Kaye, Chief Financial Officer, stated: "The business and tax incentives in Oklahoma, coupled with the opportunity to utilize our substantial net operation loss carryforwards to offset income taxes will give us an additional advantage by improving our profitably in the early stages of our manufacturing phase of operations."

Fax: 732-449-7736 or Email: info@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.

    CONTACT:
    Coates International, Ltd.
    Alicia Ansbach, +1-732-449-7717
    info@coatesengine.com
    www.mostadvancedengine.com
    www.coatesengine.com

SOURCE Coates International, Ltd.