Fountain Powerboat Industries, Inc. Reports Third Quarter Results; Sales up 24% from Third Quarter Ending 3/31/2003 Operating Profit $1 Million

Business Wire, April 27, 2004

Business Editors

WASHINGTON, N.C.--(BUSINESS WIRE)--April 27, 2004

Fountain Powerboat Industries, Inc. (NASDAQ:FPWR), a leading manufacturer of high performance sport boats, fish boats and express cruisers, announces results for the third quarter of fiscal 2004 ending March 31, 2004.

Net sales for the quarter were $15,790,649, an increase of 24% over sales of $12,783,312 for the third quarter of the previous year. Net income from operations was $1,037,460 for the third quarter. Net earnings were $785,011 or $.16 per share for the third quarter of fiscal 2004.

Net sales for the first nine months of fiscal 2004 ended March 31, 2004 were $42,037,693 up from net sales of $37,799,524 for the same nine months of fiscal 2003.

Fountain's order backlog for boats has risen to $33 million. "Our unprecedented backlog is the result of our diversification of our product lines, our aggressive marketing campaign and an improving economy," stated President and CEO, Reginald Fountain, Jr., "and puts us in a strong position for continued success through the remainder of this fiscal year (June 30, 2004) and beyond."

Safe Harbor for forward-looking statements:

Except for the historical information contained herein, this press release contains forward-looking statements, including statements containing the words "planned," "expects," "believes," "strategy," "opportunity," "anticipates" and similar words. Such forward-looking statements are subject to known and unknown risks, uncertainties or other factors that may cause the company's actual results to be materially different from historical results or any results expressed or implied by such forward-looking statements. We assume no obligation to update any forward-looking statements to reflect events or circumstances arising after the date hereof. The potential risks and uncertainties which could cause actual growth and results to differ materially include but are not limited to, customer acceptance of the company's services, products and fee structures, the success of the company's brand development efforts, the volatile and competitive nature of the industry, and changes in domestic and international market conditions, and foreign exchange rates. Further information on the factors and risks that could affect Fountain Powerboat Industries, Inc. business, financial condition and results of operations are included under the "Risk Factors" or "Factors Affecting our Operating Results" sections of Fountain Powerboat Industries, Inc. public filings with the Securities and Exchange Commission, available at (http://www.sec.gov).

          FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY

        Condensed Statements of Sales, Expenses, Net Income and
                    Earnings per Share - Unaudited

                       For The Three Months     For The Nine Months
                               Ended                   Ended
                              March 31                March 31
                      ------------------------------------------------
                             2004        2003        2004        2003
                      ------------------------------------------------
NET SALES             $15,790,649 $12,783,312 $42,037,693 $37,799,524
Cost of Goods Sold     12,671,581  10,871,979  34,859,343  31,611,866
                      ------------------------------------------------
     GROSS PROFIT       3,119,068   1,911,333   7,178,350   6,187,658

     Selling &
      Administrative
       Expense          2,081,608   1,726,932   5,573,084   4,450,479
                      ------------------------------------------------
NET INCOME FROM
 OPERATIONS             1,037,460     184,401   1,605,266   1,647,179

Interest, Income Taxes
 & Other Expenses         252,449     361,802     910,545   1,172,877
                      ------------------------------------------------
NET EARNINGS              785,011    (177,401)    694,721     474,302
                      ================================================
Earnings per Share -
 Basic                       0.16         N/A        0.14        0.10
                      ------------------------------------------------
Earnings per Share -
 Diluted                     0.16         N/A        0.14        0.10
                      ------------------------------------------------

            Condensed Statements of Assets, Liabilities and
                   Stockholders' Equity - Unaudited

                                                  March 31,  March 31,
                                                    2004       2003
                                                ----------------------
ASSETS
Current Assets
     Cash                                        3,584,625     51,903
     Accounts Receivable, net                    3,585,857  2,565,191
     Inventories, net                            4,637,734  3,203,670
    Other Current Assets                         1,455,389  1,622,385
                                                ----------------------
Total Current Assets                            13,263,605  7,443,149

Property, Plant and Equipment                   15,511,439 16,452,440
Other Assets                                     2,206,635  1,765,664
                                                ----------------------
                                                30,981,679 25,661,253
                                                ======================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
          Accounts Payable                       2,040,775  7,032,379
          Other Current Liabilities              4,693,290  3,637,640
                                                ----------------------
          Total Current Liabilities              6,734,065 10,670,019

Long Term Liabilities                           19,043,433 10,517,990
Stockholders' Equity                             5,204,181  4,473,244
                                                ----------------------
                                                30,981,679 25,661,253
                                                ======================