FOUNTAIN POWERBOAT INDUSTRIES, INC.

                                   FORM 10-Q

                               QUARTERLY REPORT

                    FOR THE QUARTER ENDED DECEMBER 31, 1999


                      SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, DC  20549

<PAGE>


                                   FORM 10-Q

                    U.S. SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C.  20549


   [X]    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
                             EXCHANGE ACT OF 1934

               For the quarterly period ended December 31, 1999

                                      OR

  [  ]   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
                             EXCHANGE ACT OF 1934

           For the transition period from __________ to ___________

     For the Quarter Ended         Commission File Number

     ___________________                0-14712

                      FOUNTAIN POWERBOAT INDUSTRIES, INC.
            (Exact name of registrant as specified in its charter)

          Nevada                             56-1774895
     (State of other jurisdiction of         (I.R.S. employer
     incorporation or organization)       identification No.)


Whichard's Beach Road, P.O. Drawer 457, Washington, NC 27889
                   (Address of principal executive offices)

Registrant's telephone no., including area code:(252)975-2000

 Indicate  by  check  mark whether the registrant (1) has  filed  all  reports
 required  to  be filed by Section 13 or 15(d) of the Securities Exchange  Act
 of  1934 during the preceding 12 months (or for such shorter period that  the
 registrant  was required to file such reports), and (2) has been  subject  to
 such filing requirements for the past 90 days.

         Yes   X                    No

 Indicate the number of shares outstanding of each of the issuer's classes  of
 common stock as of the latest practicable date.
         Class               Outstanding at February 10, 2000
 _________________________    ______________________________
 Common Stock, $.01 par value       4,732,608 Shares

                                     1
<PAGE>


              FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY

                                   INDEX


PART I.   Financial Information.                          Page No.

          Review Report of Independent Certified
            Public Accountants...........................   3

          Consolidated Balance Sheets - Assets,
            December 31, 1999 and June 30, 1999.........    4

          Consolidated Balance Sheets - Liabilities &
            Shareholders' Equity, December 31, 1999
            and June 30, 1999............................   5

          Consolidated Statements of Operations -
            Three and Six Months Ended December 31, 1999
            and December 31, 1998......................... 6-7

          Consolidated Statements of Cash Flows -
            Six Months Ended December 31, 1999
            and December 31, 1998........................  8-9

          Notes to Consolidated Financial Statements ...  10-15

          Management's Discussion and Analysis of
            Results of Operations and
            Financial Condition.......................... 15-17



PART II.  Other Information.

Item 2.   Changes in Securities............................. 17


Item 6.   Exhibits and Reports on Form 8 and Form 8-K....... 17


          Signature........................................  18














                                      2
<PAGE>








To the Board of Directors
FOUNTAIN POWERBOAT INDUSTRIES, INC.
Washington, North Carolina


We  have  reviewed  the accompanying consolidated balance  sheet  of  Fountain
Powerboat  Industries,  Inc.  as  of  December  31,  1999,  and  the   related
consolidated  statements of operations and cash flows for the  three  and  six
months then ended.  All information included in these financial statements  is
the representation of the management of Fountain Powerboat Industries, Inc.

We  conducted  our  review  in accordance with standards  established  by  the
American  Institute  of Certified Public Accountants.   A  review  of  interim
financial  information consists principally of applying analytical  procedures
to  financial  data and making inquiries of Company personnel responsible  for
financial and accounting matters.  It is substantially less in scope  than  an
audit conducted in accordance with generally accepted auditing standards,  the
objective  of  which is the expression of an opinion regarding  the  financial
statements taken as a whole.  Accordingly, we do not express such an opinion.

Based  on  our  review,  we are not aware of any material  modifications  that
should be made to the consolidated financial statements referred to above  for
them to be in conformity with generally accepted accounting principles.





/s/ Pritchett, Siler & Hardy, P.C.

PRITCHETT, SILER & HARDY, P.C.


February 11, 2000
Salt Lake City, Utah

                                     3
<PAGE>


              FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY

                          CONSOLIDATED BALANCE SHEETS
                 (Unaudited - See Accountants' Review Report)


                                    ASSETS






                                        December 31,   June 30,
                                            1999         1999
                                        ___________   ___________
CURRENT ASSETS:
  Cash and cash equivalents             $   842,867   $ 2,217,301
  Accounts receivable, net                2,085,129     1,576,712
  Inventories                             8,628,767     7,307,890
  Prepaid expenses                          802,943       761,486
  Current deferred tax assets             2,192,135     2,221,499
                                        ___________   ___________
     Total Current Assets                14,551,841    14,084,888
                                        ___________   ___________
PROPERTY, PLANT AND EQUIPMENT            36,775,371    36,209,584


  Less:  Accumulated depreciation       (18,197,612)  (17,144,314)
                                        ___________   ___________
                                         18,577,759    19,065,270
                                        ___________   ___________

OTHER ASSETS                                845,199       780,802
                                        ___________   ___________
TOTAL ASSETS                            $33,974,799   $33,930,960
                                        ___________   ___________
















                                  [Continued]

                                       4
<PAGE>


              FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY

                          CONSOLIDATED BALANCE SHEETS
                 (Unaudited - See Accountants' Review Report)


                     LIABILITIES AND STOCKHOLDERS' EQUITY

                                  [Continued]


                                        December 31,   June 30,
                                            1999         1999
                                        ___________   ___________
CURRENT LIABILITIES:
  Current maturities - long-term debt   $ 2,464,535   $ 2,464,535
  Current maturities - capital lease         11,788        11,788
  Accounts payable                        5,506,791     3,961,516
  Accrued expenses                        1,920,482     2,231,061
  Dealer territory service accrual        1,804,916     2,037,170
  Customer deposits                         555,314       687,560
  Allowance for boat repurchases            200,000       200,000
  Reserve for warranty expense              590,000       590,000
                                        ___________   ___________
     Total Current Liabilities
                                         13,053,826    12,183,630
                                        ___________   ___________
LONG-TERM DEBT, less current portion      9,287,947    10,138,395
CAPITAL LEASE, less current maturities       76,939        76,939
DEFERRED TAX LIABILITY                      912,116       899,680

COMMITMENTS AND CONTINGENCIES [NOTE 7]            -             -

                                        ___________    __________

  Total Liabilities                      23,330,828    23,298,644
                                        ___________   ___________

STOCKHOLDERS' EQUITY:
  Common stock, $.01 par value,
    200,000,000 shares authorized,
    4,732,608 shares issued                  47,326        47,326
  Capital in excess of par value         10,303,640    10,303,640
  Retained earnings - accumulated           403,753       392,098
                                        ___________   ___________
                                         10,754,719    10,743,064
  Less: Treasury stock                     (110,748)     (110,748)
                                        ___________   ___________
       Total Stockholders' Equity        10,643,971    10,632,316
                                        ___________   ___________
                                        $33,974,799   $33,930,960
                                        ___________   ___________



   The accompanying notes are an integral part of these unaudited financial
   statements.
                                     5
<PAGE>

              FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY

                     CONSOLIDATED STATEMENTS OF OPERATIONS
                 (Unaudited - See Accountants' Review Report)


                                For The Three             For The Six
                                 Months Ended             Months Ended
                                 December 31              December 31
                          ________________________  ________________________
                              1999         1998        1999         1998
                          ___________  ___________  ___________  ___________
NET SALES                 $15,384,022  $13,254,267  $26,179,190  $25,676,494

COST OF SALES              12,213,163   10,238,921   20,973,104   20,077,832
                          ___________  ___________  ___________  ___________

  Gross Profit              3,170,859    3,015,346    5,206,086    5,598,662

EXPENSES
  Selling Expense           1,502,305    2,151,203    3,215,685    4,094,385
  General &
   Administrative             694,530      676,984    1,416,033    1,318,616
                          ___________  ___________  ___________  ___________
    Total Expenses          2,196,835    2,830,700    4,631,718    5,417,434
                          ___________  ___________  ___________  ___________

OPERATING INCOME BEFORE
 STRATEGIC CHARGE             974,024      184,649      574,368      181,228

STRATEGIC CHARGE                    -   (2,440,000)           -   (2,440,000)
                          ___________  ___________  ___________  ___________

OPERATING INCOME (LOSS)       974,024   (2,255,353)     574,368   (2,258,772)


NON-OPERATING
INCOME(EXPENSE)
  Other Income                 10,867       59,088       39,853       54,996
  Interest Expense           (244,095)    (264,474)    (527,486)    (519,631)
  Interest Expense -
   Related party                    -       (5,097)           -      (13,933)
  Other expense               (33,280)           -      (33,280)           -
                          ___________  ___________  ___________  ___________

INCOME (LOSS) BEFORE TAX      707,516   (2,465,838)      53,455   (2,737,340)

CURRENT TAX EXPENSE                 -            -            -            -

DEFERRED TAXES (BENEFIT)      326,103   (1,283,120)      41,800   (1,356,628)
                          ___________  ___________  ___________  ___________

NET INCOME (LOSS)         $   381,413  $(1,182,717) $    11,655  $(1,380,712)
                          ___________  ___________  ___________  ___________






                                [Continued]

                                    6
<PAGE>
              FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY

                     CONSOLIDATED STATEMENTS OF OPERATIONS
                 (Unaudited - See Accountants' Review Report)

                                 [Continued]

                                For The Three             For The Six
                                 Months Ended             Months Ended
                                 December 31              December 31
                          ________________________  ________________________
                              1999         1998        1999         1998
                          ___________  ___________  ___________  ___________

EARNINGS (LOSS) PER SHARE $      .081  $     (.252) $      .002  $     (.294)
                          ___________  ___________  ___________  ___________
WEIGHTED AVERAGE
 SHARES OUTSTANDING         4,732,608    4,732,608    4,732,608    4,732,608
                          ___________  ___________  ___________  ___________

DILUTED EARNINGS PER
 SHARE                    $   N/A      $   N/A      $   N/A      $   N/A
                          ___________  ___________  ___________  ___________
DILUTED WEIGHTED AVERAGE
 SHARES OUTSTANDING           N/A          N/A          N/A          N/A
                          ___________  ___________  ___________  ___________

   The accompanying notes are an integral part of these unaudited financial
   statements.
                                        7
<PAGE>


              FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY

                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                 (Unaudited - See Accountants' Review Report)

               Increase (Decrease) in Cash and Cash Equivalents


                                             For the Six Months Ended
                                                  December 31,
                                            __________________________
                                                1999          1998
                                            ____________  ____________
  CASH FLOWS FROM OPERATING ACTIVITIES:

  Net Income (Loss)                         $    11,655   $(1,380,712)

  Adjustments to reconcile net income
  (loss) to net cash provided by operating
   activities:
    Depreciation Expense                      1,053,298     1,192,402
    Strategic Charge                                  -     2,440,000
    (Increase) decrease in accounts
     receivable                                (508,416)    2,246,338
    (Increase) decrease in inventory         (1,320,877)   (1,293,310)
    (Increase) decrease in prepaid expenses     (41,457)     (514,422)
    Increase (decrease)in accounts payable    1,545,274      (587,933)
    Increase (decrease)in accrued expenses     (258,528)      165,262
    Increase (decrease)in dealer service
     territory accrual                                -        18,317
    Increase (decrease)in customer deposits    (132,247)     (147,983)
    Net deferred taxes                         (242,504)   (1,356,629)
    Net liabilities of discontinued
     operations                                       -       (93,612)
                                            ____________  ____________
        Net Cash Provided by Operating
         Activities                         $   106,198   $   687,718
                                            ____________  ____________

  CASH FLOWS FROM INVESTING ACTIVITIES:
   Investments in molds, plugs and other
    tooling, net                            $   (83,033)  $  (398,078)
   Purchase of property plant and
    equipment, net                             (482,754)   (1,786,043)
   (Increase) in other assets                   (64,397)      (71,524)
                                            ____________  ____________
        Net Cash(Used) by Investing
         Activities                         $  (630,184)  $(2,255,645)
                                            ____________  ____________

  CASH FLOWS FROM FINANCING ACTIVITIES:
   Proceeds from long-term debt                       -     4,000,000
   Repayment of long-term debt                 (850,447)     (813,816)
   Repayment of long-term debt
    - related party                                   -      (257,911)
   Proceeds from issuance of common
    stock                                             -             -
                                            ____________  ____________
        Net Cash Provided (Used) by
         Financing Activities               $  (850,447)  $ 2,928,273
                                            ____________  ____________

  Net increase (decrease) in cash
   and cash equivalents                     $(1,374,433)  $ 1,360,346

  Cash and cash equivalents at
   beginning of year                          2,217,300     1,376,984
                                            ____________  ____________

  Cash and cash equivalents at
   end of period                            $   842,867   $ 2,737,330
                                            ____________  ____________

                               [Continued]

                                    8
<PAGE>

              FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY

                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                 (Unaudited - See Accountants' Review Report)

               Increase (Decrease) in Cash and Cash Equivalents

                                [Continued]

                                             For the Six Months Ended
                                                  December 31,
                                            __________________________
                                                1999          1998
                                            ____________  ____________
Supplemental Disclosures of Cash Flow
 Information:
  Cash paid during the period for:
   Interest:
    Unrelated parties                       $   527,486   $   519,631
    Related parties                                   -        13,933
                                            ____________  ____________
                                            $   527,486   $   533,564
                                            ____________  ____________
     Income taxes                           $         -   $         -
                                            ____________  ____________


Supplemental Disclosures of Non-Cash Investing and Financing Activities:
  For the six month period ended December 31, 1999:
      None

  For the six month period ended December 31, 1998:
      During December 1998, the Company recorded a $2,440,000 strategic
      charge reducing the value of their assets to their estimated
      realizable value.






















  The accompanying notes are an integral part of these unaudited
  financial statements.
                                 9
<PAGE>

              FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY
                 (Unaudited - See Accountants' Review Report)

             NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 - BASIS OF PRESENTATION

Although  these statements have been reviewed by our independent auditors,  they
are  unaudited.   In the opinion of management, all adjustments  (which  include
only  normal  recurring adjustments) necessary to present fairly  the  financial
position, results of operations and cash flows at December 31, 1999 and for  all
periods presented have been made.

Certain  information  and footnote disclosures normally  included  in  financial
statements  prepared in accordance with generally accepted accounting principles
have  been  condensed  or  omitted  for purposes  of  filing  interim  financial
statements  with the Securities and Exchange Commission.  It is  suggested  that
these  condensed financial statements be read in conjunction with the  financial
statements  and  notes thereto included in the Company's June 30,  1999  audited
financial  statements.  The results of operations for the period ended  December
31,  1999  and 1998 are not necessarily indicative of the operating results  for
the full year.

NOTE 2 - HURRICANE

During  September 1999, the Company experienced flooding and temporary closure
of  the  production  facility as a result of hurricanes "Dennis"  and  "Floyd"
hitting  Eastern North Carolina.  As a result of the hurricanes,  the  Company
sustained  damages  to inventory and property, plant and equipment,  including
damages to the yacht mold as well as lost revenue and additional expenses from
the business interruption.

As  of  November 1999, the insurance carrier has paid for the  damage  to  the
inventory  and  most  of  the  damage to the  property,  plant  and  equipment
including the yacht mold. Review is still in process by the insurance  carrier
on the repair or replacement of certain air-conditioning and heating equipment
that  was  flooded  during the storm.  The net effect of the property,  plant,
equipment  and inventory settlement cannot be reasonably estimated  until  the
balance of this claim is collected.

The  Company  also  experienced  losses resulting  from  the  closure  of  the
production facility and efficiencies due to storm preparation, cleanup and the
inability  of the full work force to report to work once the plant  re-opened.
The  Company  immediately  filed  its claims  for  business  interruption  and
believed  it  complied  with all aspects of its policy.   When  a  timely  and
reasonable resolution could not be reached, the Company filed suit against its
insurance  carrier.   As  of February 8, 2000 the Company  and  the  insurance
carrier  have  re-initiated meaningful discussions to resolve the  claim.   In
addition,  the  insurance carrier has agreed to make  an  advance  toward  the
business  interruption claim and the remaining equipment outlined above.   The
full  effect  of  a  business  interruption settlement  cannot  be  reasonably
estimated and will be recorded in the future when collected.

                                 10
<PAGE>


              FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY
                 (Unaudited - See Accountants' Review Report)

             NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 3 - ACCOUNTS RECEIVABLE

  As  of  December  31,  1999, accounts receivable were $2,085,129  net  of  the
allowance for bad debts of $27,841.  This represents a increase of $508,417 from
the  $1,576,712 in net accounts receivable recorded at June 30,  1999.   Of  the
$2,085,129  balance  at  December  31, 1999, $1,813,420  has  subsequently  been
collected as of February 8, 2000, and the remaining $271,709 is believed  to  be
fully collectible.

NOTE 4 - INVENTORIES

  Inventories at December 31, 1999 and June 30, 1999 consisted of the following:

                                    December 31,      June 30,
                                        1999            1999
                                   ____________   _____________
Parts and supplies.................$  4,419,550   $   3,296,244
Work-in-process....................   3,339,018       3,208,982
Finished goods.....................     843,363         922,664
Sportswear.........................     146,836               -
Obsolete inventory reserve.........    (120,000)       (120,000)

Total..............................$  8,628,767   $   7,307,890
                                   ____________   _____________


NOTE 5 - REVENUE RECOGNITION

The  Company  generally sells boats only to authorized dealers and to  the  U.S.
Government.   A sale is recorded when a boat is shipped to a dealer  or  to  the
Government,  legal title and all other incidents of ownership have  passed  from
the  Company  to the dealer or to the Government, and an account  receivable  is
recorded  or payment is received from the dealer, from the Government,  or  from
the  dealer's  third-party  commercial lender.  This  is  the  method  of  sales
recognition in use by most boat manufacturers.

The Company has developed criteria for determining whether a shipment should  be
recorded  as  a  sale  or as a deferred sale (a balance sheet  liability).   The
criteria  for recording a sale are that the boat has been completed and  shipped
to  a  dealer  or  to  the  Government, that title and all  other  incidents  of
ownership have passed to the dealer or to the Government, and that
there is no direct or indirect commitment to the dealer or to the Government  to
repurchase  the  boat or to pay floor plan interest for the  dealer  beyond  the
normal, published sales program terms.

                                    11
<PAGE>


              FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY
                 (Unaudited - See Accountants' Review Report)

             NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 5 - REVENUE RECOGNITION [Continued]

The sales incentive floor plan interest expense for each individual boat sale is
accrued for the maximum six-month (180 days) interest payment period in the same
fiscal accounting period that the related boat sale is recorded.  The entire six
months'  interest expense is accrued at the time of the sale because the Company
considers  it a selling expense.  The amount of interest accrued is subsequently
adjusted  to reflect the actual number of days of remaining liability for  floor
plan  interest for each individual boat remaining in the dealer's inventory  and
on floor plan.

Presently, the Company's normal sales program provides for the payment of  floor
plan interest on behalf of its dealers for a maximum of six months.  The Company
believes  that  this program is currently competitive with the interest  payment
programs  offered by other boat manufacturers, but may from time to  time  adopt
and publish different programs as necessary in order to meet competition.

NOTE 6 - ALLOWANCE AND QUALIFYING ACCOUNTS

For  the  six  months  ended December 31, 1999, the  Company  adjusted  its
allowance and qualifying accounts as follows:

                    Balance at   Charged to                 Balance
                    Beginning     Cost and    Additions     at End
                    of Period     Expense    (Deductions)  of Period
                    _________    __________  ___________   _________
 Allowance for
  boat repurchases   $200,000      $      -   $        -    $200,000

 Allowance for
  doubtful accounts    27,841             -            -      27,841

 Allowance for
  warranty claims     590,000       362,326     (362,326)    590,000

 Allowance for
  inventory values    120,000             -            -     120,000
                    _________    __________  ___________   _________
 Total               $937,841      $362,326    $(362,326)   $937,841
                    _________    __________  ___________   _________

In  management's  opinion,  the balances of the  allowance  and  qualifying
accounts are adequate to provide for all reasonably anticipated future losses.

                                 12
<PAGE>

              FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY
                 (Unaudited - See Accountants' Review Report)

             NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 7 - COMMITMENTS AND CONTINGENCIES

Manufacturer Repurchase Agreements - The Company makes available through  third-
party finance companies floor plan financing for many of its dealers.  Sales  to
participating  dealers are approved by the respective finance companies.   If  a
participating  dealer  does not satisfy its obligations  under  the  floor  plan
financing  agreement  in  effect with its commercial  lender(s)  and  boats  are
subsequently repossessed by the lender(s), then under certain circumstances  the
Company may be required to repurchase the repossessed boats if it has executed a
repurchase agreement with the lender(s).   At December 31, 1999, the Company had
a total contingent liability to repurchase boats in the event of dealer defaults
and  if  repossessed  by  the  commercial  lenders  amounting  to  approximately
$24,900,000.  The Company has reserved for future losses it might incur upon the
repossession and repurchase of boats from commercial lenders.  The amount of the
allowance  is  based  upon  probable future  events,  which  can  be  reasonably
estimated.   At  December  31,  1999, the allowance  for  boat  repurchases  was
$200,000.

Dealer  Interest  -  The Company regularly pays a portion of  dealers'  interest
charges  for floor plan financing for up to six months.  These interest  charges
amounted  to approximately $671,000 for the first six months of Fiscal 2000  and
are  included in the accompanying consolidated statements of operations as  part
of selling expense.  At December 31, 1999, the estimated unpaid dealer incentive
interest included in accrued expenses amounted to $601,358.

NOTE 8 - TRANSACTIONS WITH RELATED PARTIES

The Company paid or accrued the following amounts for services rendered or  for
interest on indebtedness to related parties:

                                          For the Six Months Ended
                                                December 31,
                                          ________________________
                                            1999         1998
                                          __________   __________
        Apartments           - Rentals    $       -    $   1,902

        R.M. Fountain, Jr.   - Interest           -            -

                             - Aircraft
                               Rental             -       71,951
                                          __________   __________
                                          $       -    $  73,853
                                          __________   __________

                                 13
<PAGE>

              FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY
                 (Unaudited - See Accountants' Review Report)

             NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 8 - TRANSACTIONS WITH RELATED PARTIES [Continued]

At December 31, 1999 the Company had travel advances and other receivables due
from employees in the amount of $21,891.

The Company paid $165,028 during the six month period ended December 31, 1999
for advertising and public relations services from an entity owned by a director
of the Company.

NOTE 9 - INCOME TAXES

The  Company accounts for income taxes in accordance with Statement of Financial
Accounting Standards ("SFAS") No. 109 "Accounting for Income Taxes".   SFAS  109
requires the Company to provide a net deferred tax asset/liability equal to  the
expected  future tax benefit/expense of temporary reporting differences  between
book  and tax accounting methods and any available operating loss or tax  credit
carryforwards.   The  Company has available at December 31, 1999,  an  operating
loss  carryforward  of approximately $2,027,000, which may  be  applied  against
future  taxable  income and which expires in various years  through  2018.   The
deferred tax asset is approximately $2,192,000 as of December 31, 1999  and  the
deferred  liablility is approximately $912,000.  The net change in deferred  tax
assets and liabilities of $41,800 for the six months ended December 31, 1999 has
been recorded as a deferred tax expense on the statement of operations.

NOTE 10 - EARNINGS (LOSS) PER SHARE

The  computation  of earnings (loss) per share and diluted earnings  (loss)  per
share  amounts are based upon the weighted average number of outstanding  common
shares  during  the  periods, plus, when their effect  is  dilutive,  additional
shares  assuming the exercise of certain vested stock options,  reduced  by  the
number of shares which could be purchased from the proceeds from the exercise of
the  stock  options assuming they were exercised.  Diluted earnings  (loss)  per
share  for  the  six-month period ended December 31,  1999  and  1998,  was  not
presented,  as  its effect was anti-dilutive.  At December 31, 1999  there  were
551,000  unexercised stock options, of which 546,000 were held by  officers  and
directors  of the company at prices ranging from $3.58 to $5.00 per share,  that
were  not included in the computation of earnings per share because their effect
is anti-dilutive.

NOTE 11 - STRATEGIC CHARGE

During December 1998, the Company designed and implemented a restructuring
plan  to  aggressively improve the Company's cost structure, refocus  sales  and
marketing expenditures and divest the Company of certain non-realizable  assets.
In connection with the restructuring plan the Company reviewed components of its
business  for possible improvement of future profitability through reengineering
or  restructuring.  As part of this plan the Company decided  to  eliminate  its
racing program and write off the balance of excess yacht tooling cost along with

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              FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY
                 (Unaudited - See Accountants' Review Report)

             NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 11 - STRATEGIC CHARGE [Continued]

other  discontinued unused tooling.  The Company completed the majority of these
actions during the third and fourth quarter of Fiscal 1999.  The carrying  value
of the assets held was reduced to fair value based on estimated realizable value
based  on future cash flows from use of the asset or sale of the related assets.
The resulting pretax adjustment of $2,440,000 was recorded as a strategic charge
in the statement of operations of the Company.



Management's Discussion and Analysis of Results of Operations
     and Financial Condition

Results of Operations.

     The  operating income for the second quarter ended December  31,  1999  was
$974,024 or $.21 per share versus operating income of $184,649 or $.04 per share
(before  the provision for strategic charge of $2,440,000) for the corresponding
period  of  the  previous year. Operating income as a percent of sales  for  the
second  quarter  of Fiscal 1999 was 6.3% versus (17%) for the  same  period  the
previous Fiscal year.  The net profit for the second quarter of Fiscal 2000  was
$381,413  or  $.081  per  share.   This  compares  to  net  loss  amounting   to
$(1,182,717),  or  $(.252)  per  share for the second  quarter  of  Fiscal  1999
(including the strategic charge).   During the second quarter of Fiscal 1999, it
was  determined  that  the  Company make a strategic redirection  to  focus  its
efforts on profitable growth (See Note 11).

      Net  sales  increased by 16.1% to $15,374,022 for the  second  quarter  of
Fiscal  2000  as  compared to $13,254,267 for the second quarter  of  the  prior
Fiscal  year.  Unit sales volume for the second quarter of Fiscal 2000 increased
by  13.2% to 129 boats as compared to 114 boats for the second quarter of Fiscal
1999.   Revenue increased faster than units due to sales of a smaller number  of
larger, higher priced boats than the second quarter of the previous Fiscal year.

      For  the  second  quarter of Fiscal 2000, the gross margin  on  sales  was
$3,170,859  (20.6%) as compared to $3,015,346 (22.8%) for the second quarter  of
Fiscal 1999.

      Selling expenses were $1,502,305 for the second quarter of Fiscal 2000  as
compared to $2,151,203 for the second quarter of last Fiscal year.  Most of  the
decrease for Fiscal 2000 was in reduced promotional racing expense.

      General  and  administrative expenses were $694,530  for  the  second
quarter  of Fiscal 2000 as compared to $676,984 for the second quarter  of  last
Fiscal year.  Most of the increase was in employment taxes.

      Interest  expense for the second quarter of Fiscal 2000  was  $244,095  as
compared  to  $264,474  for the second quarter of last  Fiscal  year.   Interest
expense is down due to an overall reduction in long-term debt.

      Other non-operating (income)/expense for the second quarter of Fiscal 2000
was $22,413 as compared to $(59,088) for the second quarter of last Fiscal year.

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<PAGE>




Financial Condition.

     The  Company's  cash  flows for the second six months of  Fiscal  2000  are
summarized as follows:

Net cash provided by operating activities......$   106,198
 "   " used by investing activities        .....  (630,184)
 "   " provided by financing activities     ....  (850,447)

        Net decrease in cash...................$(1,374,433)
                                                ===========

      This net decrease compared to a $1,360,346 net increase for the second six
months of the prior fiscal year.

     Cash  used  in  the  first six months of Fiscal 2000 to acquire  additional
property,  plant,  and equipment (investing activity) amounted  to  $630,184  of
which $83,033 was for plugs, molds, and other product tooling.

     For  the  remainder  of  Fiscal 2000 and beyond,  the  Company  expects  to
generate  sufficient cash through operations to meet its needs and  obligations.
Management believes that the Company's sales and production volume will continue
to  grow  with  a return to net earnings and positive cash flow.   Most  of  the
Company's  cash resources will be used to maintain its plant and equipment,  for
new  product  tooling and for work in process inventory in the new yacht/cruiser
facility.

The Year 2000.

     A  concern, known as the "Year 2000" or "Y2K" Bug was expected to effect  a
large  number  of computer systems and software during or after the  year  1999.
The  concern was that any computer function that requires a date calculation may
produce errors.  The Year 2000 issue could have virtually affected all companies
computer  systems.  The Company planned and put into effect an updated  computer
system with new hardware and software, which allowed it to become compliant with
the  year  2000 dates and avoid any of the previously anticipated  "Y2K"  errors
from  occurring.   With  respect  to third party providers  whose  services  are
critical  to the Company, the Company monitored the efforts of such vendors,  as
they  become Year 2000 compliant.  Management is not presently aware of any Year
2000 issues that have been encountered by any such third party, and has not seen
any effects in the deliveries of materials since the year 2000 began.

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<PAGE>

Cautionary Statement for Purposes of "Safe Harbor" Under the
Private Securities Reform Act of 1995.


The  Company  may  from time to time make forward-looking statements,  including
statements projecting, forecasting, or estimating the Company's performance  and
industry  trends.  The achievement of the projections, forecasts,  or  estimates
contained in these statements is subject to certain risks and uncertainties, and
actual   results  and  events  may  differ  materially  from  those   projected,
forecasted, or estimated.

      The  applicable  risks  and  uncertainties 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.  For example, the achievement
of  projections,  forecasts, or estimates contained in  the  Company's  forward-
looking  statements  may  be  impacted by national  and  international  economic
conditions;  compliance  with governmental laws and regulations;  accidents  and
acts of God; and all of the general risks associated with doing business.

      Risks that are specific to the Company and its markets include but are not
limited  to  compliance  with  increasingly  stringent  environmental  laws  and
regulations; the cyclical nature of the industry; competition in pricing and new
product  development  from  larger  companies with  substantial  resources;  the
concentration  of  a substantial percentage of the Company's sales  with  a  few
major customers, the loss of, or change in demand from, any of which could  have
a  material impact upon the Company; labor relations at the Company and  at  its
customers and suppliers; and the Company's single-source supply and just-in-time
inventory   strategies  for  some  critical  boat  components,  including   high
performance  engines, which could adversely affect production if a single-source
supplier is unable for any reason to meet the Company's requirements on a timely
basis.



PART II.  Other Information.

ITEM 2:   Change in Securities.

     There  were  no changes in securities during the second quarter  of  Fiscal
     2000.

ITEM 6:   Exhibits and Reports on Form 8 and Form 8-K.

          (a) No Amendments on Form 8 were filed by the Registrant during the
          first six months of Fiscal 2000.

          (b) No Current Reports on Form 8-K were filed by the Registrant
          during the first six months of Fiscal 1999.

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<PAGE>

                                   SIGNATURE


      Pursuant  to  the  requirements of the Securities Exchange  Act  of  1934,
Registrant  has  duly  caused this report to be signed  on  its  behalf  by  the
undersigned thereunto duly authorized.


                      FOUNTAIN POWERBOAT INDUSTRIES, INC.
                                 (Registrant)





   By:  Joseph F. Schemenauer                         Date:

        Joseph F. Schemenauer                    February 11, 2000
        Vice President, Chief Financial
        Officer, and Designated Principal
        Accounting Officer








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