SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                    FORM 8-K
                                    --------

                 CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934


Date of Report (Date of Earliest Event Reported)   July 30, 1999



                                LYNCH CORPORATION
                                -----------------
             (Exact name of Registrant as specified in its charter)




         Indiana                         1-106                38-1799862
         -------                         -----                ----------
(State or other jurisdiction      (Commission File Number)   (IRS Employer
      of Incorporation)                                     Identification No.)





401 Theodore Fremd Avenue, Rye, New York                           10580
----------------------------------------                           -----
Address of principal executive offices)                         (Zip Code)





Registrant's telephone number, including area code:   914/921-7601
                                                      ------------




<PAGE>



Item 2.  ACQUISITION OR DISPOSITION OF ASSETS

On  April  9,  1999,  Spinnaker  Industries,  Inc.  ("Spinnaker"),  Registrant's
approximately  61%  owned  subsidiary  (AMEX:SKK,  SKK.A)  entered  into a Stock
Purchase Agreement with Intertape Polymer Group, Inc. ("Intertape") for the sale
of  Spinnaker's  main  industrial  tape  subsidiary,  Central  Products  Company
("Central")  and  concurrently  entered into an Asset  Purchase  Agreement  with
Intertape providing for the sale of substantially all of the assets of its other
industrial  tape unit,  Spinnaker  Electrical Tape Company  ("Electrical"),  and
together  with   Central,   the   "Industrial   Tape   Businesses".   Intertape,
headquartered  in Montreal,  Quebec,  develops,  manufactures and markets a wide
variety of specialized  plastic and paper based packaging products and packaging
systems for industrial uses.

The   disposition  by  Spinnaker  of  the  Industrial   Tape   businesses   (the
"Disposition")  was completed  with the sale of Central  effective on August 10,
1999.  The  sale of the  assets  of  Electrical  closed  on July 30,  1999.  The
Industrial Tape Businesses  generated $121.8 million,  $119.7 million and $124.1
million of net sales for fiscal years ended  December  31, 1998,  1997 and 1996,
respectively,  and $53.5  million and $57.9  million  for the six month  periods
ended June 30, 1999 and 1998, respectively.

The  purchase  price paid by  Intertape to  Spinnaker  for the  Industrial  Tape
Businesses  was  allocated  as follows:  approximately  $81,450,000  in cash and
five-year  warrants to purchase  300,000  shares of Intertape  common stock at a
strike  price of $29.50  per  share  for  Central  and  $23,000,000  in cash for
Electrical.  Intertape is a  publically  traded  company with its common  shares
listed on the American  Stock  Exchange and the Toronto Stock Exchange under the
stock symbol "ITP."  Intertape's  common stock closed at  approximately  $28 per
share on August 6, 1999.

Proceeds from the sale of Central were first used to satisfy related transaction
costs and to repay  $18.1  million  of  working  capital  revolver  debt,  which
included all amounts owed by Central  under  Spinnaker's  $60 million  revolving
credit facility. The balance of the proceeds,  estimated to be approximately $60
million, are available to invest in any business, capital expenditure,  or other
tangible  asset  in  the  "Permitted  Businesses",  as  defined  in  Spinnaker's
Indenture. Any proceeds not so invested within 270 days after the closing of the
sale of Central  or not used to  permanently  reduce  indebtedness  (other  than
subordinated  debt)  shall  be used to  repurchase  Spinnaker's  10 3/4%  Senior
Secured  Notes  (the  "Senior  Notes") on a pro rata  basis as  required  by the
Indenture.  The proceeds from the sale of the Electrical assets, an unrestricted
subsidiary,  were used to repay certain term debt and working  capital  revolver
debt  collateralized  by the  assets  of  Electrical.  The  remaining  proceeds,
estimated  to be  approximately  $16  million,  will be  available  for  general
purposes or investments  of Spinnaker,  which may include  purchasing  Spinnaker
Senior Notes in the open market.  Senior Notes  currently trade at a substantial
discount  from the principal  amount.  This document  contains  certain  forward
looking  information.  Such  information  is based on  certain  assumptions  and
estimates and, accordingly,  may be subject to risk, uncertainty and inaccuracy,
which could be material.




<PAGE>



Item 7.  FINANCIAL STATEMENTS AND EXHIBITS

(b)      PRO  FORMA  FINANCIAL   INFORMATION.   Unaudited  pro  forma  financial
         statements of the Registrant and the Industrial  Tape  businesses as of
         June 30, 1999 and the six months periods ended June 30, 1999. Unaudited
         pro forma statement of operations for the year ended December 31, 1998.

(c)      EXHIBITS

2.1  Stock Purchase Agreement between Spinnaker and Intertape Polymer Group Inc.
     dated  April  9,  1999   (incorporated  by  reference  to  Exhibit  2.1  to
     Spinnaker's Form 8-K dated August 16, 1999)


2.2  Asset Purchase Agreement by and among Registrant  Spinnaker Electrical Tape
     Company and Intertape Polymer Group Inc. dated April 9, 1999  (incorporated
     by reference to Exhibit 2.2 to Spinnaker's Form 8-K dated August 16, 1999)

         Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended,  the  Registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.

                                LYNCH CORPORATION



Date: August 16, 1999                          By: /s/ Robert E. Dolan
                                                       Robert E. Dolan
                                                       Chief Financial Officer



<PAGE>



                       UNAUDITED PRO FORMA FINANCIAL DATA

The following  unaudited pro forma  financial  information  of the Registrant is
based on the historical  consolidated financial statements of the Registrant and
has been prepared to illustrate the effects of the  Disposition as though it had
occurred as of the beginning of the period presented for the pro forma statement
of operations.  Defined terms herein have the meanings given to them in the Form
8-K of which this is a part.

The pro forma adjustments include, in the opinion of management, all adjustments
necessary to give pro forma effect to the Disposition as though such transaction
had  occurred  as of the  beginning  of the period  presented  for the pro forma
statement of  operations  and as if it had occurred on June 30, 1999 for the pro
forma balance sheet.

The unaudited pro forma financial  information is not necessarily  indicative of
how the  Registrant's  balance sheet and results of  operations  would have been
presented had the Disposition actually been consummated at the assumed date, nor
is it necessarily  indicative of presentation of the Registrant's  balance sheet
and  results  of  operations  for any future  period.  The  unaudited  pro forma
financial  information  should  be  read  in  conjunction  with  the  historical
consolidated  financial  statements  and related notes  thereto  included in the
Registrant's  Annual Report on Form 10-K for the period ended  December 31, 1998
and the Registrant's Quarterly Report on Form 10-Q for the period ended June 30,
1999.

The  pro  forma  adjustments  are  based  upon  available   information.   These
adjustments  are directly  attributable  to the  Disposition and are expected to
have a continuing  impact on the Registrant's  business,  results of operations,
and financial position.


<PAGE>
<TABLE>


                                LYNCH CORPORATION
            UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
                             (Dollars in Thousands,
                           Except per Share Amounts)
<CAPTION>

                                                                       Pro Forma
                                              Six Months               Six Months
                                                Ended      Pro Forma     Ended
                                               06/30/99   Adjustments   06/30/99     Notes
                                               --------   -----------   --------     -----
SALES AND REVENUES:
<S>                                              <C>           <C>       <C>         <C>
    Manufacturing .........................   $ 93,774           -      93,774
                                              --------                  ------
                                                93,774           0      93,774
                                                ------           -      ------
COSTS AND EXPENSES:
    Manufacturing .........................     82,785           -      82,785
    Selling and administrative ............     10,594           -      10,594
                                                ------                  ------
OPERATING PROFIT ..........................        395           0         395
Other income (expense):
    Investment Income .....................          7       1,812       1,819          (6)
    Interest expense ......................     (4,529)     (3,497)     (8,026)       (4,5)
                                                ------      ------      ------
                                                (4,522)     (1,685)     (6,207)
                                                ------      ------      ------
INCOME (LOSS) FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES,  MINORITY INTERESTS ..     (4,127)     (1,685)     (5,812)
Benefit  (provision) for income taxes .....      1,637         674       2,311          (9)
Minority interests ........................      1,015         657       1,672         (10)
                                                 -----         ---       -----
NET INCOME(LOSS) FROM CONTINUING OPERATIONS   ($ 1,475)   ($   354)   ($ 1,829)
                                               ========    ========    ========

Weighted average shares outstanding           1,417,000               1,417,000

Basic and Diluted earnings per share:
NET INCOME                                      ($1.03)                  ($1.28)
</TABLE>


<PAGE>
<TABLE>



                               LYNCH CORPORATION
            UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
                             (Dollars in Thousands,
                           Except per Share Amounts)

<CAPTION>

                                                               Disposition                 Pro Forma
                                                  Year ended   of Industrial   Pro Forma   Year ended
                                                   12/31/98    Tape Business   Adjustments 12/31/98        Notes
                                                   --------    -------------   ----------- ---------       -----
SALES AND REVENUES:
<S>                                                  <C>             <C>       <C>       <C>            <C>
    Multumedia ................................   $  54,622         --           --      $  54,622
    Services ..................................     150,454         --           --      $ 150,454
    Manufacturing .............................     309,450    $(121,806)        --      $ 187,644
                                                    -------    ---------     -------     ---------
                                                    514,526    $(121,806)          0       392,720
                                                    -------    ---------     -------       -------
COSTS AND EXPENSES:
    Multumedia ................................      38,176         --           --      $  38,176
    Services ..................................     138,193         --           --      $ 138,193
    Manufacturing .............................     268,376     (105,641)        --      $ 162,735
    Selling and administrative ................      45,761      (12,897)        --      $  32,864
                                                     ------      -------      -------    ---------
OPERATING PROFIT ..............................      24,020       (3,268)           0       20,752
Other income (expense):
    Investment Income .........................       2,064         --          3,625    $   5,689          (6)
    Interest expense ..........................     (27,722)        --          1,845    ($ 25,877)         (4)
    Equity in earnings of afflaited companies .         317         --           --      $     317
    Gain on sales of subsidiary stock and other
        operating assets ......................       4,778         --           --      $   4,778
                                                      -----      -------      -------    ---------
                                                    (20,563)           0        5,470      (15,093)
                                                    -------      -------        -----      -------
INCOME (LOSS) FROM OPERATIONS BEFORE
INCOME TAXES,  MINORITY INTERESTS  DISCONTINUED
OPERATIONS AND EXTRAORDINARY ITEM .............       3,457       (3,268)       5,470    $   5,659
>
Benefit  (provision) for income taxes .........      (1,412)         722       (1,603)   ($  2,293)         (9)
Minority interests ............................       1,312         --         (1,001)   $     311         (10)
                                                      -----       ------     ---------    --------
NET INCOME(LOSS) ..............................   $   3,357    ($  2,546)   $   2,866    $   3,677
                                                  =========    =========    =========    =========

Weighted average shares outstanding               1,418,000                              1,418,000

Basic and Diluted earnings per share:
NET INCOME                                            $2.37                                  $2.59

</TABLE>

<PAGE>

<TABLE>

                               LYNCH CORPORATION
                UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEETS
                (Dollars in Thousands, Except per Share Amounts)
<CAPTION>

                                                                               Disposition
                                                                              of Industrial   Pro Forma     Pro Forma
                                                                 06/30/99     Tape Business   Adjustments   06/30/99        Notes
                                                                 --------     -------------   -----------   --------        -----
ASSETS

CURRENT ASSETS:
<S>                                                              <C>           <C>           <C>        <C>             <C>
Cash and Cash Equivalents ....................................   $     145         --         75,512    $  75,657         (1)
Receivables,less Allowances of $353 and $395 .................      24,309         --           --         24,309
Inventories ..................................................      31,477         --           --         31,477
Deferred income tax benefits .................................       8,717         --           --          8,717
Other current assets .........................................         809         --           --            809
Current assets of subsidiaries to be distributed to
   shareholders ..............................................      50,304         --           --         50,304
Current assets of discontinued operations ....................      31,986      (31,986)        --              0
                                                                    ------      -------       ------      -------
   TOTAL CURRENT ASSETS ......................................     147,749      (31,986)      75,512      191,273

PROPERTY,PLANT AND EQUIPMENT:
Land ................................................................. 672         --           --            672
Buildings and Improvements ...................................      10,833         --           --         10,833
Machinery and Equipment ......................................      53,177         --           --         53,177
                                                                    ------      ------        ------      -------
                                                                    64,682            0            0       64,682
Accumulated Depreciation .....................................     (19,690)        --           --        (19,690)
                                                                   -------      ------        ------      -------
                                                                    44,992            0            0       44,992
                                                                    ------      -------       ------      -------
EXCESS OF COST OVER FAIR VALUE OF
   NET ASSETS ACQUIRED, NET ..................................      22,472         --           --         22,472
OTHER ASSETS .................................................       6,415         --          3,000        9,415         (8)
NON-CURRENT ASSETS OF SUBSIDIARIES ...........................        --           --           --              0
   TO BE DISTRIBUTED TO SHAREHOLDERS .........................     151,677         --           --        151,677
NON-CURRENT ASSETS OF DISCONTINUED OPERATIONS ................      69,491      (69,491)        --              0
                                                                    ------      -------      -------      -------
    TOTAL  ASSETS ............................................   $ 442,794    ($101,477)     $78,512     $419,829
                                                                 =========    =========      =======     ========

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
   Notes payable to banks ....................................     $48,078         --        (20,095)      27,983           (2)
   Trade accounts payable ....................................      19,392         --           --         19,392
   Accrued interest payable ..................................       2,590         --           --          2,590
   Accrued liabilities .......................................       2,454         --           --          2,454
   Customer advances .........................................       2,714         --           --          2,714
   Current maturities of long - term debt ....................       2,198         --         (1,143)       1,055           (3)
   Current liabilites of subsidiaries to be distributed to
      shareholders ...........................................      36,272         --           --         36,272
   Current liabilites of discontinued operations .............      15,338      (15,338)        --              0
                                                                    ------      -------        ------      ------
      TOTAL CURRENT  LIABILITIES .............................     129,036      (15,338)     (21,238)      92,460
LONG-TERM DEBT ...............................................     126,380         --         (3,750)     122,630           (3)
DEFERRED INCOME TAXES ........................................       8,854         --          7,728       16,582           (7)
OTHER LONG TERM LIABILITIES ..................................       1,901         --           --          1,901
NON-CURRENT LIABILITIES OF SUBSIDIARIES
   TO BE DISTRIBUTED TO SHAREHOLDERS .........................     139,682         --           --        139,682
NON-CURRENT LIABILITIES  OF DISCONTINUED OPERATIONS ..........       6,280       (6,280)        --              0
MINORITY INTERESTS ...........................................       2,010         --          8,335       10,345          (10)

SHAREHOLDERS' EQUITY
   COMMON STOCK,NO PAR VALUE-10,000,000 SHARES
     AUTHORIZED; 1,471,191 shares issued (at stated value) ...       5,139         --           --          5,139
   ADDITIONAL PAID - IN CAPITAL 8,298 ........................        --           --          8,298
   RETAINED EARNINGS .........................................      16,207      (79,859)      87,437       23,785
   ACCUMULATED OTHER COMPREHENSIVE INCOME ....................         211         --           --            211
   TREASURY STOCK OF 58,873 and 52,943 SHARES,
      AT COST ................................................      (1,204)        --           --         (1,204)
                                                                    ------      -------      -------       ------
    TOTAL SHAREHOLDERS' EQUITY ...............................      28,651      (79,859)      87,437       36,229
                                                                    ------      -------       ------       ------
    TOTAL  LIABILITIES AND SHAREHOLDERS' EQUITY ..............    $442,794    ($101,477)     $78,512     $419,829
                                                                  ========    =========      =======     ========
</TABLE>

<PAGE>



                                Lynch Corporation

               NOTES TO UNAUDITED PRO FORMA FINANCIAL INFORMATION
                     (dollars in millions, except per share)

General

Spinnaker  has not  determined  whether  it will  retire a pro rata  portion  of
indebtedness  related to the Industrial Tape Business,  other than the repayment
of certain  borrowings under  Spinnaker's $60 million  revolving credit facility
("Spinnaker  Credit  Facility")  and borrowings  under the Electrical  revolving
credit facility at closing.

Net  proceeds  from the Central sale are  available  to invest in any  business,
capital  expenditure  or other  tangible  asset of  Spinnaker  in the  Permitted
Businesses,  as defined in the Spinnaker Indenture. Any proceeds not so invested
within  270  days  after  the  closing  of the  sale of  Central  or not used to
permanently reducer indebtedness shall be used to repurchase the Senior Notes on
a pro rata basis as required by the Indenture.

Interest expense  attributed to the Senior Notes and related deferred  financing
has  historically  been allocated based on the pro rata share of subsidiary debt
obligations  retired with the proceeds  from the issuance of the Senior Notes to
total  debt  obligations  retired.  The  Senior  Notes  proceeds  were  used  to
extinguish certain outstanding term and revolver obligations in October 1996. As
a  result,  interest  expense,  as  presented  on a  historical  basis,  may not
necessarily be indicative of interest expense of continuing operations. Interest
expenses charged to the discontinued  industrial tape segment total $4.2 million
in the six month  period ended June 30, 1999 ans $9.2 million for the year ended
December 31, 1999.

General  corporate office expenses  incurred by Spinnaker related to finance and
administrative functions including public company compliance reporting, bank and
investor  relations,  taxes other than income taxes and holding company payroll,
historically  allocated and charged to the industrial tape segment were reversed
and allocated back to continuing operations.  These expenses were not considered
to be  directly  attributed  to the  Industrial  Tape  businesses  and remain an
expense of the continuing operations of Spinnaker.

(1)      Represents  estimated  net cash proceeds  from the  disposition  of the
         Industrial Tape Businesses, calculated as follows:



<PAGE>


<TABLE>
<CAPTION>

($ in millions)                  Central  Electrical
---------------                  -------  ----------
<S>                              <C>     <C>
Cash purchase price ..........   $  81.5 $  23.0

Less: estimated expenses, fees
   and taxes .................       3.5      .5
     Repayment of debt .......      18.1     6.9
Net cash proceeds ............   $  59.9 $  15.6

</TABLE>

(2)      Represents  repayment  of  certain  borrowings  under  Spinnaker's  $60
         million  revolving credit facility and  approximately  $2.0 million for
         repayment  of  borrowings  under  the  Electrical's   revolving  credit
         facility.

(3)      Represents repayment of Electrical term debt with an original principal
         amount  of $4.5  million  and  Spinnaker's  subordinated  note  with an
         original principal amount o $0.5 million.

(4)      Represents  the  elimination  of  working  capital  revolver   interest
         associated  with repayments of certain  borrowings  under the Spinnaker
         Credit Facility and $2.0 million under the Electrical  revolving credit
         facility at closing.

(5)      Represents  the  adjustment  required to reverse and  allocate  back to
         continuing  operations Senior Note interest  historically  allocated to
         Central  based on the pro  rata  share of  Central's  debt  obligations
         retired with the proceeds  from the  issuance of the Senior  Notes,  to
         total debt obligations retired.

(6)      Represents   interest  income  earned  on  net  proceeds   invested  in
         institutional money market funds, yielding an average return of 4.80%.

(7)      Represents statutory deferred taxes on the sale of Industrial Tape
         Business.

(8)      Represents  estimated value of five-year  warrants to purchase  300,000
         shares of Intertape common stock at a strike price of $29.50 per share.

(9)      Represents income tax adjustment to reflect Registrant's  effective tax
         rate from continuing operations.

(10)     Represents  minority interest effects of Disposition of Industrial Tape
         Business and Pro Forma Adjustments.
[{"type": "8-K", "sequence": "1", "description": "DISPOSITION OF ASSETS", "secsgml_size_bytes": 26280}]
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SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                    FORM 8-K
                                    --------

                 CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of Earliest Event Reported)   July 30, 1999

                                LYNCH CORPORATION
                                -----------------
             (Exact name of Registrant as specified in its charter)

         Indiana                         1-106                38-1799862
         -------                         -----                ----------
(State or other jurisdiction      (Commission File Number)   (IRS Employer
      of Incorporation)                                     Identification No.)

401 Theodore Fremd Avenue, Rye, New York                           10580
----------------------------------------                           -----
Address of principal executive offices)                         (Zip Code)

Registrant's telephone number, including area code:   914/921-7601
                                                      ------------
Item 2.  ACQUISITION OR DISPOSITION OF ASSETS

On  April  9,  1999,  Spinnaker  Industries,  Inc.  ("Spinnaker"),  Registrant's
approximately  61%  owned  subsidiary  (AMEX:SKK,  SKK.A)  entered  into a Stock
Purchase Agreement with Intertape Polymer Group, Inc. ("Intertape") for the sale
of  Spinnaker's  main  industrial  tape  subsidiary,  Central  Products  Company
("Central")  and  concurrently  entered into an Asset  Purchase  Agreement  with
Intertape providing for the sale of substantially all of the assets of its other
industrial  tape unit,  Spinnaker  Electrical Tape Company  ("Electrical"),  and
together  with   Central,   the   "Industrial   Tape   Businesses".   Intertape,
headquartered  in Montreal,  Quebec,  develops,  manufactures and markets a wide
variety of specialized  plastic and paper based packaging products and packaging
systems for industrial uses.

The   disposition  by  Spinnaker  of  the  Industrial   Tape   businesses   (the
"Disposition")  was completed  with the sale of Central  effective on August 10,
1999.  The  sale of the  assets  of  Electrical  closed  on July 30,  1999.  The
Industrial Tape Businesses  generated $121.8 million,  $119.7 million and $124.1
million of net sales for fiscal years ended  December  31, 1998,  1997 and 1996,
respectively,  and $53.5  million and $57.9  million  for the six month  periods
ended June 30, 1999 and 1998, respectively.

The  purchase  price paid by  Intertape to  Spinnaker  for the  Industrial  Tape
Businesses  was  allocated  as follows:  approximately  $81,450,000  in cash and
five-year  warrants to purchase  300,000  shares of Intertape  common stock at a
strike  price of $29.50  per  share  for  Central  and  $23,000,000  in cash for
Electrical.  Intertape is a  publically  traded  company with its common  shares
listed on the American  Stock  Exchange and the Toronto Stock Exchange under the
stock symbol "ITP."  Intertape's  common stock closed at  approximately  $28 per
share on August 6, 1999.

Proceeds from the sale of Central were first used to satisfy related transaction
costs and to repay  $18.1  million  of  working  capital  revolver  debt,  which
included all amounts owed by Central  under  Spinnaker's  $60 million  revolving
credit facility. The balance of the proceeds,  estimated to be approximately $60
million, are available to invest in any business, capital expenditure,  or other
tangible  asset  in  the  "Permitted  Businesses",  as  defined  in  Spinnaker's
Indenture. Any proceeds not so invested within 270 days after the closing of the
sale of Central  or not used to  permanently  reduce  indebtedness  (other  than
subordinated  debt)  shall  be used to  repurchase  Spinnaker's  10 3/4%  Senior
Secured  Notes  (the  "Senior  Notes") on a pro rata  basis as  required  by the
Indenture.  The proceeds from the sale of the Electrical assets, an unrestricted
subsidiary,  were used to repay certain term debt and working  capital  revolver
debt  collateralized  by the  assets  of  Electrical.  The  remaining  proceeds,
estimated  to be  approximately  $16  million,  will be  available  for  general
purposes or investments  of Spinnaker,  which may include  purchasing  Spinnaker
Senior Notes in the open market.  Senior Notes  currently trade at a substantial
discount  from the principal  amount.  This document  contains  certain  forward
looking  information.  Such  information  is based on  certain  assumptions  and
estimates and, accordingly,  may be subject to risk, uncertainty and inaccuracy,
which could be material.
Item 7.  FINANCIAL STATEMENTS AND EXHIBITS

(b)      PRO  FORMA  FINANCIAL   INFORMATION.   Unaudited  pro  forma  financial
         statements of the Registrant and the Industrial  Tape  businesses as of
         June 30, 1999 and the six months periods ended June 30, 1999. Unaudited
         pro forma statement of operations for the year ended December 31, 1998.

(c)      EXHIBITS

2.1  Stock Purchase Agreement between Spinnaker and Intertape Polymer Group Inc.
     dated  April  9,  1999   (incorporated  by  reference  to  Exhibit  2.1  to
     Spinnaker's Form 8-K dated August 16, 1999)

2.2  Asset Purchase Agreement by and among Registrant  Spinnaker Electrical Tape
     Company and Intertape Polymer Group Inc. dated April 9, 1999  (incorporated
     by reference to Exhibit 2.2 to Spinnaker's Form 8-K dated August 16, 1999)

         Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended,  the  Registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.

                                LYNCH CORPORATION

Date: August 16, 1999                          By: /s/ Robert E. Dolan
                                                       Robert E. Dolan
                                                       Chief Financial Officer
UNAUDITED PRO FORMA FINANCIAL DATA

The following  unaudited pro forma  financial  information  of the Registrant is
based on the historical  consolidated financial statements of the Registrant and
has been prepared to illustrate the effects of the  Disposition as though it had
occurred as of the beginning of the period presented for the pro forma statement
of operations.  Defined terms herein have the meanings given to them in the Form
8-K of which this is a part.

The pro forma adjustments include, in the opinion of management, all adjustments
necessary to give pro forma effect to the Disposition as though such transaction
had  occurred  as of the  beginning  of the period  presented  for the pro forma
statement of  operations  and as if it had occurred on June 30, 1999 for the pro
forma balance sheet.

The unaudited pro forma financial  information is not necessarily  indicative of
how the  Registrant's  balance sheet and results of  operations  would have been
presented had the Disposition actually been consummated at the assumed date, nor
is it necessarily  indicative of presentation of the Registrant's  balance sheet
and  results  of  operations  for any future  period.  The  unaudited  pro forma
financial  information  should  be  read  in  conjunction  with  the  historical
consolidated  financial  statements  and related notes  thereto  included in the
Registrant's  Annual Report on Form 10-K for the period ended  December 31, 1998
and the Registrant's Quarterly Report on Form 10-Q for the period ended June 30,
1999.

The  pro  forma  adjustments  are  based  upon  available   information.   These
adjustments  are directly  attributable  to the  Disposition and are expected to
have a continuing  impact on the Registrant's  business,  results of operations,
and financial position.
LYNCH CORPORATION
            UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
                             (Dollars in Thousands,
                           Except per Share Amounts)
Pro Forma
                                              Six Months               Six Months
                                                Ended      Pro Forma     Ended
                                               06/30/99   Adjustments   06/30/99     Notes
                                               --------   -----------   --------     -----
SALES AND REVENUES:
Manufacturing .........................   $ 93,774           -      93,774
                                              --------                  ------
                                                93,774           0      93,774
                                                ------           -      ------
COSTS AND EXPENSES:
    Manufacturing .........................     82,785           -      82,785
    Selling and administrative ............     10,594           -      10,594
                                                ------                  ------
OPERATING PROFIT ..........................        395           0         395
Other income (expense):
    Investment Income .....................          7       1,812       1,819          (6)
    Interest expense ......................     (4,529)     (3,497)     (8,026)       (4,5)
                                                ------      ------      ------
                                                (4,522)     (1,685)     (6,207)
                                                ------      ------      ------
INCOME (LOSS) FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES,  MINORITY INTERESTS ..     (4,127)     (1,685)     (5,812)
Benefit  (provision) for income taxes .....      1,637         674       2,311          (9)
Minority interests ........................      1,015         657       1,672         (10)
                                                 -----         ---       -----
NET INCOME(LOSS) FROM CONTINUING OPERATIONS   ($ 1,475)   ($   354)   ($ 1,829)
                                               ========    ========    ========

Weighted average shares outstanding           1,417,000               1,417,000

Basic and Diluted earnings per share:
NET INCOME                                      ($1.03)                  ($1.28)
LYNCH CORPORATION
            UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
                             (Dollars in Thousands,
                           Except per Share Amounts)
Disposition                 Pro Forma
                                                  Year ended   of Industrial   Pro Forma   Year ended
                                                   12/31/98    Tape Business   Adjustments 12/31/98        Notes
                                                   --------    -------------   ----------- ---------       -----
SALES AND REVENUES:
Multumedia ................................   $  54,622         --           --      $  54,622
    Services ..................................     150,454         --           --      $ 150,454
    Manufacturing .............................     309,450    $(121,806)        --      $ 187,644
                                                    -------    ---------     -------     ---------
                                                    514,526    $(121,806)          0       392,720
                                                    -------    ---------     -------       -------
COSTS AND EXPENSES:
    Multumedia ................................      38,176         --           --      $  38,176
    Services ..................................     138,193         --           --      $ 138,193
    Manufacturing .............................     268,376     (105,641)        --      $ 162,735
    Selling and administrative ................      45,761      (12,897)        --      $  32,864
                                                     ------      -------      -------    ---------
OPERATING PROFIT ..............................      24,020       (3,268)           0       20,752
Other income (expense):
    Investment Income .........................       2,064         --          3,625    $   5,689          (6)
    Interest expense ..........................     (27,722)        --          1,845    ($ 25,877)         (4)
    Equity in earnings of afflaited companies .         317         --           --      $     317
    Gain on sales of subsidiary stock and other
        operating assets ......................       4,778         --           --      $   4,778
                                                      -----      -------      -------    ---------
                                                    (20,563)           0        5,470      (15,093)
                                                    -------      -------        -----      -------
INCOME (LOSS) FROM OPERATIONS BEFORE
INCOME TAXES,  MINORITY INTERESTS  DISCONTINUED
OPERATIONS AND EXTRAORDINARY ITEM .............       3,457       (3,268)       5,470    $   5,659
>
Benefit  (provision) for income taxes .........      (1,412)         722       (1,603)   ($  2,293)         (9)
Minority interests ............................       1,312         --         (1,001)   $     311         (10)
                                                      -----       ------     ---------    --------
NET INCOME(LOSS) ..............................   $   3,357    ($  2,546)   $   2,866    $   3,677
                                                  =========    =========    =========    =========

Weighted average shares outstanding               1,418,000                              1,418,000

Basic and Diluted earnings per share:
NET INCOME                                            $2.37                                  $2.59
LYNCH CORPORATION
                UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEETS
                (Dollars in Thousands, Except per Share Amounts)
Disposition
                                                                              of Industrial   Pro Forma     Pro Forma
                                                                 06/30/99     Tape Business   Adjustments   06/30/99        Notes
                                                                 --------     -------------   -----------   --------        -----
ASSETS

CURRENT ASSETS:
Cash and Cash Equivalents ....................................   $     145         --         75,512    $  75,657         (1)
Receivables,less Allowances of $353 and $395 .................      24,309         --           --         24,309
Inventories ..................................................      31,477         --           --         31,477
Deferred income tax benefits .................................       8,717         --           --          8,717
Other current assets .........................................         809         --           --            809
Current assets of subsidiaries to be distributed to
   shareholders ..............................................      50,304         --           --         50,304
Current assets of discontinued operations ....................      31,986      (31,986)        --              0
                                                                    ------      -------       ------      -------
   TOTAL CURRENT ASSETS ......................................     147,749      (31,986)      75,512      191,273

PROPERTY,PLANT AND EQUIPMENT:
Land ................................................................. 672         --           --            672
Buildings and Improvements ...................................      10,833         --           --         10,833
Machinery and Equipment ......................................      53,177         --           --         53,177
                                                                    ------      ------        ------      -------
                                                                    64,682            0            0       64,682
Accumulated Depreciation .....................................     (19,690)        --           --        (19,690)
                                                                   -------      ------        ------      -------
                                                                    44,992            0            0       44,992
                                                                    ------      -------       ------      -------
EXCESS OF COST OVER FAIR VALUE OF
   NET ASSETS ACQUIRED, NET ..................................      22,472         --           --         22,472
OTHER ASSETS .................................................       6,415         --          3,000        9,415         (8)
NON-CURRENT ASSETS OF SUBSIDIARIES ...........................        --           --           --              0
   TO BE DISTRIBUTED TO SHAREHOLDERS .........................     151,677         --           --        151,677
NON-CURRENT ASSETS OF DISCONTINUED OPERATIONS ................      69,491      (69,491)        --              0
                                                                    ------      -------      -------      -------
    TOTAL  ASSETS ............................................   $ 442,794    ($101,477)     $78,512     $419,829
                                                                 =========    =========      =======     ========

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
   Notes payable to banks ....................................     $48,078         --        (20,095)      27,983           (2)
   Trade accounts payable ....................................      19,392         --           --         19,392
   Accrued interest payable ..................................       2,590         --           --          2,590
   Accrued liabilities .......................................       2,454         --           --          2,454
   Customer advances .........................................       2,714         --           --          2,714
   Current maturities of long - term debt ....................       2,198         --         (1,143)       1,055           (3)
   Current liabilites of subsidiaries to be distributed to
      shareholders ...........................................      36,272         --           --         36,272
   Current liabilites of discontinued operations .............      15,338      (15,338)        --              0
                                                                    ------      -------        ------      ------
      TOTAL CURRENT  LIABILITIES .............................     129,036      (15,338)     (21,238)      92,460
LONG-TERM DEBT ...............................................     126,380         --         (3,750)     122,630           (3)
DEFERRED INCOME TAXES ........................................       8,854         --          7,728       16,582           (7)
OTHER LONG TERM LIABILITIES ..................................       1,901         --           --          1,901
NON-CURRENT LIABILITIES OF SUBSIDIARIES
   TO BE DISTRIBUTED TO SHAREHOLDERS .........................     139,682         --           --        139,682
NON-CURRENT LIABILITIES  OF DISCONTINUED OPERATIONS ..........       6,280       (6,280)        --              0
MINORITY INTERESTS ...........................................       2,010         --          8,335       10,345          (10)

SHAREHOLDERS' EQUITY
   COMMON STOCK,NO PAR VALUE-10,000,000 SHARES
     AUTHORIZED; 1,471,191 shares issued (at stated value) ...       5,139         --           --          5,139
   ADDITIONAL PAID - IN CAPITAL 8,298 ........................        --           --          8,298
   RETAINED EARNINGS .........................................      16,207      (79,859)      87,437       23,785
   ACCUMULATED OTHER COMPREHENSIVE INCOME ....................         211         --           --            211
   TREASURY STOCK OF 58,873 and 52,943 SHARES,
      AT COST ................................................      (1,204)        --           --         (1,204)
                                                                    ------      -------      -------       ------
    TOTAL SHAREHOLDERS' EQUITY ...............................      28,651      (79,859)      87,437       36,229
                                                                    ------      -------       ------       ------
    TOTAL  LIABILITIES AND SHAREHOLDERS' EQUITY ..............    $442,794    ($101,477)     $78,512     $419,829
                                                                  ========    =========      =======     ========
Lynch Corporation

               NOTES TO UNAUDITED PRO FORMA FINANCIAL INFORMATION
                     (dollars in millions, except per share)

General

Spinnaker  has not  determined  whether  it will  retire a pro rata  portion  of
indebtedness  related to the Industrial Tape Business,  other than the repayment
of certain  borrowings under  Spinnaker's $60 million  revolving credit facility
("Spinnaker  Credit  Facility")  and borrowings  under the Electrical  revolving
credit facility at closing.

Net  proceeds  from the Central sale are  available  to invest in any  business,
capital  expenditure  or other  tangible  asset of  Spinnaker  in the  Permitted
Businesses,  as defined in the Spinnaker Indenture. Any proceeds not so invested
within  270  days  after  the  closing  of the  sale of  Central  or not used to
permanently reducer indebtedness shall be used to repurchase the Senior Notes on
a pro rata basis as required by the Indenture.

Interest expense  attributed to the Senior Notes and related deferred  financing
has  historically  been allocated based on the pro rata share of subsidiary debt
obligations  retired with the proceeds  from the issuance of the Senior Notes to
total  debt  obligations  retired.  The  Senior  Notes  proceeds  were  used  to
extinguish certain outstanding term and revolver obligations in October 1996. As
a  result,  interest  expense,  as  presented  on a  historical  basis,  may not
necessarily be indicative of interest expense of continuing operations. Interest
expenses charged to the discontinued  industrial tape segment total $4.2 million
in the six month  period ended June 30, 1999 ans $9.2 million for the year ended
December 31, 1999.

General  corporate office expenses  incurred by Spinnaker related to finance and
administrative functions including public company compliance reporting, bank and
investor  relations,  taxes other than income taxes and holding company payroll,
historically  allocated and charged to the industrial tape segment were reversed
and allocated back to continuing operations.  These expenses were not considered
to be  directly  attributed  to the  Industrial  Tape  businesses  and remain an
expense of the continuing operations of Spinnaker.

(1)      Represents  estimated  net cash proceeds  from the  disposition  of the
         Industrial Tape Businesses, calculated as follows:
($ in millions)                  Central  Electrical
---------------                  -------  ----------
Cash purchase price ..........   $  81.5 $  23.0

Less: estimated expenses, fees
   and taxes .................       3.5      .5
     Repayment of debt .......      18.1     6.9
Net cash proceeds ............   $  59.9 $  15.6
(2)      Represents  repayment  of  certain  borrowings  under  Spinnaker's  $60
         million  revolving credit facility and  approximately  $2.0 million for
         repayment  of  borrowings  under  the  Electrical's   revolving  credit
         facility.

(3)      Represents repayment of Electrical term debt with an original principal
         amount  of $4.5  million  and  Spinnaker's  subordinated  note  with an
         original principal amount o $0.5 million.

(4)      Represents  the  elimination  of  working  capital  revolver   interest
         associated  with repayments of certain  borrowings  under the Spinnaker
         Credit Facility and $2.0 million under the Electrical  revolving credit
         facility at closing.

(5)      Represents  the  adjustment  required to reverse and  allocate  back to
         continuing  operations Senior Note interest  historically  allocated to
         Central  based on the pro  rata  share of  Central's  debt  obligations
         retired with the proceeds  from the  issuance of the Senior  Notes,  to
         total debt obligations retired.

(6)      Represents   interest  income  earned  on  net  proceeds   invested  in
         institutional money market funds, yielding an average return of 4.80%.

(7)      Represents statutory deferred taxes on the sale of Industrial Tape
         Business.

(8)      Represents  estimated value of five-year  warrants to purchase  300,000
         shares of Intertape common stock at a strike price of $29.50 per share.

(9)      Represents income tax adjustment to reflect Registrant's  effective tax
         rate from continuing operations.

(10)     Represents  minority interest effects of Disposition of Industrial Tape
         Business and Pro Forma Adjustments.