SOURCE: Fountain Powerboat

December 05, 2005 10:00 ET

Fountain Powerboat Announces Results of Annual Meeting

Shareholders Approve Two New Board Appointees and Ratify Selection of Dixon Hughes PLLC as Independent Public Accountants

WASHINGTON, NC -- (MARKET WIRE) -- December 5, 2005 -- Fountain Powerboat Industries, Inc. (AMEX: FPB), a leading manufacturer of high performance sport boats, fish boats and express cruisers, today announced the results of all items of business presented to shareholders at its annual meeting of shareholders, held Tuesday, November 30, 2005, at the Company's corporate headquarters in Washington, North Carolina.

Fountain shareholders approved the two proposals on the agenda for the meeting:

Shareholders approved the appointment of nine directors, seven incumbents and two new nominees, to Fountain Powerboat's board of directors. The two new directors included Anthony J. Romersa and Anthony A. Sarandes. Mr. Romersa previously served as Fountain's Executive Vice President and Chief Operating Officer (COO) from 1998 to 2002. Mr. Sarandes held the position of Chairman and Chief Executive Officer (CEO) for Equiflor Corporation.

The second proposal, ratification of the appointment of Dixon Hughes PLLC as independent public accountants, was approved by shareholders of the Corporation. Dixon Hughes, ranked as a top fifteen firm, was first appointed as Fountain's independent accountants in 2004. As independent public accountants, Dixon Hughes will continue to provide services including performing the audit of the corporation's annual financial statements, reviewing quarterly financial statements, tax preparation and consultation.

At the annual meeting of Fountain's shareholders, Fountain Powerboat's Chairman and Chief Executive Reginald M. Fountain Jr. highlighted the company's significant accomplishments during fiscal 2005 and outlined its strategy to deliver even greater value to customers and shareholders during fiscal 2006.

"The very positive results for fiscal 2005, ended June 30, 2005, are a reflection of the hard work of our entire team," commented Fountain. "This has been a successful year of strong brand building, business growth, product line expansion, and profitability for the company. We are confident the restructuring of our manufacturing process and procedures, coupled with the strengthening of our management team provides a strong foundation for increased revenue growth and profitability for fiscal 2006.

"We believe the support of our shareholders, the hard work of our management team and employees, along with the assistance of our newly appointed directors and independent auditors, will provide the catalyst to reach our goals and maintain a leadership role in the industry into 2006 and beyond," added Fountain.

Fiscal 2005 Highlights

In his Chairman's Report delivered during the meeting, Mr. Fountain highlighted a number of accomplishments during fiscal 2005. These accomplishments included:

--  Significant revenue growth for the year and a strong backlog that will
    be built out during fiscal 2006;
--  An increase in the manufacturing team, as well as the addition of
    multi-talented members to the management team;
--  The initiation of programs to increase manufacturing capacity,
    productivity and efficiency which significantly increased revenue growth
    and improved gross margins;
--  The launch of four new boat models;
--  The development of a sales training program to assist Fountain dealers
    in achieving their revenue goals;
--  An expanded and strengthened dealer network;
--  First quarter financial results indicate the Company is on target to
    achieve its projected revenue goal of $80 million for fiscal 2006 while
    significantly improving its bottom line over fiscal 2005.
    
About Fountain Powerboat Industries, Inc.

Fountain Powerboat Industries, founded in 1978, has its executive offices and manufacturing facilities on 66 acres along the Pamlico River in Beaufort County, North Carolina. The company designs, manufactures, and sells offshore sport boats, sport fishing boats and sport 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 totaling over 235,000 square feet located on 15 acres which can accommodate 30 to 40 boats in various stages of construction at any one time. The present plant site can accommodate up to 300,000 square feet of additional manufacturing space. The land and buildings are wholly owned by Fountain Powerboat Industries. For more information, visit www.fountainpowerboats.com.

SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS:

Except for the historical information contained herein, this press release contains forward-looking statements, including statements containing the words "planned," "expects," "believes," "strategy," "opportunity," "anticipates" and similar words. Such forward-looking statements are subject to known and unknown risks, uncertainties or other factors that may cause the company's actual results to be materially different from historical results or any results expressed or implied by such forward-looking statements. We assume no obligation to update any forward-looking statements to reflect events or circumstances arising after the date hereof. The potential risks and uncertainties which could cause actual growth and results to differ materially include, but are not limited to, customer acceptance of the company's services, products and fee structures, the success of the company's brand development efforts, the volatile and competitive nature of the industry, and changes in domestic and international market conditions, and foreign exchange rates. Further information on the factors and risks that could affect Fountain Powerboat Industries, Inc.'s business, financial condition and results of operations are included under the "Risk Factors" or "Factors Affecting our Operating Results" sections of Fountain Powerboat Industries, Inc. public filings with the Securities and Exchange Commission, available at (http://www.sec.gov).

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