Brian:

Your '89 CE has the 12 valve, 6 cylinder, 177 hp, M103 engine. Unfortunately the '90 year CE introduced the 104 engine (DOHC, 24 valve, 217 hp) -- according to MBUSA's "15 year" overview of past models.

http://www.mbusa.com/brand/container.jsp?/overview/overview_engine.jsp&yearModelCode=88_CE300COUPE&class=88_E&rnav=024568&menu=2_2

If you can get hold of a shop manual for this model, you should have no problems pulling the head if indeed it is the head gasket leaking.

Good luck!

~Paul

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'91 300E, 208k miles