Coates International, Ltd. Stockholders' Update: New Patents Awarded

WALL TOWNSHIP, N.J., Dec. 14, 2011 /PRNewswire/ --  Coates International, Ltd. (OTCBB: COTE) (the "Company") President and Inventor, George J. Coates, has been awarded patents for an improved cooling system for the CSRV engine in the following countries: Belgium, Germany, Denmark, Spain, Finland, United Kingdom, Ireland, Italy and Sweden.

• This provides us with critical protection of our intellectual property for the CSRV engine design technology until 2020.
• Coates Oklahoma Engine Manufacturing, Ltd., our manufacturing subsidiary, will appoint Mr. John I Blair IV, PE as Managing Director. He is a highly skilled engineer and experienced businessman with extensive experience in this industry. He is currently in Oklahoma working on the funding for this project.

We have received a substantial business and tax incentive package from the Oklahoma Department of Commerce with the assistance of Mr. Blair.

• The Company is searching for quality foundries in the USA to supply large quantities of competitively priced head castings. The head castings that our company is presently using have experienced some cracks and flaws such as porosity in the metal. This will cause engine break down and must be remedied before volume production starts. Four of eighteen heads experienced cracks and this is not acceptable.

The Company strives to source all parts and components within the USA. However, we will source outside of the USA, if necessary, to ensure high quality production.

• The Chinese merger with SWT is still pending. The Company may ship a CSRV Natural Gas Industrial Electric Power Engine Generator to the Clean Energy Automotive Engineering Research Center at Tongji University in Shanghai, China. This unit will be used for demonstration and testing in response to the interest of a number of Chinese companies.
• The deals and projects in Dubai are still pending, and one of them was approved for Al Najaf, Iraq. However, we cannot proceed until conditions improve and settle down in that area. We are keeping a close eye on this situation.
• The Company is in the very early stages of negotiations with an Italian company that wishes to utilize the Coates CSRV Industrial Electric Power Engine Generator to be fueled with Syngas. As a next step in the process, the Company may ship one or two CSRV engine generators for testing to the Italian National Research Council ("ICN") in Naples, Italy.
• Coates International, Ltd. management and staff would like to take this opportunity to wish all our stockholders, business partners and friends Happy Holidays and a prosperous New Year!

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. 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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