KennyOffShore

State Job Development Investment Grant Helps Company Add 250 Jobs in Washington.

WASHINGTON, NC - July 21, 2008 - Gov. Mike Easley announced today that Fountain Powerboats, Inc., a designer and manufacturer of high-performance oats, will at 250 jobs and invest $12 million over the next five years to expand its facility in Washington, NC. The state's Economic Investment Committee voted unanimously today to award a DJIG (Job Developoment Investment Grad) to the company to facilitate this project.

For each year in which the company meets to required performance targets, the state will provide a grant equal to 60 percent of that estate personal income withholding taxes derived from the creation of new jobs. Should the company create the jobs called for under the agreement and sustain them for 11 years, the agreement could yield as much as $2.5 mission for max benefits for Powerboats.

Job Development Investment Grants are awarded onl to new and expanding businesses and industrial projects whose benefits exceed the costs to the state and which would not be undertaken in North Caolina without the grant.

"For more than 200 years, North Caroline workers have been able to find jobs building boats," Easley said. "This industry continues to thrive in our state because of our highly trained workforce, top-ranked business climate and reputation for a superior quality of life. Whether traditional industries or high-tech newcomers, our state remains committed to providing the best environment for employers, workers and their families."

The company is expanding so it can produce a new line of boats on the compus. Earlier this year Brunswick Corp., the world's largest pleasure boat manufacturer, sold the assets of its high performance Baja Marine sports boat to Fountain, which will begin manufacturining the new 19-40 ft. Baja by Fountain.

Company founder and CEO, Reggie Fountain said, relocating a major production process from one state to another is a very expensive proposition. North Carolina's JDIG grand played strongly in our decision to relocate Baja boats to our existing North Carolina Factory.

I know the Governor had to stretch a bit to make this grant, and I appreciate it. He has always been a friend to Eastern North Carolina in general and Beaufort County in particular. This area of the State needs jobs, and these are great jobs paying good wages with steady work. Thank you to Governor Easlley and thanks also to the Beaufort Country Commissioners and the towns of Washington and Chocowinity which have always been such strong supporters of the Fountain Operations. In addition, a special thanks to Rep. Arthur Williams and Tom Thomson, Beaufort County Economic Development and Committee of 100 of the continued support.

In the past we have made world's fastest bats to the highest standards of quality using the best employees any manufacturer could hope for. Today's announcement means we're going to make even more boats, employing more of these great people.

Other partners who assisted with this announcement include:

About Fountain Powerboat Industries, Inc.
Fountain Powerboat Industries, Inc. has its executive offices and manufacturing facilities along the Pamilco River in Beaufort County, North Carolina. The Company, through its wholly owned subsidiary, Fountain Powerboats, Inc., designs, manufacturers and sells offshore sport boat, 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 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 Inc. and it subsidiary, Fountain Powerboats, Inc. For more information, visit www.fountainpowerboats.com