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      December 31, 1996

                                  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)

      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: (919)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 January 31,1997

Common stock, $.01 par value                 3,147,572 shares




<PAGE>





           FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY

                              INDEX


PART I.  Financial Information.                          Page No.

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

         Consolidated Balance Sheets - Assets,
            December 31, 1996 and June 30, 1996..........   4

         Consolidated Balance Sheets - Liabilities &
            Shareholders' Equity, December 31, 1996
            and June 30, 1996............................   5

         Consolidated Statements of Income -
            Three and Six Months Ended December 31, 1996
            and December 31, 1995........................   6

         Consolidated Statements of Cash Flows -
            Six Months Ended December 31, 1996
            and December 31, 1995........................ 7 -  8

         Notes to Consolidated Financial Statements...... 9 - 13

         Management's Discussion and Analysis of
            Results of Operations and
            Financial Condition..........................14 - 16



PART II. Other Information.


Item 6.  Exhibits and Reports on Form 8 and Form 8-K.....  16

         Signature.......................................  17









                                -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 December 31, 1996, and
the related consolidated statements of income and cash flows for
the three and six months then ended.  All information included 
in these financial statements is the representation of the 
management of Fountain Powerboat Industries, Inc.

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

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




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

PRITCHETT, SILER & HARDY, P.C.
January 30, 1997





<PAGE>

PART I:  Financial Information.


                  FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY
                             Consolidated Balance Sheets
                                   *** Assets ***
                     (Unaudited - See Accountants' Review Report)





                                            December 31,      June 30,
                  Assets                        1996            1996
------------------------------------------  ------------    ------------
Current assets:

   Cash................................... $  3,160,468    $  1,360,619

   Accounts receivable, net (Note 2)......    2,096,708       2,853,684

   Inventories (Note 3)...................    5,520,901       4,009,195

   Prepaid expenses.......................      333,243         154,843
                                            ------------    ------------
   Total current assets................... $ 11,111,320    $  8,378,341
                                            ------------    ------------

Property, plant, and equipment............ $ 22,725,688    $ 20,674,326

Less:  Accumulated depreciation...........  (11,557,083)    (10,746,140)
                                            ------------    ------------
                                           $ 11,168,605    $  9,928,186
                                            ------------    ------------

Other assets.............................. $    611,001    $    191,577
                                            ------------    ------------

Total assets.............................. $ 22,890,926    $ 18,498,104
                                            ============    ============






See accompanying Notes to Consolidated Financial Statements.




                                         -4-
<PAGE>


                  FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY
                             Consolidated Balance Sheets
                      *** Liabilities & Shareholders' Equity ***
                     (Unaudited - See Accountants' Review Report)


                                            December 31,      June 30,
    Liabilities & Shareholders' Equity          1996            1996
------------------------------------------  ------------    ------------
Current liabilities:
   Notes payable.......................... $          0    $  1,173,089
   Current portion/long-term debt.........      462,834         767,254
   Accounts payable.......................    1,477,461       1,713,760
   Accrued expenses.......................    2,034,878       1,599,602
   Accrued income taxes...................      446,015          80,804
   Customer deposits......................       81,666         228,608
   Allowance for boat repurchases (Note 5)      207,359         207,359
   Reserve for warranty expenses (Note 5)       410,000         410,000
                                            ------------    ------------
   Total current liabilities.............. $  5,120,213    $  6,180,476
                                            ------------    ------------
Long-term debt, less current
   portion................................ $  7,414,880    $  5,433,184
                                            ------------    ------------

Total liabilities......................... $ 12,535,093    $ 11,613,660
                                            ------------    ------------
Commitments and contingencies (Notes 6 & 11)

Shareholders' equity:
   Common stock, $.01 par value,
      200,000,000 shares authorized,
      3,129,072 shares issued (Note 9).... $     31,291    $     30,291

   Capital in excess of par value.........   10,420,200       9,297,450

   Retained earnings / (deficit)..........       15,090      (2,332,549)
                                            ------------    ------------
                                           $ 10,466,581    $  6,995,192
 Less: Treasury stock......................     110,748         110,748
                                            ------------    ------------
Total Shareholders' equity................ $ 10,355,833    $  6,884,444
                                            ------------    ------------

Total liabilities & shareholders' equity.. $ 22,890,926    $ 18,498,104
                                            ============    ============


See accompanying Notes to Consolidated Financial Statements.



                                         -5-

<PAGE>

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

                                Three Months Ended          Six Months Ended
                                   December 31,               December 31,
                              -----------------------  ------------------------
                                 1996         1995         1996         1995
                              -----------  ----------  -----------  -----------
Net sales (Note 4).......... $12,505,545  $ 9,287,467  $24,825,918  $18,286,991

Cost of sales...............   9,126,971    7,303,494   18,200,230   14,657,114
                              -----------  -----------  -----------  -----------
Gross margin................ $ 3,378,574  $ 1,983,973  $ 6,625,688  $ 3,629,877

Selling expense.............   1,236,704    1,101,516    2,220,748    1,879,167

General & admin. expense....     552,928      434,869    1,218,908      758,662

General & admin. expense -
   related parties (Note 7)       86,781       35,814      170,613       72,354
                              -----------  -----------  -----------  -----------
Operating income/(loss)..... $ 1,502,161  $   411,774  $ 3,015,419  $   919,694
                              -----------  -----------  -----------  -----------
Other (income)/expense:
   Interest expense......... $   166,707  $   204,179  $   325,760  $   403,632
   Other sundry, net........     (42,007)    (150,046)    (127,871)    (272,908)
   Non-recurring gain.......           0     (800,000)           0     (800,000)
                              -----------  -----------  -----------  -----------
                             $   124,700  $  (745,867) $   197,889  $  (669,276)
                              -----------  -----------  -----------  -----------
Net income/(loss)
   before income taxes...... $ 1,377,461  $ 1,157,641  $ 2,817,530  $ 1,588,970

Current tax expense/
   (benefit) (Note 8).......     365,211            0      469,891            0

Deferred tax expense/
   (benefit) (Note 8).......           0            0            0            0
                              -----------  -----------  -----------  -----------
Net income.................. $ 1,012,250  $ 1,157,641  $ 2,347,639  $ 1,588,970
                              ===========  ===========  ===========  ===========

Primary net income per share $       .30  $       .38  $       .72  $       .53
                              ===========  ===========  ===========  ===========
Primary weighted average
   shares outstanding......   3,332,344    3,019,072    3,265,625    3,019,072
                              ===========  ===========  ===========  ===========
Fully diluted earnings
   per share (Note 10)...... $       .30  $       .38  $       .71  $       .53
                              ===========  ===========  ===========  ==========
Fully diluted weighted avg.
   shs. outstanding (Note 10   3,373,805    3,019,072    3,289,525    3,019,072
                              ===========  ===========  ===========  ===========

See accompanying Notes to Consolidated Financial Statements.

                                         -6-
<PAGE>

                  FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY
                         Consolidated Statements of Cash Flows
                     (Unaudited - See Accountants' Review Report)


                                                           Six Months Ended
                                                             December 31,
                                                      --------------------------
                                                          1996          1995
Cash flows from operating activities:                 ------------  ------------
-------------------------------------
   Net income/(loss)................................ $  2,347,639  $  1,588,970

   Adjustments to reconcile net income to net cash
      provided/(used) by operating activities:

      Depreciation and amortization.................      810,943       800,056
      (Increase)/decrease in accounts receivable....      756,976       117,172
      (Increase)/decrease in inventory..............   (1,511,706)     (172,163)
      (Increase)/decrease in prepaid expenses.......     (178,400)        1,334
      (Increase)/decrease in other assets...........     (419,424)       (3,000)
      Increase/(decrease) in accounts payable.......     (239,174)     (180,545)
      Increase/(decrease) in accounts payable -
          related parties...........................            0         2,431
      Increase/(decrease) in accrued expenses.......      435,276       (69,433)
      Increase/(decrease) in customer deposits......     (146,942)     (137,118)
      Increase/(decrease) in income taxes payable...      365,211             0
                                                      ------------  ------------
   Net cash provided/(used) by operating activities. $  2,220,399  $  1,947,704
                                                      ------------  ------------


Cash fows from investing activities:
------------------------------------
   Construction of molds, plugs, and other tooling.. $   (879,482) $   (350,640)
   Purchases of property, plant, and equipment......   (1,171,880)     (323,144)
                                                      ------------  ------------
   Net cash provided/(used) in investing activities. $ (2,051,362) $   (673,784)
                                                      ------------  ------------

Cash flows from financing activities:
-------------------------------------
   Common stock issued.............................. $  1,123,750  $          0
   Borrowing from G.E. Capital Corporation..........    7,500,000       600,000
   Repayment of long-term debt......................   (5,576,605)   (2,473,702)
   Note payable, revolving line of credit...........   (1,416,333)      536,301
                                                      ------------  ------------
   Net cash provided/(used) in financing activities. $  1,630,812  $ (1,337,401)
                                                      ------------  ------------



                                     (Continued)

                                         -7-
<PAGE>


                  FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY
                    Consolidated Statements of Cash Flows, Continued
                     (Unaudited - See Accountants' Review Report)

                                                           Six Months Ended
                                                             December 31,
                                                      --------------------------
                                                          1996          1995
                                                      ------------  ------------

Net increase/(decrease) in cash..................... $  1,799,849  $    (63,481)


Cash at beginning of the year.......................    1,360,619       490,807

                                                      ------------  ------------
Cash at end of the period........................... $  3,160,468  $    427,326
                                                      ============  ============



Supplemental disclosures of cash flow information:
--------------------------------------------------
Cash paid during the period for:

   Interest - unrelated parties....................  $    325,760  $    403,632
            - related parties......................             0             0
            - capitalized..........................             0             0
                                                      ------------  ------------
                                                     $    325,760  $    403,632
                                                      ============  ============

   Income taxes..................................... $    469,891  $          0
                                                      ============  ============






See accompanying Notes to Consolidated Financial Statements.











                                         -8-
<PAGE>




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



1.  Basis of Presentation.

      Although  these  statements  have  been  reviewed  by   our
independent auditors, they are unaudited.  The statements reflect
all adjust-ments, in management's opinion, that are necessary  to
present  fairly the Company's financial position and  results  of
its   operations  for  the  interim  periods  presented.    These
adjustments  are,  for  the most part,  of  a  normal,  recurring
nature.   It  is  suggested  that this unaudited  interim  period
financial  information be read in conjunction with the  Company's
audited  financial statements for the fiscal year ended June  30,
1996.



2.  Accounts Receivable.

     As of December 31, 1996, accounts receivable were $2,096,708
net of the allowance for bad debts of $27,000.  This represents a
decrease   of  $756,976  from  the  $2,853,684  in  net  accounts
receivable recorded at June 30, 1996.  Of the $2,096,708  balance
at  December 31, 1996, $1,893,704 has subsequently been collected
as of February 5, 1997, and the remaining $203,004 is believed to
be fully collectible.



3.  Inventories.

     Inventories at December 31, 1996 and June 30, 1996 consisted
of the following:


                                   December 31,      June 30,
                                       1996            1996
                                   ____________   ____________
Parts and supplies.................$  3,621,218   $  3,095,379
Work-in-process....................   1,285,748        715,133
Finished goods.....................     733,935        260,269
Trailers...........................        -0-          38,414
Obsolete inventory reserve.........    (120,000)      (100,000)
                                   ____________   _____________
Total..............................$  5,520,901   $  4,009,195
                                   =============  =============






                              -9-


<PAGE>



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


4.  Revenue Recognition.

     The Company recognizes revenue when its products are sold to
its  dealers.  At this time, all incidents of title pass  to  the
buyer and the Company receives payment, usually within two weeks,
for  the  products sold.  Revenues are deferred only in instances
where  there is a direct repurchase agreement with the dealer  or
where  the Company has agreed to pay floor plan interest for  the
dealer  for  a  period of time beyond the normal six  month  time
alloted  by  its published sales promotion program.  At  December
31,  1996 and June 30, 1996, there were no deferred sales or cost
of sales.


5.  Allowance and Qualifying Accounts.

     For  the  six  months ended December 31, 1996,  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 repur-
        chases     $ 207,359    $   -0-     $   -0-     $ 207,359

Allowance for
     doubtful
        accounts      27,000          268        (268)     27,000

Allowance for
     warranty
        claims       410,000      201,874    (201,874)    410,000

  Allowance for
     inventory
        values       100,000       20,000       -0-       120,000

                   ----------   ----------  ----------  ---------
Total              $ 744,359    $ 222,142   $(202,142)  $ 764,359
                   ==========   ==========  ==========  =========

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




                                -10-


<PAGE>



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


6.  Commitments and Contingencies.

     The  Company  makes  available through  third-party  finance
companies floor plan financing for many of its dealers.  Sales to
participating  dealers  are approved by  the  respective  finance
companies.   If  a  participating dealer  does  not  satisfy  its
obligations  under the floor plan financing agreement  in  effect
with   its   commercial  lender(s)  and  boats  are  subsequently
repossessed  by  the lender(s), then under certain  circumstances
the  Company may be required to repurchase the repossessed  boats
if it has executed a repurchase agreement with the lender(s).  At
December  31, 1996, 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
$12,125,000.   The  Company  has  reserved  for  the   reasonably
anticipated  future losses it might incur upon  the  repossession
and repurchase of boats from commercial lenders.  At December 31,
1996, the allowance for losses on boat repurchases was $207,359.

     Additionally,  the  Company  regularly  pays  a  portion  of
dealers' interest charges for floor plan financing for up to  six
months.   Such  charges amounting to $396,000 for the  first  six
months  of  Fiscal 1997 are included in selling expenses  in  the
accompanying statement of operations.



7.  Transactions with Related Parties.

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

                                         Six Months Ended
                                           December 31,
                                      ________________________
                                        1997           1996
                                     __________     __________
Eastbrook Apartments     - rentals  $     8,740    $     6,470

R.M. Fountain, Jr.       - aircraft
                           rental       161,872         65,884

                                     -----------    -----------
                                    $   170,612    $    72,354
                                     ===========    ===========

     At  September 30, 1996 the Company had travel  advances  and
other  receivables from employees in the amount  of  $19,391,  of
which $720 was due from an officer of the Company.


                                -11-


<PAGE>



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





8.  Income Taxes.

During fiscal 1997 the Company will use up all of its net 
operating loss carryforwards.  Consequently, for the six month
period ended December 31, 1996, the Company provided $469,891
for current income taxes. 


9.  Stock Options.

     At  December  31,  1996  there were stock  options  held  by
officers  and  directors of the Company  for  420,000  shares  at
prices  ranging  from  $5.375 to $7.000  per  share.   The  Chief
Financial  Officer  exercised a portion of  his  incentive  stock
options  for  15,000 shares at $5.50 per share during  the  first
half  and  subsequently exercised an additional 2,500  shares  at
$5.50.  Subsequent to December 31, one of the Company's directors
assigned 4,000 of his options to another party and also exercised
his remaining 16,000 options at $5.375 per share.



10. Earnings Per Share.

     The  computations of primary and fully diluted earnings  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.


                              -12-




<PAGE>





11. Acquisition of Mach Performance, Inc.

    The Company acquired Mach Performance, Inc. of Lake Hamilton,
Florida on October 8, 1996.  The acquisition was effective as  of
October   11,   1996.    Mach   Performance,   Inc.   principally
manufactures stainless steel propellers for Fountain  Powerboats,
Inc. and many
other   customers.   Mach  Performance,  Inc.  has  foundry   and
finishing  capabilities that will permit it to manufacture  other
products  used by Fountain Powerboats, Inc., in addition  to  the
propellers.   The purchase price was $1,041,250 and was  paid  to
the  shareholders of Mach Performance, Inc. by  the  issuance  of
85,000   new  restricted  common  shares  of  Fountain  Powerboat
Industries, Inc. common stock valued at its fair market price  on
October 11, 1996, of $12.25 per share.


12.  Debt Refinancing.

      On  December 31, 1996, the Company concluded a  $10,000,000
credit  agreement  with  General  Electric  Capital  Corporation.
Under  the  terms  of  the  new  credit  agreement,  the  Company
refinanced  substantially all of its interest bearing  debts  and
will  have  additional funds made available to it for  expansion.
Initially,  the  Company  borrowed  $7,500,000  from  GE  Capital
Services  primarily  to refinance existing  debts.   All  of  the
Company's  prior  interest  bearing  debts  to  MetLife   Capital
Corporation, Deutsche Financial Services, GE Capital Corporation,
Branch  Bank  & Trust Leasing Corp., and other smaller  creditors
were  paid  off  entirely.  Subsequently,  the  Company  borrowed
another  $1,000,000  to fund plant and equipment  additions.   An
additional  $1,500,000 is available to the  Company  for  further
expansion until December 31, 1997.  The Company expects  to  have
borrowed  the  remaining $1,500,000 prior to December  31,  1997.
The  interest rate on the indebtedness to GE Capital Services  is
variable.   There is a ten-year amortization of the debt  with  a
five-year call.  The loan is 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.




                              ******









                               -13-


<PAGE>



        FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY
   Management's Discussion and Analysis of Results of Operations
                     and Financial Condition




Results of Operations.

      Net  income  for  the second quarter  of  Fiscal  1997  was
$1,012,250,  or  $.30  per share.  This compares  to  net  income
amounting to $1,157,641, or $.38 per share, for the first quarter
of  the prior year.  Net income for the first half of Fiscal 1997
was $2,347,639, or $.72 per share ($.71 per share fully-diluted).
This compares to net income amounting to $1,588,970, or $.53  per
share,  for the first half of last year.  Last year's net  income
for the second quarter included an $800,000 or $.27 per share non-
recurring  gain  for the early repayment of a  debt  to  a  major
vendor.

      Net  sales were $12,505,545 for the second quarter of Fiscal
1997 as compared to $9,287,467 for the second quarter of the prior
year.   Unit  sales volume for the second quarter of Fiscal  1997
was 120 boats as compared to 110 boats for the second quarter  of
last  year.   Net sales were $24,825,918 for the  first  half  of
Fiscal 1997 as compared to $18,286,991 for the first half of last
year.   Unit sales volume for the first half of Fiscal  1997  was
230  as compared to 207 for the first half of last year.  The mix
of  sales  for  the  first half of Fiscal 1997 was  more  heavily
weighted with sales of high margin, large sport boats than it was
for the first half of last year.

      For the second quarter of Fiscal 1997, the gross margin  on
sales  was $3,378,574 (27.02%) as compared to $1,983,973 (21.36%)
for  the second quarter of the prior fiscal year.  For the  first
half  of  Fiscal  1997, the gross margin on sales was  $6,625,688
(26.69%) as compared to $3,629,877 (19.85%) for the first half of
last year.

      Selling expenses were $1,236,704 for the second quarter  of
Fiscal  1997 as compared to $1,101,516 for the second quarter  of
last  year.  Selling expenses were $2,220,748 for the first  half
of  Fiscal 1997 as compared to $1,879,167 for the first  half  of
last  year.  Most of the increase for Fiscal 1997 was in magazine
advertising and salaries and wages.

      General and administrative expenses were $639,709  for  the
second  quarter  of Fiscal 1997 as compared to $470,683  for  the
second quarter of last year.  General and administrative expenses
were $1,389,521 for the first half of Fiscal 1997 as compared  to
$831,016  for the first half of last year.  Most of the  increase
for  Fiscal  1997  was  in  salaries and wages,  travel  expense,
professional fees, and investor relations expense.



                                -14-


<PAGE>





      Interest expense for the second quarter of Fiscal 1997  was
$166,707 as compared to $204,179 for the second quarter  of  last
year.   Interest  expense for the first half of Fiscal  1997  was
$325,760 as compared to $403,632 for the first half of last year.
The  decrease  in  interest expense was  due  to  lesser  overall
indebtedness and to a lesser rate paid on indebtedness to a major
supplier.

      Other  non-operating income for the second quarter includes
consulting  revenues  from a vendor earned by  Mr.  Fountain  and
assigned  to the Company amounting to $65,000.  This compares  to
consulting revenues amounting to $146,679 for the second  quarter
of  last year.  Consulting revenues for the first half of  Fiscal
1997 were $130,000 as compared to $272,235 for the first half  of
last  year.  The decrease is from renegotiation of Mr. Fountain's
consulting contract with the vendor.

      As  previously  noted, other non-operating income  for  the
prior  year  includes an $800,000 or $.27 per share non-recurring
gain for the early repayment of a debt to a major vendor.



Financial Condition.

      The  Company's cash flows for the first half of Fiscal 1997
are summarized as follows:


        Net cash provided by operating activities...$ 2,220,399
         "   "   used in investing activities....... (2,051,362)
         "   "   provided by financing activities...  1,630,812
                                                     -----------
        Net increase in cash........................$ 1,799,849
                                                     ===========


     This net increase compared to a $63,481 net decrease for the
first half of the prior fiscal year.

      Cash  used  in  the first half of Fiscal  1997  to  acquire
additional  property,  plant, and equipment (investing  activity)
amounted  to  $2,051,362 of which $879,482 was for plugs,  molds,
and other product tooling.

      On  December 31, 1996, the Company concluded a  $10,000,000
credit  agreement  with  General  Electric  Capital  Corporation.
Under  the  terms  of  the  new  credit  agreement,  the  Company
refinanced  substantially all of its interest bearing  debts  and
will  have  additional funds made available to it for  expansion.
Initially,



                                -15-



<PAGE>




the   Company  borrowed  $7,500,000  from  GE  Capital   Services
primarily  to  refinance existing debts.  All  of  the  Company's
prior  interest  bearing  debts to MetLife  Capital  Corporation,
Deutsche Financial Services, GE Capital Corporation, Branch  Bank
&  Trust Leasing Corp., and other smaller creditors were paid off
entirely.

    Subsequently, the Company borrowed another $1,000,000 from GE
Capital  Services  to  fund plant and  equipment  additions.   An
additional  $1,500,000 is available to the  Company  for  further
expansion until December 31, 1997.  The Company expects  to  have
borrowed  the  remaining $1,500,000 prior to December  31,  1997.
The  interest rate on the indebtedness to GE Capital Services  is
variable.   There is a ten-year amortization of the debt  with  a
five-year call.  The loan is 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 Fiscal 1997 and beyond, in addition to
the  foregoing  borrowing from GE Capital Services,  the  Company
expects to generate sufficient cash from operating activities  in
order  to  meet  its needs and obligations.  Management  believes
that  the Company's sales and production volume will continue  to
grow  with a commensurate increase in net earnings and cash  flow.
Most of the Company's cash resources will be used to maintain and
improve its plant and equipment, for new product tooling, and  to
repay existing indebtedness.  The Company does not expect to  pay
any dividends to shareholders for the forseeable future.




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.


                                -16-


<PAGE>





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






PART II.  Other Information.


ITEM 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
          1996.


           (b)  No Current Reports on Form 8-K were filed by  the
Registrant   during   the   first   nine   months    of    Fiscal
1996.

















                                -17-

<PAGE>





                            SIGNATURE



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



                FOUNTAIN POWERBOAT INDUSTRIES, INC.
                           (Registrant)






By:  /s/ Allan L. Krehbiel                          Date: February 5, 1997
   Allan L. Krehbiel
   Vice President, Chief Financial
   Officer, and Designated Principal
   Accounting Officer


























                                -18-


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