Coates Engines, China, Ltd. Is Now Being Established in Huanggang City, China This Week With Offices in Hong Kong; This Is a Subsidiary of Coates International, Ltd.; Coates International, Ltd. Is Merging With an Existing Chinese Manufacturing Company

WALL TOWNSHIP, NJ--(Marketwired - Nov 20, 2013) - Coates International, Ltd. ("the Company") (OTCQB: COTE) is moving forward with its plans to establish its mass production operations in China. Mr. Xiaoshi James Pang was appointed President and Chairman of Coates Engines China, Ltd. Officers and directors are George J. Coates, Gregory G. Coates and will also include one director from the merging Chinese company. The Chinese government will also be part of the new entity.

• Mr. Coates comments, "We have worked long and hard on this Chinese project and now it appears that there is light at the end of the tunnel. The test engine should be ready for shipping to China within a couple of weeks where it will be tested and demonstrated in China for government officials."
• Management is enthusiastic about this deal. Mr. Coates and key people will be traveling to China just prior to the CSRV® engine being shipped. A significant incentive package is being presented to the Company by the Chinese government. The Company has already executed preliminary agreements with the Chinese government to establish large mass production operations in China.
• The Coates Hydrogen Reactor tests of November 18, 2013 have been extremely successful. There is a number of electric power companies involved in this project. Many patents will be applied for on various components that make the reactor work. The secret is to produce enough hydroxy (HOH) gas on demand to operate the engine and generator that produces the electric power from water split into HOH as its only source of fuel.
• The meeting with a representative from India at the Coates headquarters in New Jersey on November 14, 2013 was productive. They are extremely interested mainly in manufacturing small CSRV® engines in India for their own market to lower emissions and operate on alternative fuels. They are putting together various proposals to present to the Company which include licensing and joint venture manufacturing in India.

There can be no assurance that the Company will be successful in any of the above endeavors.

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.