Fountain Powerboat Industries, Inc. Reports Second Quarter Results Sales Up 98% from Second Quarter Ending 12/31/01 - Net Income $.10 per Share

WASHINGTON, NC, February 12, 2003: Fountain Powerboat Industries, Inc. (NASDAQ: FPWR), the leading manufacturer of high performance sport boats, fish boats, and express cruisers, announces results for the second quarter ended December 31, 2002.

Net sales for the quarter were $12,941,227 up from sales of $6,553,076 for the same quarter in the previous fiscal year. Net earnings were $497,708 for the second quarter of fiscal 2003 compared to a net loss of $1,417,651 for the same quarter of fiscal 2002.

Net sales for the first six months of fiscal 2003 ending December 31, 2002 were $25,016,213 with net earnings of $701,911 or $.15 per share, after accounting for deferred taxes of $352,465. Operating income for the quarter was $881,818 and for the first six months of the 2003 fiscal year was $1,545,087.

President and CEO, Reginald Fountain says "Since its beginning in 1978 and until very recently the primary focus of Fountain Powerboats was asset and sales growth through land and building acquisition, research and development and technology advancement, aggressive marketing through offshore racing and tournament fishing, all needed to create market penetration and a strong brand image.

The primary focus of Fountain Powerboats today and moving forward, is growth and profitability. All assets of our company are now being directed towards the bottom line.

We are making a concentrated effort to expand and better train our dealer organization so that it becomes easier to meet higher sales budgets. The sales results from the first two quarters of the current fiscal year would suggest that the strategy is working.

We have also reduced our general expenses by more than $5,000,000 annually when compared to the 2000 fiscal year. Second quarter sales were among the best in the company's history and expected continued sales improvement and cost reductions should propel the company to a substantially profitable fiscal year ending 2003."

Safe harbor for forward-looking statements:
This press release may contain forward-looking statements projecting, forecasting, or estimating the Company's performance and industry trends. The achievement of these projections, forecasts, or estimates is subject to certain risks and uncertainties, which include general economic and industry conditions that affect all businesses, as well as matters that are specific to the Company and the markets it serves. Risks that are specific to the company and its markets include, but are not limited to, the cyclical nature of the marine industry; competition in pricing; new product development from competitors; the concentration of Company sales with a few major customers; labor relations at the Company and at its customers and suppliers; and the Company's single-source supply and just-in-time inventory for some critical boat components, which could adversely affect production if a single-source supplier is unable to meet the Company's requirements in a timely manner. Actual results and events may differ materially from those projected, forecasted, or estimated. The Company assumes no obligation to update the forward-looking statements or to update the reason actual results could differ from those contemplated by such forward-looking statements.