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**UNITED        STATES **

**SECURITIES        AND EXCHANGE COMMISSION **

**Washington,        D.C. 20549 **

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**FORM        10-Q **

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

**For        the quarterly period ended September 30, 2006**

***Commission        File Number 0-14712***

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**FOUNTAIN        POWERBOAT INDUSTRIES, INC. **

**(Exact        name of registrant as specified in its charter) **

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|                                                                                                    |                                                                          |
|---------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------|
| **Nevada**                                                                                              | **56-1774895**                                                                |
| **(State                  or other jurisdiction of****incorporation                  or organization)** | **(I.R.S.                  employer****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 **

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|                                          |                                                   |
|-----------------------------------------------|--------------------------------------------------------|
| **Class**                                     | **Outstanding                  at September 30, 2006** |
| Common                  Stock, $.01 par value | 4,834,275                  shares                      |

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**FOUNTAIN      POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY **

**INDEX      **

|             |                                                                                                                                                                                  | **Page No.**                        |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------|
|             |                                                                                                                                                                                  |                                     |
|             |                                                                                                                                                                                  |                                     |
|             |                                                                                                                                                                                  |                                     |
| **Part I**  | **Financial                  Information**                                                                                                                                            |                                     |
|             |                                                                                                                                                                                  |                                     |
|                  | Item                  1. Financial Statements                                                                                                                                         |                                     |
|             |                                                                                                                                                                                  |                                     |
|             | Unaudited                  Condensed Consolidated Balance Sheets, September 30, 2006 and June                  30,                  2006                                              | 3                  -                  4  |
|             |                                                                                                                                                                                  |                                     |
|             | Unaudited                  Condensed Consolidated Statements of Operations, for the three                  months                  ended September                  30, 2006 and 2005 | 5                                        |
|             |                                                                                                                                                                                  |                                     |
|             | Unaudited                  Condensed Consolidated Statements of Cash Flows, for the three                  months                  ended September                  30, 2006 and 2005 | 6                                        |
|             |                                                                                                                                                                                  |                                     |
|             | Notes                  to Unaudited Condensed Consolidated Financial Statements                                                                                                       | 7                  -                  10 |
|             |                                                                                                                                                                                  |                                     |
|             | Item                  2. Management’s Discussion and Analysis of Results of Operations and                  Financial Condition                                                 | 11                  - 12                 |
|             |                                                                                                                                                                                  |                                     |
|             | Item                  3. Quantitative and Qualitative Disclosures of Market Risk                                                                                                      | 12                                       |
|             |                                                                                                                                                                                  |                                     |
|             | Item                  4. Controls and Procedures                                                                                                                                      | 12                                       |
|             |                                                                                                                                                                                  |                                     |
| **Part II** | **Other                  Information**                                                                                                                                                |                                     |
|             |                                                                                                                                                                                  |                                     |
|             | Item                  1. Legal Proceedings                                                                                                                                            | 13                                       |
|             |                                                                                                                                                                                  |                                     |
|             | Item                  1A. Risk Factors                                                                                                                                                | 13                                       |
|             |                                                                                                                                                                                  |                                     |
|             | Item                  2. Unregistered Sales of Equity Securities and Use of                  Proceeds                                                                                 | 13                                       |
|             |                                                                                                                                                                                  |                                     |
|             | Item                  3. Defaults Upon Senior Securities                                                                                                                              | 13                                       |
|             |                                                                                                                                                                                  |                                     |
|             | Item                  4. Submission of Matters to a Vote of Security Holders                                                                                                          | 13                                       |
|             |                                                                                                                                                                                  |                                     |
|             | Item                  5. Other Information                                                                                                                                            | 13                                       |
|             |                                                                                                                                                                                  |                                     |
|             | Item                  6. Exhibits                                                                                                                                                     | 13                                       |
|             |                                                                                                                                                                                  |                                     |
|             | Signatures                                                                                                                                                                            | 14                                       |
|             |                                                                                                                                                                                  |                                     |
|             | Exhibits                                                                                                                                                                              | 15                  - 17                 |

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**PART      I.**
**      FINANCIAL INFORMATION. **

**ITEM 1:**
**      Financial Statements. **

**FOUNTAIN      POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY **

**UNAUDITED      CONDENSED CONSOLIDATED BALANCE SHEETS **

**ASSETS**

|                                                  |   | **September 30,****2006** |        | **June 30,****2006** |   |
|-------------------------------------------------------|--------|--------------------------------|-------------|---------------------------|--------|
|                                                  |   |                           |        |                      |   |
|                                                  |   |                           |        |                      |   |
| CURRENT                  ASSETS:                      |   |                           |        |                      |   |
| Cash                  and cash equivalents            |   | $                              | 1,280,576   |                      | $      | 4,474,552 |   |
| Accounts                  receivable, net             |   |                           | 7,701,154   |                      |   | 3,405,868 |   |
| Inventories                                           |   |                           | 6,578,913   |                      |   | 6,959,188 |   |
| Prepaid                  expenses                     |   |                           | 882,013     |                      |   | 849,160 |   |
| Deferred                  income tax                  |   |                           | 1,315,244   |                      |   | 1,446,018 |   |
| Total                  Current Assets                 |   |                           | 17,757,900  |                      |   | 17,134,786 |   |
|                                                  |   |                           |        |                      |   |   |   |
| Property,                  Plant & Equipment |   |                           | 48,788,012  |                      |   | 47,898,410 |   |
| Less:                  Accumulated depreciation       |   |                           | (31,351,215 | )                         |   | (30,790,537 | ) |
|                                                  |   |                           | 17,436,797  |                      |   | 17,107,873 |   |
| CASH                  SURRENDERVALUE LIFE INSURANCE   |   |                           | 2,611,381   |                      |   | 2,552,682 |   |
| OTHER                  ASSETS                         |   |                           | 784,655     |                      |   | 1,065,019 |   |
| DEFERRED                  TAX ASSETS - NON CURRENT    |   |                           | 8,769       |                      |   | — |   |
| TOTAL                  ASSETS                         |   | $                              | 38,599,502  |                      | $      | 37,860,360 |   |

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**FOUNTAIN      POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY **

**UNAUDITED      CONDENSED CONSOLIDATED BALANCE SHEETS **

**LIABILITIES        AND STOCKHOLDERS’ EQUITY**

|                                                                                                                                                                                                                |   | **September 30,****2006** |                     | **June 30,****2006** |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|--------------------------|---------------------------|--------|
|                                                                                                                                                                                                                |   |                           |                     |                      |   |
|                                                                                                                                                                                                                |   |                           |                     |                      |   |
| CURRENT                  LIABILITIES                                                                                                                                                                                |   |                           |                     |                      |   |
| Current                  maturities - long-term debt                                                                                                                                                                |   | $                              | 2,224,359                |                      | $      | 711,984 |   |
| Accounts                  payable - trade                                                                                                                                                                           |   |                           | 3,864,619                |                      |   | 3,861,061 |   |
| Accrued                  expenses and other liabilities                                                                                                                                                             |   |                           | 1,074,637                |                      |   | 1,253,714 |   |
| Dealer                  incentives                                                                                                                                                                                  |   |                           | 6,635,241                |                      |   | 6,367,229 |   |
| Customer                  deposits                                                                                                                                                                                  |   |                           | 341,403                  |                      |   | 391,024 |   |
| Allowance                  for boat repurchases                                                                                                                                                                     |   |                           | 27,193                   |                      |   | 15,459 |   |
| Warranty                  reserve                                                                                                                                                                                   |   |                           | 613,685                  |                      |   | 632,357 |   |
| Total                  Current Liabilities                                                                                                                                                                          |   |                           | 14,781,137               |                      |   | 13,232,828 |   |
|                                                                                                                                                                                                                |   |                           |                     |                      |   |   |   |
| LONG-TERM                  DEBT, less current maturities                                                                                                                                                            |   |                           | 15,043,431               |                      |   | 15,228,700 |   |
|                                                                                                                                                                                                                |   |                           |                     |                      |   |   |   |
| DEFERRED                  TAX LIABILITY                                                                                                                                                                             |   |                           | —                  |                      |   | 305,133 |   |
| COMMITMENTS                  AND CONTINGENCIES (Note 4)                                                                                                                                                             |   |                           |      |                      |   |      |   |
| Total                  Liabilities                                                                                                                                                                                  |   |                           | 29,824,568               |                      |   | 28,766,661 |   |
|                                                                                                                                                                                                                |   |                           |                     |                      |   |   |   |
| STOCKHOLDERS’                  EQUITY                                                                                                                                                                         |   |                           |                     |                      |   |  |   |
| Common                  stock, $.01 par value, 200,000,000 shares authorized, 4,834,275                  shares                  issued and outstanding as of September 30, 2006 and June 30,                  2006 |   |                           | 48,342                   |                      |   | 48,342 |   |
| Additional                  paid-in capital                                                                                                                                                                         |   |                           | 10,558,853               |                      |   | 10,558,853 |   |
| Accumulated                  deficit                                                                                                                                                                                |   |                           | (1,786,442               | )                         |   | (1,630,472 | ) |
| Less:                  Treasury stock, at cost 15,000 shares                                                                                                                                                        |   |                           | (110,748                 | )                         |   | (110,748 | ) |
| Accumulated                  other comprehensive income (loss) from interest rate swap                                                                                                                              |   |                           | 64,929                   |                      |   | 227,724 |   |
| Total                  Stockholders’ Equity                                                                                                                                                                   |   |                           | 8,774,934                |                      |   | 9,093,699 |   |
| **TOTAL                  LIABILITIES AND STOCKHOLDERS’ EQUITY**                                                                                                                                               |   | $                              | 38,599,502               |                      | $      | 37,860,360 |   |
|                                                                                                                                                                                                                |   |                           |                     |                      |   |  |   |

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**FOUNTAIN      POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY **

**UNAUDITED      CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS **

|                                                                   |   |   | **For                  the Three Months Ended**   |   |
|------------------------------------------------------------------------|--------|--------|-------------------------------------------------------------|--------|
|                                                                   |   |   | **September                  30,****2006**                  |   |   | **September                  30,****2005** |   |
| NET                  SALES                                             |   | $      | 19,413,852                                                  |   | $ | 19,157,736 |   |
| COST                  OF SALES                                         |   |   | 16,497,235                                                  |   |   | 15,481,622 |   |
| Gross                  Profit                                          |   |   | 2,916,617                                                   |   |   | 3,676,114 |   |
|                                                                   |   |   |                                                        |   |   |  |   |
| EXPENSES:                                                              |   |   |                                                        |   |   |  |   |
| Selling                  expenses                                      |   |   | 1,967,096                                                   |   |   | 1,495,887 |   |
| General                  and administrative expenses                   |   |   | 947,326                                                     |   |   | 841,803 |   |
| Total                  Expenses                                        |   |   | 2,914,422                                                   |   |   | 2,337,690 |   |
| OPERATING                  INCOME (LOSS)                               |   |   | 2,195                                                       |   |   | 1,338,424 |   |
| NON-OPERATING                  INCOME (EXPENSE):                       |   |   |                                                        |   |   |  |   |
| Other                  income (expense)                                |   |   | 24                                                          |   |   | (92,615 | ) |
| Interest                  expense                                      |   |   | (239,189                                                    | )      |   | (548,751 | ) |
| Total                  Non-operating Income (Expense)                  |   |   | (239,165                                                    | )      |   | (641,366 | ) |
| INCOME                  (LOSS) BEFORE INCOME TAXES                     |   |   | (236,970                                                    | )      |   | 697,058 |   |
|                                                                   |   |   |                                                        |   |   |   |   |
| CURRENT                  TAX EXPENSE (BENEFIT)                         |   |   | —                                                     |   |   | — |   |
|                                                                   |   |   |                                                        |   |   |   |   |
| DEFERRED                  TAX EXPENSE (BENEFIT)                        |   |   | (81,000                                                     | )      |   | — |   |
| NET                  INCOME (LOSS)                                     |   | $      | (155,970                                                    | )      | $ | 697,058 |   |
| BASIC                  EARNINGS (LOSS) PER SHARE                       |   | $      | (.03                                                        | )      | $ | .14 |   |
| WEIGHTED                  AVERAGE SHARES OUTSTANDING                   |   |   | 4,834,275                                                   |   |   | 4,834,275 |   |
| DILUTED                  EARNINGS (LOSS) PER SHARE                     |   | $      | (.03                                                        | )      | $ | .14 |   |
| WEIGHTED                  AVERAGE SHARES OUTSTANDING ASSUMING DILUTION |   |   | 4,834,275                                                   |   |   | 4,849,888 |   |
|                                                                   |   |   |                                                        |   |   |  |   |

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**FOUNTAIN      POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY **

**UNAUDITED      CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS **

|                                                                                                                   |   | **For                  the Three Months Ended** |       |
|------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------|------------|
|                                                                                                                   |   | **September 30,****2006**                  |       | **September 30,****2005** |   |
| CASH                  FLOWS FROM OPERATING ACTIVITIES:                                                                 |   |                                            |       |   |   |
| Net                  income (loss)                                                                                     |   | $                                               | (155,970   | ) | $ | 697,058 |   |
| Adjustments                  to reconcile net income (loss) to net cash used by operating                  activities: |   |                                            |       |   |   |  |   |
| Depreciation                  expense                                                                                  |   |                                            | 560,678    |   |   | 472,322 |   |
| Net                  Increase in cash surrender value of life insurance                                                |   |                                            | (58,699    | ) |   | (51,945 | ) |
| Deferred                  loan costs expensed                                                                          |   |                                            | —    |   |   | 229,801 |   |
| Gain                  on termination of interest rate swap                                                             |   |                                            | —    |   |   | (84,524 | ) |
| Bad                  debt expense                                                                                      |   |                                            | 24,574     |   |   | 25,032 |   |
| Amortization                  of deferred loan costs                                                                   |   |                                            | 9,000      |   |   | 16,322 |   |
| Deferred                  income tax benefit                                                                           |   |                                            | (81,000    | ) |   | — |   |
| Change                  in assets and liabilities:                                                                     |   |                                            |       |   |   |  |   |
| Accounts                  receivable                                                                                   |   |                                            | (4,319,860 | ) |   | (1,828,956 | ) |
| Inventories                                                                                                            |   |                                            | 380,275    |   |   | (476,279 | ) |
| Prepaid                  expenses                                                                                      |   |                                            | (32,853    | ) |   | (154,417 | ) |
| Other                  assets                                                                                          |   |                                            | 6,440      |   |   | (88,980 | ) |
| Accounts                  payable                                                                                      |   |                                            | 3,558      |   |   | (406,240 | ) |
| Accrued                  expenses                                                                                      |   |                                            | (178,245   | ) |   | 32,774 |   |
| Dealer                  incentives                                                                                     |   |                                            | 268,012    |   |   | 836,423 |   |
| Customer                  deposits                                                                                     |   |                                            | (49,621    | ) |   | (201,579 | ) |
| Warranty                  reserve                                                                                      |   |                                            | (18,672    | ) |   | — |   |
| Allowance                  for boat repurchases                                                                        |   |                                            | 11,734     |   |   | — |   |
| Net                  Cash Used by Operating Activities                                                                 |   |                                            | (3,630,649 | ) |   | (983,188 | ) |
| CASH                  FLOWS FROM INVESTING ACTIVITIES:                                                                 |   |                                            |       |   |   |  |   |
| Purchase                  of property, plant and equipment                                                             |   |                                            | (304,972   | ) |   | (173,403 | ) |
| Investment                  in molds and related plugs                                                                 |   |                                            | (584,629   | ) |   | (155,493 | ) |
| Net                  Cash Used by Investing Activities                                                                 |   |                                            | (889,601   | ) |   | (328,896 | ) |
| CASH                  FLOWS FROM FINANCING ACTIVITIES:                                                                 |   |                                            |       |   |   |  |   |
| Proceeds                  from long-term debt                                                                          |   |                                            | 1,500,000  |   |   | 16,500,000 |   |
| Proceeds                  received upon termination of interest rate swap                                              |   |                                            | —    |   |   | 84,524 |   |
| Payments                  of long-term debt                                                                            |   |                                            | (173,726   | ) |   | (16,194,790 | ) |
| Net                  Cash Provided by Financing Activities                                                             |   |                                            | 1,326,274  |   |   | 389,734 |   |
| Net                  decrease in cash and cash equivalents                                                             |   |                                            | (3,193,976 | ) |   | (922,350 | ) |
| Cash                  and cash equivalents at the beginning of period                                                  |   |                                            | 4,474,552  |   |   | 4,013,225 |   |
| Cash                  and cash equivalents at the end of period                                                        |   | $                                               | 1,280,576  |   | $ | 3,090,875 |   |

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**FOUNTAIN      POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY **

**NOTES      TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE      1. BASIS OF PRESENTATION **

**NOTE      2. RECENT ACCOUNTING PRONOUNCEMENTS**

**FIN      48: **

**FAS      157: **
*Fair      Value Measurements*

**FAS      158: **
*Employers’      Accounting for Defined Benefit Pension and Other Postretirement Plans (an      amendment of FASB Statements No. 87, 88, 106, and 132R) *

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**SAB      108: **
*** ***
*Considering      the Effects of Prior Year Misstatements When Quantifying Misstatements in the      Current Year Financial Statements (SAB No. 108)*

**NOTE      3. LONG-TERM DEBT AND PLEDGED ASSETS **

*Accounting      for Derivative Instruments and Hedging Activities*

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** **

**NOTE      4. COMMITMENTS AND CONTINGENCIES **

**Manufacturer      Repurchase Agreements**

**Dealer      Interest**

**Interest      Rate Risk**
** **

**Engine      Supply Agreement **

**NOTE      5. TRANSACTIONS WITH RELATED PARTIES **

**NOTE      6. EARNINGS (LOSS) PER SHARE **

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|                                                                                                                                                                        |   |                                                     |      |                           |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------|-----------|--------------------------------|--------|
|                                                                                                                                                                        |   | **For                the Three Months Ended**  |      |
|                                                                                                                                                                        |   | **September 30,****2006**                           |      | **September 30,****2005** |   |
| Weighted                average common shares outstanding used in basic earnings per share                for the three months ending                                       |   |                                                     | 4,834,275 |                           |   | 4,834,275 |   |
|                                                                                                                                                                        |   |                                                     |      |                           |   |   |   |
| Effect                of dilutive stock options                                                                                                                             |   |                                                     | —   |                           |   | 15,613 |   |
|                                                                                                                                                                        |   |                                                     |      |                           |   |  |   |
| Weighted                average common shares and potential dilutive common equivalent                shares                outstanding used in dilutive earnings per share |   |                                                     | 4,834,275 |                           |   | 4,849,888 |   |
|                                                                                                                                                                        |   |                                                     |           |                           |   |  |   |

** **

**NOTE      7. COMPREHENSIVE INCOME**

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**ITEM 2:**
**      Management’s Discussion and Analysis of Results of Operations and Financial      Condition **

**Results      of Operations **

|   | 1) | Promotional                programs and pricing concessions were employed in Fiscal 2006 to                maintain                sales volume in certain boat models and were discontinued at the                end of                Fiscal 2006; however, orders in the backlog compelled the manufacture                of                boats carrying these pricing concessions during the quarter ended                September 30, 2006; the production schedule is now devoid of such                pricing                concessions. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2) | Implementation                of “lean manufacturing” in the Company’s operations has required major                changes in its processes and procedures, and as usual, when a                manufacturing operation goes through major changes, costs and productivity                suffered, but long term benefits of this culture will be significant,                and                the Company expects to begin seeing benefits in the quarter that                ends on                December 31, 2006. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3) | Property                insurance rates increased significantly due to the effect of hurricanes                Katrina and Rita on the property insurance industry, and product                liability                insurance rates increased due to the Company’s increase in revenue in                Fiscal 2006. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4) | Depreciation                expense increased due to the completion of capital projects in Fiscal                2006                for factory expansion & improvement and tooling for building new boat                models. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1) | The                Company’s support of offshore racing programs was amplified during the                2006 offshore racing season. The 2006 offshore racing season concludes                in                November and the Company’s Management has committed to curtailing its                support significantly after this season. Racing expenses incurred                in the                quarter ending December 31, 2006 will also be substantial, but such                expenses are expected to be considerably reduced in the second half                of the                fiscal year. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2) | The                Company’s support of tournament fishing programs was increased during                Fiscal 2006 to boost recognition and sales of our expanding fish                boat                product line. The enhanced support was very successful with many                boats                being sold as a direct result of the tournament programs and an increased                awareness of the Company’s products through more tournament wins by                fishermen in Fountain boats. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**Liquidity      and Capital Resources **

**Cautionary      Statement for Purposes of “Safe Harbor” Under the Private Securities Reform Act      of 1995. **

**ITEM 3:**
**      Quantitative and Qualitative Disclosures about Market Risk.**

** **

**ITEM 4:**
**      Controls and Procedures **

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**PART      II.**
**      OTHER INFORMATION. **

**ITEM 1:**
**      Legal Proceedings. **

**ITEM 2:**
**      Unregistered Sales of Equity Securities and Use of Proceeds.**

**Item 3:**
**      Defaults Upon Senior Securities. **

**ITEM 4:**
**      Submission of Matters to a vote of Security Holders. **

**ITEM 5:**
**      Other Information. **

**ITEM 6:**
**      Exhibits. **

**EXHIBIT      INDEX **

|                 |   |                                                                                                  |
|----------------------|--------|-------------------------------------------------------------------------------------------------------|
| **Exhibit No.** |   | **Exhibit                Description**                                                                |
|                 |   |                                                                                                  |
| 31.1                 |   | Certification                pursuant to Rule 13a-14(a) by the Chief Executive                Officer |
|                 |   |                                                                                                  |
| 31.2                 |   | Certification                pursuant to Rule 13a-14(a) by the Chief Financial                Officer |
|                 |   |                                                                                                  |
| 32    |   | Certifications                Pursuant to 18 U.S.C.                Section 1350                  |

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**SIGNATURES      **

|                                                           |   |   |
|----------------------------------------------------------------|--------|--------|
| FOUNTAIN                POWERBOAT INDUSTRIES, INC.(Registrant) |   |

| Date: November                9, 2006 | /s/                Reginald M. Fountain, Jr.        |
|--------------------------------------------|-----------------------------------------------------|
|                                       | Reginald                M. Fountain, Jr.            |
|                                       | Chairman                and Chief Executive Officer |
|                                       |                                                |
| Date: November                9, 2006 | /s/                Irving L. Smith                  |
|                                       | Irving                L. Smith                      |
|                                       | Chief                Financial Officer              |

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