Coates International, Ltd. (the "Company" or "Coates") (OTCBB: COTE) announced that the company intends to begin limited production of its Industrial Electric Power Natural Gas CSRV Generator shortly, and will undertake to hire plant workers, procure inventory and production parts and optimize available space in its facility to increase manufacturing capacity. Management estimates that it is feasible to attain a production rate of up to 30 units per month without increasing the existing production capacity.

George J. Coates added that we have approached certain engine manufacturers with a view toward contractually outsourcing the production of the first hundred engine short blocks, which would be delivered ready for assembly with our revolutionary CSRV technology. The company is also exploring the feasibility of outsourcing the production of heads and other components, some of which could be sourced from China with other suppliers. Barry C. Kaye, CFO, stated that this should be seen as a very sensible approach because it requires a minimal demand on our capital resources and enables us to drastically accelerate the timeframe for ramping up production when compared with the alternative approach of full scale manufacturing of the entire engine.

Shortly after Well to Wire Energy's ("WWE") Directors visited our headquarters for the second time in January 2008, they expressed an interest in entering a second exclusive license for our Industrial CSRV Electric Power Generator, for use and sale in the oil, gas, and electric power generation industries in the territory of the United States of America. We are currently engaged in ongoing exploratory talks with WWE with respect to this potentially substantially larger licensing arrangement.

The No. 3 Industrial Natural Gas Electric Power Generator, which has been completed and satisfactorily tested at our facility by WWE, is ready for shipment by WWE. WWE is in the process of working out the logistics and appropriate timing of transporting this generator over the road on the approximately 3,000 mile long journey to an oil field in Canada in winter conditions. Our generator weighs in excess of three tons.

The Company is pleased that its recent progress towards entering the production phase has resulted in a heightened level of shareholder interest as evidenced by the increase in the number of email and telephone inquiries. Federal securities regulations prohibit publicly traded companies from disclosing non-public information to individual investors unless such information is generally made available to all investors at the same time. The Company is subject to further restrictions by confidentiality and non-disclosure provisions of agreements in force with a number of third parties customers and Licensees.

Some public companies have established an Investor Relations Department capable of responding directly to investor inquiries. The Company would like to be able to provide this support function for its shareholders in the near future but we do not believe it is prudent at this time to deploy its working capital for this purpose. All interested parties are encouraged to review our annual and quarterly reports on Form 10-KSB and 10-QSB and other publicly available information on our Company filed with the Securities and Exchange Commission ("SEC"). All Company filings may be viewed on a website maintained by the SEC at www.sec.gov. The Company also maintains a website at www.coatesengine.com which contains important information about the Company, our technology and WWE.

The Company would like to stress the substantial advantages of the CSRV technology over conventional internal combustion engines designed with the century-old poppet valve technology.

Gasoline powered Poppet Valve Engines are only 22% to 24% fuel efficient. During testing, internal combustion engines incorporating the CSRV technology have achieved fuel efficiency levels in excess of 36%. The poppet valve is the most troublesome component of the Piston Engine because timing is limited, downtime is costly and volumetric efficiency is inadequate. Although some engine manufacturers have tried to compensate for these disadvantages with 4 and even 5 poppet valves per cylinder, they still were unable to incorporate higher compression ratios with this design because the exhaust poppet valves became red hot, resulting in pre-ignition and the generation of large amounts of harmful emissions.

The development of the Coates Spherical Rotary Valve Engine (CSRV) was motivated by the substantial anticipated benefits and the technological advantages over the conventional poppet valve. Development is complete now and the CSRV technology offers the following:

--  Efficient use of Higher Compression Ratios
--  Higher Volumetric Efficiency
--  Higher Thermal Efficient Engine
--  Reduced fuel consumption
--  Substantial Reduction in Harmful Emissions Produced
--  Elimination of  Heavy Valve Springs
--  Lower Parasitic Losses
--  No Need for Servicing or Adjusting
--  Only Two Moving Parts
    

Coates is the only company in the world with the intellectual property rights to the patented (CSRV) technology.

About Coates International, Ltd.: Coates has recently completed development of its patented spherical rotary valve CSRV Internal Combustion Engine developed over a period of more than 15 years. The underlying CSRV technology was 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 run on flare-off gas from oil wells, landfill gas and raw natural gas. The Company is actively engaged in planning for production and distribution of these engines.

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.
Susan Alpert
732-449-7717
Fax:  732-449-0764
info@coatesengine.com
www.coatesengine.com