FOUNTAIN POWERBOAT INDUSTRIES, INC.

                            FORM 10-Q

                        QUARTERLY REPORT

             FOR THE QUARTER ENDED DECEMBER 31, 2000


               SECURITIES AND EXCHANGE COMMISSION
                      WASHINGTON, DC  20549


                            FORM 10-Q

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



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

        For the quarterly period ended December 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.)


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 January 30, 2001
 _________________________    ______________________________
 Common Stock, $.01 par value       4,732,608 Shares


<PAGE>



       FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY

                              INDEX


PART I.   Financial Information.                              Page No.

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

      Unaudited Consolidated Balance Sheets
        December 31, 2000 and June 30,2000.........              5-6

      Unaudited Consolidated Statements of Operations -
        Three and Six Months Ended December 31,2000
        and December 31,1999.........................              7

      Unaudited Consolidated Statements of Cash Flows -
        Six Months Ended December 31,2000
        and December 31,1999........................             8-9

      Notes to Unaudited Consolidated Financial Statements ... 10-13

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



PART II.  Other Information.

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


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


<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 December 31, 2000,  and
the  related consolidated statements of operations and cash flows
for  the  three  and  six  months then  ended.   All  information
included  in these financial statements is the representation  of
the management of Fountain Powerboat Industries, Inc.

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

Based   on   our  review,  we  are  not  aware  of  any  material
modifications  that should be made to the consolidated  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.


January 23, 2001
Salt Lake City, Utah


4
<PAGE>


       FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY

                   CONSOLIDATED BALANCE SHEETS
                           (Unaudited)


                             ASSETS






                                        December 31,   June 30,
                                            2000         2000
                                        ___________   ___________
CURRENT ASSETS:
  Cash  and  cash equivalents           $ 2,048,890   $ 1,983,439
  Accounts receivable, net                  727,755     1,701,643
  Inventories                             5,263,320     7,880,136
  Prepaid expenses                          889,360       574,615
  Current deferred tax assets             1,404,836     1,481,666
  Deferred cost of sales                     64,678             -
                                        ___________   ___________
         Total Current Assets            10,398,839    13,621,499
                                        ___________   ___________
PROPERTY, PLANT AND EQUIPMENT            37,684,042    37,686,040


  Less:  Accumulated depreciation       (19,332,402)  (18,752,789)
                                        ___________   ___________
       Total Property, Plant and
	    Equipment                      18,351,640    18,933,251
                                        ___________   ___________

OTHER ASSETS                                927,648       876,334
                                        ___________   ___________
                                        $29,678,127   $33,431,084
                                        ===========   ===========



5
<PAGE>














       FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY

                   CONSOLIDATED BALANCE SHEETS
                           (Unaudited)


              LIABILITIES AND STOCKHOLDERS' EQUITY

                           [Continued]


                                        December 31,   June 30,
                                            2000         2000
                                        ___________   ___________
CURRENT LIABILITIES:
  Current maturities - long-term debt   $ 2,422,719   $ 2,613,534
  Current maturities - capital lease         13,651        12,999
  Accounts payable                        4,237,535     4,993,717
  Accrued expenses                        2,209,851     2,504,603
  Dealer territory service accrual        1,138,284       907,230
  Customer deposits                         165,035       322,040
  Deferred sales                            167,174             -
  Allowance for boat repurchases            200,000       200,000
  Reserve for warranty expense              590,000       590,000
                                        ___________   ___________
     Total Current Liabilities           11,144,249    12,144,123
                                        ___________   ___________
LONG-TERM DEBT, less current portion      5,989,143    8,151,546
CAPITAL LEASE, less current maturities       63,288       63,940
DEFERRED TAX LIABILITY                      925,152    1,180,817

COMMITMENTS AND CONTINGENCIES [NOTE 6]            -            -
                                        ___________   __________

  Total Liabilities                      18,121,832   21,540,426
                                        ___________   __________

STOCKHOLDERS' EQUITY:
  Common stock, $.01 par value,
    200,000,000 shares authorized,
    4,732,608 shares issued                  47,326       47,326
  Additional paid-in capital             10,303,640   10,303,640
  Retained earnings                       1,316,077    1,650,440
                                        ___________   __________
                                         11,667,043   12,001,406
  Less: Treasury stock                     (110,748)    (110,748)
                                        ___________   __________
       Total Stockholders' Equity        11,556,295   11,890,658
                                        ___________   ___________
                                        $29,678,127   $33,431,084
                                        ===========   ===========

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

6
<PAGE>


       FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY
              CONSOLIDATED STATEMENTS OF OPERATIONS
                           (Unaudited)


                             For The Three         For The Six
                             Months Ended          Months Ended
                             December 31           December 31
                          2000       1999        2000       1999
                       __________ ___________ ___________ ___________
NET SALES              $8,838,621 $15,384,022 $22,524,964 $26,179,190

COST OF SALES           7,816,539  12,213,163  19,607,756  20,973,104
                       __________ ___________ ___________ ___________
     Gross Profit       1,022,082  3,170,859    2,917,208   5,206,086

EXPENSES
     Selling Expense    1,278,544  1,502,305    2,912,198   3,088,588
     Selling expense -
      related parties     117,255          -      157,375     127,097
     General &
      Administrative      720,005    694,530    1,467,697   1,416,033
                       __________ ___________ ___________ ___________
         Total Expenses 2,115,804   2,196,835   4,537,270   4,631,718
                       __________ ___________ ___________ ___________

OPERATING INCOME(LOSS) (1,093,722)    974,024  (1,620,062)    574,368
NON-OPERATING
INCOME/(EXPENSE)
     Other income
      (expense)         1,069,187     (22,413)  1,077,874       6,573
     Interest expense    (217,764)   (244,095)   (471,455)   (527,486)
     Gain on sale of
       assets             500,446           -     500,446           -
                       __________ ___________ ___________ ___________

INCOME(LOSS)BEFORE TAX    258,147     707,516    (513,197)     53,455

CURRENT TAX EXPENSE        (9,785)          -           -      (9,785)

DEFERRED TAXES(BENEFIT)   111,569     326,103    (178,835)     41,800
                       __________ ___________ ___________ ___________
NET INCOME (LOSS)         156,363     381,413    (334,362)     11,655
                       ========== =========== =========== ===========

EARNINGS(LOSS)PER SHARE      .033        .081       (.071)       .002
                       __________ ___________ ___________ ___________
WEIGHTED AVERAGE
    SHARES OUTSTANDING  4,732,608   4,732,608   4,732,608   4,732,608
                       __________ ___________ ___________ ___________

DILUTED EARNINGS PER
  SHARE                   N/A         N/A          N/A        N/A
                       __________ ___________ ___________ ___________
DILUTED WEIGHTED AVERAGE
    SHARES OUTSTANDING    N/A         N/A          N/A        N/A
                       __________ ___________ ___________ ___________


7
<PAGE>


       FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY

              CONSOLIDATED STATEMENTS OF CASH FLOWS
                           (Unaudited)

                                      For the Six Months Ended
                                            December 31,
                                   _____________________________
                                       2000            1999
					     _____________ _______________
  CASH FLOWS FROM OPERATING
  ACTIVITIES:
  Net Income (Loss)                $    (334,362)$        11,655

  Adjustments to reconcile net
  income(loss)to net
    Cash provided by operating
      activities:
        Depreciation Expense           1,193,082       1,053,298
            Gain on sale of fixed
	       assets                     (500,446)              -
            Net deferred taxes          (178,835)       (242,504)
            Change in assets and
              liabilities:
             (Increase) decrease in
                accounts receivable      973,888        (508,416)
             (Increase) decrease in
                inventory              2,616,816      (1,320,877)
             (Increase) decrease in
                prepaid expenses        (314,745)        (41,457)
              Increase (decrease)in
                deferred sales           102,496               -
              Increase (decrease)in
                accounts payable        (756,182)      1,545,274
              Increase (decrease)in
                accrued expenses        (294,753)       (258,528)
              Increase (decrease)in
                dealer territory
                 service accrual         231,054               -
              Increase (decrease)in
                customer deposits       (157,005)       (132,247)
					     _____________ _______________
               Net Cash Provided
                 by (Used in)
                 Operating
                  Activities       $   2,581,008 $       106,198
					     _____________ _______________

  CASH FLOWS FROM INVESTING ACTIVITIES:
       Purchase of property plant
         and equipment                (1,741,849)       (565,787)
       Proceeds from sale of fixed
         assets                        1,750,920               -
       (Increase) in other assets        (51,314)        (64,397)
					     _____________ _______________
               Net Cash Provided
                by (Used) Investing
                Activities         $     (42,243)$      (630,184)
					     _____________ _______________

  CASH FLOWS FROM FINANCING ACTIVITIES:
       Repayment of long-term debt
                                      (2,473,314)       (850,447)
					     _____________ _______________
            Net Cash Provided by
            (Used in) Financing
             Activities            $  (2,473,314)$      (850,447)
					     _____________ _______________
  Net increase (decrease) in cash  $      65,451 $    (1,374,433)

  Cash and Cash Equivalents at
   beginning of year               $   1,983,439 $     2,217,300
					     _____________ _______________

  Cash and Cash Equivalents at end
   of period                       $   2,048,890 $       842,867
                                   ============= ===============
                           [Continued]
8
<PAGE>



       FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY

              CONSOLIDATED STATEMENTS OF CASH FLOWS
                           (Unaudited)

                           [Continued]


                                      For the Six Months Ended
                                            December 31,
                                   _____________________________
                                       2000            1999
					     _____________ _______________
Supplemental Disclosures of Cash Flow Information:
  Cash paid during the period for:
      Interest                     $     474,502 $       527,486
      Income Taxes                             -               -


Supplemental Disclosures of Non-Cash Investing and Financing
Activities:
  For the six-month period ended December 31, 2000:
      The  Company  purchased  $120,096  in  vehicles  through  the
issuance of additional notes payable.

  For the six month period ended December 31, 1999:
     None



















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

9
<PAGE>



       FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY
                                (Unaudited)

           NOTES TO 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 December 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,
2000  audited financial statements.  The results of operations  for
the  period  ended December 31, 2000 and 1999 are  not  necessarily
indicative of the operating results for the full year.

NOTE 2 - OTHER INCOME (EXPENSE)

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
the  yacht  mold as well as lost revenue and additional  expenses
from the business interruption.

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.

As  of  June 30, 2000, the insurance carriers had paid $1,783,618
in  claims and in October, 2000, paid an additional $1,350,000 in
full and final payment of all claims.  This has been reflected
under "Non-Operating Income (Expense)" on the statement of
operations.

Also inclued in other income is the gain on the sale of fixed assets
in the amount of $500,446.  The majority of this gain was from the
sale of the Company's airplane.

10
<PAGE>




       FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY
                                (Unaudited)

           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 3 - ACCOUNTS RECEIVABLE

  As of December 31, 2000, accounts receivable were $727,755 net of
the allowance for bad debts of $27,841.  This represents a decrease
of $973,888 from the $1,701,643 in net accounts receivable recorded
at  June  30, 2000.  Of the $727,755 balance at December 31,  2000,
$422,542  has subsequently been collected as of January  31,  2001,
and the remaining $305,213 is believed to be fully collectible.

NOTE 4 - INVENTORIES

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

                                       December 31,    June 30,
                                          2000           2000
                                     _____________  _____________
Parts and supplies...................$   3,006,649  $   3,402,176
Work-in-process......................    1,721,933      3,743,713
Finished goods.......................      528,454        716,304
Sportswear...........................      156,284        167,943
Obsolete inventory reserve...........     (150,000)      (150,000)
                                     _____________  _____________
      Total..........................$   5,263,320  $   7,880,136
                                     =============  =============


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.

11
<PAGE>



       FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY
                                (Unaudited)

      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 - 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
December 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 $28,454,647.
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 December 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 $552,899 for  the
first   six  months  of  Fiscal  2001  and  are  included  in   the
accompanying  consolidated statements  of  operations  as  part  of
selling expense.  At December 31, 2000, the estimated unpaid dealer
incentive  interest  included  in  accrued  expenses  amounted   to
$390,262.


12
<PAGE>





       FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY
                           (Unaudited)

      NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 7 - TRANSACTIONS WITH RELATED PARTIES

At December 31, 2000, the Company had receivables from and
advances to employees of the Company amounting to $16,002.

The Company paid or has accrued during the first six months of
Fiscal 2001, $4,178 for apartment rentals to Eastbrook Apartments
and Village Green Apartments which are entities owned by Mr.
Fountain.  The rentals are primarily for temporary lodging for
relocating and transient Company personnel and visitors.

The Company paid or has accrued $157,375 for the six month period
ended December 31, 2000, for advertising and public relations
services from an entity owned by a director of the Company.

NOTE 8 - INCOME TAXES

The  Company accounts for income taxes in accordance with Statement
of  Financial  Accounting Standards ("SFAS")  No.  109.   SFAS  109
requires  the  Company  to  provide a net  deferred  tax  asset  or
liability  equal to the expected future tax benefit or  expense  of
temporary reporting differences between book and tax accounting and
any available operating loss or tax credit carry forwards.

For  the  six  month  period ended December 31, 2000,  the  Company
provided  $0  for current income taxes and a benefit of  $(178,835)
for deferred income taxes.

NOTE 9 - STOCK OPTIONS

At December 31, 2000, there were 526,000 unexercised stock options,
of which 505,000 were held by officers and directors of the Company
at prices ranging from $3.1875 to $5.00 per share.


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 six-month period ended December 31, 2000 and  1999,
was not presented, as its effect was anti-dilutive.

13
<PAGE>






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

Results of Operations.

     The loss from operations for the second quarter ended December
31,  2000,  was  $(1,093,722) or $(.23) per share versus  operating
income  of $974,024 or $.21 per share for the corresponding  period
of  the previous year. Operating loss as a percent of sales for the
second  quarter of Fiscal 2001 was (12.4)% versus operating  income
as  a  percent  of sales of 6.3% for the same period  the  previous
Fiscal year.  The net profit for the second quarter of Fiscal  2001
was  $156,363  or  $.033 per share.  This compares  to  net  profit
amounting to $381,413, or $.081 per share for the second quarter of
Fiscal 2000.

      Net  sales were $8,838,621 for the second quarter  of  Fiscal
2001 as compared to $15,384,022 for the second quarter of the prior
Fiscal  year.  Unit sales volume for the second quarter  of  Fiscal
2001  was 69 boats as compared to 129 boats for the second  quarter
of  Fiscal  2000.   Although the Company maintained  a  backlog  of
orders  during the period, it was affected by the slowdown  in  the
marine  industry.  Retail sales were down industry wide,  resulting
in  large dealer inventories of boats from other manufacturers  and
this  reduced  the availability of dealer floor plan  credit.   The
Company had orders from dealers for product, but could not build or
ship because of the lack of dealer credit.

      The Company believes the introduction of the new line of wide
beam cruisers and fish boats will generate additional sales revenue
with its expanded product line and increase the dealer base for its
boats.

      For  the  second quarter of Fiscal 2001, the gross margin  on
sales was $1,022,082 (11.6%) as compared to $3,170,859 (20.6%)  for
the  second quarter of Fiscal 2000.  The low sales volume  and  the
product  mix  had  the most significant effect  on  margins.   Cost
reduction efforts in employee costs, maintenance, and research  and
development  were  not  enough to offset  the  increased  costs  of
insurance, volume and product mix.

      Selling  expenses were $1,395,799 for the second  quarter  of
Fiscal  2001  as compared to $1,502,305 for the second  quarter  of
last   Fiscal  year.  Dealer  floor  plan  interest  and   magazine
advertising  were lower and cost of brochures and  promotions  were
higher  in the second quarter of fiscal year 2001 versus the second
quarter of fiscal year 2000.

       General and administrative expenses were $720,005 for the
second  quarter  of  Fiscal

14
<PAGE>



2001 as compared to $694,530 for the second  quarter of last Fiscal
year. Most of the decrease was an employment tax adjustment in tax
allocation between production  and administration departments.

      Interest  expense for the second quarter of Fiscal  2001  was
$217,764  as  compared to $244,095 for the second quarter  of  last
Fiscal  year.  Interest expense is down due to an overall reduction
in long-term debt.




     Other non-operating (income)/expense for the second quarter of
Fiscal  2001  was $1,569,633 of income as compared  to  $22,413  of
expense  for the second quarter of last Fiscal year.  Other  income
this year includes the gain on the sale of the Company airplane and
the full and final payment of all claims arising from the hurricane
damage.

Financial Condition.

     The Company's cash flows for the six months ended December 31,
2000 are summarized as follows:

Net cash provided by operating activities...........   $ 2,581,008
  "    " used by investing activities ..............       (42,243)
 "   " used by financing activities  ...............    (2,473,314)
                                                       ___________
         Net  increase  in cash.....................   $    65,451
                                                       ===========

      This net increase compared to a $(1,374,433) net decrease for
the second six months of the prior fiscal year.

     Cash  used  in the first six months of Fiscal 2001 to  acquire
additional  property,  plant,  and equipment  (investing  activity)
amounted  to  $1,741,649 of which $1,580,953 was for plugs,  molds,
and  other  product tooling. Proceeds from the sale of the  Company
airplane reduced cash used by investing activities by $1,744,126.

     Cash  was  used in financing activities to pay off  the  notes
secured  by  the  airplane and the payment of  the  long-term  debt
current maturities as it became due.

     For  the  remainder  of Fiscal 2001 and  beyond,  the  Company
expects to generate sufficient cash through operations to meet  its
needs and obligations.  Management believes the introduction of the
wide  beam  cruisers and the expansion of the wide beam  fish  boat
line   will   increase  sales  and  production   volume   and   the
corresponding reduction in tooling costs as the new product  enters
production,  will  generate a positive  cash  flow.   Most  of  the
Company's  cash  resources will be used to build  customer  ordered
boats,  maintain  its  plant  and equipment,  and  reduce  accounts
payable.

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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.


PART II.  Other Information.


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

          (a) No Exhibits

          (b) No Current Reports on Form 8-K were filed by the
          Registrant during the first six months of Fiscal 2001.


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                            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:  David A. Simmons                    Date: January 31, 2001
     Chief Financial Officer
     and Designated Principal
     Accounting Officer


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