WALL TOWNSHIP, N.J., Jan. 5, 2011 /PRNewswire/ -- Coates International, Ltd. (OTC Bulletin Board: COTE) -Coates International, Ltd. (the "Company") is pleased to announce that the president of one of the largest engine and industrial generator manufacturers in China and his associates, including Coates International, Ltd.'s exclusive liaison agent to China, Mr. James Pang, visited the Coates Plant and Headquarters on November 30, 2010 and stayed for a full week.

The visit included the operation and demonstration of the following Coates Products:

    --  The Coates Industrial 6 CYL Natural Gas Electric Power CSRV Generator
    --  The Coates 4 CYL propane stand alone home Electric Power Generator
    --  A V8-350 performance gasoline CSRV engine
    --  A 1 CYL Industrial Gasoline CSRV Engine
    --  A 6 CYL 280 CSRV Coates retrofit in a Mercedes 380 Saloon

All demonstrations and operation of the Coates products performed flawlessly.

    --  The Chinese Delegation was duly impressed with the demonstration of the
        Coates CSRV engines.
    --  Negotiations continued through the rest of the week.
    --  A business venture and corporative agreements have been agreed upon in
        principal. However, approval of the deal must be obtained from the
        Chinese Government.

Coates International, Ltd.'s management is excited about the possibility of the Coates CSRV engines and CSRV Electric Power generators, including other CSRV products being (manufactured in China).

Mr. George J. Coates comments, "The possibility of having the Coates products manufactured in China opens up many new markets for our CSRV Industrial Natural Gas Gensets and our other Coates CSRV products that will be sold throughout Europe and the Far East. There is a vast market out there, and the CSRV systems with multi fuels capabilities are all absolutely green products."

The things that are important to Coates International, Ltd. are that the fact that the Chinese company is a large manufacturer of engines and industrial generators already with an existing work force of more than two thousand qualified employees. This will be a major boost for our company.

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. 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 operate on flare-off gas from oil wells, landfill gas and raw natural gas. The Company is engaged in building the initial production version of its CSRV power units for shipment.

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 Information:
    --------------------
    Coates International, Ltd.
    Phone: 732-449-7717
    Fax: 732-449-0764
    E-Mail: info@coatesengine.com
    www.coatesengine.com
    www.mostadvancedengine.com

SOURCE Coates International, Ltd.