----

**U.S.      SECURITIES AND EXCHANGE COMMISSION **

**Washington,      D.C. 20549 **

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**FORM      10-Q **

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| **x** | **QUARTERLY                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934** |
|-------|------------------------------------------------------------------------------------------------------------------------------------------|

**For      the quarterly period ended December 31, 2005**

**OR      **

| ** ̈** | **TRANSITION                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934** |
|------------|-------------------------------------------------------------------------------------------------------------------------------------------|

**For      the transition period from **
**            **
**      to **
**            **
** **

***Commission      File Number 0-14712***

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**FOUNTAIN      POWERBOAT INDUSTRIES, INC. **

**(Exact      name of registrant as specified in its charter) **

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| **Nevada**                                                                                          | **56-1774895**                                                            |
|-----------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------|
| **(State                or other jurisdiction of****incorporation                or organization)** | **(I.R.S.                employer****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 **

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| **Class**                                   |   | **Outstanding                at December 31, 2005** |
|---------------------------------------------|--------|-----------------------------------------------------|
| Common                Stock, $.01 par value |   | 4,834,275                shares                     |

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**FOUNTAIN      POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY **

**INDEX      **

|             |                                                                                                                                                                               | **Page No.**                   |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------|
|             |                                                                                                                                                                               |                                     |
| **Part I**  | **Financial                  Information**                                                                                                                                         |                                     |
|             |                                                                                                                                                                               |                                     |
|             | Item                  1. Financial Statements                                                                                                                                      |                                     |
|             |                                                                                                                                                                               |                                     |
|             | Unaudited                  Condensed Consolidated Balance Sheets, December 31, 2005 and June                  30, 2005                                                             | 3                  -                  4  |
|             |                                                                                                                                                                               |                                     |
|             | Unaudited                  Condensed Consolidated Statements of Operations, for the three                  months and                  six months ended December 31, 2005 and 2004 | 5                  -                  6  |
|             |                                                                                                                                                                               |                                     |
|             | Unaudited                  Condensed Consolidated Statements of Cash Flows, for the six months                  ended                  December 31, 2005 and 2004                  | 7                                        |
|             |                                                                                                                                                                               |                                     |
|             | Notes                  to Unaudited Condensed Consolidated Financial Statements                                                                                                    | 8                  -                  11 |
|             |                                                                                                                                                                               |                                     |
|             | Item                  2. Management’s Discussion and Analysis of Results of Operations and                  Financial Condition                                              | 12                  - 13                 |
|             |                                                                                                                                                                               |                                     |
|             | Item                  3. Quantitative and Qualitative Disclosures of Market Risk                                                                                                   | 13                                       |
|             |                                                                                                                                                                               |                                     |
|             | Item                  4. Controls and Procedures                                                                                                                                   | 13                                       |
|             |                                                                                                                                                                               |                                     |
| **Part II** | **Other                  Information**                                                                                                                                             |                                     |
|             |                                                                                                                                                                               |                                     |
|             | Items                  1, 2, 3, 4, 5 & 6                                                                                                                                       | 13                  - 14                 |
|             |                                                                                                                                                                               |                                     |
|             | Signature                                                                                                                                                                          | 15                                       |
|             |                                                                                                                                                                               |                                     |
|             | Exhibits                                                                                                                                                                           | 16                  - 19                 |

----

**PART      I.**
**      FINANCIAL INFORMATION. **

**ITEM 1:**
**      Financial Statements. **

**FOUNTAIN      POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY **

**UNAUDITED      CONDENSED CONSOLIDATED BALANCE SHEETS **

|                                                |   | **December                31,****2005** |        | **June 30,****2005** |   |
|-----------------------------------------------------|--------|-----------------------------------------|-------------|---------------------------|--------|
| **ASSETS**                                          |   |                                    |             |                      |   |  |   |
|                                                |   |                                    |        |                      |   |   |   |
| CURRENT                ASSETS:                      |   |                                    |             |                      |   |  |   |
| Cash                and cash equivalents            |   | $                                       | 3,145,229   |                      | $      | 4,013,225 |   |
| Accounts                receivable, net             |   |                                    | 3,828,225   |                      |   | 2,195,357 |   |
| Inventories                                         |   |                                    | 6,954,019   |                      |   | 6,473,017 |   |
| Prepaid                expenses                     |   |                                    | 673,217     |                      |   | 341,989 |   |
| Total                Current Assets                 |   |                                    | 14,600,690  |                      |   | 13,023,588 |   |
|                                                |   |                                    |        |                      |   |   |   |
| Property,                Plant & Equipment |   |                                    | 46,868,963  |                      |   | 46,067,797 |   |
| Less:                Accumulated Depreciation       |   |                                    | (29,729,838 | )                         |   | (28,889,410 | ) |
|                                                |   |                                    | 17,139,125  |                      |   | 17,178,387 |   |
|                                                |   |                                    |        |                      |   |   |   |
| CASH                SURRENDER VALUE LIFE INSURANCE  |   |                                    | 2,278,584   |                      |   | 2,179,617 |   |
| OTHER                ASSETS                         |   |                                    | 483,490     |                      |   | 652,660 |   |
| TOTAL                ASSETS                         |   | $                                       | 34,501,889  |                      | $      | 33,034,252 |   |

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**FOUNTAIN      POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY **

**UNAUDITED      CONDENSED CONSOLIDATED BALANCE SHEETS **

| **LIABILITIES                AND STOCKHOLDERS’ EQUITY**                                                                                                                               |   |   | **December                31,****2005**  |   |   | **June 30,****2005**  |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------------------------------------------|--------|--------|---------------------------------|--------|
|                                                                                                                                                                                             |   |   |                                          |   |   |                            |   |
| CURRENT                LIABILITIES                                                                                                                                                               |   |   |                                               |   |   |                                 |   |
| Current                maturities - long-term debt                                                                                                                                               |   | $      | 695,985                                       |   | $      | 760,739                         |   |
| Accounts                payable - trade                                                                                                                                                          |   |   | 3,834,879                                     |   |   | 3,844,102                       |   |
| Accrued                expenses and other liabilities                                                                                                                                            |   |   | 1,078,308                                     |   |   | 1,079,558                       |   |
| Dealer                incentives                                                                                                                                                                 |   |   | 4,660,849                                     |   |   | 3,702,738                       |   |
| Customer                deposits                                                                                                                                                                 |   |   | 318,326                                       |   |   | 859,879                         |   |
| Allowance                for boat repurchases                                                                                                                                                    |   |   | 29,133                                        |   |   | 75,000                          |   |
| Warranty                reserve                                                                                                                                                                  |   |   | 747,035                                       |   |   | 740,000                         |   |
| Total                Current Liabilities                                                                                                                                                         |   |   | 11,364,515                                    |   |   | 11,062,016                      |   |
|                                                                                                                                                                                             |   |   |                                          |   |   |                            |   |
| LONG-TERM                DEBT, less current maturities                                                                                                                                           |   |   | 15,629,456                                    |   |   | 15,433,446                      |   |
| COMMITMENTS                AND CONTINGENCIES (Note 3)                                                                                                                                            |   |   |                                     |   |   |                            |   |
| Total                Liabilities                                                                                                                                                                 |   |   | 26,993,971                                    |   |   | 26,495,462                      |   |
|                                                                                                                                                                                             |   |   |                                          |   |   |                            |   |
| STOCKHOLDERS’                EQUITY                                                                                                                                                        |   |   |                                               |   |   |                                 |   |
| Common                stock, $.01 par value, 200,000,000 shares authorized, 4,834,275 shares                issued and outstanding as of December 31, 2005 and June 30,                2005 |   |   | 48,342                                        |   |   | 48,342                          |   |
| Additional                paid-in capital                                                                                                                                                        |   |   | 10,558,853                                    |   |   | 10,558,853                      |   |
| Accumulated                deficit                                                                                                                                                               |   |   | (3,019,030                                    | )      |   | (4,035,384                      | )      |
|                                                                                                                                                                                             |   |   | 7,588,165                                     |   |   | 6,571,811                       |   |
|                                                                                                                                                                                             |   |   |                                          |   |   |                            |   |
| Less:                Treasury stock, at cost 15,000 shares                                                                                                                                       |   |   | (110,748                                      | )      |   | (110,748                        | )      |
| Accumulated                other comprehensive income from interest rate swap                                                                                                                    |   |   | 30,501                                        |   |   | 77,727                          |   |
| Total                Stockholders’ Equity                                                                                                                                                  |   |   | 7,507,918                                     |   |   | 6,538,790                       |   |
| **TOTAL                LIABILITIES AND STOCKHOLDERS’ EQUITY**                                                                                                                              |   | $      | 34,501,889                                    |   | $      | 33,034,252                      |   |

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**FOUNTAIN      POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY **

**UNAUDITED      CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS **

|                                                                 |   | **For                the Three Months Ended**  |       |
|----------------------------------------------------------------------|--------|-----------------------------------------------------|------------|
|                                                                 |   |  **December                31,****2005**       |       |  **December                31,****2004** |   |
| NET                SALES                                             |   | $                                                   | 18,210,092 |   | $ | 17,256,520 |   |
| COST                OF SALES                                         |   |                                                | 15,312,390 |   |   | 14,880,617 |   |
| Gross                Profit                                          |   |                                                | 2,897,702  |   |   | 2,375,903 |   |
|                                                                 |   |                                                |            |   |   |  |   |
| EXPENSES:                                                            |   |                                                |            |   |   |  |   |
| Selling                expenses                                      |   |                                                | 1,230,822  |   |   | 1,029,424 |   |
| General                and administrative expenses                   |   |                                                | 1,129,651  |   |   | 942,288 |   |
| Total                Expenses                                        |   |                                                | 2,360,473  |   |   | 1,971,712 |   |
| OPERATING                INCOME                                      |   |                                                | 537,229    |   |   | 404,191 |   |
| NON-OPERATING                INCOME (EXPENSE):                       |   |                                                |            |   |   |  |   |
| Other                income                                          |   |                                                | 41,516     |   |   | 94 |   |
| Interest                expense                                      |   |                                                | (259,449   | ) |   | (266,880 | ) |
| Total                Non-operating Expense                           |   |                                                | (217,933   | ) |   | (266,786 | ) |
| INCOME                BEFORE INCOME TAXES                            |   |                                                | 319,296    |   |   | 137,405 |   |
| CURRENT                TAX EXPENSE (BENEFIT)                         |   |                                                | —    |   |   | — |   |
| DEFERRED                TAX EXPENSE (BENEFIT)                        |   |                                                | —    |   |   | — |   |
| NET                INCOME                                            |   | $                                                   | 319,296    |   | $ | 137,405 |   |
| BASIC                EARNINGS PER SHARE                              |   | $                                                   | .07        |   | $ | .03 |   |
| WEIGHTED                AVERAGE SHARES OUTSTANDING                   |   |                                                | 4,834,275  |   |   | 4,814,275 |   |
| DILUTED                EARNINGS PER SHARE                            |   | $                                                   | .07        |   | $ | .03 |   |
| WEIGHTED                AVERAGE SHARES OUTSTANDING ASSUMING DILUTION |   |                                                | 4,848,831  |   |   | 4,866,882 |   |

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**FOUNTAIN      POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY **

**UNAUDITED      CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS **

|                                                                 |   | **For                the Six Months Ended**  |       |
|----------------------------------------------------------------------|--------|---------------------------------------------------|------------|
|                                                                 |   |  **December                31,****2005**     |       |  **December                31,****2004** |   |
| NET                SALES                                             |   | $                                                 | 37,367,828 |   | $ | 33,998,827 |   |
| COST                OF SALES                                         |   |                                              | 30,794,012 |   |   | 29,629,776 |   |
| Gross                Profit                                          |   |                                              | 6,573,816  |   |   | 4,369,051 |   |
| EXPENSES:                                                            |   |                                              |            |   |   |  |   |
| Selling                expenses                                      |   |                                              | 2,726,709  |   |   | 2,535,590 |   |
| General                and administrative expenses                   |   |                                              | 1,971,454  |   |   | 1,529,076 |   |
| Total                Expenses                                        |   |                                              | 4,698,163  |   |   | 4,064,666 |   |
| OPERATING                INCOME                                      |   |                                              | 1,875,653  |   |   | 304,385 |   |
| NON-OPERATING                INCOME (EXPENSE):                       |   |                                              |            |   |   |  |   |
| Other                income (expense)                                |   |                                              | (51,099    | ) |   | 792 |   |
| Interest                expense                                      |   |                                              | (808,200   | ) |   | (541,109 | ) |
| Total                Non-operating Expense                           |   |                                              | (859,299   | ) |   | (540,317 | ) |
| INCOME                (LOSS) BEFORE INCOME TAXES                     |   |                                              | 1,016,354  |   |   | (235,932 | ) |
| CURRENT                TAX EXPENSE (BENEFIT)                         |   |                                              | —    |   |   | — |   |
| DEFERRED                TAX EXPENSE (BENEFIT)                        |   |                                              | —    |   |   | — |   |
| NET                INCOME (LOSS)                                     |   | $                                                 | 1,016,354  |   | $ | (235,932 | ) |
| BASIC                EARNINGS (LOSS) PER SHARE                       |   | $                                                 | .21        |   | $ | (.05 | ) |
| WEIGHTED                AVERAGE SHARES OUTSTANDING                   |   |                                              | 4,834,275  |   |   | 4,811,268 |   |
| DILUTED                EARNINGS (LOSS) PER SHARE                     |   | $                                                 | .21        |   | $ | (.05 | ) |
| WEIGHTED                AVERAGE SHARES OUTSTANDING ASSUMING DILUTION |   |                                              | 4,850,788  |   |   | 4,811,268 |   |

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**FOUNTAIN      POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY **

**UNAUDITED      CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS **

|                                                                                                                   |   | **For                the Six Months Ended**  |        |
|------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------|-------------|
|                                                                                                                   |   |  **December                31,****2005**     |        |  **December                31,****2004** |   |
| CASH                FLOWS FROM OPERATING ACTIVITIES:                                                                   |   |                                              |             |   |   |  |   |
| Net                income (loss)                                                                                       |   | $                                                 | 1,016,354   |   | $ | (235,932 | ) |
| Adjustments                to reconcile net income (loss) to net cash provided by operating                activities: |   |                                              |             |   |   |  |   |
| Depreciation                                                                                                           |   |                                              | 960,161     |   |   | 962,475 |   |
| Deferred                loan costs expensed                                                                            |   |                                              | 229,801     |   |   | — |   |
| Gain                on termination of interest rate swap                                                               |   |                                              | (84,524     | ) |   | — |   |
| Loss                on disposal of assets                                                                              |   |                                              | 11,875      |   |   |   |   |
| Bad                debt expense                                                                                        |   |                                              | 46,171      |   |   | — |   |
| Amortization                                                                                                           |   |                                              | 25,323      |   |   | 39,969 |   |
| Change                in assets and liabilities:                                                                       |   |                                              |             |   |   |  |   |
| Increase                in accounts receivable                                                                         |   |                                              | (1,679,039  | ) |   | (837,886 | ) |
| (Increase)                decrease in inventories                                                                      |   |                                              | (481,002    | ) |   | 77,468 |   |
| (Increase)                decrease in prepaid expenses                                                                 |   |                                              | (331,228    | ) |   | 43,804 |   |
| (Increase)                decrease in other assets                                                                     |   |                                              | 46,829      |   |   | (118,529 | ) |
| Increase                (decrease) in accounts payable                                                                 |   |                                              | (9,223      | ) |   | 1,411,560 |   |
| Decrease                in accrued expenses                                                                            |   |                                              | (1,250      | ) |   | (704,897 | ) |
| Increase                in dealer incentives                                                                           |   |                                              | 958,111     |   |   | 836,252 |   |
| Increase                (decrease) in customer deposits                                                                |   |                                              | (541,553    | ) |   | 622,638 |   |
| Increase                in warranty reserve                                                                            |   |                                              | 7,035       |   |   | — |   |
| Decrease                in buyback allowance                                                                           |   |                                              | (45,867     | ) |   | — |   |
| Net                Cash Provided by Operating Activities                                                               |   |                                              | 127,974     |   |   | 2,096,922 |   |
|                                                                                                                   |   |                                              |             |   |   |  |   |
| CASH                FLOWS FROM INVESTING ACTIVITIES:                                                                   |   |                                              |             |   |   |  |   |
| Purchase                of property, plant and equipment                                                               |   |                                              | (466,888    | ) |   | (739,473 | ) |
| Investment                in molds and related plugs                                                                   |   |                                              | (465,886    | ) |   | (1,003,658 | ) |
| Net                increase in cash surrender value of life insurance                                                  |   |                                              | (98,967     | ) |   | (50,479 | ) |
| Net                Cash Used by Investing Activities                                                                   |   |                                              | (1,031,741  | ) |   | (1,793,610 | ) |
|                                                                                                                   |   |                                              |             |   |   |  |   |
| CASH                FLOWS FROM FINANCING ACTIVITIES:                                                                   |   |                                              |             |   |   |  |   |
| Proceeds                from long-term debt                                                                            |   |                                              | 16,545,576  |   |   | — |   |
| Proceeds                received upon termination of interest rate swap                                                |   |                                              | 84,524      |   |   | — |   |
| Payment                of loan origination fees                                                                        |   |                                              | (180,009    | ) |   | — |   |
| Payments                of long-term debt                                                                              |   |                                              | (16,414,320 | ) |   | (697,462 | ) |
| Proceeds                from issuance of Common Stock                                                                  |   |                                              | —     |   |   | 9,668 |   |
| Net                Cash Provided (Used) by Financing Activities                                                        |   |                                              | 35,771      |   |   | (687,794 | ) |
| Net                decrease in cash and cash equivalents                                                               |   |                                              | (867,996    | ) |   | (384,482 | ) |
| Cash                and cash equivalents at the beginning of period                                                    |   |                                              | 4,013,225   |   |   | 3,622,258 |   |
| Cash                and cash equivalents at the end of period                                                          |   | $                                                 | 3,145,229   |   | $ | 3,237,776 |   |

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**FOUNTAIN      POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY **

**NOTES      TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE      1. BASIS OF PRESENTATION **

**Stock      Options:**

*Accounting      for Stock-Based Compensation*

|                                                                                                                                          |   | **For the Three Months Ended**  |    |
|-----------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------|---------|
|                                                                                                                                          |   |  **December                31,****2005**            |    |  **December                31,****2004** |   |
| Net                income as reported                                                                                                         |   | $                                                        | 319,296 |   | $ | 137,405 |   |
| Add:                Stock-based nonemployee compensation expense included in reported                net                income                |   |                                                     | — |   |   | — |   |
| Deduct:                Total stock-based employee compensation expense determined under                fair                value based method |   |                                                     | — |   |   | (4,221 | ) |
| Net                Income Proforma                                                                                                            |   | $                                                        | 319,296 |   | $ | 133,184 |   |
| Basic                earnings per share: As reported                                                                                          |   | $                                                        | .07     |   | $ | .03 |   |
| Proforma                                                                                                                                      |   | $                                                        | .07     |   | $ | .03 |   |
| Diluted                earnings per share: As reported                                                                                        |   | $                                                        | .07     |   | $ | .03 |   |
| Proforma                                                                                                                                      |   | $                                                        | .07     |   | $ | .03 |   |

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**FOUNTAIN      POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY **

**NOTES      TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

|                                                                                                                                          |   | **For the Six Months Ended**  |      |
|-----------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------|-----------|
|                                                                                                                                          |   |  **December                31,****2005**          |      |  **December                31,****2004** |   |
| Net                income (loss) as reported                                                                                                  |   | $                                                      | 1,016,354 |   | $ | (235,932 | ) |
| Add:                Stock-based nonemployee compensation expense included in reported                net                income                |   |                                                   | —   |   |   | — |   |
| Deduct:                Total stock-based employee compensation expense determined under                fair                value based method |   |                                                   | —   |   |   | (8,442 | ) |
| Net                Income (Loss) Proforma                                                                                                     |   | $                                                      | 1,016,354 |   | $ | (244,374 | ) |
| Basic                earnings (loss) per share: As reported                                                                                   |   | $                                                      | .21       |   | $ | (.05 | ) |
| Proforma                                                                                                                                      |   | $                                                      | .21       |   | $ | (.05 | ) |
| Diluted                earnings (loss) per share: As reported                                                                                 |   | $                                                      | .21       |   | $ | (.05 | ) |
| Proforma                                                                                                                                      |   | $                                                      | .21       |   | $ | (.05 | ) |

**NOTE      2. LONG-TERM DEBT AND PLEDGED ASSETS **

*Accounting      for Derivative Instruments and Hedging Activities*

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**FOUNTAIN      POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY **

**NOTES      TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL      STATEMENTS**

**NOTE      3. COMMITMENTS AND CONTINGENCIES **

**Manufacturer      Repurchase Agreements**

**Dealer      Interest**

**Interest      Rate Risk**
** **

**Engine      Supply Agreement **

**NOTE      4. TRANSACTIONS WITH RELATED PARTIES **

**NOTE      5. EARNINGS (LOSS) PER SHARE **

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|                                                                                                                                                         |   | **For                the Three Months Ended**  |      |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------|-----------|
|                                                                                                                                                         |   |  **December                31,****2005**       |      |  **December                31,****2004**  |   |
| Weighted                average common shares outstanding used in basic earnings per share                for the                three and six months ending |   |                                                     | 4,834,275 |   |   | 4,814,275 |   |
| Effect                of dilutive stock options                                                                                                              |   |                                                     | 14,556    |   |   | 52,607 |   |
| Weighted                average common shares and potential dilutive common equivalent shares                outstanding used in dilutive earnings per share |   |                                                     | 4,848,831 |   |   | 4,866,882 |   |

|                                                                                                                                                         |   | **For                the Six Months Ended**  |      |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------|-----------|
|                                                                                                                                                         |   |  **December                31,****2005**     |      |  **December                31,****2004**  |   |
| Weighted                average common shares outstanding used in basic earnings per share                for the                three and six months ending |   |                                                   | 4,834,275 |   |   | 4,811,268 |   |
| Effect                of dilutive stock options                                                                                                              |   |                                                   | 16,513    |   |   | — |   |
| Weighted                average common shares and potential dilutive common equivalent shares                outstanding used in dilutive earnings per share |   |                                                   | 4,850,788 |   |   | 4,811,268 |   |

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**ITEM 2:**
**      Management’s Discussion and Analysis of Results of Operations and Financial      Condition **

**Results      of Operations **

**Liquidity      and Capital Resources **

----

**Cautionary      Statement for Purposes of “Safe Harbor” Under the Private Securities Reform Act      of 1995. **

**ITEM 3:**
**      Quantitative and Qualitative Disclosures about Market Risk.**

** **

**ITEM 4.      Controls and Procedures **

**PART      II.**
**      OTHER INFORMATION. **

**ITEM 1:**
**      Legal Proceedings. **

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**ITEM 2:**
**      Unregistered Sales of Equity Securities and Use of Proceeds.**

**Item 3:**
**      Defaults Upon Senior Securities. **

**ITEM 4:**
**      Submission of Matters to a vote of Security Holders. **

|                                     |   | **Shares Voting****For**  |      | **Withheld**  |   | **Abstentions                and Non-votes**  |   |
|------------------------------------------|--------|-------------------------------------|-----------|--------------------|--------|----------------------------------------------------|--------|
| Reginald                M. Fountain, Jr. |   |                                | 4,088,036 |               |   | 23,675                                             |   |   | — |   |
| A.                Myles Cartrette        |   |                                | 4,024,742 |               |   | 89,969                                             |   |   | — |   |
| George                L. Deichmann, III  |   |                                | 4,080,986 |               |   | 30,725                                             |   |   | — |   |
| Guy                L. Hecker, Jr.        |   |                                | 4,068,011 |               |   | 43,700                                             |   |   | — |   |
| David                C. Miller           |   |                                | 4,058,661 |               |   | 53,050                                             |   |   | — |   |
| Mark                L. Spencer           |   |                                | 4,094,436 |               |   | 17,275                                             |   |   | — |   |
| Anthony                J. Romersa        |   |                                | 4,093,761 |               |   | 17,950                                             |   |   | — |   |
| Anthony                A. Sarandes       |   |                                | 4,094,161 |               |   | 17,550                                             |   |   | — |   |
| Robert                L. Stallings, III  |   |                                | 3,999,467 |               |   | 112,244                                            |   |   | — |   |

**ITEM 5:**
**      Other Information. **

**ITEM 6:**
**      Exhibits. **

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**SIGNATURE      **

| FOUNTAIN                POWERBOAT INDUSTRIES, INC.(Registrant) |                                                             |
|----------------------------------------------------------------|------------------------------------------------------------------|
|                                                           |                                                             |   |
| By:                                                            | /s/                Irving L. SmithIrving                L. Smith | Date: February                9, 2006 |
|                                                           | Chief                Financial Officer                           |   |

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**EXHIBIT      INDEX **

| **Exhibit No.** |   | **Exhibit                Description**                                                                |
|----------------------|--------|-------------------------------------------------------------------------------------------------------|
|                 |   |                                                                                                  |
| 31.1                 |   | Certification                pursuant to Rule 13a-14(a) by the Chief Executive                Officer |
|                 |   |                                                                                                  |
| 31.2                 |   | Certification                pursuant to Rule 13a-14(a) by the Chief Financial                Officer |
|                 |   |                                                                                                  |
| 32    |   | Certifications                Pursuant to 18 U.S.C.                Section 1350                  |

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