Coates International, Ltd. Stockholders' Update: The Company Was Notified That the Delegation of Chinese Business Executives

Coates International, Ltd. Stockholders' Update: The Company Was Notified That
     the Delegation of Chinese Business Executives Will Visit the Coates
                     Headquarters After February 10, 2013

PR Newswire

WALL TOWNSHIP, N.J., Jan. 28, 2013

WALL TOWNSHIP, N.J., Jan. 28, 2013 /PRNewswire/ -- Coates International, Ltd.
(NASDAQ OTCBB: COTE) – Coates International, Ltd. (the "Company") has received
notice from Mr. James Pang, its Exclusive Liaison Agent to China, that
representatives of the Hong Kong-based major manufacturer now plan to visit
the Company's headquarters shortly after the Chinese New Year which starts on
February 10, 2013.

  oThe Company continues to work with two different states for the purpose of
    establishing its manufacturing operations. Two majority-owned subsidiaries
    have been established for this purpose. Management has visited one of
    these states and met with the city and state officials. The Company has
    also developed detailed business plans for raising new capital and ramping
    up production in either of these two states.

Both of the states are finalizing a proposal to the company to provide a
package of business and tax incentives. A suitable, existing manufacturing
site has been identified in each of the two states. Once a decision is made
as to which of the two states to set up operations in, the manufacturing site
would be acquired by the Company.

The Company plans to initially focus on production of CSRV industrial,
electric-power natural gas engine generators. Thereafter, the business plans
also provide for additions to the product line to include: domestic
stand-alone propane, four-cylinder quiet generators, performance V-8 engines,
4-cylinder water-cooled engines and 1, 2 and 3-cylinder air-cooled engines.
Also under consideration in the future, are retrofit kits for heavy trucks and
buses and further application of the CSRV technology to marine products.

  oThe business plans for the CSRV engine production contemplate the creation
    of a substantial number of new, skilled permanent jobs. This, combined
    with anticipated new sources of revenue from both domestic distribution
    and exports of the CSRV products would serve to stimulate both the local
    and US economies.
  oThe Company has received an assessment of the market opportunity from its
    Canadian-based distributor which indicates a need for 11,000 power units
    per year in the US and Canada over a five year period. The Company will
    require a reasonable period of time to ramp up its production to that
    level. Depending on the mix of the types of power units sold in any given
    year, if the Company could achieve that production volume to meet this
    estimated demand, it could generate revenues in excess of $1 Billion
    annually.
  oThe Company is attempting to firm up certain smaller orders which would
    enable it to begin building units on a relatively short timetable for
    delivery to these customers. This would provide further support for the
    viability of the CSRV system technology, while generating revenues and
    cash flow.
  oPotential sources of working capital that would be needed to commence the
    ramp up toward large scale manufacturing include:
  oDraw down of the Existing Dutchess Equity Line of Credit-- $19,700,000
  oNegotiation of a Letter of Credit which must first be deemed acceptable by
    a bank -- $30,000,000
  oOnce the Company commences production it can begin to collect fees owed to
    it under its CSRV technology sublicenses for Canada and the US for use and
    sale of industrial, natural gas CSRV power units for the oil and gas
    industry -- $54,847,000
  oAfter the Company receives the final business and tax incentive package
    commitment and chooses a state for its operations, the Company plans to
    undertake a private offering of its securities to raise additional working
    capital to support the ramp-upofproduction
  oAfter a reasonable period of time to reach and exceed a break-even point
    from manufacturing operations, the Company intends to reinvest positive
    cash flows to expand manufacturing capacity and its product line.
  oTo the extent that the Company achieves it business plans, shareholder
    value would naturally be enhanced.

The Company would like to arrange an open house for shareholders some time
after the Chinese visit.

There can be no assurances that the Company will be successful in carrying out
the business plans outlined above in this press release.

Safe Harbor Statement:

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. 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

THE COATES OFFICIAL NEWS WEBSITE
www.coatesengine.com | www.mostadvancedengine.com

SOURCE Coates International, Ltd.

Website: http://www.coatesengine.com
 
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