FORM 10-Q

                  SECURITIES AND EXCHANGE COMMISSION
                        Washington, DC 20549


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

       For the quarterly period ended       December 31, 1995

                                  OR

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

       For the transition period from __________ to ___________
       For Quarter Ended                 Commission File Number

                                                 0-14712

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

         Nevada                                 88-0160250
(State or other jurisdiction          (I.R.S. Identification No.)
    of incorporation or
       organization)

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


Registrant's telephone number, including area code:(919)975-2000


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

           Yes  X                         No
               ---                           ---
Indicate  the  number  of  shares  outstanding  of  each  of  the
issurer's  classes  of common stock as of the latest  practicable
date.

      Class                       Outstanding at January  31,1996

Common stock, $.01 par value                 3,029,072 shares


<PAGE>







           FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY

                              INDEX


PART I.  Financial Information.                          Page No.

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

         Consolidated Balance Sheets - Assets,
            December 31, 1995 and June 30, 1995..........   4

         Consolidated Balance Sheets - Liabilities &
            Shareholders' Equity, December 31, 1995
            and June 30, 1995............................   5

         Consolidated Statements of Income -
            Three and Six Months Ended December 31, 1995
            and December 31, 1994...........................6

         Consolidated Statements of Cash Flows -
            Six Months Ended December 31, 1995
            and December 31, 1994........................ 7 -  8

         Notes to Consolidated Financial Statements...... 9 - 12

         Management's Discussion and Analysis of
            Results of Operations and
            Financial Condition..........................13 - 14



PART II. Other Information.


Item 6.  Exhibits and Reports on Form 8 and Form 8-K.....  15

         Signature.......................................  16






                                -2-
<PAGE>

               PETERSON, SILER & STEVENSON
               CERTIFIED PUBLIC ACCOUNTANTS
                   430 EAST 400 SOUTH
               SALT LAKE CITY, UTAH  84111
                    (801) 328-2727




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, 1995,
and the related consolidated statements of income and cash 
flows for the three 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/  Peterson, Siler & Stevenson

PETERSON, SILER & STEVENSON, P.C.
January 25, 1996


                             -3-

<PAGE>

<TABLE>

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




<CAPTION>
                                            December 31,                  June 30,
                  Assets                        1995                        1995
------------------------------------------  ------------                ------------
<S>                                       <C>                         <C>
Current assets:

   Cash................................... $    427,326                $    490,807

   Accounts receivable, net (Note 2)......    1,781,682                   1,898,854

   Inventories (Note 3)...................    3,579,889                   3,407,726

   Deferred cost of sales (Note 4)........      183,393                     183,393

   Prepaid expenses.......................      203,613                     204,947
                                            ------------                ------------
   Total current assets................... $  6,175,903                $  6,185,727
                                            ------------                ------------

Property, plant, and equipment............ $ 19,873,527                $ 19,199,743

Less:  Accumulated depreciation...........  (10,009,717)                 (9,209,661)
                                            ------------                ------------
                                           $  9,863,810                $  9,990,082
                                            ------------                ------------

Other assets.............................. $    161,948                $    158,948
                                            ------------                ------------

Total assets.............................. $ 16,201,661                $ 16,334,757
                                            ============                ============







See accompanying Notes to Consolidated Financial Statements.

<FN>

                                      -4-
</TABLE>
<PAGE>
<TABLE>
               FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY
                          Consolidated Balance Sheets
                   *** Liabilities & Shareholders' Equity ***
                  (Unaudited - See Accountants' Review Report)

<CAPTION>
                                            December 31,                  June 30,
    Liabilities & Shareholders' Equity          1995                        1995
------------------------------------------  ------------                ------------
<S>                                       <C>                         <C>
Current liabilities:
   Notes payable.......................... $  1,070,486                $    534,185
   Current portion/long-term debt.........      723,178                   1,371,554
   Accounts payable.......................    1,620,047                   1,800,592
   Accts. pay. - related parties (Note 7)         7,200                       4,769
   Accrued expenses.......................    1,083,056                   1,152,489
   Accrued exp. - related parties (Note 7)            0                           0
   Customer deposits......................      275,691                     412,809
   Allowance for boat repurchases (Note 5)      207,359                     207,359
   Reserve for warranty expenses (Note 5)       400,000                     400,000
   Deferred sales (Note 4)................      197,541                     197,541
                                            ------------                ------------
   Total current liabilities.............. $  5,584,558                $  6,081,298
                                            ------------                ------------

Long-term debt, less current
   portion................................ $  5,823,723                $  7,049,049

Deferred income taxes payable.............            0                           0
                                            ------------                ------------
Total liabilities......................... $ 11,408,281                $ 13,130,347
                                            ------------                ------------

Commitments and contingencies (Note 6)

Shareholders' equity:
   Common stock, $.01 par value,
     200,000,000 shares authorized,
     3,029,072 shares issued (Note 10).... $     30,291                $     30,291

   Capital in excess of par value.........    9,297,450                   9,297,450

   Accumulated deficit....................   (4,423,613)                 (6,012,583)

                                            ------------                ------------
                                           $  4,904,128                $  3,315,158

Less: Treasury stock......................      110,748                     110,748
                                            ------------                ------------
Total Shareholders' equity................ $  4,793,380                $  3,204,410
                                            ------------                ------------

Total liabilities & shareholders' equity.. $ 16,201,661                $ 16,334,757
                                            ============                ============

<FN>
See accompanying Notes to Consolidated Financial Statements.


                                      -5-
</TABLE>
<PAGE>
<TABLE>

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


                                  Three Months Ended           Six Months Ended
                              --------------------------  --------------------------
<CAPTION>
                              December 31,  December 31,  December 31,  December 31,
                                  1995          1994          1995          1994
                              ------------  ------------  ------------  ------------
<S>                         <C>           <C>           <C>           <C>   
Net sales................... $  9,287,467  $  9,658,597  $ 18,286,991  $ 19,157,656

Cost of sales...............    7,303,494     7,622,352    14,657,114    15,176,134
                              ------------  ------------  ------------  ------------
Gross margin................ $  1,983,973  $  2,036,245  $  3,629,877  $  3,981,522

Selling expense.............    1,101,516       732,245     1,879,167     1,404,673
Selling expense -
    related parties (Note 7)            0             0             0             0
General & admin. expense....      434,869       373,173       758,662       675,202
General & admin. expense -
    related parties (Note 7)       35,814        25,135        72,354        56,600
                              ------------  ------------  ------------  ------------
Operating income/(loss)..... $    411,774  $    905,692  $    919,694  $  1,845,047
                              ------------  ------------  ------------  ------------
Other (income)/expense:
   Interest expense......... $    204,179  $    251,280  $    403,632  $    495,288
   Interest expense -
      related parties (Note 7)          0             0             0             0
   Other income, net  (Note 9)   (950,046)     (108,460)   (1,072,908)     (183,846)
                              ------------  ------------  ------------  ------------
                             $   (745,867) $    142,820  $   (669,276) $    311,442
                              ------------  ------------  ------------  ------------
Net income/(loss)
   before income taxes...... $  1,157,641  $    762,872  $  1,588,970  $  1,533,605


Current tax expense  (benefit)          0             0             0             0
                     (Note 8)

Deferred tax expense (benefit)          0             0             0             0
                     (Note 8)
                              ------------  ------------  ------------  ------------
Net income/(loss)........... $  1,157,641  $    762,872  $  1,588,970  $  1,533,605
                              ============  ============  ============  ============

Net income/(loss)
   per share, historical.... $       0.38  $       0.25  $       0.53  $       0.51
                              ============  ============  ============  ============
Weighted average shares
   outstanding, historical..    3,019,072     3,019,072     3,019,072     3,019,072
                              ============  ============  ============  ============

<FN>
See accompanying Notes to Consolidated Financial Statements.

                                      -6-
</TABLE>
<PAGE>
<TABLE>

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

                                                               Six Months Ended
                                                          --------------------------
<CAPTION>
                                                          December 31,  December 31,
                                                              1995          1994
                                                          ------------  ------------
<S>                                                     <C>           <C>     
Cash flows from operating activities:
-------------------------------------
   Net income/(loss).................................... $  1,588,970  $  1,533,605

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

      Depreciation and amortization.....................      800,056       820,048
      (Gain) loss on disposal of property, plant,
           and equipment................................            0             0
      (Increase)/decrease in accounts receivable........      117,172    (1,448,925)
      (Increase)/decrease in inventory..................     (172,163)      152,130
      (Increase)/decrease in prepaid expenses...........        1,334      (104,165)
      (Increase)/decrease in other assets...............       (3,000)       (6,000)
      Increase/(decrease) in accounts payable...........     (180,545)     (723,014)
      Increase/(decrease) in accounts payable -
          related parties...............................        2,431       (10,300)
      Increase/(decrease) in accrued expenses...........      (69,433)      508,838
      Increase/(decrease) in accrued expenses -
          related parties...............................            0             0
      Increase/(decrease) in customer deposits..........     (137,118)     (720,901)
      Increase/(decrease) in deferred sales/cost........            0      (150,000)
      Increase/(decrease) in allowance for repurchases..            0             0
                                                          ------------  ------------
   Net cash provided/(used) by operating activities..... $  1,947,704  $   (148,684)
                                                          ------------  ------------

Cash fows from investing activities:
------------------------------------
   Construction of molds, plugs, and other tooling...... $   (350,640) $   (365,473)
   Purchases of property, plant, and equipment..........     (323,144)     (313,749)
   Sales of        "        "     "      "    ..........            0             0
                                                          ------------  ------------
   Net cash provided/(used) in investing activities..... $   (673,784) $   (679,222)
                                                          ------------  ------------

Cash flows from financing activities:
-------------------------------------
   Increase in long-term debt........................... $    600,000  $    102,410
   Repayment of long-term debt..........................   (2,473,702)     (277,817)
   Note payable, revolving line of credit...............      536,301       507,302
                                                          ------------  ------------
   Net cash provided/(used) in financing activities..... $ (1,337,401) $    331,895
                                                          ------------  ------------

<FN>
                                  (Continued)


                                      -7-
</TABLE>
<PAGE>
<TABLE>

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


                                                                Six Months Ended
                                                          --------------------------
<CAPTION>
                                                          December 31,  December 31,
                                                              1994          1994
                                                          ------------  ------------
<S>                                                     <C>           <C>
Net increase/(decrease) in cash......................... $    (63,481) $   (496,011)


Cash at beginning of the year...........................      490,807       675,711

                                                          ------------  ------------
Cash at end of the period............................... $    427,326  $    179,700
                                                          ============  ============



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

   Interest - unrelated parties......................... $    403,632  $    495,288
      "     - related parties (Note 7)..................            0             0
      "     - capitalized...............................            0             0
                                                          ------------  ------------
                                                         $    403,632  $    495,288
                                                          ============  ============

   Income taxes (Note 8)................................ $          0  $          0
                                                          ============  ============


<FN>

See accompanying Notes to Consolidated Financial Statements.


                                      -8-
</TABLE>
<PAGE>


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



1.  Basis of Presentation.

      Although  these  statements  have  been  reviewed  by   our
independent auditors, they are unaudited.  The statements reflect
all adjust-ments, in management's opinion, that are necessary  to
present  fairly the Company's financial position and  results  of
its   operations  for  the  interim  periods  presented.    These
adjustments  are,  for  the most part,  of  a  normal,  recurring
nature.   It  is  suggested  that this unaudited  interim  period
financial  information be read in conjunction with the  Company's
audited  financial statements for the fiscal year ended June  30,
1995.



2.  Accounts receivable.

     As of December 31, 1995, accounts receivable were $1,781,682
net of the allowance for bad debts of $30,000.  This represents a
decrease   of  $117,172  from  the  $1,898,854  in  net  accounts
receivable recorded at June 30, 1995.  Of the $1,781,682  balance
at  December 31, 1995, $1,525,461 has subsequently been collected
as of January 18, 1996, and the remaining $256,221 is believed to
be fully collectible.



3.  Inventories.

     Inventories at December 31, 1995 and June 30, 1995 consisted
of the following:


                                   December 30,      June 30,
                                       1995            1995

Parts and supplies.................$  2,713,323   $  2,707,702
Work-in-process....................     759,384        704,354
Finished goods.....................     158,768         48,512
Trailers...........................      38,414         37,158
Obsolete inventory reserve.........     (90,000)       (90,000)
                                   -------------  -------------
Total..............................$  3,579,889   $  3,407,726
                                   =============  =============




                              -9-


<PAGE>



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


4.  Revenue Recognition.

     At  fiscal year-end June 30, 1995, the Company deferred  the
recognition  of  revenues amounting to $197,541  (recorded  as  a
balance sheet liability) and the related cost of sales amounting
to  $183,393 (recorded as a balance sheet asset).  This  had  the
effect of reducing the prior year's gross margin on sales and net
income after tax by $235,852 ($0.08 per share).  At December  31,
1995,  the  Company estimated the balances of deferred sales  and
deferred  cost of sales to be the same as they were  at  year-end
June  30, 1995.  Therefore, there was no effect in the first half
on gross margin or net income from a change in these estimates.



5.  Allowance and Qualifying Accounts.

     For  the  six  months ended December 31, 1995,  the  Company
adjusted its allowance and qualifying accounts as follows:

                   Balance at   Charged to              Balance
                   Beginning    Cost and    Additions   at End
                   of Period    Expense    (Deductions) of Period

Allowance for
     boat repur-
        chases     $ 207,359    $   -0-     $   -0-     $ 207,359

Allowance for
     doubtful
        accounts      12,869        -0-        17,131      30,000

Allowance for
     warranty
        claims       400,000      180,650    (180,650)    400,000

  Allowance for
     inventory
        values        90,000        -0-         -0-        90,000

                   ----------   ----------  ----------  ---------
        Total      $ 710,228    $ 180,650   $(163,519)  $ 727,359
                   ==========   ==========  ==========  =========

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



                                -10-


<PAGE>



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


6.  Commitments and Contingencies.

     The  Company  makes  available through  third-party  finance
companies floor plan financing for many of its dealers.  Sales to
participating  dealers  are approved by  the  respective  finance
companies.   If  a  participating dealer  does  not  satisfy  its
obligations  under the floor plan financing agreement  in  effect
with   its   commercial  lender(s)  and  boats  are  subsequently
repossessed  by  the lender(s), then under certain  circumstances
the  Company may be required to repurchase the repossessed  boats
if it has executed a repurchase agreement with the lender(s).  At
December  31, 1995, 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
$10,600,000.   The  Company  has  reserved  for  the   reasonably
anticipated  future losses it might incur upon  the  repossession
and repurchase of boats from commercial lenders.  At December 31,
1995, the allowance for losses on boat repurchases was $207,359.

     Additionally,  the  Company  regularly  pays  a  portion  of
dealers' interest charges for floor plan financing for up to  six
months.   Such  charges amounting to $423,000 for the  first  six
months  of  Fiscal 1996 are included in selling expenses  in  the
accompanying statement of operations.



7.  Transactions with Related Parties.

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

                                       Six    Months   Ended
                                     --------------------------
                                     December 31,   December 31,
                                        1995           1994
                                    -----------    ------------
Eastbrook Apartments     - rentals  $     6,470    $     6,900

R.M. Fountain, Jr.       - aircraft
                           rental        65,884         49,700

                                     -----------    -----------
                                    $    72,354    $    56,600
                                     ===========    ===========

     At  December  31, 1995, the Company had travel advances  and
other  receivables from employees in the amount  of  $16,359,  of
which none was due from officers of the Company.


                                -11-

<PAGE>




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



8.  Income taxes.

     For  the  six months ended December 31, 1995, no current  or
deferred tax expense was recorded because the net change  in  the
deferred  tax asset valuation allowance of approximately $667,000
equaled  the estimated net changes in the Company's net  deferred
tax  asset  account.   The primary change in  the  Company's  net
deferred  tax  asset  account  was  from  the  reduction  of  net
operating  loss  carryforwards due  to  the  current  period  net
income.   The  estimated net operating loss  carryforward  as  of
December 31, 1995 is $5,232,000.


9.  Other non-operating income.

     Included  in  other non-operating income is a  non-recurring
$800,000 discount earned for the early retirement of a long-term,
interest   bearing  note  payable  to  a  vendor.   The  vendor's
discounting  of the note payable was in consideration  for  early
repayment   and  for  services  the  Company  provided   in   the
development, promotion, and marketing of the vendor's products in
conjunction with the Company's offshore fishing boat line.


10. Stock options.

     On  June 21, 1995, a special meeting of the shareholders was
held  to  vote  upon the adoption of the 1995 stock option  plan.
The new plan as adopted by the shareholders allowed up to 300,000
common  stock options to be granted by the Board of Directors  to
employees or directors of the Company on either a qulified or non-
qualified  basis.   Subsequently, on August 4,  1995,  the  Board
unanimously  voted  to  grant the entire  300,000  stock  options
authorized under the 1995 stock option plan to Mr. Reginald M.
Fountain, Jr. at $7.00 per share on a non-qualified basis.   None
of  the  options  granted to Mr. Fountain under  the  1995  stock
option plan have been exercised.

     There  are other outstanding stock options for 52,500 shares
under  the 1986 Incentive Stock Option Plan and for 80,000 shares
under the special plan of March 23, 1995 for outside directors.


            ****** END OF FINANCIAL STATEMENTS *****


                               -12-

<PAGE>





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




Results of Operations.

      The  net  profit  for the first half  of  Fiscal  1996  was
$1,588,970  ($0.53 per share).  This compares  to  a  net  profit
amounting to $1,533,605 ($0.51 per share) for the first  half  of
the  prior year.  The net profit for the second quarter of Fiscal
1996  was  $1,157,641 ($.38 per share).  This compares to  a  net
profit  amounting  to $762,872 ($.25 per share)  for  the  second
quarter  of  the  prior  year.  Included in  other  non-operating
income  for  the  first half and the second  quarter  is  a  non-
recurring $800,000 discount earned for the early retirement of  a
long-term,  interest  bearing note  payable  to  a  vendor.   The
vendor's discounting of the note payable was in consideration for
early  repayment  and for services the Company  provided  in  the
development, promotion, and marketing of the vendor's products in
conjunction with the Company's offshore fishing boat line.

     Net sales were $18,286,991 for the first half of Fiscal 1996
as  compared to $19,157,656 for the first half of the prior year.
Net  sales were $9,287,467 for the second quarter of Fiscal  1996
as  compared  to $9,658,597 for the second quarter of  the  prior
year.   Unit sales volume for the first half of Fiscal  1996  was
207  boats  as compared to 190 boats for the first  half  of  the
prior  year.   Sales for the first half of Fiscal  1996  included
more smaller units which have lesser unit sales prices.

     For the first half of Fiscal 1996, the gross margin on sales
was  $3,629,877 (19.85%) as compared to $3,981,522  (20.78%)  for
the  first half of the prior fiscal year.  For the second quarter
of Fiscal 1996, the gross margin on sales was $1,983,973 (21.36%)
as  compared to $2,036,245 (21.08%) for the second quarter of the
prior  fiscal year.  Selling price increases were only  partially
in  effect for the first quarter because orders for most  of  the
boats sold in the first quarter were taken prior to the effective
date  of  the  price increases.  Beginning in October,  all  boat
sales  were  at  the new, higher prices.  For the first  half  of
Fiscal 1996, sales included a larger proportion of smaller,  less
profitable  boats than were included in sales for the first  half
of the prior fiscal year.
      Selling  expenses  were $1,879,167 for the  first  half  of
Fiscal 1996 as compared to $1,404,673 for the first half of  last
year.  Selling expenses were $1,101,516 for the second quarter of
Fiscal 1996 as compared to $732,245 for the second quarter of the
prior  fiscal year.  Most of the increase for Fiscal 1996 was  in
magazine advertising and racing expense.


                                -13-

<PAGE>


      General and administrative expenses were $758,662  for  the
first  half of Fiscal 1996 as compared to $675,202 for the  first
half  of  last  year.  General and administrative  expenses  were
$434,869  for  the second quarter of Fiscal 1996 as  compared  to
$373,173  for  the  second quarter of last  year.   Most  of  the
increase for Fiscal 1996 is for additional executive compensation
and increased travel expense.

      Interest  expense  for the first half of  Fiscal  1996  was
$403,453  as compared to $495,288 for the first quarter  of  last
year.  Interest expense for the second quarter of Fiscal 1996 was
$204,179 as compared to $$251,280 for the second quarter of  last
year.   The decrease in interest expense is due to lesser overall
indebtedness and to a lesser rate paid on indebtedness to a major
supplier.

     Other non-operating income for the first half and the second
quarter of fiscal 1996 includes a non-recurring $800,000 discount
earned  for the early retirement of a long-term, interest bearing
note  payable to a vendor.  The vendor's discounting of the  note
payable was in consideration for early repayment and for services
the Company provided in the development, promotion, and marketing
of  the  vendor's  products  in conjunction  with  the  Company's
offshore fishing boat line.




Financial Condition.

      The  Company's cash flows for the first half of Fiscal 1996
are summarized as follows:


        Net cash provided by operating activities...$ 1,947,704
         "   "   used in investing activities.......   (673,784)
         "   "   used in financing activities....... (1,337,401)

        Net decrease in cash........................$   (63,481)
                                                     ===========


      This  net decrease compared to a $496,011 net decrease  for
the first half of the prior fiscal year.

      Cash  used  in  the first half of Fiscal  1996  to  acquire
additional  property,  plant, and equipment (investing  activity)
amounted to $673,784, of which $350,640 was for plugs, molds, and
other product tooling.



                                -14-

<PAGE>



      For  the  remainder of Fiscal 1996 and beyond, the  Company
expects to generate sufficient cash from operating activities  in
order  to  meet  its needs and obligations.  Management  believes
that  the Company's sales and production volume will continue  to
grow  with a commesurate increase in net earnings and cash  flow.
Most of the Company's cash resources will be used to maintain and
improve its plant and equipment, for new product tooling, and  to
repay existing indebtedness.  The Company does not expect to  pay
any dividends to shareholders for the forseeable future.

     During  Fiscal 1995, MetLife Capital Corporation  agreed  to
amend the Company's financial ratio requirements.  The Company is
now   in   compliance  with  the  new  MetLife  financial   ratio
requirements and expects to remain in compliance with  the  ratio
requirements.  The Company has made timely payment of all amounts
owed  to MetLife and none of the indebtedness to MetLife, or  any
other parties, is in arrears.







PART II.  Other Information.


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


           (a) No Amendments on Form 8 were filed  by  the
               Registrant during the first half of Fiscal 1996.


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









                                -15-

<PAGE>





                            SIGNATURE



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



                FOUNTAIN POWERBOAT INDUSTRIES, INC.
                           (Registrant)






By: /s/ Allan L. Krehbiel                Date: January 31, 1996
   Allan L. Krehbiel
   Vice President, Chief Financial
   Officer, and Designated Principal
   Accounting Officer









                                -16-