FOUNTAIN POWERBOATS COMPLETES FINANCING ARRANGEMENT

Washington, NC, July 18, 2003 -- Fountain Powerboat Industries, Inc. (NASDAQ: FPWR) President and Chief Executive Officer Reginald M. Fountain, Jr. announced the implementation of an $18 million long-term financing arrangement with Bank of America, the proceeds of which are being used by the company to refinance existing long-term debt, pay current liabilities, and provide additional operating funds.
Fountain Powerboats has reported three consecutive quarters of operating profit and is in the process of closing its fourth fiscal quarter ended on June 30 during which it recorded strong sales. Mr. Fountain stated, "We believe the results of our operations during fiscal 2003, combined with the new financing, put us in a strong financial position going into our 2004 fiscal year."
The loan is secured by certain assets of Fountain Powerboats and Mr. Fountain and has been guaranteed by Brunswick Corporation, a division of which supplies marine engines used in the company's products.