FOUNTAIN POWERBOAT INDUSTRIES, INC.

                                   FORM 10-Q

                               QUARTERLY REPORT

                     FOR THE QUARTER ENDED MARCH 31, 2000


                      SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, DC  20549













<PAGE>

                                   FORM 10-Q

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


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

                 For the quarterly period ended March 31, 2000

                                      OR

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

           For the transition period from __________ to ___________

            For the Quarter Ended         Commission File Number

              ___________________                  0-14712

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

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


1653 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 May 10, 2000
 _________________________    ______________________________
 Common Stock, $.01 par value       4,732,608 Shares

                                     2
<PAGE>

              FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY

                              INDEX


PART I.   Financial Information.                          Page No.

          Review Report of Independent Certified
            Public Accountants...........................   4

          Consolidated Balance Sheets - Assets,
            March 31, 2000 and June 30, 1999.............   5

          Consolidated Balance Sheets - Liabilities &
            Stockholders' Equity, March 31, 2000
            and June 30, 1999............................   6

          Consolidated Statements of Operations -
            Three and Nine Months Ended March 31, 2000
            and March 31, 1999.........................    7-8

          Consolidated Statements of Cash Flows -
            Nine Months Ended March 31, 2000
            and March 31, 1999........................     9-10

          Notes to Consolidated Financial Statements ...  11-15

          Management's Discussion and Analysis of
            Results of Operations and
            Financial Condition.......................... 16-18



PART II.  Other Information.

Item 2.   Changes in Securities............................. 18


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


          Signature........................................  19















                                       3
<PAGE>


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


We  have  reviewed  the accompanying consolidated balance  sheet  of  Fountain
Powerboat  Industries, Inc. as of March 31, 2000, and the related consolidated
statements of operations for the three and nine months ended March 31, 2000 and
1999 and the related consolidated statements of cash flows for the nine  months
ended March 31, 2000 and 1999.  All  information  included  in  these  financial
statements  is  the representation of the management of Fountain Powerboat
Industries, Inc.

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

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



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

PRITCHETT, SILER & HARDY, P.C.

Salt Lake City, Utah
May 3, 2000











                                      4
<PAGE>


              FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY

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


                                    ASSETS






                                         March 31,     June 30,
                                            2000         1999
                                        ___________   ___________
CURRENT ASSETS:
  Cash and cash equivalents             $   151,000   $ 2,217,301
  Accounts receivable, net                2,672,045     1,576,712
  Inventories                             9,195,423     7,307,890
  Prepaid expenses                          500,737       761,486
  Deferred tax assets                     2,317,295     2,221,499
                                        ___________   ___________
     Total Current Assets                14,836,500    14,084,888
                                        ___________   ___________
PROPERTY, PLANT AND EQUIPMENT            36,922,649    36,209,584


  Less:  Accumulated depreciation       (18,892,080)  (17,144,314)
                                        ___________   ___________
                                         18,030,569    19,065,270
                                        ___________   ___________

OTHER ASSETS                                870,625       780,802
                                        ___________   ___________
TOTAL ASSETS                            $33,737,694   $33,930,960
                                        ___________   ___________
















                                  [Continued]

                                       5
<PAGE>


              FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY

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


                     LIABILITIES AND STOCKHOLDERS' EQUITY

                                  [Continued]


                                         March 31,     June 30,
                                            2000         1999
                                        ___________   ___________
CURRENT LIABILITIES:
  Current maturities - long-term debt   $ 2,464,535   $ 2,464,535
  Current maturities - capital lease         11,788        11,788
  Accounts payable                        5,030,810     3,961,516
  Accrued expenses                        1,475,689     2,231,061
  Dealer territory service accrual        1,870,071     2,037,170
  Customer deposits                         644,546       687,560
  Allowance for boat repurchases            200,000       200,000
  Reserve for warranty expense              590,000       590,000
  Accrued Income Taxes                      175,474             -
                                        ___________   ___________
     Total Current Liabilities
                                         12,462,913    12,183,630

LONG-TERM DEBT, less current portion      8,973,135    10,138,395
CAPITAL LEASE, less current maturities       76,939        76,939
DEFERRED TAX LIABILITY                    1,022,543       899,680

COMMITMENTS AND CONTINGENCIES [NOTE 7]            -             -

                                        ___________   ___________

  Total Liabilities                      22,535,530    23,298,644
                                        ___________   ___________

STOCKHOLDERS' EQUITY:
  Common stock, $.01 par value,
    200,000,000 shares authorized,
    4,732,608 shares issued                  47,326        47,326
  Capital in excess of par value         10,303,640    10,303,640
  Retained earnings - accumulated           961,946       392,098
                                        ___________   ___________
                                         11,312,912    10,743,064
  Less: Treasury stock                     (110,748)     (110,748)
                                        ___________   ___________
       Total Stockholders' Equity        11,202,164    10,632,316
                                        ___________   ___________
                                        $33,737,694   $33,930,960
                                        ___________   ___________

Note: The balance sheet at June 30, 1999 was taken from the audited financial
statements at that date and condensed.

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

                                         6
<PAGE>

              FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                  (Unaudited - See Accountants' Review Report)
                            For The Three Months         For The Nine Months
                              Ended March 31               Ended March 31
                         __________________________  __________________________
                             2000          1999          2000         1999
                         ____________  ____________  ____________  ____________

NET SALES                $14,306,940   $14,041,832   $40,486,130   $39,718,327


COST OF SALES             11,789,264    11,094,281    32,607,955    31,172,114
                         ____________  ____________  ____________  ____________

     Gross Profit          2,517,676     2,947,551     7,878,175     8,546,213


EXPENSES
  Selling Expense          1,941,220     1,761,294     5,160,257     5,855,679
  General &
   Administrative            699,508       734,898     2,305,590     2,053,514
  General &
   Administrative -
   Related Parties                 -         4,325             -         8,758
                         ____________  ____________  ____________  ____________
     Total Expenses        2,640,728     2,500,517     7,465,847     7,917,951

OPERATING INCOME BEFORE
  STRATEGIC CHARGE          (123,052)      447,034       412,328       628,262

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

OPERATING INCOME (LOSS)     (123,052)      447,034       412,328    (1,811,738)

NON-OPERATING
INCOME (EXPENSE)
  Gain on insurance
   claim                   1,078,697             -     1,078,697             -
  Other Income                22,121        25,937        67,682        80,933
  Interest Expense          (249,694)     (249,732)     (777,180)     (769,363)
  Interest Expense
   Related Expense                 -        (6,514)            -       (20,447)
                         ____________  ____________  ____________  ___________
TOTAL NON-OPERATING
 INCOME (EXPENSE)            851,124      (230,309)     (369,199)     (708,877)

INCOME (LOSS) BEFORE TAX     728,072       216,725       781,527    (2,520,615)

CURRENT TAX EXPENSE          184,612             -       184,612             -

DEFERRED TAX EXPENSE
 (BENEFIT)                   (14,733)     (120,960)       27,067    (1,477,588)
                         ____________  ____________  ____________  ____________

NET INCOME (LOSS)        $   558,193   $   337,685   $   569,848   $(1,043,027)
                         ____________  ____________  ____________  ____________







                                 [Continued]

                                       7
<PAGE>


                      FOUNTAIN POWERBOAT INDUSTRIES, INC.

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

                                   [Continued]

                            For The Three Months         For The Nine Months
                              Ended March 31               Ended March 31
                         __________________________  __________________________
                             2000          1999          2000         1999
                         ____________  ____________  ____________  ____________
EARNINGS (LOSS) PER
 SHARE                   $       .12   $       .07   $       .12   $      (.22)
                         ____________  ____________  ____________  ____________
WEIGHTED AVERAGE SHARES
  OUTSTANDING              4,732,608     4,702,608     4,732,608     4,705,017
                         ____________  ____________  ____________  ____________

DILUTED EARNINGS PER
 SHARE                   $       N/A   $       .07   $       N/A   $       N/A
                         ____________  ____________  ____________  ____________
DILUTED WEIGHTED AVERAGE
  SHARES OUTSTANDING             N/A     4,794,363           N/A           N/A
                         ____________  ____________  ____________  ____________





































   The accompanying notes are an integral part of these unaudited financial
   statements.
                                       8
<PAGE>


              FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY

                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                 (Unaudited - See Accountants' Review Report)
               Increase (Decrease) in Cash and Cash Equivalents

                                                          For the Nine
                                                     Months Ended March 31,
                                                   __________________________
                                                       2000          1999
                                                   ____________  ____________
  CASH FLOWS FROM OPERATING ACTIVITIES:

  Net Income (Loss)                                $   569,848   $(1,043,027)


  Adjustments to reconcile net income (loss)
   to net Cash provided by operating
   activities:
     Depreciation Expense                            1,747,766     1,741,646
     Strategic Charge                                        -     2,440,000
     (Increase) decrease in accounts receivable     (1,095,333)    1,791,053
     (Increase) decrease in inventory               (1,887,533)      197,060
     (Increase) decrease in prepaid expenses           260,749      (408,949)
     Increase (decrease) in accounts payable         1,069,294    (1,395,072)
     Increase (decrease) in accrued expenses          (185,516)      235,632
     Increase (decrease) in dealer service
      territory accrual                               (561,481)      345,618
     Increase (decrease) in customer deposits          (43,014)      (96,971)
     Net deferred taxes                                 27,067    (1,477,588)
     Net liabilities of discontinued operations              -       (93,612)
                                                   ____________  ____________
         Net Cash Provided by (Used in)
          Operating Activities                     $   (98,153)  $ 2,235,790
                                                   ____________  ____________

  CASH FLOWS FROM INVESTING ACTIVITIES:
     Construction of molds, plugs and other
      tooling                                      $  (215,615)     (635,272)
     Purchase of property plant and equipment         (497,451)   (2,121,691)
     (Increase) in other assets                        (89,823)     (102,969)
                                                   ____________  ____________
         Net Cash Provided by (Used) Investing
          Activities                               $  (802,889)  $(2,859,932)
                                                   ____________  ____________

  CASH FLOWS FROM FINANCING ACTIVITIES:
     Proceeds from long-term  debt                 $         -   $ 4,000,000
     Repayment of long-term debt                    (1,165,259)   (1,391,817)
     Repayment of long-term debt - related party             -      (257,911)
     Proceeds from issuance of common stock                  -       107,400
                                                   ____________  ____________
         Net Cash Provided by (Used in) Financing
          Activities                               $(1,165,259)  $ 2,457,672
                                                   ____________  ____________

  Net increase (decrease) in cash                  $(2,066,301)  $ 1,833,530

  Cash and Cash Equivalents at beginning of year   $ 2,217,301   $ 1,376,984
                                                   ____________  ____________

  Cash and Cash Equivalents at end of period       $   151,000   $ 3,210,514
                                                   ____________  ____________
                                  [Continued]

                                       9
<PAGE>


              FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY

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

               Increase (Decrease) in Cash and Cash Equivalents


                                  [Continued]


                                                          For the Nine
                                                     Months Ended March 31,
                                                   __________________________
                                                       2000          1999
                                                   ____________  ____________
Supplemental Disclosures of Cash Flow Information:
  Cash paid during the period for:
    Interest:
      Unrelated parties                            $   789,270   $   769,363
      Related parties                                        -        20,447
                                                   ____________  ____________
                                                   $   789,270   $   789,810
                                                   ____________  ____________
     Income taxes                                  $         -   $   263,345
                                                   ____________  ____________


Supplemental Disclosures of Non-Cash Investing and Financing Activities:
  For the nine-month period ended March 31, 2000:
     None

  For the nine-month period ended March 31, 1999:
     During December 1998, the Company recorded a $2,440,000 strategic charge
     reducing the value of their assets to their estimated realizable value.
















   The accompanying notes are an integral part of these unaudited financial
   statements.
                                      10
<PAGE>


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

             NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 - BASIS OF PRESENTATION

Although  these statements have been reviewed by our independent auditors,  they
are  unaudited.   In the opinion of management, all adjustments  (which  include
only  normal  recurring adjustments) necessary to present fairly  the  financial
position,  results of operations and cash flows at March 31, 2000  and  for  all
periods presented have been made.

Certain  information  and footnote disclosures normally  included  in  financial
statements  prepared in accordance with generally accepted accounting principles
have  been  condensed  or  omitted  for purposes  of  filing  interim  financial
statements  with the Securities and Exchange Commission.  It is  suggested  that
these  condensed financial statements be read in conjunction with the  financial
statements  and  notes thereto included in the Company's June 30,  1999  audited
financial statements.  The results of operations for the periods ended March 31,
2000  and 1999 are not necessarily indicative of the operating results  for  the
full year.

NOTE 2 - HURRICANE

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

As  of  March  2000,  the insurance carrier has paid for  the  damage  to  the
inventory  and  most  of  the  damage to the  property,  plant  and  equipment
including the yacht mold.  Review is still in process by the insurance carrier
on the repair or replacement of certain air-conditioning and heating equipment
that  was  flooded  during the storm.  The final net effect of the property,
plant, equipment  and inventory settlement cannot be reasonably estimated
until  the balance of this claim is collected.  Ths Company has recorded other
income of $117,137 for the claims that have been paid.

The  Company  also  experienced  losses resulting  from  the  closure  of  the
production facility and efficiencies due to storm preparation, cleanup and the
inability  of the full work force to report to work once the plant  re-opened.
The  Company  immediately  filed  its claims  for  business  interruption  and
believed  it  complied  with all aspects of its policy.   When  a  timely  and
reasonable resolution could not be reached, the Company filed suit against its
insurance carrier.  As of March 31, 2000, a partial payment of $961,560 has
been  made  by the  insurance  carrier and recorded as other income.   The
Company  and  the insurance carrier have come to an impasse as to  the  policy
limits  and  interpretation of the ingress/egress language and have  submitted
the  process  to  arbitration.  If the differences cannot be resolved  through
arbitration, the suit will be continued for a final conclusion.


                                     11
<PAGE>


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

             NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 3 - ACCOUNTS RECEIVABLE

  As of March 31, 2000, accounts receivable were $2,672,045 net of the allowance
for  bad  debts of $27,841.  This represents an increase of $1,095,333 from  the
$1,576,712  in  net  accounts receivable recorded at  June  30,  1999.   Of  the
$2,672,045 balance at March 31, 2000, $2,562,602 has subsequently been collected
as  of  April  28,  2000, and the remaining $109,443 is  believed  to  be  fully
collectible.

NOTE 4 - INVENTORIES

  Inventories at March 31, 2000 and June 30, 1999 consisted of the following:

                                      March 31,      June 30,
                                        2000           1999
                                    _____________  _____________
Parts and supplies................. $  3,439,922   $  3,296,244
Work-in-process....................    5,099,819      3,208,982
Finished goods.....................      775,682        922,664
Obsolete inventory reserve.........     (120,000)      (120,000)
                                    _____________  _____________
Total.............................. $  9,195,423   $   7,307,890
                                    _____________  _____________

NOTE 5 - REVENUE RECOGNITION

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

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

                                     12
<PAGE>

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

             NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 5 - REVENUE RECOGNITION - [Continued]

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

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

NOTE 6 - ALLOWANCE AND QUALIFYING ACCOUNTS

     For  the  nine  months  ended  March 31, 2000,  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     27,841         -0-            -0-            27,841

Allowance for
 warranty claims      590,000        621,703       (621,703)       590,000

Allowance for
 inventory values     120,000         -0-            -0-           120,000
                   ____________   ____________   ____________   ____________
       Total        $ 937,841      $ 621,703      $(621,703)     $ 937,841
                   ____________   ____________   ____________   ____________

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

                                      13
<PAGE>


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

             NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 7 - COMMITMENTS AND CONTINGENCIES

Manufacturer Repurchase Agreements - The Company makes available through  third-
party finance companies floor plan financing for many of its dealers.  Sales  to
participating  dealers are approved by the respective finance companies.   If  a
participating  dealer  does not satisfy its obligations  under  the  floor  plan
financing  agreement  in  effect with its commercial  lender(s)  and  boats  are
subsequently repossessed by the lender(s), then under certain circumstances  the
Company may be required to repurchase the repossessed boats if it has executed a
repurchase agreement with the lender(s).   At March 31, 2000, 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
$28,500,000.  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, 2000, 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 $894,135 for the first nine months of Fiscal 2000  and
are  included in the accompanying consolidated statements of operations as  part
of  selling  expense.  At March 31, 2000, the estimated unpaid dealer  incentive
interest included in accrued expenses amounted to $465,290.


NOTE 8 - TRANSACTIONS WITH RELATED PARTIES

For the nine months ended March 31, 2000 and 1999 the Company paid or accrued
$  -0-  and  $7,808 for use of apartments and $ -0- and $20,447 for interest  on
indebtedness to  Mr. Reginald M. Fountain, Jr. the Company's Chairman, President
and  Chief Executive Officer, or to entities owned or controlled by him.

At March 31, 2000 the Company had travel advances and other receivables due
from employees in the amount of $15,225.

The Company paid $208,652 during the nine-month period ended March 31, 2000 for
advertising and public relations services from an entity owned by a director of
the Company.

                                        14
<PAGE>


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

             NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS


NOTE 9 - INCOME TAXES

The  Company accounts for income taxes in accordance with Statement of Financial
Accounting Standards ("SFAS") No. 109 "Accounting for Income Taxes".   SFAS  109
requires the Company to provide a net deferred tax asset/liability equal to  the
expected  future tax benefit/expense of temporary reporting differences  between
book  and tax accounting methods and any available operating loss or tax  credit
carryforwards.   The Company has available at March 31, 2000, an operating  loss
carryforward  of approximately $1,769,640, which may be applied  against  future
taxable  income and which expires in various years through 2020.   The  deferred
tax  asset  is  approximately $2,317,295 as of March 31, 2000 and  the  deferred
liability  is approximately $1,022,543.  The net change in deferred  tax  assets
and  liabilities of $(27,067) for the nine months ended March 31, 2000 has  been
recorded as a deferred tax expense on the statement of operations.

NOTE 10 - EARNINGS (LOSS) PER SHARE

The  computation  of earnings (loss) per share and diluted earnings  (loss)  per
share  amounts are based upon the weighted average number of outstanding  common
shares  during  the  periods, plus, when their effect  is  dilutive,  additional
shares  assuming the exercise of certain vested stock options,  reduced  by  the
number of shares which could be purchased from the proceeds from the exercise of
the  stock  options assuming they were exercised.  Diluted earnings  (loss)  per
share  for  the  nine-month  period ended March  31,  2000  and  1999,  was  not
presented,  as  its  effect was anti-dilutive.  At March  31,  2000  there  were
551,000  unexercised stock options, of which 546,000 were held by  officers  and
directors  of the company at prices ranging from $3.58 to $5.00 per share,  that
were  not included in the computation of earnings per share because their effect
is anti-dilutive.

NOTE 11 - STRATEGIC CHARGE

      During December 1998, the Company designed and implemented a restructuring
plan  to  aggressively improve the Company's cost structure, refocus  sales  and
marketing expenditures and divest the Company of certain non-realizable  assets.
In connection with the restructuring plan the Company reviewed components of its
business  for possible improvement of future profitability through reengineering
or  restructuring.  As part of this plan the Company decided  to  eliminate  its
racing program and write off the balance of excess yacht tooling cost along with
other  discontinued unused tooling.  The Company completed the majority of these
actions during the third and fourth quarter of Fiscal 1999.  The carrying  value
of the assets held was reduced to fair value based on estimated realizable value
based  on future cash flows from use of the asset or sale of the related assets.
The resulting pretax adjustment of $2,440,000 was recorded as a strategic charge
in  the  statement of operations of the Company for the periods ended March  31,
1999.
                                     15
<PAGE>

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

Results of Operations.

     The operating income(loss) for the third quarter ended  March 31, 2000 was
$(123,052) or $(.03) per share versus operating income of $447,034 or  $.09  per
share for the corresponding period of the previous year. Operating income  as  a
percent of sales for the third quarter of Fiscal 2000 was (.9)% versus 3.2%  for
the  same period the previous Fiscal year.  The net profit for the third quarter
of  Fiscal  2000 was $558,193 or $.12 per share.  This compares  to  net  profit
amounting to $337,685, or $.07 per share for the third quarter of Fiscal 1999.

      Net sales increased by 1.9% to $14,306,940 for the third quarter of Fiscal
2000  as compared to $14,041,832 for the third quarter of the prior Fiscal year.
Unit sales volume for the third quarter of Fiscal 2000 was 111 boats as compared
to  111 boats for the third quarter of Fiscal 1999.   Revenue increased slightly
due to heavier sales of sportboats versus fishing boats from the same period  in
the prior Fiscal year.

      For  the  third  quarter of Fiscal 2000, the gross  margin  on  sales  was
$2,517,676  (17.6%) as compared to $2,947,551 (21.0%) for the third  quarter  of
Fiscal 1999.  Gross margins have been reduced by the Company's decision to  hold
prices  constant  through  the winter and spring selling  seasons,  rather  than
forfeit market share to its aggressive price competitors.

      Selling expenses were $1,941,220 for the third quarter of Fiscal  2000  as
compared to $1,761,294 for the third quarter of last Fiscal year.  Most  of  the
increase for Fiscal 2000 was from increased promotion expenditures primarily  at
the  New  York  and  Miami Boat Shows as well as creation  of  dramatically  new
product promotional brochures.

      General  and  administrative expenses were  $699,508  for  the  third
quarter  of  Fiscal 2000 as compared to $739,223 for the third quarter  of  last
Fiscal year.

      Interest  expense  for the third quarter of Fiscal 2000  was  $249,694  as
compared  to  $256,246 for the third quarter of last Fiscal year.  Most  of  the
decrease  resulted  from a reduction of related party interest  from  the  third
quarter of Fiscal 1999.

     Other  non-operating (income)/expense for the third quarter of Fiscal  2000
was  $(1,100,818) as compared to $(25,937) for the third quarter of last  Fiscal
year.   Substantially all of the increase is due to receipt of a partial payment
from our business interruption insurance carrier.




                                       16
<PAGE>


Financial Condition.

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

Net cash used by operating activities............ $   (98,153)
 "   "   used by investing activities ...........    (802,889)
 "   "   provided by financing activities    ....  (1,165,259)
                                                  ____________
        Net decrease in cash..................... $(2,066,301)
                                                  ____________

      This net decrease compared to a $1,833,530 net increase for the first nine
months of the prior fiscal year.

     Cash  used  in  the first nine months of Fiscal 2000 to acquire  additional
property,  plant,  and equipment (investing activity) amounted  to  $802,889  of
which $215,615 was for plugs, molds, and other product tooling.

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

The Year 2000.

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


                                  [Continued]

                                      17
<PAGE>

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


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

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


PART II.  Other Information.

ITEM 2:   Change in Securities.

     During  the  third  quarter  of  Fiscal 1999,  30,000  stock  options  were
     exercised by a former director of the Company at an option price  of  $3.58
     per  share.  There was no change in securities during the third quarter  of
     Fiscal 2000.

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

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

          (b) No Current Reports on Form 8-K were filed by the Registrant
          during the first nine months of Fiscal 2000.









                                    18

<PAGE>



                                   SIGNATURE


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


                      FOUNTAIN POWERBOAT INDUSTRIES, INC.
                                 (Registrant)





     By:  Joseph F. Schemenauer                          Date:  May 12, 2000
          Joseph F. Schemenauer
          Vice President, Chief Financial
          Officer, and Designated Principal
          Accounting Officer