Coates Files U.S. Patent Application for Combination Fuel Mixing System Utilizing Alternative Fuels

WALL TOWNSHIP, N.J.--April 26, 2006--Coates International, Ltd. ("Coates" or the "Company") announced today that it has filed a patent application to the United States Patent Office for the Company's new fuel mixing management system designed to mix different types of fuels simultaneously and sequentially in the Company's patented industrial Coates Spherical Rotary Valve Engine ("CSRV") for electric power generation. The device, designed by Gregory G. Coates, son of inventor and founder of the Company, George J. Coates, purports to mix natural gas with various alternative fuels, including biodiesel (a fuel manufactured from vegetable oil), ethanol and hydrogen. The Company believes that the use of alternative fuels as described may potentially lessen consumer demand for petroleum-based products and particularly foreign imported oil.

The new fuel mixing management system is built and has been tested to the satisfaction of the Company during the past three months while using different combinations of alternative fuels. The manufacturer of the bio diesel and ethanol is Zambrana Engineering, Inc., a U.S. company. Specific details concerning how this new device works are anticipated to be divulged publicly in the near future.

Coates is in the process of manufacturing its CSRV industrial generator sets with this new alternative fuel management and mixing capabilities. Coates believes this new technology will eventually migrate into cars, trucks, buses, boats and so on.

There can be no assurances that a U.S. patent will be issued to the Company.

About Coates International, Ltd.

Coates has emerged from over 15 years of research and development, after very diligently and quietly working on its CSRV Combustion engine technology. While experiencing substantial measured success, Coates has acquired numerous patents worldwide on its CSRV technology.