Coates International Home Generators May Only Need Water As Fuel To Operate And Prepares Online Video Demonstrating Operation Of A Coates CSRV 14 Horsepower Engine Running On Hydrogen Generated From The Coates Hydrogen Splitting Reactor

WALL TOWNSHIP, NJ--July 18, 2013: Coates International –Coates International, Ltd. (the "Company") has developed its first hydrogen reactor which is capable of splitting the molecules in ordinary tap water to generate Hydroxy gas. The Hydroxy Gas is harvested from the tap water on demand by the hydrogen splitting reactor. It is then used to power the Coates CSRV engines. A video of the successful first application to power a Coates 14 Horsepower CSRV engine can now be viewed on the Company's website at Coates Engine.

CSRV engines operating on Hydroxy Gas do not produce any emissions whatsoever, and the energy is sourced from an ordinary water supply, making this an inexpensive and "green" source of power. Conventional engines designed with poppet valves assemblies would likely experience catastrophic failure in a very short time running on Hydroxy Gas because they are designed to run on gasoline or diesel fuel and there is no lubricity in hydrogen.

At this time, the Company is continuing with the development of this technology and is working on applying this technology to more powerful, higher capacity CSRV engines.

At this time, there can be no assurance that this project can be successfully introduced into the marketplace on a large scale basis.