FOUNTAIN POWERBOAT INDUSTRIES, INC.

                                 FORM 10-Q

                             QUARTERLY REPORT

                   FOR THE QUARTER ENDED MARCH 31, 2003


                    SECURITIES AND EXCHANGE COMMISSION
                           WASHINGTON, DC  20549


                                 FORM 10-Q

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


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

               For the quarterly period ended March 31, 2003

                                    OR

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

      For the transition period from ____________ to _______________

     For the Quarter Ended         Commission File Number

     ___________________                0-14712

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

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


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

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

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

         Yes   X                    No

 Indicate  the  number  of  shares outstanding of  each  of  the  issuer's
 classes of common stock as of the latest practicable date.

         Class                  Outstanding at March 31, 2003

 Common Stock, $.01 par value          4,745,108 shares


<PAGE>
            FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY


                                   INDEX

                                                                  Page No.

Part I Financial Information

    Unaudited Condensed Consolidated Balance Sheets,
     March 31, 2003 and June 30, 2002                              1 - 2

    Unaudited Condensed Consolidated Statements of Operations,
     for the three and nine months ended March 31, 2003 and 2002     3

    Unaudited Condensed Consolidated Statements of Cash Flows,
     for the nine months ended March 31, 2003 and 2002             4 - 5

    Notes to Unaudited Condensed Consolidated Financial Statements 6 - 10

    Management's Discussion and Analysis of Results
     of Operations and Financial Condition                         11-13

Part II  Other Information

    Item 2, 3, 4, & 6                                                14

    Signatures                                                       15

    Management Certification                                       16-18


<PAGE>

            FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY

              UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS


                                  ASSETS





                                            March 31,      June 30,
                                              2003          2002
                                         ____________   ____________
CURRENT ASSETS:
  Cash and cash equivalents             $      51,902   $    329,640
  Accounts receivable, net                  2,565,191      3,003,992
  Inventories                               3,203,671      3,090,451
  Prepaid expenses                            729,547        328,783
  Current tax assets                          892,838      1,132,181
                                         ____________   ____________
     Total Current Assets                   7,443,149      7,885,047
                                         ____________   ____________
PROPERTY, PLANT AND EQUIPMENT              41,426,337     40,887,882

  Less:  Accumulated depreciation         (24,973,898)   (23,773,221)
                                         ____________   ____________
                                           16,452,439     17,114,661
                                         ____________   ____________

CASH SURRENDER VALUE LIFE INSURANCE         1,333,431      1,179,223

OTHER ASSETS                                  432,232        355,765
                                         ____________   ____________
     Total Assets                       $  25,661,251   $ 26,534,696
                                         ____________   ____________












                                [Continued]


<PAGE>

            FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY

              UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

                   LIABILITIES AND STOCKHOLDERS' EQUITY

                                [Continued]


                                      March 31,      June 30,
                                         2003          2002
                                         ____________   ____________
CURRENT LIABILITIES:
  Current maturities - long-term debt   $     943,388   $    919,182
  Current maturities - capital lease           16,855         15,674
  Accounts payable                          6,858,200      6,877,394
  Accounts payable - related party            174,179        147,234
  Accrued expenses                          1,100,760      1,193,672
  Dealer incentives                           337,771        921,707
  Customer deposits                           138,864        631,090
  Allowance for boat repurchases              200,000        200,000
  Warranty reserve                            900,000        870,000
                                         ____________   ____________
     Total Current Liabilities             10,670,017     11,775,953

LONG-TERM DEBT, less current maturities     9,365,454      9,791,949
CAPITAL LEASE, less current maturities         22,571         35,212
DEFERRED TAX LIABILITY                      1,129,965        962,880

COMMITMENTS AND CONTINGENCIES [NOTE 5]              -              -
                                         ____________   ____________
     Total Liabilities                     21,188,007     22,565,994
                                         ____________   ____________



STOCKHOLDERS' EQUITY:
  Common stock, $.01 par value,
   200,000,000 shares authorized,
   4,745,108  and 4,732,608 shares
   issued and outstanding, respectively        47,451         47,326
  Additional paid-in capital               10,360,611     10,343,935
  Accumulated earnings                     (5,806,377)    (6,280,679)
                                         ____________   ____________
                                            4,601,685      4,110,582
Less: Treasury stock, at cost,
        15,000 shares                        (110,748)      (110,748)
      Deferred compensation for
        stock options issued                  (17,693)       (31,132)
                                         ____________   ____________
     Total Stockholders' Equity             4,473,244      3,968,702
                                         ____________   ____________
     Total Liabilities and
       Stockholders' Equity              $ 25,661,251   $ 26,534,696
                                         ____________   ____________




 The accompanying notes are an integral part of these unaudited condensed
                   consolidated financial statements.

<PAGE>

            FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY

         UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS


                                For The Three               For The Nine
                                 Months Ended               Months Ended
                                   March 31                   March 31
                         __________________________   ________________________
                              2003         2002           2003         2002
                         ____________  ____________   ___________  ___________
NET SALES                $ 12,783,311  $ 10,739,593  $ 37,799,524 $ 25,669,980


COST OF SALES              10,871,979     8,704,173    31,611,866   23,851,157
                         ____________  ____________   ___________  ___________


   Gross Profit             1,911,332     2,035,420     6,187,658    1,818,823
                         ____________  ____________   ___________  ___________

EXPENSES:
  Selling Expense           1,396,465     1,432,495     3,311,758    2,982,927

  Selling Expense
    -related parties                -             -             -            -
General &  Administrative     330,467       564,133     1,228,721    1,527,639
                         ____________  ____________   ___________  ___________


   Total Expenses           1,726,932     1,996,628     4,540,479    4,510,566
                         ____________  ____________   ___________  ___________


OPERATING INCOME (LOSS)       184,400        38,792     1,647,179   (2,691,743)
                         ____________  ____________   ___________  ___________

NON-OPERATING INCOME
  (EXPENSE):

  Other Income (Expense)      (29,799)       (2,121)          166        2,162
  Interest Expense           (245,939)     (317,205)     (766,615)    (721,570)
                         ____________  ____________   ___________  ___________



INCOME (LOSS) BEFORE TAX      (91,338)     (280,534)      880,730   (3,411,151)


CURRENT TAX EXPENSE                 -             -             -            -

DEFERRED TAXES (BENEFIT)       86,064       (91,382)      406,428   (1,297,705)
                         ____________  ____________   ___________  ___________

NET INCOME (LOSS)        $   (177,402)  $  (189,152)  $   474,302  $(2,113,446)
                         ____________  ____________   ___________  ___________

EARNINGS (LOSS) PER SHARE        (.04)         (.04)          .10         (.45)
                         ____________  ____________   ___________  ___________

WEIGHTED AVERAGE
  SHARES OUTSTANDING        4,745,108     4,732,608     4,745,108    4,732,608
                         ____________  ____________   ___________  ___________


DILUTED EARNINGS PER SHARE        N/A           N/A           .10          N/A
                         ____________  ____________   ___________  ___________

WEIGHTED AVERAGE SHARES
  OUTSTANDING ASSUMING
  DILUTION                        N/A           N/A     4,811,619          N/A
                         ____________  ____________   ___________  ___________


 The Accompanying notes are an integral part of these unaudited
           condensed consolidated financial statements


<PAGE>
            FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY

         UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

             Increase (Decrease) in Cash and Cash Equivalents

                                          For the Nine Months Ended
                                                March 31,
                                         __________________________
                                            2003           2002
                                         ___________   ____________
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income (loss)                      $ 474,302   $ (2,113,446)
                                         ___________   ____________
  Adjustments to reconcile net
   income (loss) to net cash
   provided by operating activities:
     Depreciation expense                1,574,814      1,692,879
     Net deferred taxes                    406,428     (1,297,705)
     Gain on sale of fixed asset             9,890              -
     Amortization of deferred loan cost     46,350              -
     Non-cash expense                       13,440              -
     Increase in warranty reserve           30,000              -
     Change in assets and liabilities:
       (Increase) decrease in
         accounts receivable               438,802      1,136,419
       (Increase) decrease in
         inventories                      (113,219)      (340,455)
       (Increase) decrease in
         prepaid expenses                 (400,765)       (68,622)
       Increase (decrease) in
         accounts payable                    7,726        341,051
       Increase (decrease) in
         accrued expenses                  (92,886)       211,282
       Increase (decrease) in
         dealer incentives                (583,936)    (1,246,505)
       Increase (decrease) in
         customer deposits                (492,227)        43,272
                                         ___________   ____________
        Net Cash Provided (Used) by
          Operating Activities          $1,318,719   $ (1,641,830)
                                         ___________   ____________
CASH FLOWS FROM INVESTING ACTIVITIES:
  Purchase of property, plant,
   and equipment                        (1,088,427)    (1,458,443)
  Proceeds from sale of fixed assets       165,945              -
  (Increase) in other assets              (277,026)      (362,745)
                                         ___________   ____________
        Net Cash Provided (Used) by
          Investing Activities         $(1,199,508)   $(1,821,188)
                                         ___________   ____________
CASH FLOWS FROM FINANCING ACTIVITIES:
  Proceeds from long-term debt         $   343,029    $ 3,848,537
  Payments of long-term debt              (756,778)      (188,085)
  Proceeds from common stock issuances      16,800              -
                                         ___________   ____________
        Net Cash Provided (Used) by
          Financing Activities         $  (396,949)   $ 3,660,452
                                         ___________   ____________
Net increase (decrease) in cash
 and cash equivalents                  $  (277,738)   $   197,434

Cash and cash equivalents at
 beginning of year                     $   329,640    $   796,606
                                         ___________   ____________

Cash and cash equivalents at
 end of period                         $    51,902    $   994,040
                                         ___________   ____________

                                [Continued]

<PAGE>
            FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY

         UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

             Increase (Decrease) in Cash and Cash Equivalents

                                [Continued]

                                         For the Nine Months Ended
                                                 March 31,
                                         __________________________
                                             2003          2002
                                         ___________   ____________
Supplemental Disclosures of
 Cash Flow Information:
  Cash paid during the period for:

   Interest, net of amounts capitalized   $  771,831   $    596,423
   Income Taxes                           $        -   $          -


Supplemental Disclosures of Noncash Investing and Financing Activities:

  For the nine month period ended March 31, 2003:
     The Company recorded consulting expense of $13,440 as a result of
     amortization of deferred compensation from 30,000 options issued to
     purchase common stock during fiscal 2002 vesting through December
     2004.

  For the nine month period ended March 31, 2002:
     None










 The accompanying notes are an integral part of these unaudited condensed
                      consolidated financial statements.


<PAGE>
            FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY

      NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 - BASIS OF PRESENTATION

  The  accompanying financial statements have been prepared by the Company
  without  audit.   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, 2003 and for all periods presented have been made.

  Certain  information  and  footnote  disclosures  normally  included  in
  financial  statements  prepared in accordance  with  generally  accepted
  accounting  principles  in  the  United  States  of  America  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, 2002 audited financial statements.  The  results
  of  operations  for the period ended March 31, 2003 is  not  necessarily
  indicative of the operating results for the full year.

  Principles  of  Consolidation:  The  consolidated  financial  statements
  include  the  accounts of the Company and its wholly  owned  subsidiary,
  Fountain  Powerboats, Inc.  All significant inter-company  accounts  and
  transactions have been eliminated in consolidation.

  Accounting  Estimates:  The  preparation  of  financial  statements   in
  conformity  with generally accepted accounting principles in the  United
  States  of America requires management to make estimates and assumptions
  that  affect  the  reported  amounts  of  assets  and  liabilities,  the
  disclosures  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.

  Cash  and Cash Equivalents: For purposes of the statement of cash flows,
  the  Company  considers  all  highly  liquid  debt  instruments  with  a
  maturity  of three months or less to be cash equivalents.  At March  31,
  2003  and  June 30, 2002, the Company had $0 and $229,640, respectively,
  in excess of federally insured amounts held in cash.

  Recently  Enacted Accounting Standards: During quarter  ended  September
  30,   2002,   the  Company  adopted  Emerging  Issue  Task  Force   01-9
  "Accounting  for  Consideration  Given  by  a  Vendor  to   a   Customer
  (including a Reseller of the Vendor's Products)", requiring the  Company
  to  reclassify dealer incentive interest paid to resellers from  Selling
  Expense  to  Net  Sales.  Prior  year  financial  statements  have  been
  reclassified to reflect the change in accounting principle.

  Fair  Value of Financial Instruments:  Management estimates the carrying
  value  of financial instruments on the consolidated financial statements
  approximates their fair values.


<PAGE>

            FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY

      NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 - BASIS OF PRESENTATION [Continued]

  Revenue   Recognition:  The  Company  generally  sells  boats  only   to
  authorized dealers and to the U.S. Government.  A sale is recorded  when
  a  boat is shipped to a dealer or to the Government, legal title and all
  other  incidents of ownership have passed from the Company to the dealer
  or  Government,  and  an  accounts receivable  is  recorded  or  payment
  received  from  the dealer, the Government, or 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  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.

  The  sales  incentive interest payment program for  each  boat  sale  is
  accrued  for  the  entire interest period in the same fiscal  accounting
  period  that  the  related sale is recorded.   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.

  Reclassifications:  The financial statements for years  prior  to  March
  31,   2003   have  been  reclassified  to  conform  with  headings   and
  classifications used in the  March 31, 2003 financial statements.


NOTE 2 - ACCOUNTS RECEIVABLE

  As  of  March 31, 2003, accounts receivable were $2,565,191 net  of  the
  allowance  for  bad  debts of $54,102.  This  is  a  decrease  from  the
  $3,003,992  in net accounts receivable recorded at June  30,  2002.   Of
  the  balance  at  March  31,  2003,  $1,531,440  subsequently  has  been
  collected  as  of  April  22,  2003, and  the  remaining  $1,033,751  is
  believed to be fully collectible.

NOTE 3 - INVENTORIES

  Inventories  at  March  31,  2003 and June 30,  2002  consisted  of  the
  following:


                                       March 31,     June 30,
                                         2003          2002
                                     ___________   ____________
         Parts and supplies          $ 1,868,334   $  2,071,709
         Work-in-process               1,348,518      1,047,154
         Finished goods                  136,819        278,981
         Obsolete inventory reserve     (150,000)      (307,393)
                                     ___________   ____________
           Total                     $ 3,203,671   $  3,090,451
                                     ___________   ____________


<PAGE>

            FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY

      NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 4- COMMON STOCK

  During  December  2001, the Company issued 10,000  options  to  purchase
  common  stock  to  a  consultant for services to be rendered  valued  at
  $12,342.   The options are exercisable at $1.45 per share, vest  through
  December  2004 and expire December 2009.  During the nine  months  ended
  March 31, 2003, the Company recorded consulting expense of $3,027.

  During  January  2002,  the Company issued 20,000  options  to  purchase
  common  stock  to  a  consultant for services to be rendered  valued  at
  $27,953.   The options are exercisable at $1.67 per share, vest  through
  January  2004  and  expire January 2009.  During the nine  months  ended
  March 31, 2003, the Company recorded consulting expense of $10,419.

NOTE 5 - 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,  2003,
  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 $14,529,997.  The Company has reserved  for
  the  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, 2003, the allowance for boat repurchases was $200,000.

  Dealer  Interest  -  The Company regularly pays a  portion  of  dealers'
  interest  charges  for  floor  plan financing.  These  interest  charges
  amounted  to  approximately $615,006 for the  first  nine  months  ended
  March  31,  2003  and the estimated unpaid dealer interest  included  in
  accrued dealer incentives at March 31, 2003 amounted to $147,327.

  Interest  Rate Risk - At March 31, 2003, the Company owed $8,963,244  on
  a   $10,000,000   credit   agreement  with  General   Electric   Capital
  Corporation.   The  credit agreement involves two notes,  both  with  an
  interest  rate  of  prime  plus 2%, 6.25% as  of  March  31,  2003.   An
  increase  in the prime rate would have a negative effect on the  results
  of  operations  of the Company.  A hypothetical 50 basis point  increase
  in interest rates would result in an approximately $45,000  increase  in
  interest expense.

NOTE 6 - TRANSACTIONS WITH RELATED PARTIES

  At  March  31, 2003, the Company had receivables and advances  from  its
  employees amounting to $12,282.

  During  the  nine  month period ended March 31, 2003, the  Company  paid
  $7,189  for  services rendered to entities owned or  controlled  by  the
  Company's Chairman, President, and Chief Executive Officer.

  The  Company paid $42,000 during the nine month period ended  March  31,
  2003  for  advertising  services received from  an  entity  owned  by  a
  Company director.

<PAGE>

            FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY

      NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 7- INCOME TAXES

  For  the  nine month period ended March 31, 2003 and 2002,  the  Company
  paid   $0  and  $0  for  current  income  taxes  and  incurred   a   tax
  expense/(benefit)   for   deferred  income   taxes   of   $406,428   and
  $(1,297,705), respectively.

NOTE 8 - EARNINGS (LOSS) PER SHARE

  The  computations of earnings (loss) per share and 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.   Diluted earnings per share for the nine month period  ended
  March 31, 2002, was not presented as its effect was anti-dilutive.

  The   weighted  average  common  shares  and  common  equivalent  shares
  outstanding for the nine month period ended March 31, 2003 and 2002  for
  purposes of calculating earnings per share was as follows:

                                          March 31,    March 31,
                                             2003        2002
                                          _________    _________
  Weighted average common shares
   outstanding used in basic
   earnings  per  share for the
   nine months  ending                    4,745,108    4,732,608

  Effect of dilutive stock options           66,511            -
                                          _________    _________
  Weighted average common shares
   and potential dilutive common
   equivalent shares outstanding
   used in dilutive earnings
   per share                              4,811,619    4,732,608
                                          _________    _________

  At  March  31,  2003  there were 622,500 unexercised stock  options,  of
  which  480,000  were held by officers and directors of  the  Company  at
  prices  ranging from $3.58 to $4.67 per share that were not included  in
  the  computation  of  earnings per share because  the  effect  is  anti-
  dilutive.  On  April  18,  2003, a director  of  the  Company  exercised
  options to purchase 12,500 shares of common stock at $1.34 per share.

NOTE 9 - VALUATION AND QUALIFYING ACCOUNTS

  The  balance in the following valuation and qualifying accounts at March
  31, 2003 and change from the year ended June 30, 2002 are as follows:


                                              Charge
                                                To
                                    Balance   Expense               Balance
Valuation and Qualifying            June 30,  Adjust-  Payments/    March 31,
Account Description                   2002     ments   Deductions     2003
___________________________       _________  _______   _________   _________
Allowance for Doubtful accounts      27,841   26,261          -       54,102
Inventory Valuation Reserve         307,393        -   (157,393)     150,000
Deferred Tax Valuation Allowance  2,599,979   53,691          -    2,653,670
Warranty Expense                    870,000  962,800   (932,800)     900,000
Allowance for Boat Repurchases      200,000        -          -      200,000




<PAGE>

            FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY

      NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 10 - GOING CONCERN

  The  accompanying financial statements have been prepared in  conformity
  with  generally accepted accounting principles in the United  States  of
  America  which  contemplate  continuation of  the  Company  as  a  going
  concern.   As  shown in the financial statements at March 31,  2003  and
  June  30,  2002  the Company had negative working capital of  $3,226,868
  and  $3,890,906,  respectively.  These factors raise  substantial  doubt
  about  the  ability of the Company to continue as a going  concern.  The
  consolidated  financial statements do not include any  adjustments  that
  might result from the outcome of these uncertainties.

  The  Company's  operations will require significant  increases  in  cash
  flows  from  operations or additional financing or capital to  continue.
  In  order  to  generate positive cash flows, the Company  will  need  to
  return  to  profitability through increasing sales of  their  sport  and
  fish  boats  and  wide  beam  cruisers, reducing  expenses  and  capital
  expenditures and successfully refinancing current liabilities  to  long-
  term obligations.

  Management  plans  to  improve cash flows  from  current  operations  by
  maintaining  an  aggressive  budget for  fiscal  2003  which  management
  believes   has  resulted  in  positive  cashflows  from  operations   of
  $1,318,719 for the nine months ended March 31, 2003 and will  result  in
  continual  improvement  in sales and improved  yield  in  the  remaining
  quarter  of fiscal 2003.  The budget has focused the Company's resources
  on  existing  sales order backlogs for the new higher margin  wide  beam
  cruisers  and  The Company is further seeking to obtain additional  debt
  financing,  which  will enable the Company to reduce  material  cost  by
  taking favorable cash discounts on material purchases.

  The  statements  in the above paragraphs regarding the Company's  plans,
  intentions  and beliefs, and the expected results of its  budgetary  and
  other  actions,  are  "forward-looking" statements and  are  subject  to
  risks  and  uncertainties.  As should be read considering the cautionary
  statement  for  purposes of "Safe Harbor" under the  Private  Securities
  Reform  Act of 1995.  Various factors could affect the Company's ability
  to  successfully  implement  its plans or actions  or  could  cause  the
  actual  outcome or results of the Company's plans and actions to  differ
  materially  from those that the statements indicate or  imply  that  the
  Company  believes  or  expects  to occur.   Examples  of  those  factors
  include:   sales  falls  significantly  short  of  forecast,  production
  efficiency  improvements  are not accomplished,  and  company  does  not
  obtain additional debt funding.


NOTE 11 - SUBSEQUENT EVENT

  On  April  18,  2003,  a  director of the Company exercised  options  to
  purchase 12,500 shares of common stock at $1.34 per share.


<PAGE>



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

Results of Operations.
The  operating  income  for  the three months ended  March  31,  2003  was
$184,400 or $.04 per share and compares to the operating income of  38,792
or $.01 per share for the three months ended March 31, 2002.  The net loss
for  the  three months ended March 31, 2003 was $(177,402) or  $(.04)  per
share as compared to a net loss for the three months ended March 31,  2002
of  $(189,152)  or $(.04) per share.  The net income for the  nine  months
ended March 31, 2003 was $474,302 or $.10 per share as compared to  a  net
loss  for  the nine months ended March 31, 2002 of $(2,113,446) or  $(.45)
per share.

Net  sales  were  $12,783,311 for the third quarter of Fiscal  2003.   Net
sales  were $10,739,593 for the third quarter of Fiscal 2002.  During  the
third  quarter  of Fiscal 2003, unit volumes increased significantly  over
the  same  period  of the prior year, with sales volume for  three  months
ended  March 31, 2003 at 99 units compared to 55 units for the prior year.
Fiscal  2003  net  sales for the nine months ended  March  31,  2003  were
$37,799,524, compared to net sales of $25,669,980 for the same nine months
period of the prior year.

Unit  sales  volume  increase  was the result  of  an  improving  economy,
aggressive  marketing  campaign that provided an increase  in  sport  boat
sales,  increased fish boat sales and sales of the new models,  34'  wide-
beam fish boat and 48' wide-beam cruiser.

Gross  profits  on  sales for the three months ended March  31,  2003  was
$1,911,332  as compared to the gross profits of $2,035,420 for  the  three
months  ended  March 31, 2002.  Gross profits for the  nine  months  ended
March  31,  2003 was $6,187,658 compared to the gross profit of $1,818,823
for  the same period of the previous year.  The decline in margin for  the
three months resulted from an increase in sales of lower margin fish boats
and a decrease in sales of higher margin sport boats.

Selling expenses were $1,396,465 for the three months ended March 31, 2003
as  compared  to  $1,432,495 for the three months ended  March  31,  2002.
Decreased selling expense resulted from lower boat show expense and racing
expense than for the same period of the previous year.

General  and  administrative expenses were $330,467 for the  three  months
ended March 31, 2003 compared to $564,133 for the three months ended March
31,  2002.   Expense  reduction  in  the areas  of  consulting,  executive
salaries,  investor relations and legal fees, and a refund  for  franchise
taxes produced savings compared to the same period for the prior year.

Interest expense for the three months ended March 31, 2003 was $245,939 as
compared  to  $317,205  for the three months ended March  31,  2002.  This
results  from lower interest charges on the G.E. Capital Corporation  loan
and  reduction in interest payments on funds borrowed from cash  value  of
key man life insurance policies.

<PAGE>


Other  non-operating (income)/expense for the three months March 31,  2003
was  $29,799  as compared to $2,121 for the three months ended  March  31,
2002.

Liquidity and Capital Resources.
At March 31, 2003, the Company had a working capital deficit of $3,226,868
an  improvement of $664,038 over the $3,890,906 working capital deficit at
June  30,  2002,   As  mentioned  in Note 9  to  the  Unaudited  Financial
Statements  the  accompanying  unaudited financial  statements  have  been
prepared  in  conformity with generally accepted accounting principles  in
the United States of America which contemplate continuation of the Company
as  a  going  concern.  The Company's operations  will  require  continued
increases in cash flows from operations or additional financing or capital
to continue.

Cash  decreased to $51,902 at March 31, 2003 compared to the  $329,640  at
June  30, 2002.  The decrease in cash can be generally attributed  to  the
$1,318,719  generated from operating activities less  $1,199,508  used  by
investing  primarily  attributed to additional  capital  expenditures  and
$396,948  used  by  financing  activities to pay  current  long-term  debt
obligations offset against proceeds received to exercise stock options and
an additional $343,029 in borrowing against certain cash value in key life
insurance policies owned by the Company.
Cashflows  from operations for the nine months ended March  31,  2003  was
$1,318,719, an increase of $2,960,549 over the $1,641,830 of cash used  in
operations  for  the  nine months ended March 31, 2002.   This  change  is
primarily  attributable to the increase in sales resulting in a return  to
profitability.
The  Company's  principal sources of liquidity for the nine  months  ended
March  31, 2003 includes a 47% increase in sales over the same nine  month
period  in the previous year $165,945 in proceeds from the sale of certain
fixed  assets and $343,029 in additional borrowing against cash  surrender
value of life insurance policies.
The  Company's  liquidity  needs  are principally  for  financing  of  raw
materials  and  work in process inventory as a result of  increase  sales,
paying down certain vendors to more current terms, and meeting the current
payments of long term obligations.

For  the  remainder of the year ending June 30, 2003 the Company  believes
that  it  will  continue  to improve upon prior years  operating  results.
Management  has developed and instigated a plan that budgets expenses  and
clearly outlines certain sales goals and expectations for the remainder of
the  fiscal year.  After surpassing this plan in the first nine months  of
Fiscal  2003, management anticipates that continued operations under  this
plan  will result in a profitable and successful year. Managememt believes
they  can  generate sufficient cash flows from operations to meet  current
critical  liquidity  demands.  The Company is further  seeking  to  obtain
additional  debt financing, which will enable the Company  to  satify  all
current obligations while reducing material cost by taking favorable  cash
discounts on material purchases.


Cash  used  in the nine months ended March 31, 2003 to acquire  additional
property, plant, and equipment (investing activity) amounted to $1,088,427
which  was  invested in tooling changes to the new 48' Express Cruiser,  a
new style 38' fish boat deck, and other miscellaneous tooling projects.


<PAGE>

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

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

The  applicable  risks  and  uncertainties include  general  economic  and
industry  conditions that affect all businesses, as well as, matters  that
are  specific to the Company and the markets it serves.  For example,  the
achievement  of  projections, forecasts, or  estimates  contained  in  the
Company's  forward-looking  statements may be  impacted  by  national  and
international economic conditions; compliance with governmental  laws  and
regulations;  accidents  and acts of God; and all  of  the  general  risks
associated with doing business.

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




<PAGE>



PART II.  Other Information.

ITEM 2:   Change in Securities.

There was no change in securities during the quarter ending March 31, 2003

ITEM 3:QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Interest Rate Risk - At March 31, 2003, the Company owed $8,963,244  on  a
$10,000,000  credit  agreement with General Electric Capital  Corporation.
The  credit  agreement involves two notes, both with an interest  rate  of
prime plus 2%, 6.25% as of March 31, 2003.  A hypothetical 100 basis point
increase  in  interest  rates  would result in  an  approximately  $90,000
increase  in  interest  expense, resulting in a  negative  impact  on  the
Company's liquidity and results of operations.

ITEM 4:   Controls and Procedures

      Within  the  90-day  period prior to the filing  of  this  quarterly
report,  an evaluation was performed under the  supervision and  with  the
participation  of the Company's management, including the Chief  Executive
Officer  and  Chief  Financial Officer,  of  the  effectiveness   of   the
design   and  operation    of   the  company's  disclosure   controls  and
procedures   pursuant  to   Exchange Act  Rule  13a-14.    Based  on  that
evaluation,   the  Chief  Executive Officer and  Chief  Financial  Officer
concluded  that the design and operation of these disclosure controls  and
procedures were effective.     There  have  been  no  significant  changes
in  the  Company's  internal  controls  or in other   factors  that  could
significantly   affect  these controls subsequent to  the  date  of  their
evaluation.

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

     (1)  Exhibits:  None.

      (a)  No Amendments on Form 8 were filed by the Registrant during the
third three months of Fiscal 2002.

      (b)   No  Current Reports on Form 8-K were filed by  the  Registrant
during the first nine months of Fiscal 2002.




<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/ Irving L. Smith           Date:  May 6, 2003
         Irving L. Smith
         Chief Financial Officer






<PAGE>

                               CERTIFICATION

     I, Reginald M. Fountain, Jr., certify that:

1.   I have reviewed this quarterly report on Form 10Q of Fountain
     Powerboat Industries, Inc.;
2.   Based on my knowledge, this quarterly report does not contain any
     untrue statement of a material fact or omit to state a material fact
     necessary to make the statements made, in light of the circumstances
     under which such statements were made, not misleading with respect to
     the period covered by this quarterly report;
3.   Based on my knowledge, the financial statements, and other financial
     information included in this quarterly report, fairly present in all
     material respects the financial condition, results of operations and
     cash flows of the registrant as of, and for, the periods presented in
     this quarterly report;
4.   The registrant's other certifying officers and I are responsible for
     establishing and maintaining disclosure controls and procedures (as
     defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant
     and we have:
     a)   designed such disclosure controls and procedures to ensure that
          material information relating to the registrant, including its
          consolidated subsidiaries, is made known to us by others within
          those entities, particularly during the period in which this
          quarterly report is being prepared;
     b)   evaluated the effectiveness of the registrant's disclosures
          controls and procedures as of a date within 90 days prior to the
          filing date of this quarterly report (the "Evaluation Date");
          and
     c)   presented in this quarterly report our conclusions about the
          effectiveness of the disclosure controls and procedures based on
          our evaluation as of the Evaluation Date;
5.   The registrant's other certifying officers and I have disclosed,
     based on our most recent evaluation, to the registrant's auditors and
     the audit committee of registrant's board of directors (or persons
     performing the equivalent functions):
     a)   all significant deficiencies in the design or operation of
          internal controls which could adversely affect the registrant's
          ability to record, process, summarize and report financial data
          and have identified for the registrant's auditors any material
          weaknesses in internal controls; and
     b)   any fraud, whether or not material, that involves management or
          other employees who have a significant role in the registrant's
          internal controls; and
6.   The registrant's other certifying officers and I have indicated in
     this quarterly report whether or not there were significant changes
     in internal controls or in other factors that could significantly
     affect internal controls subsequent to the date of our most recent
     evaluation, including any corrective actions with regard to
     significant deficiencies and material weaknesses.


Date:  May 6, 2003       /s/Reginald M. Fountain, Jr.
                    Reginald M. Fountain, Jr.
                    President and Chief Executive Officer




<PAGE>

                               CERTIFICATION

     I, Irving L. Smith, certify that:

1.   I have reviewed this quarterly report on Form 10Q of Fountain
     Powerboat Industries, Inc.;
2.   Based on my knowledge, this quarterly report does not contain any
     untrue statement of a material fact or omit to state a material fact
     necessary to make the statements made, in light of the circumstances
     under which such statements were made, not misleading with respect to
     the period covered by this quarterly report;
3.   Based on my knowledge, the financial statements, and other financial
     information included in this quarterly report, fairly present in all
     material respects the financial condition, results of operations and
     cash flows of the registrant as of, and for, the periods presented in
     this quarterly report;
4.   The registrant's other certifying officers and I are responsible for
     establishing and maintaining disclosure controls and procedures (as
     defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant
     and we have:
     a)   designed such disclosure controls and procedures to ensure that
          material information relating to the registrant, including its
          consolidated subsidiaries, is made known to us by others within
          those entities, particularly during the period in which this
          quarterly report is being prepared;
     b)   evaluated the effectiveness of the registrant's disclosures
          controls and procedures as of a date within 90 days prior to the
          filing date of this quarterly report (the "Evaluation Date");
          and
     c)   presented in this quarterly report our conclusions about the
          effectiveness of the disclosure controls and procedures based on
          our evaluation as of the Evaluation Date;
5.   The registrant's other certifying officers and I have disclosed,
     based on our most recent evaluation, to the registrant's auditors and
     the audit committee of registrant's board of directors (or persons
     performing the equivalent functions):
     a)   all significant deficiencies in the design or operation of
          internal controls which could adversely affect the registrant's
          ability to record, process, summarize and report financial data
          and have identified for the registrant's auditors any material
          weaknesses in internal controls; and
     b)   any fraud, whether or not material, that involves management or
          other employees who have a significant role in the registrant's
          internal controls; and
6.   The registrant's other certifying officers and I have indicated in
     this quarterly report whether or not there were significant changes
     in internal controls or in other factors that could significantly
     affect internal controls subsequent to the date of our most recent
     evaluation, including any corrective actions with regard to
     significant deficiencies and material weaknesses.



Date:  May 6, 2003     /s/Irving L. Smith
                         Irving L. Smith
                         Chief Financial Officer



<PAGE>



(Certification Pursuant to 18 U.S.C. Section 1350)

     The undersigned hereby certifies that (i) the foregoing quarterly
report on Form 10-Q filed by Fountain Powerboat Industries, Inc. (the
"Company") for the quarter ended March 31, 2003, fully complies with the
requirements of Section 13(a) or 15(d) of the Securities Exchange Act of
1934, and (ii) the information contained in that Report fairly presents,
in all material respects, the financial condition and results of
operations of the Company.


Date:  May 6, 2003             /s/Reginald M. Fountain, Jr.

                                  Reginald M. Fountain, Jr.
                                  President and Chief Executive Officer



Date:  May 6, 2003            /s/Irving L. Smith
                                 Irving L. Smith
                                 Chief Financial Officer

<PAGE>