FOUNTAIN POWERBOAT INDUSTRIES, INC.

                          FORM 10-Q

                      QUARTERLY REPORT

          FOR THE QUARTER ENDED SEPTEMBER 30, 2000




             SECURITIES AND EXCHANGE COMMISSION
                    WASHINGTON, DC  20549


<PAGE>

                          FORM 10-Q

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


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

      For the quarterly period ended September 30, 2000

                             OR

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

     For the transition period from ____________ to _______________

                   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 October  11, 2000
  Common Stock, $.01 par value               4,732,608 shares


<PAGE>



       FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY


                              INDEX

                                                         Page No.

Part I  Financial Information

        Review Report of Independent Certified
         Public Accountants                                     1

        Unaudited Consolidated Balance Sheets,
         September 30, 2000 and June 30, 2000               2 - 3

        Unaudited Consolidated Statements of Operations,
         for the three months ended September 30,
         2000 and September 30, 1999                            4

        Unaudited Consolidated Statements of Cash
         Flows, for the three months ended
         September 30, 2000 and September 30, 1999          5 - 6

        Notes to Unaudited Consolidated Financial
         Statements                                        7 - 10

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

Part II Other Information


       Item 6  Exhibits and Reports on Form 8 and
                Form 8-K                                       13

       Signature                                               14


<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 September  30,
2000,  and the related consolidated statements of operations
and cash flows for the three months ended September 30, 2000.
All  information included in these financial  statements  is
the  representation of the management of Fountain  Powerboat
Industries, Inc.

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

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









/S/PRITCHETT, SILER & HARDY, P.C.
PRITCHETT, SILER & HARDY, P.C.
Salt Lake City, Utah
October 30, 2000
1
<PAGE>




       FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY

                   CONSOLIDATED BALANCE SHEETS
                           (Unaudited)


                             ASSETS





                                    September 30,    June 30,
                                         2000          2000
                                    _____________ _____________
CURRENT ASSETS:
  Cash and cash equivalents          $ 1,232,952   $ 1,983,439
  Accounts receivable, net             2,282,950     1,701,643
  Inventories                          5,808,990     7,880,136
  Prepaid expenses                     1,036,871       574,615
  Current tax assets                   1,772,536     1,481,666
                                    _____________ _____________
     Total Current Assets             12,134,299    13,621,499
                                    _____________ _____________
PROPERTY, PLANT AND EQUIPMENT         38,372,328    37,686,040

  Less:  Accumulated depreciation    (19,351,243)  (18,752,789)
                                    _____________ _____________
                                      19,021,085    18,933,251
                                    _____________ _____________
OTHER ASSETS                             901,991       876,334
                                    _____________ _____________
                                     $32,057,375   $33,431,084
                                    _____________ _____________


2
<PAGE>




















       FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY

                   CONSOLIDATED BALANCE SHEETS
                           (Unaudited)


         LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

                           [Continued]


                                    September 30,    June 30,
                                         2000          2000
                                    _____________ _____________
CURRENT LIABILITIES:
  Current maturities - long-term
   debt                            $   2,616,834 $   2,613,534
  Current maturities - capital
   lease                                  12,999        12,999
  Accounts payable                      5,390,275     4,993,717
  Accrued expenses                      2,195,078     2,504,603
  Dealer territory service
   accrual                                854,822       907,230
  Customer deposits                        31,470       322,040
  Allowance for boat repurchases          200,000       200,000
  Reserve for warranty expense            590,000       590,000
                                    _____________ _____________
     Total Current Liabilities         11,891,478    12,144,123

LONG-TERM DEBT, less current
 maturities                             7,520,741     8,151,546
CAPITAL LEASE, less current
 maturities                                63,940        63,940
DEFERRED TAX LIABILITY                  1,181,283     1,180,817

COMMITMENTS AND CONTINGENCIES
  [NOTE 7]                                      -             -
                                    _____________ _____________
     Total Liabilities                 20,657,442    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                    1,159,715     1,650,440
                                    _____________ _____________
                                      11,510,681    12,001,406
Less: Treasury stock, at cost,
 15,000 shares                          (110,748)     (110,748)
                                    _____________ _____________
     Total Stockholders' Equity       11,399,933    11,890,658
                                    _____________ _____________
                                     $32,057,375   $33,431,084
                                    _____________ _____________



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

3
<PAGE>


       FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY

              CONSOLIDATED STATEMENTS OF OPERATIONS
                           (Unaudited)

                                     For the Three Months Ended
                                           September 30,
                                    ____________________________
                                         2000          1999
                                    _____________ ______________
NET SALES                           $  13,686,344 $   10,795,168

COST OF SALES                          11,791,217      8,759,941
                                    _____________ ______________
  Gross Profit                          1,895,127      2,035,227
                                    _____________ ______________
EXPENSES:
  Selling expense                       1,598,692      1,586,283
  Selling expense - related parties        75,082        127,097
      General and administrative          747,692        721,503
                                    _____________ ______________
     Total expenses                     2,421,466      2,434,883
                                    _____________ ______________
OPERATING INCOME (LOSS)                  (526,339)      (399,656)

NON-OPERATING INCOME (EXPENSE):
  Other income (expense)                    8,687         28,986
  Interest expense                       (253,691)      (283,391)
                                    _____________ ______________
INCOME (LOSS) BEFORE INCOME TAXES        (771,343)      (654,061)

CURRENT TAX EXPENSE                         9,785              -

DEFERRED TAX (BENEFIT)                   (290,404)      (284,303)
                                    _____________ ______________

NET INCOME (LOSS)                   $    (490,724)$     (369,758)
                                    _____________ ______________

EARNINGS (LOSS) PER SHARE           $        (.10)$         (.08)
                                    _____________ ______________
WEIGHTED AVERAGE SHARES
  OUTSTANDING                           4,732,608      4,732,608
                                    _____________ ______________

DILUTED EARNINGS PER SHARE:         $         N/A $          N/A
                                    _____________ ______________
DILUTED WEIGHTED AVERAGE
  SHARES OUTSTANDING                          N/A            N/A
                                    _____________ ______________



 The accompanying notes are an integral part of these financial
                           statements.
4
<PAGE>



       FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY

              CONSOLIDATED STATEMENTS OF CASH FLOWS
                          (Unaudited)

        Increase (Decrease) in Cash and Cash Equivalents

                                   For the Three Months Ended
                                         September 30,
                               __________________________________
                                     2000              1999
                               ________________  ________________
CASH FLOWS FROM OPERATING
 ACTIVITIES:
  Net income (loss)            $       (490,724) $       (369,758)
                               ________________  ________________
  Adjustments to reconcile
    net income (loss)to net
    cash provided by operating
    activities:
     Depreciation expense               598,453           637,896
     Net deferred taxes                (290,404)         (284,303)
     Change in assets and
      liabilities:
       (Increase) decrease in
         accounts receivable           (581,308)         (232,922)
       (Increase) decrease in
         inventories                  2,071,146        (1,053,428)
       (Increase) decrease in
         prepaid expenses              (462,256)          (68,601)
       Increase (decrease) in
         accounts payable               396,558         1,496,682
       Increase (decrease) in
         accrued expenses              (300,525)         (593,501)
       Increase (decrease) in
         dealer territory
         service accrual                (52,408)         (107,026)
       Increase (decrease) in
         customer deposits             (290,569)            5,350
                                 ________________  ________________
        Net Cash Provided
         (Used) by Operating
         Activities            $        588,963  $       (569,611)
                               ________________  ________________
CASH FLOWS FROM INVESTING
 ACTIVITIES:
  Purchase of property, plant,
   and equipment                       (686,288)         (472,545)
  (Increase) in other assets            (25,657)          (33,744)
                               ________________  ________________
        Net Cash Provided
        (Used) by Investing
         Activities            $       (711,945) $       (506,289)
                               ________________  ________________
CASH FLOWS FROM FINANCING
 ACTIVITIES:
  Repayment of long-term debt  $       (627,505) $       (237,177)

                               ________________  ________________
        Net Cash Provided
        (Used) by Financing
          Activities           $       (627,505) $       (237,177)
                               ________________  ________________
Net increase (decrease) in
 cash and cash equivalents     $       (750,487) $     (1,313,077)

Cash and cash equivalents
 at beginning of year                 1,983,439         2,217,301
                               ________________  ________________
Cash and cash equivalents at
 end of period                 $      1,232,952  $        904,224
                               ________________  ________________

5
<PAGE>




       FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY

              CONSOLIDATED STATEMENTS OF CASH FLOWS
                           (Unaudited)

        Increase (Decrease) in Cash and Cash Equivalents

                           [Continued]

                                   For the Three Months Ended
                                         September 30,
                               __________________________________
                                     2000              1999
                               ________________  ________________
Supplemental Disclosures of
 Cash Flow information:
  Cash paid during the period
   for:
     Interest                  $        270,140  $        280,805
     Income taxes              $          9,785  $              -


Supplemental Disclosures of Noncash investing and financing activities:
  For the three month period ended September 30, 2000:
     None

  For the three month period ended September 30, 1999:
       None





 The accompanying notes are an integral part of these financial
                           statements.
6
<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
  September  30,  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 September 30,  2000
  is  not necessarily indicative of the operating results for the
  full year.

NOTE 2 - GAIN ON INSURANCE CLAIMS FROM HURRICANES

   During  September 1999, the Company experienced flooding and
   the 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
   of  approximately $277,172 to inventory and $389,063 to property,
   plant  and equipment,   which  includes  $300,000  in  damages
   to the Company's yacht mold and $51,658 in additional expenses.
   The Company filed a business interruption claim for damages due
   to  lost  revenues from the closure of the production facility
   and  inefficiencies due to storm preparation, cleanup and work
   force  shortages.   As  of September 30, 2000,  the  insurance
   carriers  have  paid $1,058,618 for damages to the  inventory,
   property,  plant, and equipment including the Yacht  Mold  and
   other  expenses.   The Company filed its  claim  for  business
   interruption and believes it complied with all aspects of  its
   policy.  When a timely and reasonable resolution could not  be
   reached,   the  Company  filed  suit  against  its   insurance
   carrier.   As of September 30, 2000 the insurance carrier  has
   advanced  $951,650  towards the business  interruption  claim.
   During  fiscal year 2000 the Company has recorded  a  gain  on
   insurance  claims from the hurricanes of $891,539. On  October
   10,  2000  checks  totaling $1,350,000 were  received  by  the
   Company  from the insurance carrier in full and final  payment
   of all claims.



NOTE 3 - ACCOUNTS RECEIVABLE

  As  of  September 30, 2000, accounts receivable were $2,282,950
  net   of  the  allowance  for  bad  debts  of  $27,841.    This
  represents an increase of $581,307 from the $1,701,643  in  net
  accounts  receivable  recorded  at  June  30,  2000.   Of   the
  $2,282,950  balance  at  September  30,  2000,  $1,767,509  has
  subsequently  been collected as of October 11,  2000,  and  the
  remaining $515,441 is believed to be fully collectible.
 7
 <PAGE>








       FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY
                            (Unaudited)

           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


NOTE 4 - INVENTORIES

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

                                     September 30,      June 30,
                                        2000             2000
                                    _____________   _____________
         Parts and supplies         $   3,395,605   $   3,402,176
         Work-in-process                1,691,303       3,743,713
         Finished goods                   872,082         884,247
         Obsolete inventory reserve      (150,000)       (150,000)
                                    _____________   _____________
           Total                    $   5,808,990   $   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.

  The  sales  incentives  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 the 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.

 8
 <PAGE>





       FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY
                            (Unaudited)

           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


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
  September   30,  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  $32,235,188.  The Company has reserved  for  the
  future  losses  it  might  incur  upon  the  repossession   and
  repurchase  of  boats from commercial lenders.  The  amount  of
  the  allowance is based upon probable future events, which  can
  be  reasonably estimated.  At September 30, 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 $372,675  for
  the  first three months of Fiscal 2001 and are included in  the
  accompanying consolidated statements of operations as  part  of
  selling  expense.  At September 30, 2000, the estimated  unpaid
  dealer   incentive   interest  included  in  accrued   expenses
  amounted to $534,978.
9
<PAGE>


       FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY
                           (Unaudited)

           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


NOTE 7 - TRANSACTIONS WITH RELATED PARTIES

  At  September  30, 2000, the Company had receivables  from  and
  advances to employees of the Company amounting to $9,198.

  The  Company  paid  $75,082 for the three  month  period  ended
  September  30,  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  three  month  period ended September  30,  2000,  the
  Company  provided $0 for current income taxes and a benefit  $0
  for deferred income taxes.

NOTE 9 - STOCK OPTIONS

  At  September  30,  2000 there were 526,000  unexercised  stock
  options,  of which 510,000 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  computations  of  earnings (loss) per  share  and  diluted
  earnings per share amounts are based upon the weighted  average
  number  of outstanding common shares during the periods,  plus,
  when  their effect is dilutive, additional shares assuming  the
  exercise  of  certain  vested stock  options,  reduced  by  the
  number  of  shares which could be purchased from  the  proceeds
  from  the  exercise  of the stock options  assuming  they  were
  exercised.   Diluted  earnings per share for  the  three  month
  period ended September 30, 2000 and 1999, was not presented  as
  its effect was anti-dilutive.

  NOTE 11 - SUBSEQUENT EVENTS

  On  October 10, 2000, checks totaling $1,350,000 were  received
  by  the  Company from the insurance carrier in full  and  final
  payment  of  all insurance claims (See Note 2).  Proceeds will
  be used to pay  legal, accounting, and other hurricane claims
  associated expenses  of  approximately $202,000.



10
<PAGE>







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

Results of Operations.

     The operating loss for the first quarter ended September 30,
2000  was  $(526,339)  or $(.11) per share versus  $(399,656)  or
$(.08)  per  share for the corresponding period of  the  previous
year.   The  operating loss as a percent of sales for  the  first
quarter  of  Fiscal 2001 was (3.8)% versus (3.7)%  for  the  same
period  the  previous Fiscal year. The net  loss  for  the  first
quarter  of  Fiscal 2001 was $(490,724) or $(.10) per share.   This
compares  to a net loss of $(369,758) or $(.08) per share  for  the
first quarter of Fiscal 2000.

      Net  sales were $13,686,344 for the first quarter of Fiscal
2001  as  compared to $10,795,168 for the first  quarter  of  the
prior  Fiscal year.  Unit sales volume for the first  quarter  of
Fiscal  2001 was 96 boats as compared to 89 boats for  the  first
Fiscal  quarter  of 2000. The hurricanes that hit  eastern  North
Carolina in September, 1999 (see Note 2) disrupted production and
shipments of boats and had an adverse effect on the first quarter
of  Fiscal  2000.   Sales  revenue for  the  three  months  ended
September  30, 2000, was 3 % below planned sales revenue.   Sales
were  affected  by the cooler than normal weather experienced  by
much of the United States this past summer.

The  Company  believes the introduction of the new line  of  wide
beam  cruisers,  which is intended to address the growing  demand
for family-oriented cruisers in the North American middle market,
will  generate additional sales revenue and the Company will meet
its planned boat sales revenue of $54,000,000 for fiscal 2001.

     For  the  first quarter of Fiscal 2001, the gross margin  on
sales  was  $1,895,127 (14%) as compared to $2,035,227 (19%)  for
the  first  quarter of the prior fiscal year.   The  decrease  in
gross margin was due primarily to higher than expected production
costs,  particularly   cost  of sale for  the  65  Yacht,  higher
insurance  costs  because  of  increased  rates  caused  by   the
hurricanes, and higher development costs associated with the wide
beam cruisers mentioned above.

      Selling  expenses were $1,673,774 for the first quarter  of
Fiscal  2001 as compared to $1,713,380 for the first  quarter  of
last Fiscal year.  Decreased selling expense was primarily due to
a  decrease  in  racing  expense (383,000)  and  an  increase  in
advertising  expense  (188,000) and dealer  floor  plan  interest
(162,000).

      General and administrative expenses were $747,692  for  the
first  quarter  of  Fiscal 2001 as compared to $721,503  for  the
first quarter of last Fiscal year.

      Interest expense for the first quarter of Fiscal  2001  was
$253,691  as compared to $283,391 for the first quarter  of  last
year.



11
<PAGE>



      Other  non-operating (income)/expense for the first quarter
was  $(8,687) as compared to $(28,986) for the first  quarter  of
last fiscal year.


Financial Condition.

      The  Company's  cash  flows  for  the  three  months  ended
September 30, 2000 are summarized as follows:

        Net cash provided by operating activities....$    588,963
        "    " used in investing activities..............(711,945)
         "   "   used by financing activities............(627,505)

        Net    decrease   in   cash..................$   (750,487)
                                                     =============

      This  net decrease compares to a $(1,313,077) net  decrease
for the first three months of the prior fiscal year.

      Cash  used  in  the first three months of  Fiscal  2001  to
acquire  additional  property, plant,  and  equipment  (investing
activity)  amounted to $711,945 of which $25,657  was  for  other
assets.

      For  the  remainder of the year ending June  30,  2001  and
beyond,  the Company expects to generate sufficient cash  through
operations  to  meet  its  needs and obligations.   In  addition,
management  believes that with the near term  settlement  of  its
pending  insurance  claim,  the Company's  sales  and  production
volume  will continue to grow with a gradual improvement  in  net
earnings  and  cash flow.  Most of the Company's  cash  resources
will be used to maintain and improve its plant and equipment  and
for new product tooling.

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.


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      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-K.

     (a)  No Exhibits


     (b)  The Registrant filed no Current Reports on Form 8-K during
        the first three 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:  /S/David A. Simmons               Date: October 31, 2000
     Chief Financial Officer and
     Designated Principal Accounting
     Officer
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