The coates rotary valve system makes possible and is the most suitable for all of the following:

Small Combustion Engines - Low emission Engines - High thermal efficient Engines - Low fuel consumption engines - High rpm engines - High performance engines - Internal combustion engines - Racing engines - Midget Racing engines - Drag racing engines - Marine engines - Boat engines - Hot Rod engines - Industrial engines - Truck engines - Large industrial engines,

Source: Coates International Ltd.

COATES INTERNATIONAL STOCKHOLDERS UPDATE

Thursday, December 10, 2009-For Immediate Release

WALL TOWNSHIP, NJ. – (PR Newswire) ­- Coates International, Ltd. (OTCBB: COTE)

• We are continuing to make excellent progress in finalizing an agreement with the representative delegation of professors from China that will provide for setting up mass production operations in China under a possible joint venture structure. We will have completed the first production Industrial Natural Gas CSRV Electric Power Engine Generator which will be used for demonstration and evaluation in China.

• This first production industrial natural gas electric power generator is scheduled to be shipped to China at the end of December or early January, depending on the availability of freight forwarding booking schedule.

• We are engaged in negotiations for a number of other applications of our technology in China, including:

  • A Licensing Agreement with an industrial engine manufacturer.

  • A Licensing Agreement with a large automobile manufacturer.

  • A Use License to the largest oil company in China

• Our exclusive liaison agent, Mr. James Pang is continuing his efforts and is heading up all the negotiations in China.

• Well to Wire Energy Inc. of Canada: The President of Well to Wire is scheduled to visit Coates International Ltd. Headquarters next week. We will disclose any progress of that meeting in the near future.

• The preparation efforts for the $300,000,000 bond issue are continuing. The company made an initial advance of funds to the transaction managers (FCFL) of Tennessee to cover offering costs as they are incurred. This transaction is targeted for completion in January 2010. The proceeds of this offering will be utilized to establish large scale production of CSRV system technology products in the USA.