<DOCUMENT>
<TYPE>11-K
<SEQUENCE>1
<FILENAME>lynch11k-2.txt
<DESCRIPTION>LYNCH CORPORATION 401(K) PLAN
<TEXT>

                       SECURITIES AND EXCHANGE COMMISSION

                              Washington, DC 20549





                                    FORM 11-K


[X ]     ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
         EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2000

[   ]    TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
         SECURITIES EXCHANGE ACT OF 1934


For the transition period from ________ to _________

Commission File Number 1-106


A.       Full title of Plan:

                  401(k) SAVINGS PLAN OF LYNCH CORPORATION
                  AND PARTICIPATING EMPLOYERS

B.       Name of issuer of the securities held pursuant to the Plan and address
         of its principal executive officer:

                  Lynch Corporation
                  401 Theodore Fremd Avenue
                  Rye, New York 10580


<PAGE>








AUDITED FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULE
401(k) SAVINGS PLAN OF LYNCH CORPORATION
AND PARTICIPATING EMPLOYERS


Years ended December 31, 2000 and 1999


<PAGE>



                    401(k) SAVINGS PLAN OF LYNCH CORPORATION
                           AND PARTICIPATING EMPLOYERS


                          Audited Financial Statements
                            and Supplemental Schedule

                     Years ended December 31, 2000 and 1999






                                    Contents



Report of Independent Auditors...............................................1

Audited Financial Statements

Statements of Net Assets Available for Benefits..............................2
Statements of Changes in Net Assets Available for Benefits...................3
Notes to Financial Statements................................................4

Supplemental Schedule

Schedule H, Line 4(i) Schedule of Assets Held for Investment
  Purposes at End of Year....................................................9


<PAGE>










                              Supplemental Schedule

<PAGE>








                         Report of Independent Auditors

Board of Directors
Lynch Corporation


We have audited the accompanying statements of net assets available for benefits
of the 401(k)  Savings Plan of Lynch  Corporation  and  Participating  Employers
(formerly the Lynch Corporation 401(k) Savings Plan) as of December 31, 2000 and
1999, and the related statements of changes in net assets available for benefits
for the years then ended.  These financial  statements are the responsibility of
the  Plan's  management.  Our  responsibility  is to express an opinion on these
financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable  assurance about whether the financial  statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting  the amounts and  disclosures in the financial  statements.  An audit
also includes assessing the accounting principles used and significant estimates
made by  management,  as well as  evaluating  the  overall  financial  statement
presentation.  We believe  that our audits  provide a  reasonable  basis for our
opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all  material  respects,  the net assets  available  for benefits of the Plan at
December  31,  2000 and 1999,  and the changes in its net assets  available  for
benefits for the years then ended,  in  conformity  with  accounting  principles
generally accepted in the United States.

Our audits were performed for the purpose of forming an opinion on the financial
statements taken as a whole. The  accompanying  supplemental  schedule of assets
held  for  investment  purposes  at end of  year as of  December  31,  2000,  is
presented for purposes of additional  analysis and is not a required part of the
financial statements but is supplementary information required by the Department
of Labor's Rules and Regulations for Reporting and Disclosure under the Employee
Retirement  Income  Security  Act of  1974.  The  supplemental  schedule  is the
responsibility of the Plan's  management.  This  supplemental  schedule has been
subjected  to  auditing  procedures  applied  in our  audits  of  the  financial
statements  and, in our opinion,  is fairly  stated in all material  respects in
relation to the financial statements taken as a whole.

                                                   /s/ ERNST & YOUNG LLP


Stamford, Connecticut
June 15, 2001

                                                                             1

<PAGE>


<TABLE>

                    401(k) SAVINGS PLAN OF LYNCH CORPORATION
                           AND PARTICIPATING EMPLOYERS

                 Statements of Net Assets Available for Benefits


<CAPTION>
                                                              December 31
                                                          2000         1999
                                                      -------------------------
Assets
<S>                                                   <C>             <C>
Investments ....................................      $4,562,386      $4,100,781

Contribution receivable from employer ..........            --             4,807
                                                      ----------      ----------

Total assets ...................................      $4,562,386       4,105,588

Liabilities

Other liabilities ..............................            --               369
                                                      ----------      ----------

Total liabilities ..............................            --               369

Net assets available for benefits ..............      $4,562,386      $4,105,219
                                                      ==========      ==========


See accompanying notes.
</TABLE>
                                                                         2

<PAGE>
<TABLE>





                    401(k) SAVINGS PLAN OF LYNCH CORPORATION
                           AND PARTICIPATING EMPLOYERS

           Statements of Changes in Net Assets Available for Benefits
<CAPTION>
                                                                   Years Ended December 31
                                                                     2000          1999
                                                                 --------------------------
Additions:
  Investment income:
    Net appreciation (depreciation) in fair value of investments:
<S>                                                              <C>            <C>
      Employer stock funds ...................................   $    15,668    $   510,654
      Mutual funds ...........................................       (91,096)        71,501
                                                                 -----------    -----------
                                                                     (75,428)       582,155
    Interest and dividends ...................................       393,792        216,316
                                                                 -----------    -----------
                                                                     318,364        798,471
Contributions:
  Participants ...............................................       255,262        357,374
  Employer ...................................................        20,290         19,210
Transfer from Lynch Interactive Corporation 401(k) Plan ......     1,337,354           --
                                                                 -----------    -----------
Total additions ..............................................     1,931,270      1,175,055

Deductions:
Benefits paid directly to participants .......................      (314,532)      (224,643)
Excess contributions and related investment income distributed
   to participants ...........................................        (9,689)          --
Other ........................................................        (1,233)        (1,296)
Transfer to Lynch Interactive Corporation 401(k) Plan ........    (1,148,649)          --
                                                                 -----------    -----------
                                                                  (1,474,103)      (225,939)

Net increase .................................................       457,167        949,116

Net assets available for benefits at beginning of year .......     4,105,219      3,156,103
                                                                 -----------    -----------
Net assets available for benefits at end of year .............   $ 4,562,386    $ 4,105,219
                                                                 ===========    ===========

See accompanying notes.


</TABLE>





                                                                           3

<PAGE>



                    401(k) SAVINGS PLAN OF LYNCH CORPORATION
                           AND PARTICIPATING EMPLOYERS

                          Notes to Financial Statements

                     Years ended December 31, 2000 and 1999


1.  Description of Plan

Effective May 15, 2000,  the name of the Plan was changed to the 401(k)  Savings
Plan of Lynch  Corporation  (the  "Company")  and  Participating  Employers (the
"Plan").

The following  description of the Plan provides only general information.  For a
more complete description of the Plan's provisions, participants should refer to
the Plan Agreement, which is available from the Company.

General

The Plan is a defined  contribution  plan covering  substantially  all non-union
employees of the Company and the  employees of certain of its  subsidiaries  who
are at  least 18 years of age and who  have  completed  1,000  hours of  service
during a consecutive  twelve-month period. The Plan is subject to the provisions
of the Employee Retirement Income Security Act of 1974 ("ERISA").

On September 1, 1999, Lynch Corporation  spun-off Lynch Interactive  Corporation
and substantially all existing  employees of Lynch Corporation  became employees
of Lynch Interactive Corporation.  Lynch Interactive corporate employees and the
employees  of  Bretton  Woods  Telephone  Company,  a  subsidiary  of the  Lynch
Interactive  Corporation,  who  participated  in the Plan  during  1999,  ceased
contributing to the Plan as of the spin-off date. During 2000, Lynch Interactive
corporate employees transferred their fund balances of ($1,148,649) to the Lynch
Interactive  Corporation  401(k) Plan,  which was established at the time of the
spin-off. Additionally, Bretton Woods' employees transferred their fund balances
to its own plan. On May 15, 2000, the Lynch Interactive  Corporation 401(k) Plan
merged into the Plan and accordingly, assets of $1,337,354 were transferred into
the plan.

During  1999,  for each share of the  Company's  common  stock held in the Lynch
Corporation  stock  fund,  a stock  distribution  was made equal to one share of
Lynch  Interactive  Corporation  common  stock.  The  distribution  to the Lynch
Corporation stock fund was 5,965 common shares of Lynch Interactive  Corporation
common stock.

Contributions

Participants may elect to contribute,  on a pre-tax basis, between 1% and 15% of
their total annual  compensation to the Plan up to the maximum allowed under the
Internal Revenue Code ($10,500 in 2000 and $10,000 in 1999).


                                                                             4

<PAGE>


                    401(k) SAVINGS PLAN OF LYNCH CORPORATION
                           AND PARTICIPATING EMPLOYERS

                    Notes to Financial Statements (continued)

                     Years ended December 31, 2000 and 1999

1. Description of Plan (Continued)

Contributions (Continued)

An annual mandatory employer matching contribution is made to each participant's
account  equal to 25% of the first $800 of the  participant's  contribution,  as
defined in the Plan  agreement,  generally  on or about the closing  date of the
Plan  year.  In  addition,   the  Company  may  make  a  discretionary  matching
contribution  equal  to a  percentage  of the  first  $800 of the  participant's
contribution. No such discretionary contribution was made in 2000 or 1999.

Participants' Accounts

Each participant's account is credited with the participant's  contributions and
Plan  earnings.  Allocations  are  based  on  participant  earnings  or  account
balances,  as defined in the Plan agreement.  The benefit to which a participant
is entitled is the benefit that can be provided from the participant's account.

Vesting

Participants  are vested  immediately in all  contributions  to their  accounts,
including the Company's matching contributions (mandatory and discretionary,  if
any) and investment earnings.

Payment of Benefits

Participant  benefits are paid as soon as practicable  following  termination of
employment,  permanent disability,  retirement, death or upon termination of the
Plan in accordance  with the terms of the Plan agreement.  All benefit  payments
are made in lump  sum  payments  for an  amount  equal to the fair  value of the
participants' vested account balance.

Investment Options

All of the  Plan's  investment  options  are fully  participant  directed.  Upon
enrollment  in the Plan,  a  participant  may direct  employer  and  participant
contributions  in 1%  increments  into  any of the  Plan's  investment  options.
Participants may change their investment options daily.

                                                                           5


<PAGE>

                    401(k) SAVINGS PLAN OF LYNCH CORPORATION
                           AND PARTICIPATING EMPLOYERS

                    Notes to Financial Statements (continued)

                     Years ended December 31, 2000 and 1999

1.   Description of Plan (Continued)

Investment Options (Continued)

During 1999,  East/West  Communications  Inc.  (which became an affiliate of the
Company  upon a spin off to its  shareholders,  its  common  stock  interest  in
East/West)  offered, at no cost to the shareholders of its Class A common stock,
a non-transferable  right to purchase one additional share of its Class A common
stock. The right entitled shareholders to purchase one additional share of Class
A common  stock for every four shares of Class A common  stock held at $1.50 per
share.  Participants  in the Plan had the option to  participate  in this rights
offering.

Participant Loans

Participants  may borrow  from their fund  accounts a minimum of $1,000 or up to
50% of their account balance (not to exceed  $50,000).  All loans must, by their
terms,  require repayment over a period not to exceed five years, unless for the
purchase  of the  participant's  primary  residence  for which the term shall be
determined  by the  Company.  The loans are secured by 50% of the balance in the
participant's  account and bear  interest at a reasonable  rate as determined by
the Plan administrator.

Plan Termination

Although  it has not  expressed  any intent to do so, the  Company has the right
under the Plan to discontinue its contributions at any time and to terminate the
Plan subject to the provisions of ERISA.

Expenses

All of the Plan's administrative expenses are paid by the Company.

2.  Summary of Accounting Policies

Use of Estimates

The preparation of financial statements in conformity with accounting principles
generally  accepted in the United States  requires  management to make estimates
that affect the amounts  reported in the financial  statements and  accompanying
notes. Actual results could differ from those estimates.

                                                                           6


<PAGE>



                    401(k) SAVINGS PLAN OF LYNCH CORPORATION
                           AND PARTICIPATING EMPLOYERS

                    Notes to Financial Statements (continued)

                     Years ended December 31, 2000 and 1999

2.   Summary of Accounting Policies (Continued)

Investment Valuation

Except for the unallocated  guaranteed  investment contracts in 1999, the Plan's
investments  are  stated at fair  value.  The  shares of  registered  investment
companies  (i.e.,  mutual  funds)  are  valued at quoted  market  prices,  which
represent  the net asset  values of shares held by the Plan at  year-end.  Lynch
Corporation,  Lynch Interactive  Corporation and East/West  Communications  Inc.
Class A common  stock are valued at the last  reported  sales  price on the last
business day of the year. The participant  loans are valued at their outstanding
principal balances, which approximate fair value.

The unallocated  guaranteed  investment  contracts were valued at contract value
which  approximated  fair value as  estimated  by the John  Hancock  Mutual Life
Insurance Company  ("Hancock").  Contract value represented  contributions  made
under the contract,  plus interest at the contract rate,  less funds used to pay
retirement benefits and certain administrative expenses.

Purchases and sales of securities are recorded on a trade-date basis. Historical
cost of the Plan's  investments  are determined by the weighed  average  method.
Interest income is recorded on the accrual basis.  Dividends are recorded on the
ex-dividend date.

3. Investments

Individual investments for each respective year that represent 5% or more of the
Plan's net assets available for benefits are as follows:


<PAGE>
<TABLE>
<CAPTION>


                                                   December 31
                                                 2000         1999
                                              -----------------------
<S>                                           <C>          <C>
Fleet Stable Asset Fund ...................   $1,132,535   $1,184,811
Mutual Qualified Fund .....................    1,486,258    1,213,772
Mutual Discovery Fund .....................      458,760      332,127
Galaxy U.S. Treasury Fund .................      296,312      449,204
Lynch Corporation Common Stock ............      550,142         --
Lynch Interactive Corporation Common Stock.      475,542      565,094

</TABLE>



                                                                          7


<PAGE>



                    401(k) SAVINGS PLAN OF LYNCH CORPORATION
                           AND PARTICIPATING EMPLOYERS

                    Notes to Financial Statements (continued)

                     Years ended December 31, 2000 and 1999


4.  Contracts with Insurance Company

During 1999,  the Plan held  unallocated  guaranteed  investment  contracts with
maturities  in 1999 with Hancock.  Contributions  from the Plan were accepted by
Hancock  throughout the first year of each contract and interest was earned over
the contract lives at guaranteed  annual rates ranging from 5.39% to 6.56%.  The
underlying assets within the contract were restricted solely for  administrative
expenses and benefit payments made by the Plan.

5. Income Tax Status

The Plan has not applied for a  determination  letter from the Internal  Revenue
Service  stating that the Plan is qualified under Section 401(a) of the Internal
Revenue Code (the "Code").  The Plan  administrator has indicated that they will
take the necessary steps, if any, to maintain the Plan's qualified status.
























                                                                            8

<PAGE>

<TABLE>



                    401(k) SAVINGS PLAN OF LYNCH CORPORATION
                           AND PARTICIPATING EMPLOYERS

                            EIN-38-17909862 Plan-004
                             Schedule H, Line 4(i) -
                           Schedule of Assets Held for
                       Investment Purposes at End of Year

                                December 31, 2000
<CAPTION>

 Identity of Issuer, Borrower Lessor    Description of Investment, Including Maturity Date, Rate of      Current
          or Similar Party                            Interest, Par or Maturity Value                     Value
-------------------------------------- -------------------------------------------------------------- ---------------
<S>                                    <C>                                                                <C>
*Fleet National Bank                   Fleet Stable Asset Fund, 113,254 shares                            $1,132,535

                                       Galaxy U.S. Treasury Fund 296,312 shares                              296,312

                                       Mutual Qualified Fund, 89,480 shares                                1,486,258

                                       Mutual Discovery fund, 24,235 shares                                  458,760

                                       Short-term investment, 53,386 shares                                   53,386

*Lynch Corporation                     Lynch Corporation Common Stock, 12,794 shares                         550,142

*Lynch Interactive                     Lynch Interactive Corporation Common Stock,
     Corporation                         10,932 shares                                                       475,542

*Participant loans                     Loans bears interest between 7.75% and 8.5%
                                       with varying maturity dates                                           109,451
                                                                                                      ---------------
                                                                                                          $4,562,386
                                                                                                      ===============
<FN>

*Indicates party-in-interest to the Plan.


The cost column is not applicable as all of the Plan's investment programs are
fully participant directed.
</FN>


</TABLE>





                                                                            9

<PAGE>






                                    SIGNATURE





The Plan.  Pursuant to the requirements of the Securities  Exchange Act of 1934,
the 401(k) Savings Plan of Lynch  Corporation  and  Participating  Employers has
duly  caused this  annual  report to be signed on its behalf by the  undersigned
hereunto duly authorized.


                                    LYNCH CORPORATION 401(k) SAVINGS PLAN


                                    By: Robert E. Dolan
                                        -------------------------------------
                                        Robert E. Dolan
                                        Member of the 401(k) Plan Committee


Dated: June 29, 2001
       --------------
























                                                                          10
</TEXT>
</DOCUMENT>
