Dunkirk & Fredonia Telephone Co. to join Lynch Corp. Multimedia Group.

GREENWICH, Conn.--(BUSINESS WIRE)--Lynch Corp. (AMEX:LGL) announced today that a subsidiary has entered into a contract, pursuant to its previously announced letter of intent, under which privately owned Dunkirk & Fredonia Telephone Co. and its subsidiaries, Cassadaga Telephone Corp., Comantel Inc., and D&F Cellular Telephone Inc. will join Lynch's multimedia group.

Robert A. Maytum, whose family has owned the company for 100 years, president of Dunkirk & Fredonia, and his management team will continue to guide and grow the company.

This agreement exemplifies Lynch's policy of providing family-owned telephone companies with a customized transaction, giving them capital and management continuity.

Dunkirk & Fredonia Telephone Co. serves approximately 10,700 access lines in western New York including the community of Fredonia where a campus of the state university is located, the Village of Cassadaga and the Hamlet of Stockton. Lynch's total access lines will increase to over 27,000 in six states, which will make it about the 50th largest telephone company in the United States. Dunkirk & Fredonia also owns and operates other telecommunications businesses including long distance resale and sales and servicing of telecommunications equipment.

In 1989, Lynch acquired Western New Mexico Telephone Co. Inc., whose service area covers over 15,000 square miles in southwestern New Mexico. In 1991, Lynch completed the acquisition of Inter-Community Telephone Co., which serves an area located west of Fargo, N.D. Also in 1991, Lynch completed the acquisition of Cuba City Telephone Exchange Co. and Belmont Telephone Co. which serve two exchanges in southwestern Wisconsin. In 1992, Lynch acquired Bretton Woods Telephone Co. which serves the resort area of Bretton Woods in northern New Hampshire. In 1993, Lynch acquired JBN Telephone Co. located in northeastern Kansas. In 1994, Lynch acquired Haviland Telephone Co. located in south central Kansas. In addition, Lynch has pending two additional transactions in two separate serving areas comprising over 1,500 assess line, that are expected to close late 1995, or early 1996.

Lynch also owns approximately 48,000 cellular POPs and the right to distribute Direct Broadcast Satellite television service to over 10,000 homes.

Details of the proposed transaction, which is subject to certain conditions including regulatory approvals, were not disclosed.

Lynch is a diversified company with subsidiaries in multimedia, services and manufacturing, and actively seeks acquisitions, principally in existing business areas.

CONTACT: Lynch Corp.

Mario J. Gabelli, 203/629-3333