Dunkirk & Fredonia Acquires Internet Service Provider.

RYE, N.Y.--(BUSINESS WIRE)--Jan. 12, 1999--Lynch Corporation (AMEX:LGL) announced that its subsidiary, Dunkirk & Fredonia Telephone Company, has acquired the assets of CommunityNet, LLC, an internet service provider (ISP), currently serving over 1,500 customers. Aside from expecting to increase its ISP customer base to over 6,500 subscribers (more than doubling its subscriber count since the beginning of 1998), this transaction expands the geographic reach of Dunkirk & Fredonia from its base in Chautauqua County, NY, eastward into the city of Olean, NY and parts of Pennsylvania. On a consolidated basis, this acquisition increases Lynch's total internet subscribers to over 9,500.

Dunkirk & Fredonia's ISP operations compliment two of its current growth initiatives. DFT Select One, which has received authority from the State of New York Department of Public Service to initiate competitive local exchange carrier ("CLEC") service in New York State, expects to offer resale CLEC service in Dunkirk, NY in the second quarter of 1999. Additionally, earlier this year, Dunkirk & Fredonia launched DFT Long Distance which will be able to provide long distance services to its landline telephony, CLEC and internet service areas.

This release contains forward-looking information which will depend of future events and is therefor subject to uncertainties, risks and inaccuracies.

Lynch is a diversified company with subsidiaries in multimedia, services and manufacturing, and actively seeks acquisitions, principally in existing business areas. Lynch Corporation is listed on the American Stock Exchange under the symbol LGL. The Company's World Wide Web address is: http://www.lynchcorp.com.