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Coates Reaches Key Milestone Point in Joint Project to Power Engines Almost Entirely on Water — Coates International, Ltd. Has Completed Its Part of a Hydrogen Reactor Project With Aqua Power, LLC — One 14 HP CSRV Engine Is Operating on Water Utilizing a Reactor Which Converts Water Molecules Into Hydroxyl Gas — A Larger 150 KW CSRV Industrial Gen Set Now Has All Switchgears, Controls, Load Bank and Emission Equipment in Place at Coates Headquarters

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WALL TOWNSHIP, NJ–(Marketwired – Feb 17, 2016) – Coates International, Ltd. (OTC PINK: COTE) (the “Company”) has completed its obligations on a joint technology development project known as the “Hydrogen Reactor Project.” The Company is working in concert with Aqua Power, LLC, an energy resource development company and Dr. Patrick Hayes of WTF Asia International Ltd., a Hong Kong-based entity to bring the project to the commercialization stage. By reaching this milestone, Dr. Hayes is now in a position to complete the next phase of the technology by integrating the large hydrogen reactor with a technology that he has already developed to power larger commercial and industrial engines. Pictures of the smaller and larger hydrogen reactors are being posted on the Company’s website at www.coatesengine.com.

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