Fountain Powerboat Industries Reports Fourth Quarter and Fiscal Year-End Results

WASHINGTON, NC, September 18, 2003: Fountain Powerboat Industries, Inc. (NASDAQ;FPWR), announces results for the fourth quarter and Fiscal year ended June 30, 2003. Sales for Fiscal 2003 were $52,557,084 and earnings were $479,353 or .10 per share. This compares with Fiscal 2002 sales of $36,950,581 and earnings of $(7,031,593) or $(1.49) per share. Earnings from operations were $2,089,110 for 2003, up from a loss of $(6,420,458) from the previous fiscal year.
Sales revenue increased 42% in Fiscal 2003 over Fiscal 2002, which the Company contributes to the reduction of dealer inventory in Fiscal 2002, an improving economy, competitive pricing, product diversification, and an aggressive marketing campaign. To sustain future sales growth the Company believes that they have effectively diversified their product line by entering into the wide-beam cruiser and fish boat markets, which accounted for 47% of 2003 sales.
The gross margin for Fiscal 2003 was 16.2%, a 13.6% increase from the gross margin of 2.6% for Fiscal 2002. Improvement in margin is attributable to improved sales volume, more profitable product mix and efficiency improvements in manufacturing.
On July 17, 2003, after Fiscal 2003 ended June 30, 2003, Fountain Powerboats completed a long-term financing program for $18,000,000 with Bank of America that we believe puts us in a very strong financial position for future growth and profitability.

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).