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Fountain Press Release - Steady Performance in An Unsteady Market

Old 08-08-2008, 01:38 PM
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Default Fountain Press Release - Steady Performance in An Unsteady Market

July 31, 2008

Fountain Powerboats Inc. will post 2008 sales results approximately the same as last years results. “We feel extremely happy with our sales performance in 2008”, remarked Fountain CEO Reggie Fountain. “ The Fountain brand has worldwide recognition based on a strong marketing plan that is paying off for us in a soft market”. The National Marine Manufactures Association has posted that the manufactures are down in sales from 2008 compared to 2007 between 25-30% across the board. “Our strategy to focus our dealers network on high credentials of excellence in financial capability, service certifications, completion of sales training curriculum, and sales facility qualifications has produced more sales with less dealers, said Fountain Powerboat President David Knight. “Our dealer network is working better together with our factory than before. Our dealer meetings are scheduled in August to enter the orders for the 2009 models.”

Although the daily headlines from around the marine industry are filled with news of plant closings, corporate downsizing, losses in profits by many, Fountain is making headlines of company investment and market expansion through the recent acquisition of Baja Marine. On July 21, 2008 Governor Mike Easley announced that the State of North Carolina would award a JDIG grant to Fountain Powerboats. Fountain is investing $12 million over the next five years to expand the facility in Washington NC. Fountain has announced it will move operations of recently acquired Baja Marine to the Washington NC facility. Fountain plans to add 250 jobs as they ramp production of the Baja product line. David Knight commented “ The Baja product line is a perfect complement to the existing Fountain product family. Baja gives us an entry level high performance addition to our sport boats and performance cruiser product lines. Baja brings us an additional dealer network of 87 dealers around the world. This gives us new sales channels to move Fountain and Baja products through that will continue to expand our sales revenues both in North America and International sectors.” During the year just ended on June 30. 2008, Fountain’s international sales increased by over 35% over 2007. Baja’s international sales ending December 31, 2007 was up 74% over previous year results.

Fountain management has presented the 2009 budget to their banking partners. They have preliminary approved the cost reductions and business enhancement programs associated with the 2009 business models. Fountain CFO Irving Smith said “ Many of the cost reductions in the 2009 budget are already completed and the others are in process. Our financial partners liked our conservative business model and efficiency improvements to build cash in our operation in 2009. Fountain’s experienced management team has really pulled together to develop and implement this budget that increases efficiency, reduces cost, and builds cash for the 2009 year”. We believe we have presented a plan to The American Stock Exchange that demonstrates our ability to comply with their listing standards going forward,” commented Smith.

Sales of Fountain boats have been steady in a declining marine market in 2008. The acquisition of Baja Marine and the move of the operation to North Carolina will generate additional revenues and be generally absorbed by the existing overhead structure of the company without additional cost. The early success of the Fountain Dealer’s Factory Superstore to support sales to the existing dealer network and expand sales in Virginia, North Carolina, and South Carolina will continue to increase revenues for the company in 2009. The expansion of the Fountain Factory Service Department will expand revenues of aftermarket sales to existing Fountain customers. The addition of the Baja sportswear line to the Fountain sportswear line will provide additional sales dollars through an ever expanding internet site. “ I think the company is in a strong position entering 2009 with our people, products, and dealers to gain strength during an unsteady market for others, said CEO Reggie Fountain. “We want to let everyone know what the facts really are with Fountain Powerboats.”
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