Coates International, Ltd. Announces Plans for Large Scale Retrofitting of Heavy Truck Engines.

WALL TOWNSHIP, N.J. -- Coates International, Ltd. (Coates) (OTCBB: COTE).

Coates is now in the planning stages for a "go-to-market strategy" that would provide the trucking industry accessibility to facilities throughout North America designed to retrofit existing truck engines with the Coates Spherical Rotary Valve Engine ("CSRV") technology. The CSRV technology improves fuel consumption, reduces harmful emissions, and reduces equipment "downtime" by extending the intervals between engine maintenance.

The combination of the increasing cost of diesel fuel, which is rapidly approaching $5.00 per gallon, along with the prospect of new trucking industry regulations designed to reduce harmful emissions, is posing an unprecedented, serious threat to the entire trucking industry. These new emissions regulations cut fuel efficiency for heavy trucks to as low as five miles per gallon. These factors, which are putting a number of heavy trucking industry companies into a fight for survival, have prompted a recent spate of calls to our Company by heavy truck fleet owners, operators, and others that service the trucking industry, who are frantically in search of a realistic solution.

We are currently in discussions with a major diesel and biodiesel supplier interested in retrofitting as many as 19,000 trucks owned by various distributors for Coca-Cola within Mexico. We are also in discussions for retrofitting heavy truck engines with Mapletree Transportation Inc., a Berkshire Hathaway company.

There is excellent synergy between the specific requirements for heavy trucking industry internal combustion engines and the technology we have already developed for the Coates CSRV 855 c.i. Industrial Engine which powers the Coates Electric Power Generators to be distributed under the US and Canadian licensing agreements with Well to Wire Energy, Inc. ("WWE"). We believe that demand for retrofit services will be substantial and that the quickest and most efficient strategy for meeting market demands will be to license this technology to others with both experience and existing facilities. Barry Kaye, CFO, noted that a key element of this strategy will be to maintain a supply of retrofitted truck engines at each established Coates Retrofit Facility with our CSRV technology. This will enable the Coates CSRV engines to be rapidly swapped out with the existing engines in the trucks to be retrofitted. The swapped out old technology heavy truck engines would then be retrofitted offline with the Coates CSRV technology, thereby substantially accelerating the process and increasing productivity.

As an initial step towards implementing this strategy, Coates has already authorized WWE to retrofit up to ten 18-wheeler, tractor-trailer heavy trucks for Elk Point Sand and Gravel Co, Aarbo Ranching Ltd. located in Alberta, Canada with the Coates CSRV 855 c.i. Industrial Engine. Our management intends to devote substantial energy to putting additional license arrangements in place throughout the country for this purpose.

George Coates stated that our existing internal combustion engine technology provides us with an important competitive advantage in penetrating this substantial market opportunity.

About Coates International, Ltd.: Coates has recently completed development of its patented spherical rotary valve CSRV Industrial Internal Combustion Engine developed over a period of more than 6 years and other CSRV applications over 10 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 rollout 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.