SOURCE: Fountain Powerboats

October 24, 2005 09:45 ET

Fountain Powerboats Reports Record Number of Orders at Annual Dealer Meeting

Demand Remains Strong as High-End Product Line Drives Sales of 75 New Boats and Backlog to More Than $60 Million

WASHINGTON, NC -- (MARKET WIRE) -- October 24, 2005 -- Fountain Powerboat Industries, Inc. (AMEX: FPB), a subsidiary of Fountain Powerboat Industries, Inc. and leading manufacturer of high performance sport boats, fish boats and express cruisers, today announced that it recorded approximately $15 million in new boat sales from dealers and agents representing North America, Europe and the Middle East at the company's annual dealer meeting held October 17th and 18th.

"Despite rumors of marine industry leaders lowering production and choking on inventory levels, demand for Fountain powerboats continues to climb," commented Fountain Powerboats CEO and President Reginald M. Fountain, Jr. "Our inventory levels are extremely low, an average of about three boats per dealer. With more than 27 models of boats and $15 million in new orders booked during our dealer meeting, it is evident that the strength of our brand, the leadership of our dealer network, and socioeconomic mix of our target market will allow us to meet our sales projections of $80 million for fiscal 2006."

The two-day dealer meeting, hosted by Fountain Powerboats' founder Reggie Fountain, was held at the company's corporate facilities in Washington, NC. Attendees participated in new product presentations, exchanged ideas on innovative sales and marketing programs, and discussed strategies for efficiently scaling their businesses.

"Fountain is definitely the manufacturer to be doing business with in today's environment," said 30-year marine veteran, Michael Black, Owner and President of South Austin Marine, an Austin, Texas-based authorized Fountain Dealer. "Fountain has the whole package -- product, management, and sales support. I'm glad to work with a manufacturer who listens to their dealers. Fountain has what all dealers want to be part of and the history to back it up!"

"We are extremely bullish on the future," commented David Knight, Executive Vice President of Fountain Powerboats. "Our team has worked extremely hard to build the business infrastructure necessary to produce and support a global dealer and customer network that will allow us to meet projected revenues of $80 million for fiscal 2006. It was important to see our dealers respond so positively to the roll-out of our 2006 sales and marketing programs as we still have our largest new order opportunities in front of us with the upcoming boat shows in Ft. Lauderdale, New York and Miami."

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 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 located on 65 acres totaling over 238,000 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, Inc. 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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