Offshoreonly.com - Fountain Powerboats Reports Fiscal 2008 Second Quarter and Six-Month Financial Result

Fountain Powerboats Increases Revenue 16.6 Percent for Second Quarter

WASHINGTON, NC--(MARKET WIRE)--Feb 14, 2008 -- Fountain Powerboat Industries, Inc. (AMEX:FPB - News), a leading manufacturer of high performance sport boats, fish boats and express cruisers, today announced the results of its fiscal 2008 second quarter and six-month period ended December 31, 2007.

"With the marine market continuing to decline, we are pleased to report that we have increased our revenue 16.6 percent for the second quarter, when compared to last year's second quarter," commented Reginald M. Fountain, Jr., Fountain Powerboats Chairman and Chief Executive Officer. "In addition to increased revenue for the quarter, we improved our gross margins and curtailed expenses, which allowed us to decrease our loss for the quarter by approximately 48 percent.

"Historically," continued Fountain, "the second quarter is generally our weakest quarter, so we were very encouraged by our dealers' success at the fall and winter boat shows. We are looking forward to their continued success at the Miami International Boat Show, being held this month."

Second Quarter Financial Results

-- Net sales for the second quarter of fiscal 2008 were $15,196,038, an
increase of approximately 16.6 percent, when compared to net sales of
$13,032,786 for the comparable quarter of fiscal 2007.

-- Gross profit for the quarter was $2,216,271, with a gross profit
margin of approximately 14.6 percent, versus a gross profit of $1,123,938,
with a gross profit margin of 8.6 percent, for the second quarter of fiscal
2007.

-- Operating loss for the quarter was $447,076, a significant
improvement, when compared to an operating loss of $2,015,301 for the
second quarter of fiscal 2007.

-- Net loss for the quarter was $765,055, or net loss per share of $0.16
on a basic and diluted basis, versus a net loss of $1,495,478, or net loss
per share of $0.31 on a basic and diluted basis, for the second quarter of
fiscal 2007.

Six-Month Financial Results

-- Net sales for the first six months of fiscal 2008, ended December 31,
2007, were $33,245,468, compared to net sales of $32,446,638 for the first
six months of fiscal 2007.

-- Gross profit was $4,920,857, with a gross profit margin of
approximately 14.8 percent, versus a gross profit of $3,999,855, with a
gross profit margin of 12.3 percent, for the first six months of fiscal
2007.

-- Operating income was $191,393, compared to an operating loss of
$2,053,806 for the first six months of fiscal 2007.

-- Net loss was $491,676, or a loss per share of $0.10 on a basic and
diluted basis, compared to a net loss of $1,692,148, or a loss per share of
$0.35 on a basic and diluted basis, for the first six months of fiscal
2007.

"Overall, the first six months of fiscal 2008 show a marked improvement, which we believe will continue throughout the remainder of fiscal 2008," added Fountain.

About Fountain Powerboats, Inc.

Fountain Powerboats, Inc., a subsidiary of Fountain Powerboat Industries, Inc., has its executive offices and manufacturing facilities along the Pamlico River in Beaufort County, North Carolina. The company designs, manufactures and sells offshore sport boats, sport fishing boats and express cruisers that target the segment of the recreational power boat market where speed, performance, safety and quality are the main criteria for purchase. These recreational boats are based upon an innovative, award-winning design enabling world class performance while using standard reliable power. There are currently 12 buildings located on 65 acres totaling over 237,000 square feet accommodating 40 to 45 boats in various stages of construction at any one time. The present plant site can also accommodate up to 300,000 square feet of additional manufacturing space. The land and buildings are wholly owned by Fountain Powerboat Industries, Inc. and its subsidiary, Fountain Powerboats.