Coates Contemplates Breaking Land Speed Record.

WALL TOWNSHIP, N.J. -- Coates International, Ltd. (OTCBB:COTE) announced that its CEO, George J. Coates, is talking with a group who want to attempt to break the land speed record for internal combustion piston engine vehicles.

The group approached Coates because of two primary factors:

1. Coates' CSRV (Coates Spherical Rotary Valve) engines can be operated at far higher RPM than all other internal combustion piston engines.

2. Coates recently created two high-speed racing engines, one using a Ford (NYSE:F) 351 SVO aluminum block, and the other using a Ford (NYSE:F) 302 SVO aluminum block.

While final testing of the CSRV Electric Power Natural Gas Industrial Generator is in process, and is being done by an independent testing laboratory recommended and recognized by the EPA, the Company is proceeding with other possible deals.

CEO Coates said: "To break the land speed record using an internal combustion piston engine will depend on which engine size and category is targeted, but we are in serious discussions regarding this possibility. In fact, the company has already created an initial design for a complete Coates vehicle incorporating the CSRV Engine, to achieve such a land speed record."

The last record using an internal combustion piston engine vehicle was driven by Bob Summers in "Goldenrod" on 11/13/1965 when he did 409.277 miles per hour over a one-mile run.

About Coates International:

Coates' CSRV (Coates Spherical Rotary Valve) system is used on Coates' high performance racing engine that incorporates a Ford (NYSE:F) 351 block - that engine has a 14 to 1 compression ratio, high volumetric efficiency, and is designed to run @10,500 RPM. Recently demonstrated to another racing team, it had incredible throttle response, and its design should result in substantially lower maintenance than current racing engines.

Coates' engines are quieter, have ultra low emissions, higher power output per pound, and are more dynamically balanced than conventional poppet valve engines with better "breathing" capability and higher speed capability. Coates' technology allows the use of smaller, lighter, & more efficient engines. They are capable of running on such fuels as gasoline, natural gas, propane, digested land fill gas, hydrogen, methanol, ethanol, & diesel.

There are about 25 million diesel engines sold each year, and the total number of all types of internal combustion engines made each year worldwide is about 150 million and almost 1,000,000,000 vehicles registered on the roads worldwide each year, retrofitting of the CSRV is a real possibility. The company feels that this constitutes a rather adequate market for its patented CSRV system.

New niche markets are popping up for the CSRV Engine constantly. Coates' CEO stated, "that he will investigate and study all possible applications and the most lucrative and beneficial deals to the Company will be accepted first." Of course, management realizes the vast potential markets and different applications for the patented CSRV Internal Combustion Engine is only beginning to surface; we believe our company is about to expand rapidly, with unlimited future possibilities.