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Coates International, Ltd. Receives Monies Totalling More Than $3 Million USD from Well to Wire and Prepares to Manufacture Engines and Generators to Fulfill Standing Orders

WALL TOWNSHIP, N.J.-(Business Wire)-October 1, 2008 - Coates International, Ltd. (Coates) (OTCBB: COTE).

Coates is pleased to report that, during the third quarter, it has received additional payments aggregating $805,000 required under its Escrow Agreement with Well to Wire Energy, Inc. (“WWE”) in connection with its research and development and licensing agreements. This brings the total amount received from WWE under these agreements to $3,005,000, leaving a balance of $7,995,000 due under the Escrow Agreement.

Having determined that WWE has made sufficient progress payments to date towards its obligations under the Escrow Agreement, Coates is now taking steps to commence production and expects to have commercial electric power engine generators, engineered for use with alternative fuels including flare-off gas from oil wells, landfill gas and raw natural gas (“Coates Generators”), ready for pickup by WWE before the end of the current year. Orders have already been placed with suppliers for production inventory and parts. George J. Coates remarked that “commencement of our production phase puts us on the path towards realizing our ultimate mission with this technology – making a significant contribution to reducing US dependence on foreign imported oil and mitigating the deleterious effects of global warming and help reduce the cost of fuel at the pump.”

We are in the process of reorganizing the layout of our existing facility to accommodate a number of engine/generator production stations to fulfill initial orders. In addition, we will be staffing up for this production by hiring plant workers, as appropriate.” Barry C. Kaye, CFO stated “We believe our working capital, which has been fortified from the WWE payments this year, is sufficient to fund our planned production of Coates Generators. Sales of these generators to WWE are expected to generate additional positive working capital. We are also exploring additional sources of new equity to augment our working capital available for ramping up production on a larger scale.

WWE has previously conducted its own unrestricted independent tests of the Coates Generators at our facility to ensure that the engines have been manufactured to their specifications. At the conclusion their testing, WWE left our offices so enthused about the future benefits from our CSRV Engine Generators that Bryan Campbell, CEO of WWE immediately issued a letter to Mr. Coates confirming WWE’s “extreme satisfaction”. In that letter, Bryan Campbell stated “It should be noted that energy use was measured at 27.5% to 30.4% less than what we presently experience with alternate engines. The CSRV Natural Gas fired engine will be used by Well to Wire in all of our future electrical power generation systems. I am extremely satisfied with the smoothness, the flawless operation, the very low energy use and the initial power output.”

WWE has secured a funding commitment in the aggregate amount of $1.2 billion to finance the production and purchases of more than 7,400 Coates Generators from us. WWE’s financing commitment ensures that we will receive the sales proceeds from these sales to WWE at the time title passes to WWE and will minimize our credit risk.

WWE has met the pre-requisite conditions set by Coates to qualify for an extension under the Escrow Agreement which included making payments totaling at least $3 million and agreeing to accrue interest on the unpaid balance due under the Escrow Agreement at the rate of five percent (5%) per annum.

WWE is continuing to undertake its plans to raise additional equity capital to fund the remaining balance due under the Escrow Agreement. This ninety day extension does not relieve WWE of its obligation to remit the remaining balance due under the Escrow Agreement by December 31, 2008. In the event that WWE is unable to satisfy the remaining balance due or Coates does not grant a further extension of time, WWE would forfeit all license rights in the US and Canada without any obligation by Coates to refund any monies previously paid.

About Coates International, Ltd.:

Coates has 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, and expects to have completed engines ready for pickup by Well to Wire, Energy, Inc. before the end of the year. The Company has recently completed the technological development of a diesel truck engine, which incorporates our CSRV system suitable for the trucking industry. We continue to make considerable progress with other important aspects of now retrofitting the diesel truck engine, including integration with the transmission and braking systems. After that, the engine will be fired up and tested with and without loads. The diesel truck engine is expected to achieve improved fuel efficiency and reduce harmful emissions.

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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