FORM 10-Q

                  SECURITIES AND EXCHANGE COMMISSION
                        Washington, DC 20549


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

       For the quarterly period ended March 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 Quarter Ended                 Commission File Number
                                                                       
                                                  0-14712

                 Fountain Powerboat Industries, Inc.               
         (Exact name of registrant as specified in its charter)

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

      1653 Whichard's Beach Road
      P.O. Drawer 457
      Washington, NC                              27889  
(Address of Principal Executive Offices)        (Zip Code)


Registrant's telephone number, 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 issurer's classes  of
common stock as of the latest practicable date.


            Class                  Outstanding at April 30, 1999
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,
            March 31, 1999 and June 30, 1998............    4

          Consolidated Balance Sheets - Liabilities &
            Shareholders' Equity, March 31, 1999
            and June 30, 1998............................   5

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

          Consolidated Statements of Cash Flows -
            Nine Months Ended March 31, 1999
            and March 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............................. 18


Item 6.   Exhibits and Reports on Form 8 and Form 8-K....... 18


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










                                -2-
<PAGE>

             PRITCHETT, SILER & HARDY, P.C.
                  430 EAST 400 SOUTH
              SALT LAKE CITY, UTAH 84111



  
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 March 31, 1999, and the related consolidated
statements of income and cash flows for the three and nine 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.


May 10, 1999
Salt Lake City, Utah
      
                                -3-
<PAGE>

 
              FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY
                                       
                          CONSOLIDATED BALANCE SHEETS
                                       
                                    ASSETS
                                       
                 (Unaudited - See Accountant's Review Report)
                                       


                                          March 31,       June 30,
                                            1999            1998
                                        ____________   ____________
CURRENT ASSETS:
  Cash and cash equivalents             $  3,210,514   $  1,376,984
  Accounts receivable, net                   924,701      2,715,754
  Inventories                              5,951,658      7,077,540
  Prepaid expenses                           898,239        489,290
  Deferred tax assets                      1,698,726      1,058,967
                                        ____________   ____________
     Total Current Assets                 12,683,838     12,718,535
                                        ____________   ____________
PROPERTY, PLANT AND EQUIPMENT             34,271,399     33,411,011


  Less:  Accumulated depreciation       (15,610,403)   (14,254,156)
                                        ____________   ____________
                                          18,660,996     19,156,855
                                        ____________   ____________

OTHER ASSETS                                 724,972        622,003
                                        ____________   ____________

TOTAL ASSETS                            $ 32,069,806   $ 32,497,393
                                        ____________   ____________
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                      -4-
<PAGE>

                                  [Continued]
                                       
                                       
                                       
                                       
              FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY
                                       
                          CONSOLIDATED BALANCE SHEETS
                                       
                     LIABILITIES AND STOCKHOLDERS' EQUITY
                                       
                 (Unaudited - See Accountants' Review Report)
                                       
                                  [Continued]


                                            March 31,     June 30,
                                              1999          1998
                                          ___________   ___________
CURRENT LIABILITIES:
  Current portion/long-term debt          $ 2,173,487   $   981,365
  Notes payable - related party               157,910       415,821
  Accounts payable                          2,196,417     3,591,489
  Accrued expenses                          2,175,425     1,939,791
  Dealer territory service accrual          2,392,557     2,046,939
  Customer deposits                           413,996       510,967
  Allowance for boat repurchases              200,000       200,000
  Reserve for warranty expense                500,000       500,000
  Net liabilities of discontinued operations   10,000       103,612

                                          ___________   ___________
     Total Current Liabilities             10,219,792    10,289,984
                                          ___________   ___________
LONG-TERM DEBT, LESS CURRENT PORTION       10,915,956     9,499,895

DEFERRED TAX LIABILITY                         88,978       926,807

COMMITMENTS AND CONTINGENCIES [NOTE 6]              -             -

                                          ___________   ___________

     Total Liabilities                     21,224,726    20,716,686
                                          ___________   ___________

STOCKHOLDERS' EQUITY:
  Common stock, $.01 par value,
     200,000,000 shares authorized,
     4,732,608 and 4,702,608 shares
     issued and outstanding, respectively      47,326        47,026
  Capital in excess of par value           10,303,640    10,196,540
  Retained earnings - accumulated             604,862     1,647,889
                                          ___________   ___________
                                           10,955,828    11,891,454
  Less: Treasury stock                      (110,748)     (110,748)
                                          ___________   ___________
       Total Stockholders' Equity          10,845,080    11,780,707
                                          ___________   ___________
                                          $32,069,806   $32,497,393
                                          ___________   ___________
                                       
                                       
  The accompanying notes are an integral part of these financial statements.
                                       
                                      -5-
<PAGE>


                      FOUNTAIN POWERBOAT INDUSTRIES, INC.
                                       
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                 (Unaudited - See Accountants' Review Report)
                                       
                            For the Three Months Ended For the Nine Months Ended
                                     March 31,                  March 31,
                            __________________________ _________________________
                                 1999        1998           1999       1998     
                            ____________ _____________ ____________ ____________
NET SALES                   $ 14,041,832 $  12,699,853 $ 39,718,327 $ 37,313,090
                            ____________ _____________ ____________ ____________
COST OF SALES                 11,094,281     8,744,319   31,172,114   26,456,149
                            ____________ _____________ ____________ ____________
  Gross Profit                 2,947,551     3,955,534    8,546,213   10,856,941

EXPENSES:
  Selling expense              1,761,294     1,952,340    5,855,679    3,869,103
  General and administrative     734,898       592,272    2,053,514    2,089,473
  General and administrative                                         
    Related parties                4,325             -        8,758       73,853
                            ____________ _____________ ____________ ____________
        Total Expenses         2,500,517     2,544,612    7,917,951    6,032,429
                            ____________ _____________ ____________ ____________
OPERATING INCOME BEFORE
  STRATEGIC CHARGE               447,034     1,410,922      628,262    4,824,512
STRATEGIC CHARGE                       -             -  (2,440,000)            -
                            ____________ _____________ ____________ ____________
OPERATING INCOME (LOSS)          447,034     1,410,922  (1,811,738)    4,824,512

NON-OPERATING INCOME
  (EXPENSE):
  Other income                    25,937        21,934       80,933       62,099
  Interest expense             (249,732)     (199,734)    (769,363)    (480,867)
  Interest expense-
   related party                 (6,514)             -     (20,447)            -
                            ____________ _____________ ____________ ____________

INCOME (LOSS) BEFORE TAXES       216,725     1,233,122  (2,520,615)    4,405,744

CURRENT TAX EXPENSE                    -       312,618            -    1,267,066
DEFERRED TAX (BENEFIT)         (120,960)             -  (1,477,588)            -
DEFERRED TAX EXPENSE                   -       147,574            -       75,756
                            ____________ _____________ ____________ ____________
INCOME (LOSS) FROM
  CONTINUING OPERATIONS          337,685       772,930  (1,043,027)    3,062,922

DISCONTINUED OPERATIONS:
  Loss on disposal of operations
    of Fountain Power, Inc. and
    Mach Performance, Inc.             -        60,310            -       33,710
                            ____________ _____________ ____________ ____________
LOSS FROM DISCONTINUED
  OPERATIONS                           -      (60,310)            -     (33,710)
                            ____________ _____________ ____________ ____________
NET INCOME (LOSS)           $    337,685 $     712,620 $(1,043,027) $  3,029,212
                            ____________ _____________ ____________ ____________
                                       
                                       
                                      -6-
<PAGE>
                                  [Continued]


                      FOUNTAIN POWERBOAT INDUSTRIES, INC.
                                       
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                 (Unaudited - See Accountants' Review Report)
                                       
                                  [Continued]
                                       
                            For the Three Months Ended For the Nine Months Ended
                                     March 31,                  March 31,
                            __________________________ _________________________
                                 1999        1998           1999       1998     
                            ____________ _____________ ____________ ____________
                  
EARNINGS (LOSS) PER SHARE:
  Continuing Operations     $        .07 $         .16 $      (.22) $        .65
  Income from Operations of
    Discontinued Segments              -             -            -            -
  Estimated Loss on Disposal
    of Discontinued Segments           -         (.01)            -        (.01)
                            ____________ _____________ ____________ ____________
EARNINGS (LOSS) PER SHARE   $        .07 $         .15 $      (.22) $        .64
                            ____________ _____________ ____________ ____________
WEIGHTED AVERAGE SHARES
  OUTSTANDING                  4,702,608     4,740,108    4,705,017    4,738,356
                            ____________ _____________ ____________ ____________

DILUTED EARNINGS PER SHARE:
  Continuing Operations     $        .07 $         .15 $   N/A      $        .61
  Loss from Operations of
    Discontinued Segments              -             -     N/A                 -
  Estimated Loss on Disposal
    of Discontinued Segments           -         (.01)     N/A             (.01)
                            ____________ _____________ ____________ ____________
DILUTED EARNINGS PER SHARE  $        .07 $         .14 $   N/A      $        .60
                            ____________ _____________ ____________ ____________
DILUTED WEIGHTED AVERAGE
  SHARES OUTSTANDING           4,794,363     5,068,713     N/A         5,088,913
                            ____________ _____________ ____________ ____________
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
  The accompanying notes are an integral part of these financial statements.
                                    
                                      -7-
<PAGE>

                                       

              FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY
                                       
                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                 (Unaudited - See Accountant's Review Report)
                                       
               Increase (Decrease) in Cash and Cash Equivalents
                                       
                                                   For the Nine Months Ended    
                                                           March 31,
                                               _________________________________
                                                     1999             1998  
                                               ________________ ________________
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income (loss)                            $    (1,043,027) $      3,029,212
                                               ________________ ________________
  Adjustments to reconcile net income (loss)
    to net cash provided by operating activities:
     Depreciation expense                             1,741,646        1,418,965
     Strategic Charge                                 2,440,000                -
     Change in assets and liabilities:
       (Increase) decrease in accounts receivable     1,791,053      (2,436,774)
       (Increase) decrease in inventories               197,060      (3,606,629)
       (Increase) decrease in prepaid expenses        (408,949)          446,220
       Increase (decrease) in accounts payable      (1,395,072)          716,133
       Increase (decrease) in accrued expenses          235,632          229,995
       Increase (decrease) in dealer territory
         service accrual                                345,618          337,497
       Increase (decrease) in customer deposits        (96,971)          154,028
       Net deferred taxes                           (1,477,588)          623,417
       Net liabilities of discontinued operations      (93,612)        (134,441)
                                               ________________ ________________
        Net Cash Provided (Used) by
          Operating Activities                 $      2,235,790 $        777,623
                                               ________________ ________________
CASH FLOWS FROM INVESTING ACTIVITIES:
  (Purchase) sale of certificates of 
   deposit, net                                $             -  $        696,155
  Investment in molds, plugs, and other tooling       (635,272)      (1,060,026)
  Purchase of property, plant, and equipment        (2,121,691)      (5,452,598)
  (Increase) in other assets                          (102,969)        (112,712)
                                               ________________ ________________
        Net Cash Provided (Used) by Investing
          Activities                           $    (2,859,932) $    (5,929,181)
                                               ________________ ________________
CASH FLOWS FROM FINANCING ACTIVITIES:
  Proceeds from long-term debt                 $      4,000,000 $      2,875,000
  Repayment of long-term debt                       (1,391,817)        (524,680)
  Repayment of long-term debt - related party         (257,911)                -
  Proceeds from issuance of common stock                107,400          107,500
                                               ________________ ________________
        Net Cash Provided (Used) by Financing
          Activities                           $      2,457,672 $      2,457,820
                                               ________________ ________________
Net increase (decrease) in cash and cash 
equivalents                                    $      1,833,530 $    (2,693,738)

Cash and cash equivalents at beginning of period      1,376,984        2,994,503
                                               ________________ ________________
Cash and cash equivalents at end of period     $      3,210,514 $        300,765
                                               ________________ ________________
                                       
                                      -8-
<PAGE>
                                  [Continued]
                                       

              FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY
                                       
                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                 (Unaudited - See Accountant's Review Report)
                                       
               Increase (Decrease) in Cash and Cash Equivalents
                                       
                                  [Continued]

                                       
                                                   For the Nine Months Ended    
                                                           March 31,
                                               _________________________________
                                                     1999             1998 
                                               ________________ ________________

Supplemental Disclosures of Cash Flow Information:
  Cash paid during the period for:
     Interest:
      Unrelated parties                        $        502,752 $        570,688
      Related parties                                    16,879           17,672
                                               ________________ ________________
                                               $        519,631 $        588,360
                                               ________________ ________________
     Income taxes                              $        263,345 $          8,836
                                               ________________ ________________

Supplemental Disclosures of Noncash Investing and Financing Activities:
  For the nine month period ended March 31, 1999:
     There were no non-cash investing and financing activities.
     
  For the nine month period ended March 31, 1998:
     On September 30, 1997 the Company purchased an airplane for $1,375,000
     from a related party through the issuance of a $415,821 note payable to
     the related party and assuming $959,179 underlying indebtedness on the
     plane.
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
                                       
  The accompanying notes are an integral part of these financial statements.

                                      -9-
<PAGE>
      
                                 
                          FOUNTAIN POWERBOAT INDUSTRIES, INC.
                                       
                        Notes to Consolidated Financial Statements
                       (Unaudited - See Accountants' Review Report)
                                       
NOTE 1.  Basis of Presentation.
  
     Although  these statements have been reviewed by our independent  auditors,
they  are unaudited.  The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions  that  affect the reporting amounts of assets and  liabilities, 
the disclosure  of  contingent assets and liabilities at the date of  the 
financial statements,  and  the  reported  amounts of revenues  and  expenses 
during  the reporting  period.   Actual  results  could  differ  from  those
estimated by management.   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 March 31, 
1999  and  for  all periods presented have been made.

   Certain  information  and  footnote  disclosures  normally  included  in  the
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,
1998  audited  financial statements.  The results of operations for  the  period
ended March 31, 1999 are not necessarily indicative of the operating results for
the full year.

NOTE 2.  Accounts Receivable.

    As of March 31, 1999, accounts receivable were $924,701 net of the allowance
for  bad  debts of $30,000.  This represents a decrease of $1,791,053  from  the
$2,715,754  in  net  accounts receivable recorded at  June  30,  1998.   Of  the
$924,701 balance at March 31, 1999, $612,996 has subsequently been collected  as
of  April  30,  1999,  and  the  remaining $311,705  is  believed  to  be  fully
collectible.

NOTE 3.  Inventories.
  
    Inventories at March 31, 1999 and June 30, 1998 consisted of the following:

                                                       
                                                   March 31,        March 31,
                                                     1999             1998 
                                               ________________ ________________
                                                                               
Parts and Supplies.............................$      3,163,596 $      4,510,373
Work-in-process................................       2,175,290        2,235,394
Finished goods.................................         536,102          302,587
Sportswear.....................................         196,670          149,186
Obsolete inventory reserve.....................       (120,000)        (120,000)

Total..........................................$      5,951,658 $      7,077,540

                                     -10-
<PAGE>


                  FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY
                      Notes to Consolidated Financial Statements
                     (Unaudited - See Accountants' Review Report)


NOTE 4.  Revenue Recognition.

     The  Company  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.

      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.


     


                                       
                                       
                                       
                                     -11-
<PAGE>
      
                                 
                  FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY
                      Notes to Consolidated Financial Statements
                     (Unaudited - See Accountants' Review Report)
                          
NOTE 5.  Allowance and Qualifying Accounts.

     For  the  nine  months  ended  March 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 $      -0- $        -0- $  200,000

Allowance for
 doubtful accounts      30,000     12,710       12,710     30,000

Allowance for
 warranty claims       500,000    612,279      612,279    500,000

Allowance for
 inventory values      120,000        -0-          -0-    120,000

                    ---------- ---------- ------------ ----------          
Total               $  850,000 $  624,989 $    624,989 $  850,000
                    ========== ========== ============ ==========

     In  management's  opinion,  the balances of the  allowance  and  qualifying
accounts are adequate to provide for all reasonably anticipated future losses.
     
NOTE 6. Notes Payable and Line of Credit.

During  September 1998 the Company concluded negotiations for a  new  $4,000,000
promissory  note  with Transamerica Business Credit Corporation  which  included
restatement  and  amendment of certain existing promissory  notes  with  General
Electric  Capital Corporation ("GECC").  An Omnibus Agreement was  entered  into
which  provides that all the underlying collateral and encumbered property would
apply  ratably  to  all  of the Notes Payable.  The $4,000,000  promissory  note
provides  for thirty-nine monthly principal payments in the amount  of  $100,000
beginning October 1, 1998 with a final payment of the entire outstanding payment
due  on  January 2, 2002.  Accrued interest will be paid monthly in addition  to
the  principal payment.  Interest will be calculated at 2.7% per annum above the
published LIBOR Rate (London Interbank Offered Rates) and is calculated monthly.
The  Company  executed  a restated and amended Note to GECC  in  the  amount  of
$9,007,797, which replaces a previous

                                     -12-
<PAGE>


                FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY
                    Notes to Consolidated Financial Statements
                   (Unaudited - See Accountants' Review Report)

note  with  the  same  outstanding balance.  The note provides  for  39  monthly
payments of $123,103, which includes principal and interest.  A final payment of
the  outstanding balance will be due on January 2, 2002.  Interest is calculated
at  2.7% per annum above the published LIBOR Rate.  The Company also executed  a
restated  and amended Note to GECC in the amount of $855,050, which  replaces  a
previous note with the same outstanding balance.  The note provides for  seventy
monthly  payments  of $15,181, which includes principal and interest.   A  final
payment  of  the outstanding balance will be due on April 1, 2004.  Interest  is
calculated at 2.7% per annum above the published LIBOR Rate.  All of  the  notes
provide  for  prepayment  penalties according to  a  predefined  timetable.   On
December  1, 1998, the two GECC loans were converted to fixed rates of 7.02%  on
the $9,007,797 loan and 7.26% on the $855,050 loan.


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 March 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
$32,100,000.  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 March 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 $1,213,400 for the first nine months of Fiscal  1999
and  are  included in the accompanying consolidated statements of operations  as
part  of  selling  expense.   At  March 31, 1999, the  estimated  unpaid  dealer
incentive interest included in accrued expenses amounted to $404,900.


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:




                                     -13-
<PAGE>

               FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY
                   Notes to Consolidated Financial Statements
                  (Unaudited - See Accountants' Review Report)

                                                March 31,        March 31,
                                                  1999             1998       
                                               ___________      ___________
Apartments                     - Rentals       $     7,808      $     3,862

R.M. Fountain, Jr.             - Interest           20,447              -0-

                               - Aircraft
                                 Rental                -0-          137,219
                                               -----------      -----------
                                               $    28,255      $   141,081
                                               ===========      ===========

     At March 31, 1999 the Company had travel advances and other receivables
from employees in the amount of $71,328, of which $58,304 was due from an
officer of the Company.  For the nine months ended March 31, 1999 the Company
paid interest expense of  $20,447 to an Officer/Director of the Company.


NOTE 9.  Income Taxes.

     For  the nine-month period ended March 31, 1999, the Company provided  $-0-
for current income taxes and a benefit of $1,477,588 for deferred income taxes.
                                       
NOTE 10.  Stock Options.

     On  January 12, 1999, the board of directors adopted a 1999 Employee  Stock
Option Plan for the purpose of encouraging officers and employees of the Company
to  expand  and  improve the profits and prosperity of the Company.   Concurrent
with the adoption of this plan, the Company issued an incentive stock option for
30,000  shares  of stock to an officer of the Company, at an exercise  price  of
$5.00  per  option share.  The 1999 employee stock option plan and the  employee
stock  option  agreement  with an officer of the  Company  were  approved  by  a
majority of the shareholders at the 1998 annual meeting held on March 2, 1999.
     
     At  March  31, 1999 there were 546,000 unexercised stock options, of  which
540,000  were  held by officers and directors of the Company at  prices  ranging
from $3.58 to $8.167 per share.  During this period, a former director of the
Company  exercised 30,000 stock option shares at an option price  of  $3.58  per
share.

NOTE 11. Earnings 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 nine-month period ended March  31,  1999,  was  not
presented, as its effect was anti-dilutive.
     
                                     -14-
<PAGE>

             FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY
                 Notes to Consolidated Financial Statements
                (Unaudited - See Accountants' Review Report)
    
                            For the Three Months Ended For the Nine Months Ended
                                     March 31,                  March 31,
                            __________________________ _________________________
                                 1999        1998           1999       1998     
Weighted average common 
shares outstanding for basic____________ _____________ ____________ ____________
  earnings per share           4,702,608     4,740,108    4,705,017    4,738,356
Effect of dilutive securities:
  Stock  options                  92,322       328,605          N/A      350,557
                            ____________ _____________ ____________ ____________

Weighted average common shares 
  and potential dilutive shares 
  outstanding for dilutive
  earnings per share           4,794,930     5,068,713          N/A    5,088,913
                            ____________ _____________ ____________ ____________
Stock options to purchase 
  common stock not included 
  in the computation of diluted
  earnings per share as their
  effect is anti-dilutive              -             -      546,000            -
                            ____________ _____________ ____________ ____________
     

NOTE 12.  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 other discontinued unused tooling.  The Company expects
to  complete the majority of these actions during the third and fourth  quarters
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 second quarter 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 third quarter ended  March  31,  1999  was
$447,034  or  $.09 per share versus operating income of $1,410,922 or  $.30  per
share for the corresponding period of the previous year.  Operating income as  a
percent of sales for the third quarter of Fiscal 1999 was 3.2% versus 11.1%  for
the  same period the previous Fiscal year.  Net income for the third quarter  of
Fiscal  1999  was  $337,685  or $.07 per share.  This  compares  to  net  income
amounting to $712,620 or $.15 per share for the third quarter of Fiscal 1998.



                                     -15-
<PAGE>


     Net sales were $14,041,832 for the third quarter of Fiscal 1999 as compared
to  $12,699,853  for  the third quarter of the prior Fiscal  year.   Unit  sales
volume  for  the third quarter of Fiscal 1999 was 111 boats as compared  to  109
boats for the third quarter of Fiscal 1998.   The increase in units this quarter
over  the  prior Fiscal year is primarily due to an increase in  the  number  of
fishing boats sold.

      For  the  third  quarter of Fiscal 1999, the gross  margin  on  sales  was
$2,947,551  (21.0%) as compared to $3,955,534 (31.1%) for the third  quarter  of
Fiscal 1998.

      Selling expenses were $1,761,294 for the third quarter of Fiscal  1999  as
compared to $1,952,340 for the third quarter of last Fiscal year.  Most  of  the
decrease was in promotional racing and advertising expense.

      General  and  administrative expenses were  $739,223  for  the  third
quarter  of  Fiscal 1999 as compared to $592,272 for the same  quarter  of  last
Fiscal  year.   Most  of  the increase was due to a one  time  insurance  credit
occurring in the third quarter of last Fiscal year.

      Interest  expense  for the third quarter of Fiscal 1999  was  $256,246  as
compared  to  $199,734  for  the third quarter of last  Fiscal  year.   Interest
expense is up due to an overall increase in long-term debt.

     Other  non-operating income/(expense) for the third quarter of Fiscal  1999
was $25,937 as compared to $21,934 for the third quarter of last Fiscal year.


Financial Condition.

     The  Company's  cash  flows for the first nine months of  Fiscal  1999  are
summarized as follows:
                                       
Net cash provided by operating activities........  $ 2,235,790
 "   " used by investing activities..............  (2,859,932)
 "   " provided by financing activities..........    2,457,672

        Net increase in cash.....................  $ 1,833,530
                                                   ===========

This  net   increase compared to a $(2,693,738) net decrease for the first  nine
months of the prior fiscal year.

     Cash  used  in  the first nine months of Fiscal 1999 to acquire  additional
property,  plant, and equipment (investing activity) amounted to  $2,756,963  of
which $635,272 was for plugs, molds, and other product tooling.

      During the first quarter of Fiscal 1999, the Company borrowed $4,000,000
to  supplement  and  offset  the  cash used during  Fiscal  1998  to  increase
property,  plant  and  equipment by $6,937,699 and  inventory  by  $3,139,783.
Refer to Note 6 to the


                                     -16-
<PAGE>


Consolidated Financial Statements for complete notes payable details. Both the
General Electric Capital Corporation loan and the Transamerica Business Credit
Corporation  loans  are  secured by all of the  Company's  real  and  personal
property  and  by  the  Company's assignment of  a  $1,000,000  key  man  life
insurance policy.

For  the  remainder  of  1999  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 increases
for new product line additions.
     
The Year 2000.

A current concern, known as the "Year 2000" or "Y2K" Bug is expected to effect
a large number of computer systems and software during or after the year 1999.
The concern is that any computer function that requires a date calculation may
produce  errors.   The  Year 2000 issue affects virtually  all  companies  and
organizations, including the Company.  The
Company  is taking the steps necessary to prevent these errors from occurring.
With  respect  to  third party providers whose services are  critical  to  the
Company, the Company intends to monitor 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, which  could
materially affect the Company's operations.  At present, the Company has spent
$312,000 and anticipates $100,000 in additional costs in upgrading some of its
software  and  hardware  in  order to avoid any problems  resulting  from  the
Millennium  bug.  There is no assurance that the Company will  not  experience
operational difficulties as a result of Year 2000 issues.

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

                                     -17-
<PAGE>


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.

During third quarter of Fiscal 1999, 30,000 stock option shares were exercised
by a former director of the Company at an option price of $3.58 per share.


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 nine
months of Fiscal 1999.

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



                                   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)




        /s/ Joseph F. Schemenauer
    By:  Joseph F. Schemenauer                            Date: May 14, 1999
     Joseph F. Schemenauer
     Vice President, Chief Financial
     Officer, and Designated Principal
     Accounting Officer

                                       
                                            -18-
<PAGE>