UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                            Washington, D. C. 20549

                                   FORM 10-K

     (Mark One)
(X)  Annual Report Pursuant to Section 13 or 15(d) of The Securities Exchange
     Act of 1934
     For the Fiscal Year Ended December 31, 2001

                       OR

( )  Transition Report Pursuant to Section 13 or 15(d) of The Securities
     Exchange Act of 1934

                         Commission File Number 0-275

                           Allen Organ Company
            (Exact name of registrant as specified in its charter)

     Pennsylvania                       23-1263194
  (State of Incorporation)      (IRS Employer Identification No.)

  150 Locust Street, P. O. Box 36, Macungie, Pennsylvania      18062-0036
  (Address of principal executive offices)                     (Zip Code)

  Registrant's telephone number, including area code         610-966-2200

         Securities registered pursuant to section 12 (b) of the Act:

                                     None

         Securities registered pursuant to section 12 (g) of the Act:

                 Class B Common Shares, par value $1 per share
                               (Title of Class)

Indicate  by  check  mark  whether the registrant (1)  has  filed  all  reports
required to be filed by Section 13 or 15(d) of the Securities Exchange  Act  of
1934  during  the  preceding 12 months (or for such  shorter  period  that  the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.

                               Yes   X        No

Indicate by check mark if disclosure of delinquent filers pursuant to Item  405
of  Regulation S-K is not contained herein, and will not be contained,  to  the
best  of  registrant's knowledge, in definitive proxy or information statements
incorporated  by  reference in Part III of this Form 10-K or any  amendment  of
this Form 10-K.  (  X  )

The  Class A voting stock of the registrant is not registered pursuant  to  the
Securities  Exchange Act of 1934, is not publicly traded,  and,  therefore,  no
market value information exists for such stock held by non-affiliates.

The  number of shares outstanding of each of the Registrant's classes of common
stock, as of the close of business on March 8, 2002:

Class A - Voting    83,864                 Class B - Non-voting    1,086,457

<PAGE>
                              ALLEN ORGAN COMPANY

                                     INDEX




                                    PART I

1. Business
      - General developments of business
      - Industry Segments
      - Description of business
      - Financial information about geographic areas
2. Properties
3. Legal Proceedings
4. Submission of Matters to a Vote of Security Holders


                                    PART II

5. Market for the Registrants Common Stock and
      Related Security Holder Matters
6. Selected Financial Data
7. Management's Discussion and Analysis of Financial Condition and
      Results of Operations
7A.   Quantitative and Qualitative Disclosures About Market Risk
8. Changes in and Disagreements with Accountants on Accounting
      and Financial Disclosure
9. Financial Statements


                                   PART III

10.   Directors and Executive Officers of the Registrant
11.   Executive Compensation
12.   Security Ownership of Certain Beneficial Owners and Management
13.   Certain Relationships and Related Transactions


                                    PART IV

14.   Exhibits, Financial Statement Schedules and Reports on Form 8-K

Signatures

Financial Statement Schedules

Exhibits
<PAGE>
                                    PART I
Item 1.   Business

          General developments of business.

                Incorporated in Pennsylvania in 1945, Allen Organ  Company  and
          Subsidiaries  ("Company") operate in four industry segments:  Musical
          Instruments,  Data  Communications, Electronic Assemblies  and  Audio
          Equipment.
                The Company's results for 2001 were negatively affected by  the
          downturn  that  occurred  in the economy, particularly  in  the  Data
          Communications  and  Electronic Assemblies segments.   The  Company's
          Data  Communications segment was hard hit in the first half  of  2001
          since  some  of  this segments products had been sold to  Competitive
          Local Exchange Carriers (CLEC's) many of which had difficulty raising
          capital and became insolvent.  This segment has since redirected  its
          sales  efforts away from CLEC's and has focused on other markets  for
          which  its  product line is well suited including  the  wireless  and
          certain  international  markets.   As  a  result,  this  segment  was
          successful  in  increasing its order rate during the second  half  of
          2001 to be near the sales level of the same period in 2000.
                The  economic  downturn also negatively affected the  Company's
          Electronic  Assemblies segment customers resulting in  a  significant
          reduction  in  this segments order rate in the second half  of  2001.
          The  Company  expects this lower order rate to continue  into  future
          quarters and has taken steps to reduce its costs at its Macungie,  PA
          plant.
               While there are many factors that may affect the future business
          of  the Company, the Company is particularly concerned with the  weak
          economic  environment, which may alter or delay customers  purchasing
          decisions in any of the four industry segments that it operates.

          Industry segments.
                 The  Company  operates  in  four  industry  segments:  Musical
          Instruments,  Data  Communications, Electronic Assemblies  and  Audio
          Equipment.   For financial information concerning the  segments,  see
          Note 18 to the financial statements.

          Description of business.

              Musical Instruments.
                Allen  Organ  Company is a leading manufacturer  of  electronic
          keyboard  musical  instruments, primarily digital  electronic  church
          organs and accessories.  This segment accounted for 40%, 39% and  47%
          of revenue in 2001, 2000 and 1999 respectively.
                The  principal  market for the Musical Instruments  segment  is
          institutions, primarily churches.  Sales to the home market make up a
          smaller  portion  of this segment's sales.  Musical  Instruments  are
          distributed  mostly  through  dealers, primarily  independent  retail
          music  stores throughout the United States, with a lesser  percentage
          distributed through dealers internationally.  The segment's  business
          is not seasonal.
                The principal raw materials used in the segment's products  are
          electronic  components and wood, all of which are  readily  available
          from various sources without undue difficulty.  Historically, certain
          electronic  components had been put on allocation by their suppliers.
          This  was  not  a  significant issue during 2001  with  the  economic
          slowdown.   Also,  as  life  cycles for  electronic  components  have
          shortened  in  recent  years the Company has  had  to  redesign  some
          circuit  boards  to satisfy the needs of current and past  customers.
          Traditionally  organs  have longer service  requirements  than  other
          digital  products.  At the present time the Company does  not  expect
          this issue to significantly affect future product shipments.
                The  segment  does  not  engage in any significant  amounts  of
          consignments,  extended  payment terms,  or  lease  guarantees.   The
          Company  is contingently liable in connection with certain customers'
          financing  arrangements.   See Note 12 to the  financial  statements.
          The  dollar amounts and number of times the Company has had to  honor
          these repurchase agreements are negligible.
                The  Musical Instruments segment is not dependent on any single
          or  small group of customers, the loss of which would have a material
          adverse  effect on the business.  The dollar amount of the  segment's
          unshipped  order  backlog at the end of February 2002  and  2001  was
          $5.2  million and $4.7 million respectively.  All orders are expected
          to be filled in the current year.
                The electronic organ industry is competitive involving at least
          five (5) domestic and foreign companies.  In addition, there are many
          small  pipe  organ companies in the institutional organ market.   The
          organ   market   consists  of  two  basic  divisions,   institutional
          (primarily churches) and home or entertainment.  The Company believes
          it  has  a  major  position in the institutional  market  because  of
          product  performance and competitive prices, and a smaller percentage
          of the home or entertainment market.

              Data Communications.
                The  Data  Communications segment consists of Eastern Research,
          Inc.  (ERI)  into which the Company, combined the operations  of  VIR
          Linear Switch during 2001.  The combined operations are headquartered
          at ERI's facility in Moorestown, New Jersey.  ERI designs and markets
          data inter-networking products enabling network service providers  to
          deliver services to their customers.  This segment accounted for 43%,
          46% and 40% of revenues in 2001, 2000 and 1999 respectively.
                Data Communications products are sold directly to end-users, to
          wholesale  and retail distributors worldwide and under OEM agreements
          with  several customers.  The segment maintains an inventory  of  in-
          process and finished goods to allow for rapid fulfillment of customer
          orders that is expected in the industry.
                The  principal  raw  material used in the  Data  Communications
          products are electronic components, which are readily available  from
          various  sources  without  undue difficulty.   Historically,  certain
          electronic  components had been put on allocation by their suppliers.
          This  was  not  a  significant issue during 2001  with  the  economic
          slowdown.   Also  as  life  cycles  for  electronic  components  have
          shortened  in  recent  years, the Company has had  to  redesign  some
          circuit  boards  to satisfy the needs of current and past  customers.
          At the present time the Company does not expect this to significantly
          affect future product shipments.
                The  Data  Communications segment derived 13% and  16%  of  its
          revenue from 1 customer in 2001 and 2000 respectively, and 52% of its
          1999 revenue from three customers.
                ERI's  customer  base  includes  major  end-user  corporations,
          Network  Service  Providers, Internet Service Providers  and  systems
          integrators.   There  are many competitors in  this  market  that  is
          dominated  by  several large data communications companies,  such  as
          Cisco Systems, Tellabs and Alcatel.  The Company's strategy has  been
          to  target market niches with products that provide new features  and
          packaging with attractive pricing.
                ERI initially built its business in the CSU/DSU market and also
          developed  router technology products.  In 1997, ERI  introduced  its
          multi-service access concentrator (DNX) family of products.  ERI  has
          expanded this product family and broadened its feature set since  its
          introduction and now considers the DNX its flagship product.  The DNX
          revenues  represent approximately 90% of ERI's sales  for  2001.   To
          properly   capitalize  on  this  market's  opportunities,   ERI   has
          implemented  aggressive marketing strategies and product  development
          work  and  will  continue to do so in a way that takes  into  account
          ERI's needs and the current economic environment.
               ERI markets the VIR Linear Switch products that consist of patch
          and testing equipment, often referred to as tech control products and
          test access equipment.  These products are of varying complexity  and
          are  used  to connect, switch, test and trouble shoot data  lines  in
          large computer installations.
                The  segment derived approximately 13% and 23% of  its  revenue
          from  international markets in 2001 and 2000 respectively,  primarily
          from Australia, Europe and the Far East.  ERI will continue to pursue
          growth  opportunities  in markets outside  the  United  States.   The
          realization  of  future  business from these opportunities  could  be
          adversely  affected  by currency fluctuations, social  and  political
          risks and changes in foreign economies.
                ERI  has in the past developed strategic customer relationships
          to  expand  distribution  of its products  through  other  networking
          companies.    These  relationships  do  not  currently  represent   a
          significant portion of ERI's total sales.
                The  dollar  amount of unshipped order backlog at  the  end  of
          February,   2002  and  2001  was  $3.0  million  and   $1.0   million
          respectively.   All orders are expected to be filled in  the  current
          year.
                Due   to   the   previously   mentioned   weakness   in   the
          telecommunications markets and economy in general, the Company's Data
          Communications   segment  sales  and  operating   results   decreased
          significantly  in  the first half of 2001.  This  segment  has  since
          redirected its sales and marketing efforts to focus on other  markets
          for which its product line is well suited, including the wireless and
          certain  international markets.  This segment has been successful  in
          increasing its order rate during the second half of 2001 to  be  near
          the sales level of the same period in 2000.  While ERI's business has
          stabilized,  ERI's  visibility  of  future  sales  remains   limited.
          Consequently, the Company has developed a business plan that  focuses
          on bottom line profits, as well as top line sales growth.
                During  the  second quarter of 2001 ERI launched a new  product
          platform-the DNX-88 that provides carriers the ability to scale their
          edge  or  co-location  sites to 688 T1/E-1 ports,  24  DS3  and/or  8
          OC3/STM1  interfaces,  all  managed by  Envision.   (As  a  point  of
          comparison, prior to the DNX-88, the largest DNX configuration  could
          scale  to only 88 T1/E1 ports.)  Envision is a comprehensive  element
          manager  system  designed to manage and control  the  DNX  family  of
          products.  Also during the fourth quarter of 2001, ERI introduced  an
          OC3/STM-1 card, adding ERI's first optical interface capabilities  to
          the DNX family.
                The 2001 product enhancements have strengthened the DNX product
          line.   They have begun to position ERI as an optical access solution
          provider  helping  carriers migrate their T-1/T-3 networks  onto  the
          optical backbones already in place and begin to break the bottlenecks
          in the "last mile".

              Electronic Assemblies.
                Allen  Integrated Assemblies (AIA), a division of  Allen  Organ
          Company,  provides  subcontract manufacture of electronic  assemblies
          for  outside  customers.   The Electronic Assemblies  segment  is  an
          outgrowth  of  the  technical  skills and manufacturing  capabilities
          developed by the Company for its musical instruments business.   This
          segment  accounted for 14% of 2001 revenue, 12% of 2000  revenue  and
          10% of revenue in 1999.  AIA derived 82%, 76% and 68% of its revenues
          from 3 customers in 2001, 2000 and 1999 respectively.
                The  Electronic  Assemblies segment is  very  competitive  with
          numerous  manufacturers offering such services.   AIA  customers  are
          generally  obtained  from  a geographic area  located  close  to  the
          manufacturer.
                The  dollar amount of the segment's unshipped order backlog  at
          the  end  of  February 2002 and 2001 was $529,000  and  $3.4  million
          respectively.   All orders are expected to be filled in  the  current
          year.

              Audio Equipment.
                The  Audio Equipment segment operates through two subsidiaries,
          Legacy  Audio, Inc and Allen Audio, Inc.  This segment accounted  for
          3% of revenue in 2001, 2000 and 1999 respectively.
                The principal raw materials used in the segment's products  are
          audio  speakers,  electronic components and wood, all  of  which  are
          readily available from various sources without undue difficulty.
                The  Audio Equipment segment is not dependent on any single  or
          small  group  of customers, the loss of which would have  a  material
          adverse effect on the business
               Legacy Audio, Inc. (LAI) Designs, manufactures and markets high-
          quality  audio  speaker cabinets for hi-fi stereo  and  home  theater
          applications.   It  also markets electronic audio equipment  such  as
          amplifiers that are manufactured to its specifications by third party
          suppliers.
                The  principal market for LAI's products is consumers for  home
          use.    The   segment's  products  are  mainly  distributed   through
          independent retail dealers and directly to end-users.  This segment's
          business is not seasonal.
                LAI  historically sold its products through a direct  marketing
          program.   The Company believes that this method of distribution  has
          limited its ability to penetrate the broader market.  During 2001 the
          Company began implementing plans to distribute its products through a
          more  traditional dealer network.  The Company has added  independent
          retail dealers and will continue to do so in a conservative manner to
          build  a quality dealer network.  During this period Legacy has  been
          shifting  marketing resources to the new method of distribution.   In
          addition, the general economic slowdown has slowed sales for consumer
          goods.   This has resulted in a sales decrease in direct  sales  that
          has not been offset by dealer sales.
                The high-end audio market is evolving from the traditional two-
          channel  to  the  multi-channel market, which  is  utilized  in  home
          theater   applications.   Legacy  Audio  has  developed  and  markets
          products specifically for these home theater applications.
                Many of LAI's manufacturing needs are similar to those required
          in  the  Company's  Musical  Instruments  segment.   The  Company  is
          manufacturing a growing percentage of LAI's speaker cabinets  at  its
          Macungie, PA facility.
                The  Company competes with several other high-end audio speaker
          cabinet  manufacturers including Martin-Logan, Thiel, B&W, Celestion,
          and others.
                LAI  is  not  dependent  on  any single,  or  small  group,  of
          customers.   The  dollar  amount  of the  segment's  unshipped  order
          backlog  at  the  end  of  February 2002 and 2001  was  $244,000  and
          $267,000 respectively.  All orders are expected to be filled  in  the
          current year.
                Allen  Audio,  Inc.  (AAI)  Designs, manufactures  and  markets
          Public Address System products.  AAI has developed a PA system  mixer
          utilizing Digital Signal Processor (DSP) technology also used in  the
          Allen  digital  organs.  AAI has also developed  a  line  of  speaker
          cabinets  for  the  PA field.  These products are  being  distributed
          through dealers, primarily in the sound reinforcement business.

          General.

                The  Company's working capital is sufficient to meet the normal
          expansion of inventory and receivables.
                 The  Company  spent  $8,004,838,  $7,340,209,  and  $4,910,278
          annually  in  2001,  2000,  and  1999 respectively  on  research  and
          development.   The  increases are a result of the  Company's  ongoing
          commitment to new product development and support, primarily  in  its
          Data Communications segment.
                The  Company  and  its  subsidiaries employ  approximately  510
          persons.
                The  Company  monitors its compliance with applicable  federal,
          state,  or  local  provisions  with regard  to  the  environment  and
          implements  procedures or modifies its equipment  as  necessary.  The
          Company  does  not  expect any significant capital additions  in  the
          coming year to maintain its compliance.

          Financial information about geographic areas.

                The  Company does not own manufacturing or sales facilities  in
          any  foreign countries.  See Note 17 to the financial statements, for
          additional information on export sales.
                Export  sales are all made in US dollars and for the most  part
          are made under Letter of Credit or on a prepaid basis.
                The  Company has established a Foreign Sales Corporation within
          the  meaning of the Internal Revenue Code of 1986.  This wholly-owned
          subsidiary  is  Allen  Organ International, Inc.,  a  Virgin  Islands
          corporation.

Item 2.   Properties

                The  following  sets  forth  the location,  approximate  square
          footage  and  use of the Company's operating locations segregated  by
          segment.   The  Company  believes that its facilities  are  generally
          suitable and adequate for its needs.

                                                        Approximate
          Location                Square Footage            Use
   Musical Instruments and Electronic Assemblies:

      Macungie,    Pennsylvania    242,000        Administrative, research
                                                  and manufacturing facility.
                                                  Owned by Allen Organ Company.
                                                  Operating at approximately
                                                  85% capacity.

      Macungie,    Pennsylvania     27,000        International sales,
                                                  exhibition center, museum
                                                  and teaching facility.
                                                  Owned by Allen Organ Company.

   Data Communications:

      Southampton, Pennsylvania     22,000        Operations closed  in  2001.
                                                  Attempting   to  sublet.
                                                  Leased until August, 2005.

      Moorestown,  New Jersey       39,000        Administrative, sales and
                                                  research  facility.  Leased
                                                  until September, 2002.

   Audio Equipment:

      Springfield, Illinois         15,000        Administrative, research and
                                                  manufacturing facility. Owned
                                                  by Legacy  Audio, Inc.    at
                                                  Operating approximately 90%
                                                  capacity.

                In  April  1999, the Company sold its manufacturing  and  sales
          facility located in Rocky Mount, North Carolina.  See Note 2  to  the
          financial statements, for additional information.

Item 3.     Legal Proceedings

               There is no litigation requiring disclosure pursuant to Item 103
          of regulation S-K.

Item 4.     Submission of Matters to a Vote of Security Holders

                No  matters were submitted to a vote of security holders during
          the fourth quarter of fiscal year 2001.

                                    PART II

Item 5.     Market  for  the Registrant's Common Stock and Related  Stockholder
            Matters

                The Company's Class A voting shares are not registered pursuant
          to  the  Securities Exchange Act of 1934 and are not publicly traded.
          The  Company's  Class B non-voting stock trades on The  NASDAQ  Stock
          Market under the symbol AORGB.

               The high and low bid quotations for each quarter during the last
          two  years  as  reported by NASDAQ Market Information  System  is  as
          follows:

                  2001             High           Low
                  First Quarter    55             33
                  Second Quarter   39             31.75
                  Third Quarter    36.473         30.02
                  Fourth Quarter   33.5           30.4

                  2000             High           Low
                  First Quarter    85             38.375
                  Second Quarter   74             55
                  Third Quarter    71             57.25
                  Fourth Quarter   68             44

                The  Company  has  7  Class  A Shareholders  and  261  Class  B
          Shareholders of record as of March 8, 2002.

                During  the  past  two fiscal years, the Company  has  declared
          dividends on both its class A and B shares as follows:

                  Record of Quarterly Dividends Paid in 2001
                  Record Date        Payable     Amount
                  Cash  2/16/2001    3/2/2001    $.14
                  Cash  5/18/2001    6/1/2001    $.14
                  Cash  8/17/2001    8/31/2001   $.14
                  Cash  11/16/2001   11/30/2001  $.14

                  Record of Quarterly Dividends Paid in 2000
                  Record Date        Payable     Amount
                  Cash  2/18/2000    3/3/2000    $.14
                  Cash  5/19/2000    6/2/2000    $.14
                  Cash  8/18/2000    9/1/2000    $.14
                  Cash  11/17/2000   12/1/2000   $.14

Item 6.   Selected Financial Data

                                  Years Ended December 31,
                   2001         2000        1999          1998         1997

Net Sales      $60,490,513  $72,516,208  $58,018,742  $44,966,075  $40,348,084
Net Income
 (Loss)        $(4,083,810) $ 3,954,896  $ 2,884,488  $  (616,711) $ 3,512,142
Earnings (Loss)
 per share          $(3.49)       $3.38        $2.46       $(0.52)       $2.79
Cash dividends
 per share          $ 0.56        $0.56        $0.56       $ 0.56        $0.56

At Year End

 Total Assets  $66,472,252  $80,807,742  $67,466,070  $61,989,953  $62,562,004
 Long-Term Debt,
  net of
  current
  portion      $         0  $         0  $         0  $         0  $         0


Item 7.   Management's Discussion and Analysis of Financial Condition and
          Results of Operations

     Liquidity and Capital Resources:

        The  Company continues to maintain a strong financial position and high
     level of liquidity, which enables it to generate funds internally to  meet
     operating  needs,  capital expenditures and short-term  obligations.   Key
     indicators of the Company's liquidity are presented below:
                                            December 31,
                                      2001             2000
          Working Capital          $37,845,509      $40,957,743
          Current Ratio               5.9 to 1         3.3 to 1
          Debt to Equity Ratio       0.18 to 1        0.29 to 1

        As  indicated in Note 10 of the financial statements, Eastern Research,
     Inc.  had obtained bank financing to provide them with working capital  as
     well  as  funds to repay $7,000,000 of ERI's inter-company  loans  due  to
     Allen  Organ Company.  The proceeds of the term loan were invested in  the
     Company's short-term investment accounts.  During June of 2001 ERI  repaid
     all  outstanding  bank loans totaling $12,000,000 with funds  provided  by
     Allen Organ Company.  The Company originally obtained these loans to  give
     ERI financial autonomy as it explored strategic alternatives.  As a result
     of  the changes in the financial markets, the Company decided to repay the
     outstanding loans to eliminate the costs related to this financing.
        Cash  flows provided by operating activities decreased during 2001,  as
     compared  to  2000 and 1999 primarily due to operating losses incurred  in
     the Data Communications segment.  These decreases were partially offset by
     reductions  in  inventory  levels in the Musical  Instruments,  Electronic
     Assemblies and Data Communications segments.
        Cash  flows provided by operating activities increased during  2000  as
     compared  to  1999 primarily due to increases in operating income  in  the
     Musical  Instruments  segment  resulting  from  higher  sales  volume  and
     operational improvements.
        Cash  flows  provided by investing activities during 2001 includes  the
     sale  of  more  than  $12,000,000 in short term investments  to  fund  the
     repayment  of  ERI's  bank  loans.   Cash  flows  were  used  to  purchase
     approximately  $529,000  and $736,000 of property  and  equipment  in  the
     Musical Instruments and Data Communications segments respectively.
        Cash  flows  used  in investing activities during  2000  were  used  to
     purchase   approximately  $3,157,000  in  plant  and  equipment  including
     approximately  $2,148,000  for leasehold improvements  and  new  computer,
     office and test equipment to support the growth of Eastern Research, Inc.
        Cash  flows  used  in investing activities during  1999  were  used  to
     purchase   approximately  $3,260,000  in  plant  and  equipment  including
     $775,000  for  a  new air handling system in the wood and metal  finishing
     area  and $150,000 for a new automated router in the woodworking  area  of
     the  Macungie,  PA plant.  Plant and equipment purchases of  approximately
     $1,567,000  in  the Data Communications segment are primarily  related  to
     leasehold  improvements,  new  computers, office  and  test  equipment  to
     support the growth of Eastern Research.

     Results of Operations:

        Sales and Operating Income

        Consolidated  sales for 2001 decreased $12,025,695 (17%) when  compared
     to  2000, primarily due to lower sales in the Data Communications segment.
     Consolidated sales for 2000 increased $14,497,466 (25%) when  compared  to
     the  prior  year  primarily due to higher sales at Eastern  Research,  Inc
     (ERI) as well as in the Musical Instruments segment.

                                             December 31,
                                 2001            2000            1999
        Net Sales
        Musical Instruments
         Domestic             $20,616,513     $24,422,709     $23,769,362
         Export                 3,759,129       3,635,123       3,563,383
          Total                24,375,642      28,057,832      27,332,745

        Data Communications
         Domestic              22,567,298      25,556,745      22,149,842
         Export                 3,342,587       7,764,597       1,146,137
          Total                25,909,885      33,321,342      23,295,979

        Electronic Assemblies
         Domestic               8,382,021       8,624,199       5,650,917

        Audio Equipment
         Domestic               1,603,650       2,323,865       1,651,566
         Export                   219,315         188,970          87,535
          Total                 1,822,965       2,512,835       1,739,101

        Total                 $60,490,513     $72,516,208     $58,018,742

        Income (Loss) from Operations
        Musical Instruments   $ 2,184,321     $ 5,029,871     $ 2,950,251
        Data Communications    (8,284,232)     (2,063,221)       (805,738)
        Electronic Assemblies     125,000       1,284,806         430,031
        Audio Equipment          (988,353)       (429,386)       (761,688)
         Total                $(6,963,264)    $ 3,822,070     $ 1,812,856

     Musical Instruments Segment

        The  domestic  sales for 2001 decreased $3,806,000.   While  the  order
     rate  for 2001 was approximately equal to orders for 2000, the 2000  sales
     were  higher due to shipments made to domestic customers against a  higher
     order  backlog.   The  2000 increase in domestic sales reflects  increased
     order  volume  and  shipments made against a  higher  order  backlog.   As
     discussed on page 3, the economic downturn may affect future order volume.
        Export  sales  were  approximately equal  for  the  three  years  ended
     December  31,  2001.  Certain foreign markets continue to be  affected  by
     unfavorable  economic  conditions, particularly Far  East  countries,  and
     changes in the value of the US dollar compared to foreign currencies.
        In  recent  years  the Company has entered a different  subset  of  the
     institutional  organ market that includes the sale of its  organ  consoles
     and  control electronics to customers that want to retain their wind-blown
     pipes.  In the past this market was served by pipe organ manufacturers and
     local  pipe  organ  maintenance organizations.  The Company's  ability  to
     produce  both  the  wood  cabinetry and digital electronics  gives  it  an
     advantage in this market.
        Gross  profit  margins on sales were 30.1%, 36.5%  and  30.5%  for  the
     three  years ended December 31, 2001.  The 2001 decrease is due  to  lower
     sales  over which to absorb fixed costs and changes in product  mix.   The
     increase  in  gross profit in 2000 over 1999 was a result of higher  sales
     volume over which to absorb fixed costs.
        Selling  and advertising expenses remained approximately equal for  the
     three  years ended December 31, 2001.  General and administrative expenses
     in  2001  were approximately equal to 2000 and decreased in  2000  due  to
     lower personnel requirements and related benefits.
        Research  and development expenses decreased approximately  $25,000  in
     2001 and increased approximately $264,000 in 2000.

     Data Communications Segment

        Domestic  sales  decreased $2,989,447 in 2001 and increased  $3,406,903
     in 2000 when compared to 1999.  International sales decrease $4,422,010 in
     2001  and increased $6,618,460 during 2000.  The increase in international
     sales  in 2000 was primarily from sales to two customers in the Far  East.
     The  decrease in 2001 sales is attributable to a general slowdown  in  the
     world  economy  and  a  more significant industry-wide  slowdown  in  Data
     Communications markets.  Some of this segment's products had been sold  to
     Competitive  Local Exchange Carriers (CLEC), many of which had  difficulty
     raising  capital and became insolvent.  This segment has since  redirected
     its  sales  efforts away from CLEC's and has focused on other markets  for
     which  its product line is well suited including the wireless and  certain
     international  markets.   As  a result, this  segment  was  successful  in
     increasing  its order rate during the second half of 2001 to be  near  the
     sales level of the same period in 2000.
        Cost  of goods sold for 2001 includes $1,539,000 of additional non-cash
     inventory valuation adjustments recorded at VIR, Inc. for slow moving  and
     obsolete inventory associated with discontinued product lines.  The result
     of  these adjustments was to decrease the 2001 gross profit margin  by  6%
     from  46% to 40%.  The decrease in the 2001 gross profit margin, excluding
     the  inventory valuation adjustments, was due to lower sales  volume  over
     which  to  absorb fixed costs and competitive pressures to  lower  selling
     prices  of products.  Gross profit margins were 47% and 48% for  2000  and
     1999,  respectively.  While the company strives to maintain profit margins
     by   developing  products  that  offer  more  features,  the  industry  is
     competitive which often results in pricing changes to obtain and  maintain
     market share.
        Selling  expenses  decreased  approximately  $1,123,000  in  2001   and
     increased  approximately $2,500,000 in 2000 over 1999.  The 2001  decrease
     is related to lower sales and cost cutting measures initiated in the first
     half of 2001 due to the economic downturn.
        Administrative expenses decreased approximately $347,000 in  2001  from
     cost  cutting  measures initiated in the first half of  2001  due  to  the
     economic   downturn.   Administrative  expenses  increased   approximately
     $900,000 in 2000 over 1999 primarily related to additional management  and
     administrative personnel added at ERI to support its growth.
        Research  and  development  expenses were  $6,599,104,  $5,911,740  and
     $3,759,183  for  the  years  ended  December  31,  2001,  2000  and  1999,
     respectively  primarily related to ERI.  The segment is committed  to  new
     product development and support and expects these expenditures to continue
     at approximately the same level in 2002.

     Electronic Assemblies Segment

        Sales   decreased   approximately  $242,000  in  2001   and   increased
     approximately   $2,973,000  in  2000.   The  2001  order  rate   decreased
     significantly  in  the  second half of 2001 as a result  of  the  economic
     slowdown  that  has  also  affected the Company's  contract  manufacturing
     customers.   The  order rate is expected to continue at a lower  level  in
     future quarters.  Because of this decrease in sales the Company has  taken
     steps  to  reduce its costs at its Macungie, PA plant including reductions
     in personnel related to this segment of the business
        Gross  profit  margins were 7.1%, 19.5% and 15.2% for the  three  years
     ended  December 31, 2001.  The 2001 decrease is the result of lower  sales
     in  the  second half of 2001 over which to absorb fixed costs.   The  2000
     increase  over  1999 is due to higher order volume over  which  to  absorb
     fixed costs and changes in product mix.
        Selling,  general  and administrative expenses increased  approximately
     $95,000 in 2001 and decreased slightly in 2000.  The segment continues its
     efforts  to  diversify  its customer base and to  improve  its  production
     capabilities  to  offer  state of the art manufacturing  services  to  its
     customers.

     Audio Equipment Segment

        Sales   for   2001  decreased  approximately  $690,000  and   increased
     approximately $773,000 in 2000 when compared to 1999.
        Gross  profit  margins  were  12%, 43% and  38%  for  the  years  ended
     December  31,  2001, 2000 and 1999, respectively.  The  2001  decrease  is
     attributable to lower sales volume over which to absorb fixed costs.
        Selling,  general  and  administrative  costs  decreased  approximately
     $250,000  during 2001 as a result of steps taken to reduce operating  cost
     and  because  of  Legacy Audio's switch to a dealer based  selling  model.
     Selling, general and administrative costs increased approximately  $82,000
     during 2000 over 1999.
        Legacy  Audio  has  historically sold its  products  through  a  direct
     marketing  program.  The Company believes that this method of distribution
     has limited its ability to penetrate the broader market.  Legacy has begun
     distributing its products through a more traditional dealer network.   The
     Company has added independent retail dealers and will continue to do so in
     a  conservative  manner to build a quality dealer  network.   During  this
     period  Legacy has been shifting marketing resources to the new method  of
     distribution.  In addition, the general economic slowdown has  slowed  the
     sales  of consumer goods.  This has resulted in a sales decrease in direct
     sales that has not been offset by dealer sales.
        The  Company has developed a line of Public Address System products and
     in connection therewith has formed Allen Audio, Inc. to develop and market
     these products.  Allen Audio began shipping units in late 1999.

     Other Income (Expense)

        Investment  income for the year ended December 31, 2001 decreased  when
     compared  to 2000 due to lower invested balances.  Investment  income  for
     2000  increased compared to 1999 due to higher returns on investments  and
     higher invested balances.  Interest expense was incurred in 2001 and  2000
     on short-term bank financing related to Eastern Research.
        The  2001  loss  on  sale  of  property,  plant  &  equipment  includes
     approximately  $158,000 of losses related to the disposition  of  property
     and  equipment  at  VIR's  Southampton, PA facility  that  was  closed  in
     September  2001.  The 1999 gain on sale of property, plant  and  equipment
     includes  approximately $1,068,000 of gains related to  the  sale  of  the
     Rocky Mount, North Carolina facility.

     Income Taxes

        The  effective tax (benefit) rate was (36.8%), 22.4% and 30.6% in 2001,
     2000 and 1999 respectively.  The 2001 effective tax rate increased due  to
     tax  credits  and  other preference items increasing the  benefit  to  the
     Company  related  to  the current year loss.  The  decrease  in  the  2000
     effective  tax  rate  is due to higher tax credits and  other  non-taxable
     items.

     Significant Accounting Policies

        The  significant  accounting policies of the Company are  described  in
     Note  1  of  the  financial  statements.   The  preparation  of  financial
     statements in conformity with accounting principles generally accepted  in
     the  United  State  of America requires management to make  estimates  and
     assumptions that affect the reported amounts of assets and liabilities and
     disclosures  of  contingent assets and liabilities  at  the  date  of  the
     financial  statements  and the reported amounts  of  revenue  and  expense
     during the reporting period.
        Certain   accounting   estimates  and  assumptions   are   particularly
     sensitive  because  of  their significance to the  consolidated  financial
     statements  and possibility that future events affecting them  may  differ
     markedly.   The  accounting  policies  of  the  Company  with  significant
     estimates and assumptions are described below.

          Carrying  Value of Obsolete and Slow Moving Inventory:   The  Company
          has written down the value of inventory which may become obsolete  or
          that  will  not  be  used in the normal course  of  business  to  its
          estimated net realizable value.

          Allowance  for Doubtful Accounts:  The Company has recorded allowance
          for the estimated amount of accounts which may become uncollectible.

          Carrying  Value  of  Goodwill  and Intangible  Assets:   The  Company
          reviews  the  recoverability of its goodwill and  intangible  assets.
          Any impairment in value is charged against current operations.

          Realization of Deferred Income Tax Benefits:  As discussed in Note  9
          of  the  financial  statements, the Company  has  recorded  valuation
          allowances related to the uncertainty of realizing state and  federal
          net operating loss carry forwards.

        Risk  factors that may affect these judgements include the  volume  and
     timing  of  orders  received, changes in global  economics  and  financial
     markets,  changes  in the mix of products sold, market acceptance  of  the
     Company's  and  its  customer's products, competitive  pricing  pressures,
     global currency valuations, the availability of electronic components that
     the  Company  purchases  from suppliers, the  Company's  ability  to  meet
     increasing  demand, the Company's ability to introduce new products  on  a
     timely basis, the timing of new product announcements and introductions by
     the Company or its competitors, changing customer requirements, delays  in
     new  product  qualifications,  the  timing  and  extent  of  research  and
     development expenses and fluctuations in manufacturing yields.

     Contractual Obligations and Commercial Commitments

        Following  is a summary of contractual obligations and other commercial
     commitments of the Company:

                                                Payments Due by Period
          Contractual                        Less
          Obligations                        than       1-3       4-5    After
                                Total       1 year      years    years  5 years
        Operating Leases      $  602,452   $  329,229  $273,223    $0       $0

                                     Amount of Commitment Expiration Per Period
           Other Commercial                   Less
            Commitments       Total Amounts   than      1-3       4-5    After
                               Committed     1 year    years     years  5 years
        Contingent Repurchase
         Commitments Related to
         Customer Financing
         Arrangements         $2,041,909   $2,041,909    $0        $0       $0

     Factors that May Affect Operating Results

        The  statements  contained in this report on Form  10-K  that  are  not
     purely  historical are forward looking statements within  the  meaning  of
     Section  27A  of  the  Securities Act of  1933  and  Section  21E  of  the
     Securities  Exchange  Act  of  1934, including  statements  regarding  the
     Company's  expectations,  hopes, intentions or  strategies  regarding  the
     future.   Forward looking statements include: statements regarding  future
     products or product development; statements regarding future research  and
     development  spending and the Company's marketing and product  development
     strategy,  statements regarding future production capacity.   All  forward
     looking  statements  included in this document are  based  on  information
     available  to the Company on the date hereof, and the Company  assumes  no
     obligation  to  update any such forward looking statements.   Readers  are
     cautioned not to place undue reliance on these forward looking statements,
     which  reflect management's opinions only as of the date hereof.   Readers
     should carefully review the risk factors described in other documents  the
     Company  files  from  time  to  time  with  the  Securities  and  Exchange
     Commission,  including the Quarterly Reports on Form 10-Q to be  filed  by
     the  Company  in  fiscal  year 2002.  It is important  to  note  that  the
     Company's  actual  results  could differ materially  from  those  in  such
     forward  looking statements.  Some of the factors that could cause  actual
     results to differ materially are set forth below.
        The  Company  has  experienced and expects to  continue  to  experience
     fluctuations  in  its  results of operations.   Factors  that  affect  the
     Company's  results of operations include the volume and timing  of  orders
     received,  changes in global economics and financial markets,  changes  in
     the  mix  of  products sold, market acceptance of the  Company's  and  its
     customer's  products,  competitive  pricing  pressures,  global   currency
     valuations,  the  availability of electronic components that  the  Company
     purchases from suppliers, the Company's ability to meet increasing demand,
     the  Company's  ability to introduce new products on a timely  basis,  the
     timing  of  new product announcements and introductions by the Company  or
     its  competitors, changing customer requirements, delays  in  new  product
     qualifications, the timing and extent of research and development expenses
     and fluctuations in manufacturing yields.  As a result of the foregoing or
     other  factors,  there  can  be no assurance that  the  Company  will  not
     experience  material  fluctuations  in  future  operating  results  on   a
     quarterly or annual basis, which would materially and adversely affect the
     Company's business, financial condition and results of operations.
        See  Note 1 to the financial statements for information concerning  the
     effects of changes in accounting policies.

Item 7A    Quantitative and Qualitative Disclosures About Market Risk.

        Financial  instruments that potentially subject the Company  to  market
     and/or credit risk consist principally of short-term investments and trade
     receivables.   The Company places substantially all of its investments  in
     mutual funds holding federal, state and local government obligations  and,
     by  policy,  limits the amount of credit exposure in any  one  investment.
     The  Company's  Musical Instruments segment sells  most  of  its  products
     through  established  dealer  networks.  The Data  Communications  segment
     sells  most  of  their products directly to end-users,  to  wholesale  and
     retail  distributors worldwide and under OEM agreements  with  other  data
     communications  companies.   The market and credit  risk  associated  with
     related  receivables  is limited due to the large number  of  dealers  and
     distributors  and their geographic dispersion.  The Company has  no  other
     material exposure to market risk.

Item 8.    Financial Statements
        See Item 14 for index.

Item 9.    Changes in and Disagreements with Accountants on Accounting and
           Financial Disclosure
        There were no reportable events as described in Item 304(b).

<PAGE>

KPMG
4905 Tilghman Street
Allentown, PA 18104

                      INDEPENDENT AUDITORS' REPORT


The Board of Directors
 and Stockholders
Allen Organ Company


      We  have  audited the accompanying consolidated balance  sheets  of
Allen  Organ Company and Subsidiaries as of December 31, 2001  and  2000,
and  the related consolidated statements of income, stockholders'  equity
and  cash  flows and the related financial statement schedule for each of
the years in the three  year  period  ended December  31,  2001. These
consolidated financial  statements and the financial statement schedule
are  the  responsibility  of  the Company's management.  Our responsibility
is  to express  an opinion on these consolidated financial statements  and
financial statement schedule  based  on our audits.

      We  conducted  our  audits in accordance  with  auditing  standards
generally  accepted  in  the United States of America.   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 consolidated financial statements referred  to
above present fairly, in all material respects, the financial position of
Allen  Organ Company and Subsidiaries as of December 31, 2001  and  2000,
and  the results of their operations and their cash flows for each of the
years in the three year period ended December 31, 2001 in conformity with
accounting principles generally accepted in the United States of America.
Also, in our opinion, the related financial statement schedule, when
considered in relation to the basic consolidated financial statements
taken as a whole, presents fairly, in all material respects, the information
set forth therein.

/s/KPMG LLP

Allentown, PA
February 5, 2002

<PAGE>
                      ALLEN ORGAN COMPANY AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS

                                                           December 31
                     ASSETS                              2001          2000
CURRENT ASSETS
 Cash                                               $ 4,449,998   $ 2,712,368
 Investments including accrued interest              11,609,416    24,694,377
 Accounts receivable, net of allowance for
  doubtful accounts of $350,492 in 2001
  and $428,791 in 2000                                9,947,842    10,285,659
 Inventories                                         16,485,908    19,808,173
 Prepaid income taxes                                 1,106,214        13,972
 Prepaid expenses                                       386,421       304,342
 Deferred income tax benefits                         1,561,138     1,094,701
     Total Current Assets                            45,546,937    58,913,592

PROPERTY, PLANT AND EQUIPMENT, NET                   11,491,549    12,523,133
OTHER ASSETS
 Prepaid pension costs                                    --          506,702
 Inventory held for future service                      811,249       690,657
 Note receivable from related party                   1,997,107     1,556,721
 Cash value of life insurance                         2,173,566     2,034,867
 Deferred income tax benefits                         2,022,725       398,476
 Goodwill, net                                          194,523       221,449
 Intangible assets, net                               2,218,504     3,943,553
 Other assets                                            16,092        18,592
     Total Other Assets                               9,433,766     9,371,017
     Total Assets                                   $66,472,252   $80,807,742

  LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
 Notes payable - Bank                               $     --      $ 8,700,000
 Accounts payable                                     2,750,251     3,448,119
 Other accrued expenses                               1,973,154     2,816,102
 Customer deposits                                    2,978,023     2,991,628
     Total Current Liabilities                        7,701,428    17,955,849
NONCURRENT LIABILITIES
 Deferred and other noncurrent liabilities              707,769       310,016
 Accrued Pension Costs                                1,748,040          --
     Total Noncurrent Liabilities                     2,455,809       310,016
     Total Liabilities                               10,157,237    18,265,865

MINORITY INTERESTS                                        --          106,976
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
 Common stock, par value $1 per share
 Authorized
  Class A Voting Shares-      400,000 in 2001 and 2000
  Class B Non-Voting Shares-3,600,000 in 2001 and 2000
 Issued       2001              2000
  Class A   127,232 shares;   127,232 shares            127,232       127,232
  Class B 1,410,761 shares; 1,410,761 shares          1,410,761     1,410,761
   Total Common Stock                                 1,537,993     1,537,993
 Capital in excess of par value                      12,903,610    12,758,610
 Retained earnings                                   55,237,713    59,977,002
 Accumulated other comprehensive income              (1,374,300)      139,990
  Sub-total                                          68,305,016    74,413,595
 Less cost of common shares in treasury
  2001-43,368 Class A shares;324,304 Class B shares (11,990,001)        --
  2000-43,230 Class A shares;324,148 Class B shares       --      (11,978,694)
 Total Stockholders' Equity                          56,315,015    62,434,901
 Total Liabilities and Stockholders' Equity         $66,472,252   $80,807,742

          See accompanying notes to Consolidated Financial Statements.
<PAGE>
              ALLEN ORGAN COMPANY AND SUBSIDIARIES
                CONSOLIDATED STATEMENTS OF INCOME

                                             Years Ended December 31,
                                          2001          2000           1999

NET SALES                            $60,490,513    $72,516,208    $58,018,742
COSTS AND EXPENSES
  Cost of sales                       41,707,417     43,730,716     36,793,515
  Selling, administrative and other
   expenses                           15,811,522     17,623,213     14,502,093
  Research and development             8,004,838      7,340,209      4,910,278
  Costs to close Southampton plant       530,000          --             --
  Impairment of VIR, Inc. goodwill
   and intangibles                     1,400,000          --             --
  Total Costs and Expenses            67,453,777     68,694,138     56,205,886

(LOSS) INCOME FROM OPERATIONS         (6,963,264)     3,822,070      1,812,856

OTHER INCOME (EXPENSE)
  Investment income                    1,018,162      1,542,347      1,128,524
  Interest expense                      (315,083)      (320,942)         --
 (Loss) gain on sale of property,
   plant and equipment                  (175,358)       (58,288)     1,063,722
  Other income (expense), net             25,008         20,414         (9,593)
  Minority interests in
   consolidated subsidiaries             (33,275)        68,295        112,979
  Total Other Income (expense)           519,454      1,251,826      2,295,632

(LOSS) INCOME BEFORE TAXES            (6,443,810)     5,073,896      4,108,488

PROVISION FOR TAXES
  Current                             (1,168,000)     1,736,000      2,030,000
  Deferred                            (1,192,000)      (617,000)      (806,000)
  Total                               (2,360,000)     1,119,000      1,224,000

NET (LOSS) INCOME                    $(4,083,810)   $ 3,954,896    $ 2,884,488

OTHER COMPREHENSIVE (LOSS), INCOME
 NET OF TAX
  Unrealized (loss) gain on
   investments:
   Unrealized (loss) gain arising
    during period                    $  (138,420)   $  (171,313)   $   230,132
   Less:  reclassified adjustment
    for (loss) gain included in
    income                               (41,153)       (11,097)       (42,068)
  Total                                 (179,573)      (182,410)       188,064
  Minimum pension liability
   adjustment                         (1,334,717)         --             --
Other comprehensive (loss) income     (1,514,290)      (182,410)       188,064
COMPREHENSIVE (LOSS) INCOME          $(5,598,100)   $ 3,772,486    $ 3,072,552

BASIC AND DILUTED EARNINGS PER SHARE $     (3.49)   $      3.38    $      2.46

  See accompanying notes to Consolidated Financial Statements.
<PAGE>
                     ALLEN ORGAN COMPANY AND SUBSIDIARIES
          CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

                                      Common Stock                   Capital
                                                                        in
                            Class A             Class B             Excess of
                            Shares    Amount    Shares    Amount    Par Value

Balance-December 31, 1998   127,232  $127,232  1,410,761 $1,410,761 $12,758,610

Balance-December 31, 1999   127,232  $127,232  1,410,761 $1,410,761 $12,758,610

Balance-December 31, 2000   127,232  $127,232  1,410,761 $1,410,761 $12,758,610

Tax benefit from exercise
of subsidiary stock options                                             145,000

Balance-December 31, 2001   127,232  $127,232  1,410,761 $1,410,761 $12,903,610




                                         Accumulated
                                            Other
                            Retained    Comprehensive       Treasury Stock
                            Earnings        Income       Shares       Amount

Balance-December 31, 1998  $54,448,760    $134,336      367,172   $(11,971,003)

Net Income                   2,884,488
Reacquired Class A Shares                                   110         (3,959)
Change in unrealized
 gain on securities
 available for sale                        188,064
Cash dividend paid
($.56 per share)              (655,598)

Balance-December 31, 1999  $56,677,650    $322,400      367,282   $(11,974,962)

Net Income                   3,954,896
Reacquired Class B Shares                                    96         (3,732)
Change in unrealized
 gain on securities
 available for sale                       (182,410)
Cash dividend paid
($.56 per share)              (655,544)

Balance-December 31, 2000  $59,977,002    $139,990      367,378   $(11,978,694)

Net Loss                    (4,083,810)
Reacquired Class B Shares                                   156         (6,891)
Reacquired Class A Shares                                   138         (4,416)
Change in unrealized
 gain (loss) on securities
 available for sale                       (179,573)
Minimum pension
 liability adjustment                   (1,334,717)
Cash dividend paid
($.56 per share)              (655,479)

Balance-December 31, 2001  $55,237,713 $(1,374,300)     367,672   $(11,990,001)


         See accompanying notes to Consolidated Financial Statements.
<PAGE>
                     ALLEN ORGAN COMPANY AND SUBSIDIARIES
                     CONSOLIDATED STATEMENTS OF CASH FLOWS

                                                Years Ended December 31,
                                             2001          2000         1999
CASH FLOWS FROM OPERATING ACTIVITIES
 Net (loss) income                      $(4,083,810)   $3,954,896   $2,884,488
 Adjustments to reconcile net income
  (loss) to net
  cash provided by operating activities
  Depreciation and amortization           2,974,898     2,519,496    1,916,970
  Minority interest in consolidated
   subsidiaries                              33,275       (68,295)    (112,979)
  Loss from impairment of VIR, Inc.
   goodwill and intangibles, included in
   operating expenses                     1,400,000         --          --
  Loss (Gain) on sale of property,
   plant and equipment                      175,358        58,288   (1,063,722)
  Gain on sale of investments               (65,635)      (17,684)     (67,244)
  Change in assets and liabilities
   Accounts receivable                      337,817       158,771   (3,375,842)
   Inventories                            3,201,673    (3,050,201)  (1,724,698)
   Prepaid income taxes                  (1,092,242)      (13,972)     422,656
   Prepaid expenses                         (82,079)      (17,204)     224,816
   Deferred income tax benefits          (1,296,667)     (711,566)    (474,799)
   Prepaid pension costs                    126,006       (36,548)     172,455
   Other assets                               2,500        22,548      (34,641)
   Accounts payable                        (697,868)     (145,589)   2,031,276
   Accrued income taxes                       --         (683,133)     683,133
   Other accrued expenses                  (842,948)      888,946      504,871
   Customer deposits                        (13,605)    1,406,432       57,767
   Deferred and other noncurrent
    liabilities                             397,753       130,101     (100,589)
     Net Cash Provided by Operating
      Activities                            474,426     4,395,286    1,943,918
CASH FLOWS FROM INVESTING ACTIVITIES
  Cash proceeds from sale of investments
   classified as available for sale      18,682,314     9,908,680    5,993,248
  Cash paid for purchase of investments
   classified as available for sale      (5,711,291)  (15,118,347)  (5,399,027)
  Increase in cash value of life insurance (138,699)     (313,370)    (321,163)
  Increase in note receivable              (440,386)     (445,574)    (451,261)
  Additions to goodwill and intangible
   assets                                  (156,243)     (906,700)    (733,194)
  Cash proceeds from sale of property,
   plant and equipment                       11,250       100,206    1,382,716
  Cash paid for purchase of property,
   plant and equipment                   (1,458,233)   (3,157,814)  (3,260,719)
     Net Cash (Provided by) Used In
      Investing Activities               10,788,712    (9,932,919)  (2,789,400)
CASH FLOWS FROM FINANCING ACTIVITIES
 Proceeds from bank loans                 3,300,000     8,700,000         --
 Repayment of bank loans                (12,000,000)         --           --
 Dividends paid in cash                    (655,479)     (655,544)    (655,598)
 Reacquired Class B common shares            (6,891)       (3,732)        --
 Subsidiary company stock reacquired
  from minority stockholders               (255,055)         --        (13,238)
 Proceeds from sale of subsidiary stock      96,333          --           --
 Reacquired Class A common shares            (4,416)         --         (3,959)
     Net Cash (Used in) Provided by
      Financing Activities               (9,525,508)    8,040,724     (672,795)
NET INCREASE (DECREASE)  IN CASH          1,737,630     2,503,091   (1,518,277)
CASH, JANUARY 1                           2,712,368       209,277    1,727,554
CASH, DECEMBER 31                       $ 4,449,998    $2,712,368   $  209,277


           SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION

  Cash (refunded) paid for income taxes $  (218,816)   $2,535,061   $1,625,400
  Cash paid for interest                $   315,084    $  320,942   $    --
The above changes in assets and
 liabilities excludes the following
 adjustments related to the minimum
 pension liability.
 Accumulated other comprehensive income   1,334,717          --          --
 Deferred income tax benefits               794,019          --          --
 Accrued Pension Costs                   (2,128,736)         --          --

         See accompanying notes to Consolidated Financial Statements.
<PAGE>
                     ALLEN ORGAN COMPANY AND SUBSIDIARIES
                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 Significant Accounting Policies
     Background:
        Allen   Organ  Company  and  Subsidiaries  operate  in  four   industry
     segments:     Musical   Instruments,   Data   Communications,   Electronic
     Assemblies,  and Audio Equipment.  See Note 18 for additional  information
     on the operating activities of each segment.

     Principles of Consolidation:
        The  consolidated  financial statements include  the  accounts  of  the
     Allen   Organ  Company  and  the  following  subsidiaries.   All  material
     intercompany transactions have been eliminated.
           Subsidiary Name               Ownership %
         Allen Audio, Inc.                 100.00%
         Allen Diversified, Inc.           100.00%
         Allen Organ International, Inc.   100.00%
         Eastern Research, Inc.             92.52%
         Legacy Audio, Inc.                 75.00%
         Linear Switch Corporation         100.00%
         Rocky Mount Instruments, Inc.     100.00%
         VIR, Inc.                         100.00%

     Revenue and Cost Recognition:
        The  Company's  financial  statements are prepared  using  the  accrual
     method  of  accounting.   In accordance with this  method  of  accounting,
     revenue is recognized in the period in which it is earned and expenses are
     recognized  in the period in which they are incurred.  Revenue on  product
     shipments  is recognized when title has transferred pursuant  to  shipping
     terms  with the Company's customers.  All revenue and expenses  which  are
     applicable to future periods have been presented as deferred or prepaid on
     the accompanying financial statements.

     Financial Instruments:
        Financial  instruments that potentially subject the Company  to  credit
     risk  consist principally of short-term investments and trade receivables.
     The  Company  places substantially all of its investments in mutual  funds
     holding  federal, state and local government obligations and,  by  policy,
     limits the amount of credit exposure in any one investment.  The Company's
     Musical Instruments segment sells most of its products through established
     dealer  networks.   The Data Communications segment sells  most  of  their
     products  direct to customers and to distributors worldwide and under  OEM
     agreements  with  other data communications companies.   The  credit  risk
     associated with related receivables is limited due to the large number  of
     dealers and distributors and their geographic dispersion.

     Use of Estimates:
        The  preparation of financial statements in conformity  with  generally
     accepted  accounting principles requires management to make estimates  and
     assumptions that affect the reported amounts of assets and liabilities and
     disclosure  of  contingent  assets and liabilities  at  the  date  of  the
     financial  statements  and the reported amounts of revenues  and  expenses
     during  the  reported  period.  Actual results  could  differ  from  those
     estimates.

     Investments:
        The  Company accounts for its short-term investments in accordance with
     Statement  of  Financial  Accounting Standards  No.  115,  Accounting  for
     Certain  Investments in Debt and Equity Securities.  Management determines
     the  appropriate  classification of its investments  in  debt  and  equity
     securities  at the time of purchase and reevaluates such determination  at
     each balance sheet date.

     Inventories:
        Inventories  are  valued  at the lower of  cost  or  market.   Cost  is
     determined  using the first-in, first- out (FIFO) method for substantially
     all inventories.

     Property, Plant and Equipment:
        Property,  plant  and  equipment are stated at cost.   Depreciation  is
     computed  over  estimated useful asset lives using both straight-line  and
     accelerated  methods for financial reporting and accelerated  methods  for
     tax reporting.

     Goodwill and Intangible Assets:
        Goodwill  represents  the  excess of cost  over  the  identifiable  net
     assets of acquired subsidiaries.  Goodwill is amortized on a straight-line
     basis  over  various periods generally from 5 - 20 years and is  presented
     net  of accumulated amortization of $128,195 and $101,269 at December  31,
     2001 and 2000 respectively.

        Intangible  assets  represent  identifiable  assets  such  as  customer
     lists, developed technology and trademarks acquired in connection with the
     purchase  of the Company's subsidiaries.  Intangible assets are  amortized
     on  a straight-line basis over various periods generally from 5 - 20 years
     and  are  presented  net  of accumulated amortization  of  $2,381,307  and
     $1,736,548 at December 31, 2001 and 2000 respectively.

        The  carrying value of goodwill and intangible assets for each business
     is   continually  reviewed  to  assess  its  recoverability  from   future
     operations,  based  on  future cash flows (undiscounted)  expected  to  be
     generated  by such operations.  Any impairment in value indicated  by  the
     assessment  would be computed based on discounted cash flows  and  charged
     against current operations.

     Income Taxes:
        Income  taxes are provided for the tax effects of transactions reported
     in  the  financial  statements and consist of  taxes  currently  due  plus
     deferred taxes.  Deferred taxes are recognized for differences between the
     basis  of  assets and liabilities for financial statement and  income  tax
     purposes.

     Research and Development:
        Research  and  development  expenditures  are  charged  to  expense  as
     incurred.

     Stock-Based Compensation:
        The  Company accounts for its stock-based compensation plans using  the
     accounting  prescribed  by Accounting Principles  Board  Opinion  No.  25,
     Accounting  for  Stock  Issued to Employees.  Since  the  Company  is  not
     required  to adopt the fair value based recognition provisions  prescribed
     under Statement of Financial Accounting Standards No. 123, Accounting  for
     Stock-Based  Compensation,  it  has  elected  only  to  comply  with   the
     disclosure requirements set forth in the Statement.  (See Note 20)

     Reclassifications:
        Certain  amounts  in the 2000 and 1999 financial statements  have  been
     reclassified to conform to the 2001 presentation.

     New Accounting Standards:
        Effective  January  1,  2001, the Company adopted Financial  Accounting
     Standard  No.  133,  "Accounting for Derivative  Instruments  and  Hedging
     Activities,"  as  amended.  This standard  requires  that  all  derivative
     instruments be reported on the balance sheet at fair value and establishes
     criteria for designation and effectiveness of hedging relationships.   The
     Company  has no derivative instruments or hedging activities and therefore
     this standard did not have an affect on its financial statements.

        During  2001  the  Financial  Accounting  Standards  Board  issued  the
     following  new  Statements  that are applicable  to  the  Company.   These
     statements  did  not  have  a material effect on the  Company's  financial
     statements.

          SFAS  141, "Business Combinations" - requires the use of the purchase
            method  for  all  business combinations initiated  after  June  30,
            2001.
          SFAS  142,  "Goodwill  and Other Intangible Assets"  -  replaces  the
            requirement  to  amortize intangible assets with  indefinite  lives
            and  goodwill  with  a  requirement for an  impairment  test.   The
            statement will be adopted beginning 2002.
          SFAS  143,  "Accounting for Asset Retirement Obligations" - addresses
            financial accounting and reporting for obligations associated  with
            the  retirement  of tangible long-lived assets and  the  associated
            asset retirement costs.
          SFAS  144,  "Accounting for the Impairment or Disposal of  Long-Lived
            Assets"  -  Establishes one accounting model, used  for  long-lived
            assets  to  be  held  and used, disposed of by  sale  or  otherwise
            disposed.
        The  Company does not expect that these statements will have a material
     affect on future financial statements.

NOTE 2 Sale of Manufacturing Facility
        In  April  1999  the Company sold its manufacturing  plant  located  in
     Rocky  Mount, North Carolina for $1,360,000 (net of selling expenses)  and
     recognized  a gain on the sale of approximately $1,068,000.   The  Company
     ceased   operations  at  this  facility  effective  March  31,  1999   and
     consolidated   all  of  its  Musical  Instruments  production   into   its
     manufacturing facility in Macungie, PA.

NOTE 3 Impairment of Goodwill and Intangibles
        During  March 2001 the Company recorded a charge to operating  expenses
     of  $1,400,000  related  to the impairment in the value  of  goodwill  and
     intangibles  which arose in connection with the acquisition of  VIR,  Inc.
     This write down is attributable to the downturn in the data communications
     industry,  the  combination of VIR into the Company's  subsidiary  Eastern
     Research, Inc. and closure of the VIR facility discussed in more detail in
     Note  4 below, all of which reduced expectations of future cash flows from
     VIR's operations.

NOTE 4 Combination of Subsidiaries
        During  2001  the Company combined its Data Communications subsidiaries
     VIR  Linear  Switch (VIR) of Southampton, PA into Eastern  Research,  Inc.
     (ERI),  which  is  also a subsidiary of the Company.  The combination  was
     completed  during  the  third  quarter of 2001  and  the  Southampton,  PA
     facility  has  been closed.  The combined operations are headquartered  at
     ERI's  facility in Moorestown, New Jersey.  Manufacturing of some of VIR's
     products  has been moved to ERI's supplier with other manufacturing  being
     transferred  to  the Macungie, PA plant.  The Company  has  estimated  the
     restructuring  charges (including employee severance and benefits  for  19
     employees  and  other  exit costs) related to this combination  and  plant
     closure to be approximately $530,000 of which $390,000 has been paid as of
     December  31, 2001.  The Company believes that the remaining  $140,000  of
     accrued  termination  costs is adequate to cover the  estimated  remaining
     expenditures, which relate primarily to future lease payments and building
     maintenance costs.

NOTE 5  Investments

       The  cost  and  fair value of investments in debt and equity  securities
       are as follows:

                                               Gross       Gross
                                  Amortized Unrealized  Unrealized       Fair
                                     Cost      Gains      Losses         Value

      December 31, 2001
      Available for sale
      Equity securities         $   129,310   $    --     $ 92,000 $    37,310
      Mutual Funds
        Short Term Gov't Funds    6,602,414    158,818        --     6,761,232
        Municipal  Bond Funds     4,137,455     62,906        --     4,200,361
        Equity Funds                803,440      4,020     196,947     610,513
      Totals                    $11,672,619   $225,744    $288,947 $11,609,416

      December 31, 2000
      Available for sale
      Equity securities         $   129,315   $    --     $100,067 $    29,248
      Mutual Funds
        Short Term Gov't Funds   13,345,217    138,061        --    13,483,278
        Municipal  Bond Funds     7,769,342     68,453          57   7,837,738
        Equity Funds              3,229,923    233,541     119,351   3,344,113
      Totals                    $24,473,797   $440,055    $219,475 $24,694,377

        Marketable  debt  securities have an average  contractual  maturity  of
     approximately 1 year or less.
        Realized gains and losses are determined based on the original cost  of
     these  investments using a first-in, first-out method.  During 2001,  2000
     and 1999, sales proceeds and gross realized gains and losses on securities
     classified as available for sales were:

                                   2001          2000           1999

     Sales proceeds           $18,682,314    $9,908,680     $5,993,248

     Gross realized losses    $   216,546    $   37,974     $   60,606

     Gross realized gains     $   282,181    $   55,658     $  127,850

        The  change in net unrealized holding gains on securities available for
     sale in the amount of $283,786, $276,948, and $285,677 net of deferred tax
     expense  of  $104,213,  $94,538, and $97,613 has been  included  in  other
     comprehensive income in stockholders' equity for the years ended  December
     31, 2001, 2000, and 1999, respectively.

NOTE 6 Inventories
                                                  December 31,
                                               2001         2000
           Finished goods                  $4,720,318   $5,950,327
           Work in process                  6,249,775    6,172,954
           Raw materials                    5,515,815    7,684,892
            Total                         $16,485,908  $19,808,173

           The  Company also maintains an inventory of various parts to be used
       to  service musical instruments as future needs arise which are reported
       as a noncurrent asset.

NOTE 7 Property, Plant and Equipment
                                                                   Estimated
                                                December 31,         Useful
                                              2001        2000       Lives
           Land and improvements         $ 2,407,298 $ 2,407,298    10 yrs
           Buildings and improvements      9,000,465   8,955,230     2 - 40 yrs
           Machinery and equipment        10,481,698   9,993,291     5 - 10 yrs
           Office furniture and equipment  4,548,093   4,341,718     3 - 8  yrs
           Vehicles                          163,411     164,244     4 yrs
            Sub-total                     26,600,965  25,861,781
           Less accumulated depreciation  15,109,416  13,338,648
            Total                        $11,491,549 $12,523,133

           Depreciation   expense   charged  to  operations   was   $2,303,209,
       $1,897,715 and $1,424,189 in 2001, 2000 and 1999 respectively.

NOTE 8 Note Receivable
           The  Company  has  entered  into  two  Split-Dollar  Life  Insurance
       agreements  with  its  President who is the insured  and  owner  of  the
       policies.  The policy owner shall pay the portion of the premiums  equal
       to  the  value  of  the economic benefit determined in  accordance  with
       applicable  IRS Revenue Rulings.  The Company shall pay the  balance  of
       the net premiums, which approximates $450,000 annually.

           The  agreements  provide  that  the Company  shall  be  entitled  to
       recover the amount of premiums paid out of the built up cash value  upon
       termination  of the agreement or out of the proceeds upon the  death  of
       the  insured.   As  security for repayment the Company is  a  collateral
       assignee  of the policy to the extent of any such unreimbursed premiums.
       The   Company  is  also  secured  by  the  personal  obligation  of  its
       President.   The  note receivable exceeds the cash  surrender  value  of
       these  policies by approximately $450,000 and $483,000 at  December  31,
       2001 and 2000, respectively.

NOTE 9 Income Taxes
           The provision for income taxes consists of the following:
                  2001                      2000                    1999
         Currently                  Currently              Currently
          Payable      Deferred      Payable    Deferred    Payable   Deferred

Federal $(1,347,000) $(1,014,000)  $1,392,000  $(251,000) $1,620,000 $(658,000)
State       179,000     (178,000)     344,000   (366,000)    410,000  (148,000)
Total   $(1,168,000) $(1,192,000)  $1,736,000  $(617,000) $2,030,000 $(806,000)

           A  reconciliation  of  the  provision  for  income  taxes  with  the
       statutory rate follows:
                                2001               2000               1999
Statutory provision for
 federal income tax   $(2,180,000) (34.0)% $1,702,000  34.0%  $1,359,000  34.0%
State taxes, net of
 federal tax benefits    (549,000)  (8.6)     (14,000) (0.3)      73,000   1.8
Tax credits              (363,000)  (5.7)    (325,000) (6.5)    (179,000) (4.5)
Tax-exempt income         (96,000)  (1.5)    (106,000) (2.1)    (110,000) (2.8)
Exempt income of
 foreign sales
 corporation             (100,000)  (1.6)    (151,000) (3.0)     (77,000) (1.9)
Other items, net           28,000    0.4       13,000   0.3       58,000   1.5
Effect of change in
 valuation allowance of
 deferred tax assets:
  Federal                 350,000    5.4          --    --          --    --
  State                   550,000    8.6          --    --       100,000  2.5
Total                 $(2,360,000) (36.8)% $1,119,000  22.4%  $1,224,000 30.6%


           The  following temporary differences give rise to the net  deferred
     tax asset at December 31, 2001 and 2000.

                                                        2001          2000
         Deferred Tax Liabilities
           Excess of tax depreciation/amortization
            over book depreciation/amortization      $  --         $(398,666)
           Excess of pension expense for tax
            purposes over book                          --          (188,722)
           Unrealized gain not recognized for
            tax purposes                                --           (80,806)
             Total Deferred Tax Liabilities             --          (668,194)
         Deferred Tax Assets
           Excess of book depreciation/amortization
            over tax depreciation/amortization         328,155         --
           Excess of book over tax pension
            expense                                    652,031         --
           Unrealized loss not recognized for
            tax purposes                                23,434         --
           Deferred compensation not recognized
            for tax purposes                           226,047       118,082
           Net operating loss carry forwards         1,743,391       888,981
           Other Liabilities                           247,466        70,275
           Reserve for Bad Debts                       131,943       163,008
           Inventory Reserve                         1,231,396     1,021,025
             Sub-total                               4,583,863     2,261,371
           Valuation Allowance                      (1,000,000)     (100,000)
           Total Deferred Tax Assets                 3,583,863     2,161,371
           Net Deferred Tax Asset                   $3,583,863    $1,493,177

           Deferred taxes are included in the Company's financial  statements
           as follows:
                                                        2001          2000
             Current deferred tax asset             $1,561,138    $1,094,701
             Non-current deferred tax asset          2,022,725       398,476
               Net deferred tax asset               $3,583,863    $1,493,177

           At  December  31,  2001  the  Company has  available  approximately
     $5,212,000  of  federal  net  operating  losses  of  which  approximately
     $3,145,000 are eligible for carry back to offset prior years taxes  paid.
     The  Company  expects to receive approximately $1,200,000 of tax  refunds
     during  2002  related  to  these loss and tax credit  carry  backs.   The
     Company   also   has  available  at  December  31,  2001,   approximately
     $17,454,000 of unused state net operating loss carry forwards that may be
     applied  against future taxable income and that expire in  various  years
     from 2002 to 2021.

           At  December  31,  2001  the Company has a valuation  allowance  of
     $1,000,000  for  the  deferred tax assets related to the  uncertainty  of
     realizing  state  net  operating  loss carry  forwards  and  federal  net
     operating losses of a subsidiary not included in the consolidated federal
     income tax return.

NOTE 10    Notes Payable - Bank
           In  June  2000  Eastern Research, Inc. (ERI), a subsidiary  of  the
     Company, obtained a term loan and revolving line of credit from  a  bank.
     During June 2001 Eastern Research, Inc. repaid all outstanding bank loans
     totaling $12,000,000 with funds provided by Allen Organ Company.

NOTE 11    Other Accrued Expenses
                                                          December 31,
                                                       2001        2000
             Accrued salaries and commissions      $1,386,646    $996,254
             Accrued additional purchase price          --        906,700
             Accrued plant closing costs              140,700         --
             Other                                    445,808     913,148
               Total                               $1,973,154  $2,816,102

NOTE 12    Commitments and Contingencies
           As  of December 31, 2001, the Company is contingently liable for  a
     maximum  amount  of  approximately  $2,041,909  in  connection  with  the
     financing arrangements of certain customers.

           Under  the terms of an agreement with the wife of the late Chairman
     and principal shareholder, the Company may be required to purchase within
     eight  months of her death, at the option of her personal representative,
     an amount of Class B Common Shares then owned by her or includable in her
     estate for Federal Estate Tax purposes sufficient to pay estate taxes and
     costs,  subject to the limitations of Section 303 of the Internal Revenue
     Code.   At  December  31,  2001,  the shareholder  owned  or  would  have
     includable  in  her estate 261,797 shares of Class B Common  Stock.   The
     Company has purchased life insurance on the life of the shareholder  with
     a  face  value of $6,000,000.  While the potential obligation related  to
     this  agreement  is in large part dependent on the value  placed  on  the
     Company's  stock  for estate tax purposes, the Company believes  that  it
     would  have  access  to sufficient resources to fund this  obligation  if
     necessary.

           In connection with the purchase of VIR, Eastern Research and Linear
     Switch,  the Company agreed to pay a contingent purchase price  equal  to
     4.5%  of  the sales of these Companies in excess of $7,000,000  per  year
     through  December 2000.  The total additional payment for 2000  and  1999
     amounted  to $906,700 and $733,319, respectively.  The agreement provided
     that the total of these payments not exceed $2,000,000 and this limit was
     met during 2000.

           The  Company's Data Communications segment leases its  offices  and
     production facility under non-cancelable operating leases which expire at
     various  dates through August 2005.  These leases include renewal options
     for  periods  ranging up to ten years with increases  of  lease  payments
     based  on changes in the Consumer Price Index.  Legacy Audio, Inc. leases
     warehouse  space under a non-cancelable operating lease which expires  in
     July  2003.  Rent expense for all Company operating leases was $ 495,816,
     $440,971  and  $321,368  for 2001, 2000 and 1999, respectively.   Minimum
     annual rent payments for the operating leases are as follows:

            2002                      $329,229
            2003                       110,054
            2004                       103,054
            2005                        60,115
           Total                     $ 602,452

NOTE 13    Retirement Plans
           The  Company  sponsors two noncontributory defined benefit  pension
     plans,  which  cover substantially all of its employees.   Salaried  plan
     benefits  are  generally based on the employee's  years  of  service  and
     compensation  levels.  Hourly plan benefits are based on various  monthly
     amounts for each year of credited service.  The Company's funding  policy
     is  to  contribute  amounts to the plans sufficient to meet  the  minimum
     funding requirements set forth in the Employee Retirement Income Security
     Act of 1974, plus such additional amounts as the Company may determine to
     be  appropriate from time to time.  Plan assets are comprised principally
     of   cash   equivalents,  U.S.  Government  obligations,   fixed   income
     securities, and equity securities.

           Following are reconciliations of the pension benefit obligation and
     the value of plan assets:

                                         2001            2000           1999
      Pension benefit obligation
      Balance, beginning of year    $15,194,233     $15,065,101    $14,923,318
      Service cost                      353,266         324,423        380,650
      Interest cost                   1,055,508       1,024,441        999,772
      Benefits paid to
      participants                   (1,012,126)       (976,612)      (812,359)
      Increase (decrease) on
       updated data/assumptions         522,034        (243,120)      (426,280)
      Balance, end of year          $16,112,915     $15,194,233    $15,065,101

      Plan assets
      Fair value, beginning of year $15,689,627     $17,477,871    $15,611,950
      Actual investment returns      (1,278,937)       (811,632)     2,678,280
      Benefits paid to participants  (1,012,126)       (976,612)      (812,359)
      Fair value, end of year       $13,398,564     $15,689,627    $17,477,871

           The Funded status of the plans were as follows:
                                                           December 31,
                                         2001            2000           1999
      Excess of the value of
       plan assets over the
       benefit obligation           $(2,714,351)    $   495,394    $ 2,412,770
      Unrecognized prior
       service cost                        --                --         73,323
      Unrecognized net transition
       liability (asset)                   --           (72,012)      (144,020)
      Unrecognized net actuarial
       loss (gain)                    3,095,047          83,320     (1,871,919)
      Adjustment to recognize
       minimum liability             (2,128,736)             --          --
      (Accrued) prepaid
       benefit cost                 $(1,748,040)    $   506,702    $   470,154

           The  adjustment to recognize the minimum pension liability  in  the
     amount  of  $2,128,736 net of deferred tax expense of $794,019  has  been
     included  in  other  comprehensive  income  in  stockholders'  equity  at
     December 31, 2001.

           The following weighted-average rates were used:

      Discount rate on the
       benefit obligation                 6.75%          7.00%          7.00%
      Rate of return on plan assets       8.00%          8.00%          8.00%
      Rate of long-term
       compensation increase              6.00%          6.00%          6.00%

           Pension expense is comprised as follows:

                                         2001            2000           1999

      Service cost                  $   356,266     $   324,423    $   380,650
      Interest cost                   1,055,508       1,024,441        999,772
      Expected return on plan assets  1,210,756      (1,357,306)    (1,209,949)
      Amortization of net
       gain from prior periods            --            (29,421)         --
      Amortization of unrecognized
       prior service cost                 --             73,323         73,990
      Amortization of transition asset  (72,012)        (72,008)       (72,008)
        Net Pension Cost            $   126,006     $   (36,548)   $   172,455

           The  foregoing net amounts regarding the pension benefit  obligation
       and  the  value  of  plan  assets are based on  a  combination  of  both
       overfunded  and  underfunded plans.  The aggregate amounts  rela ting  to
       underfunded plans are as follows:
                                                    December 31,
                                             2001         2000         1999
      Projected benefit obligation      $16,112,915   $8,078,231       $--
      Accumulated benefit obligation     15,146,604    7,167,545        --
      Fair value of plan assets          13,398,564    7,827,166        --

           The  Company  provides  a 401(k) deferred compensation  and  profit
     sharing  plan  for the benefit of eligible employees.   The  plan  allows
     eligible  employees  to  defer a portion of  their  annual  compensation,
     pursuant to Section 401(k) of the Internal Revenue Code.  Company profit-
     sharing contributions to the plan are discretionary as determined by  the
     Company's  board of directors.  The Company contributions were  $248,650,
     $125,374 and $93,388 to the plans in 2001, 2000 and 1999 respectively.

           The   Company  provides  supplemental  executive  retirement  plans
     (deferred  compensation) for 3 of its officers.  These plans provide  for
     discretionary  company contributions, which vest over a  5  year  period,
     accrue interest at the prime rate, not to exceed 9%, and are payable upon
     the executive's death or retirement.

NOTE 14    Deferred and Other Noncurrent Liabilities

                                                             December 31,
                                                         2001          2000
           Deferred compensation expense              $ 587,769     $ 250,016
           Other Noncurrent Liabilities                 120,000        60,000
            Total                                     $ 707,769     $ 310,016

NOTE 15    Accumulated Other Comprehensive Income

                                                             December 31,
                                                         2001           2000
           Unrealized (loss) gain on investments, net  $(39,583)     $ 139,990
           Minimum pension liability adjustment      (1,334,717)        --
            Total                                   $(1,374,300)     $ 139,990

NOTE 16    Earnings Per Share
           Earnings  per  share were computed using 1,170,480 shares  in  2001,
       1,170,618  shares  in 2000, and 1,170,719 shares in 1999,  the  weighted
       average  number  of  shares outstanding during each year.   The  Company
       does not have any dilutive equity instruments.

NOTE 17    Export Sales
           In  2001,  2000  and  1999,  net sales by  the  Musical  Instruments
       segment include export sales, principally to Canada, Europe and the  Far
       East  of  $3,759,129,  $3,635,123, and  $3,563,383,  respectively.   Net
       sales   by   the  Data  Communications  segment  include  export   sales
       principally  to  Australia, Europe and the Far East  of  $3,342,587  for
       2001,  $7,764,597 for 2000, and $1,146,137 for 1999.  Net sales  by  the
       Audio  Equipment segment include export sales principally to Europe  and
       the  Far  East of $219,315 for 2001, $188,970 for 2000 and  $87,535  for
       1999.

NOTE 18     Industry Segment Information
           The   Company's   operations  are  classified  into  four   industry
       segments:   Musical   Instruments,   Data   Communications,   Electronic
       Assemblies,  and  Audio Equipment.  The Musical Instruments  segment  is
       comprised   of   operations   principally  involved   in   the   design,
       manufacture,  sale  and  distribution  of  electronic  keyboard  musical
       instruments, primarily digital organs and related accessories.   Musical
       instruments are sold primarily to retail distributors worldwide.

           The  Data Communications segment is involved in the design, sale and
       distribution  of  data  communications equipment.   Data  communications
       products  are  sold direct to customers and distributors  worldwide  and
       under OEM agreements with several customers.

           The  Electronic  Assemblies segment is involved in the  manufacture,
       sale  and  distribution of electronic assemblies for  outside  customers
       used   primarily  as  control  devices  and  other  circuitry  in  their
       products.   Subcontract  assembly services  are  provided  primarily  to
       industrial concerns in Pennsylvania and New Jersey.

           The  Audio Equipment segment is involved in the design, manufacture,
       sale  and  distribution  of high quality speaker  cabinets  and  related
       equipment  for  hi-fi  stereo and home theater  applications.   Legacy's
       products  are  sold  worldwide  primarily  through  independent   retail
       dealers  and  to a lesser extent directly to individual customers.   The
       Company  through its subsidiary Allen Audio, Inc., designs, markets  and
       sells  through  distributors a line of Public Address  system  products,
       which  have  initially  been targeted at small  to  mid-sized  churches,
       auditoriums and similar customers.

           Following is a summary of segmented information for 2001,  2000  and
       1999.

                                                      December 31,
                                              2001         2000         1999
       Net Sales to Unaffiliated Customers
              Musical Instruments        $24,375,642  $28,057,832  $27,332,745
              Data Communications         25,909,885   33,321,342   23,295,979
              Electronic Assemblies        8,382,021    8,624,199    5,650,917
              Audio Equipment              1,822,965    2,512,835    1,739,101
               Total                     $60,490,513  $72,516,208  $58,018,742

       Intersegment Sales
              Musical Instruments        $    91,820  $   294,146  $   109,667
              Data Communications            193,664      120,712      174,516
              Electronic Assemblies           79,651       15,577       37,742
              Audio Equipment                 87,777       35,563       58,253
               Total                     $   452,912  $   465,998  $   380,178

       Income (Loss) from Operations
              Musical Instruments        $ 2,184,321  $ 5,029,871  $ 2,950,251
              Data Communications         (8,284,232)  (2,063,221)    (805,738)
              Electronic Assemblies          125,000    1,284,806      430,031
              Audio Equipment               (988,353)    (429,386)    (761,688)
               Total                     $(6,963,264) $ 3,822,070  $ 1,812,856

       Identifiable Assets
              Musical Instruments        $17,664,908  $18,693,577  $18,912,763
              Data Communications         19,596,306   31,011,641   19,764,425
              Electronic Assemblies        3,377,712    4,444,349    3,658,915
              Audio Equipment              2,795,550    2,658,110    2,209,810
               Sub-total                  43,434,476   56,807,677   44,545,913
              General corporate assets    23,037,776   24,000,065   22,920,157
               Total                     $66,472,252  $80,807,742  $67,466,070

       Capital Expenditures
              Musical Instruments        $   528,998  $   837,828  $ 1,268,726
              Data Communications            736,538    2,297,046    1,908,323
              Electronic Assemblies          188,272        5,320        5,670
              Audio Equipment                  4,425       17,620       78,000
               Total                     $ 1,458,233  $ 3,157,814  $ 3,260,719

       Depreciation and Amortization
              Musical Instruments        $   690,084  $   683,673  $   697,587
              Data Communications          2,093,476    1,632,861      992,933
              Electronic Assemblies          113,027      120,750      145,948
              Audio Equipment                 78,311       82,212       80,502
               Total                     $ 2,974,898  $ 2,519,496  $ 1,916,970

       Income Tax Expense (Benefit)
              Musical Instruments        $ 1,186,000  $ 1,984,000  $ 1,985,000
              Data Communications         (3,565,000)  (1,156,000)    (619,000)
              Electronic Assemblies           47,000      484,000      159,000
              Audio Equipment                (28,000)    (193,000)    (301,000)
               Total                     $(2,360,000) $ 1,119,000  $ 1,224,000

           Intersegment  sales are generally priced at cost plus  a  percentage
       mark-up,  and  are generally thought to be marginally less  than  prices
       which  would be charged for the same product to unaffiliated  customers.
       Intersegment  sales  are  excluded  from  net  sales  reported  in   the
       accompanying  consolidated income statements.   Identifiable  assets  by
       segment  are  those  assets  that are used in the  Company's  operations
       within  that  segment.  General corporate assets consist principally  of
       cash and short-term investments.

           The  Electronic Assemblies segment derived 82%, 76% and 68%  of  its
       revenues  from three customers in 2001, 2000 and 1999 respectively.  The
       Data Communications segment derived 13% and 16% of its revenue from  one
       customer  in  2001  and 2000, respectively and 52% of its  1999  revenue
       from  three  customers.   The  Company's Musical  Instrument  and  Audio
       Equipment segments are not dependent on any single customer.

NOTE 19    Investment Income
                                                       December 31,
                                              2001        2000        1999

       Interest Income                    $  910,144  $1,109,751   $  935,290
       Dividend Income                       173,653     414,912      125,990
       Gain (Loss) on Sale of Investments    (65,635)     17,684       67,244
        Total                             $1,018,162  $1,542,347   $1,128,524

NOTE 20    Stock Option Plans
           Eastern  Research,  Inc.  (ERI)  provides  an  employee  stock-based
       compensation plan to assist them in attracting and retaining  personnel.
       The  maximum  number of subsidiary shares that may be issued  under  the
       plan  approximates a 15% interest in the company.  Options are generally
       issued  at estimated fair market value.  The maximum term of the options
       is 6 years, and they generally vest equally over 4 years.

           VIR,  Inc. also sponsored an employee stock-based compensation plan.
       This  plan  was  terminated  in  connection  with  the  closure  of  the
       Southampton plant and combination of VIR Inc. into ERI during 2001.
           As  of December 31, 2001, total options issued represents 14% of the
       ERI  shares currently outstanding.  Vested options consist of 9% of  the
       currently outstanding shares of ERI.

           ERI  recognized  compensation expense of $59,375 and $29,687  during
       2001  and 2000 respectively, related to options granted with an exercise
       price  less  than  the  fair market value on the  date  of  grant.   Had
       compensation  cost been determined pursuant to FASB Statement  No.  123,
       net income (loss) and earnings per share would have been:

                                      2001          2000         1999
           Net (loss) income     $(4,123,257)   $3,820,658   $2,775,220
           Earnings per share         $(3.52)        $3.26        $2.37

NOTE 21    Related Party Transactions
           Two  members  of  the Company's Board of Directors are  employed  by
       firms  providing  legal  and financial advisory services,  respectively.
       Legal  fees  paid were $75,094, $131,543 and $75,221 during  2001,  2000
       and  1999  respectively.   Financial advisory fees  paid  were  $11,753,
       $63,546 and $16,418 during 2001, 2000 and 1999 respectively.

NOTE 22     Quarterly Financial Data (Unaudited)

                First       Second        Third         Fourth
  2001         Quarter      Quarter       Quarter       Quarter        Total
Net Sales    $13,259,398  $15,119,294   $15,385,870   $16,725,951  $60,490,513
Gross Profit   3,381,851    3,890,162     5,173,502     6,337,581   18,783,096
Net (Loss)
 Income       (2,625,492)  (1,565,281)     (263,425)      370,388   (4,083,810)
(Loss) Earnings
 per Share         (2.24)       (1.34)        (0.23)         0.32        (3.49)

  2000
Net Sales    $16,808,032  $18,931,735   $17,850,297   $18,926,144  $72,516,208
Gross Profit   6,953,628    7,751,695     6,891,620     7,188,549   28,785,492
Net Income       869,852    1,356,195       658,528     1,070,321    3,954,896
Earnings per Share  0.74         1.16          0.56          0.91         3.38

  1999
Net Sales    $11,699,573  $13,887,775   $15,590,813   $16,840,581  $58,018,742
Gross Profit   3,637,359    4,878,932     6,107,161     6,601,775   21,225,227
Net Income
 (Loss)         (136,631)   1,044,946       741,718     1,234,455    2,884,488
Earnings (Loss)
 per Share         (0.12)        0.89          0.63          1.05         2.46

 <PAGE>
                                 PART III

Item 10.    Directors and Executive Officers of the Registrant.

                 (a)            Identification of Directors
                                                               Time Period
                              Date Term                         Position
Name                           Expires       Age  Position         Held

Steven Markowitz             Next Annual     48   Director     Since 1980
                           Meeting in 2002
Eugene Moroz (1)             Next Annual     78   Director     Since 1968
                           Meeting in 2002
Leonard W. Helfrich          Next Annual     72   Director     1964 - 1968 and
                           Meeting in 2002                     1972 to present
Orville G. Hawk (1)          Next Annual     84   Director     Since 1989
                           Meeting in 2002
Albert F. Schuster           Next Annual     82   Director     Since 1989
                           Meeting in 2002
Martha Markowitz             Next Annual     80   Director     Since 1991
                           Meeting in 2002
Jeffrey L. Schucker (1)      Next Annual     47   Director     Since July 1996
                           Meeting in 2002
Ernest Choquette             Next Annual     48   Director     Since April 1998
                           Meeting in 2002

   (1)  Audit Committee member.

           (b)  Identification of Executive Officers.
                                                                Time Period
                              Date Term                           Position
Name                           Expires       Age  Position          Held
Steven Markowitz             Next Annual     48   President       1990 to
                           Meeting in 2002                        present
Barry J. Holben              Next Annual     49   Vice President  October 1995
                           Meeting in 2002                        to present
Dwight A. Beacham            Next Annual     55   Vice President  October 1995
                           Meeting in 2002                        to present
Nathan S. Eckhart            Next Annual     38   Vice President, May 1996
                           Meeting in 2002        Treasurer,      to present
                                                  Secretary

                  (c)  Identification of Certain Significant Employees.

                       Not required to be answered.

                  (d)  Family Relationships.

                        Except  for Martha Markowitz and Steven  Markowitz,
                  who  are  mother and son, there is no family relationship
                  between any officers or directors of the Company.


                  (e)  Business Experience.

                             (1)  Steven Markowitz, Barry Holben and Dwight
                       Beacham,  have  been employees  of  the  Company  in
                       executive  capacities for at  least  the  last  five
                       years.
                                  Mr.  Eckhart  has been  employed  by  the
                       Company   since   1993,   previously   serving    as
                       Controller.  Prior to that time he was a manager for
                       a public accounting firm.
                                  Mr. Moroz was employed by the Company for
                       over 50 years, having last held the position of Vice
                       President.  He retired from active employment in May
                       1998  and  continues  to  serve  on  the  Board   of
                       Directors.
                                  Mr.  Helfrich was employed by the Company
                       for  nearly  40 years as Vice President-Finance  and
                       Secretary   before  retiring  in  March   2000   and
                       continues to serve on the Board of Directors.
                                  Mr.  Hawk who has been retired more  than
                       five  (5)  years was formerly Chairman of the  Board
                       and President of First National Bank of Allentown.
                                 Mr. Schuster is a church director of music
                       and prior to his retirement more than five (5) years
                       ago was a supervisor at Bethlehem Steel Corporation.
                                  Mrs.  Markowitz  is the widow  of  Jerome
                       Markowitz, the Company's founder, and represents the
                       family interests.
                                  Mr.  Schucker  is  currently  a  Managing
                       Director  with Griffin Financial Group and  formerly
                       President of Middle Market Capital Advisors,  L.L.C.
                       (MMCA)   and  Vice  President  of  Meridian  Capital
                       Markets.  Griffin Financial Group provides financial
                       advisory services to the Company from time to time.
                                 Mr. Choquette has been a member of the law
                       firm of Stevens & Lee, Reading PA, for over 20 years
                       and   currently  serves  as  Co-Chairman  of   their
                       Corporate  Group.  Stevens & Lee serves  as  general
                       counsel to the Company.

                  (f)    Involvement  in  Certain  Legal   Proceedings   by
                  Directors or Officers.

                       None.

                  (g)  Compliance with Section 16(a) of the Exchange Act.

                       No transaction required to be reported.

Item 11.    Executive Compensation.
                 Deleted paragraphs and/or columns are not required to be
                 answered.

             (b)  SUMMARY COMPENSATION TABLE:
                                       Annual   Compensation     All Other
                                       Salary      Bonus        Compensation
Name and Principal    Position   Year     $            $              $

Steven A. Markowitz, President   2001  140,616        -          48,739 (1)
  (Chief Executive Officer)      2000  135,923        -          42,322
                                 1999  126,840        -          42,059

Leonard W. Helfrich,             2001     -           -
  Vice President - Finance       2000   38,970        -
  (Secretary)                    1999  116,416        -


(1)-Value  of  Split Dollar Life Insurance.  See Note 8 to the accompanying
consolidated  financial  statements  for  additional  information  on  this
arrangement.


             (f)  Defined Benefit or Actuarial Plan Disclosure.

                   Estimated  Annual Benefit obtained from  2001  Actuarial
                   Valuation Report:

                  Steven A. Markowitz      $63,533        Age 48 (1)

                  (1)  Amount shown is calculated from prior compensation to
                  date and estimated compensation to normal retirement age (65)

             (g)  Compensation of Directors:

                                  Non-employee Directors receive  $350  for
                  each Board and committee meeting attended plus reasonable
                  expenses   in   connection  with  attendance.    Employee
                  Directors  receive no additional compensation  for  their
                  services as a Director.

             (h)  Employment Contracts and Termination  of
                  Employment and Change in Control Arrangements:

                                  There are no employment contracts between
                  the  Company and any of the Company's Executive Officers.
                  The Company has established an Executive Bonus Program in
                  the  form of executive supplemental retirement plans  for
                  the  benefit of Mr. Beacham, Mr. Holben and Mr.  Eckhart.
                  These    plans   provide   for   discretionary    company
                  contributions,  which vest over a 5 year  period,  accrue
                  interest  at  the prime rate, not to exceed 9%,  and  are
                  payable upon the executives death or retirement.

             (j)  Additional Information with  Respect  to
                  Compensation    Committee    Interlocks    and    Insider
                  Participation in Compensation Decisions:

                  (1)              Nathan    S.  Eckhart,  Vice   President,
                       Treasurer   and   Secretary  and Ernest J. Choquette,
                       Director of the Company,  serve on  the  Compensation
                       Committee  of the Board  of Directors  whose function
                       is   to  set  the   compensation  of  the  President.
                       The compensation of  all  other employees  is set  by
                       or at the  direction  of  the  President.


Item 12.     Security Ownership of Certain Beneficial Owners and Management

             (a)   Voting securities of the registrant owned of  record  or
             beneficially by each person who owns of record, or is known by
             the registrant to own beneficially, more than 5 percent of any
             class  of  such securities.  Class A Common Shares  constitute
             the  only  securities with voting rights.  Information  as  of
             February 28, 2002.
                                          Amount and
                                          Nature of
            Names and           Title of  Beneficial   % of
            Addresses             Class   Ownership    Class
            Jerome Markowitz        A     81,531       97.22%
            Trust (2)                     (1)
            821 N. 30th St.
            Allentown, PA

            (1)  Sole voting and investment power

            (2)   The  shares are held by Trustees under an Inter  Vivos
               Trust  established by Mr. Markowitz, who died  in  February,
               1991,  for the benefit of his family, principally his widow,
               Martha   Markowitz.   The  Trustees  are  Steven  Markowitz,
               President  and  a  Director  of  the  Company,  and   Martha
               Markowitz, a Director of the Company.

             (b)   Each class of equity securities of the registrant  or  any
             of   its   parents   or  subsidiaries,  other  than   directors'
             qualifying shares, beneficially owned directly or indirectly  by
             all  directors  naming them and directors and  officers  of  the
             registrant, as a group, without naming them.  Information as  of
             December 31, 2001.

                                                    Percent  Percent
                                        Nature of    of       of
                 Class     Class        Beneficial Class    Class
Directors          A         B          Ownership    A        B

Steven Markowitz    58                  (1) (3)      .07 %
                           13,562       (1) (3)               1.25%
                81,531*                 (2) (4)    97.22 %
                          242,016*      (2) (4)              22.27%

Eugene Moroz                6,290       (1) (3) as
                                        to 6,290
                            6,000       (2) (4) as
                                        to 6,000              1.13%

Leonard W. Helfrich           346       (2) (4)                .03%

Orville G. Hawk                50       (2) (4)                .005   %

Martha Markowitz           19,781       (1) (3)               1.82%
                81,531*                 (2) (4)    97.22 %
                          242,016*      (2) (4)              22.27%


                                                    Percent  Percent
All Directors                                        of       of
and Officers     Class     Class                   Class    Class
as a Group         A         B                       A        B

     7          81,589**  288,045**                97.29%**  26.51%


              (1)   Sole voting power
              (2)   Shared voting power
              (3)   Sole investment power
              (4)   Shared investment power

                     *     Shares owned by the Jerome Markowitz Trust  for
                  which   Martha  Markowitz  and  Steven  Markowitz,   Co-
                  Trustees, have shared voting and investment power and of
                  which  Martha  Markowitz is the primary beneficiary  and
                  Steven Markowitz, one of the residuary beneficiaries.

                    **   The shares held by the Jerome Markowitz Trust are
                  not duplicated in the totals for the Class A and Class B
                  Shares.

             (c)      Changes in Control.  Not required to be answered.


Item 13.    Certain Relationships and Related Transactions

            See  Note  12 to Financial Statements, concerning an  agreement
            between  the  Company and Martha Markowitz, a Director  of  the
            Company.

                                  PART IV

Item 14.    Exhibits, Financial Statement Schedules and Reports on Form 8-K

             (a)  (1)  Financial Statements
                       The  following consolidated financial statements  of
                 Allen  Organ Company and its subsidiaries are included  in
                 Part II, Item 8:
                      Independent Auditors' Reports.
                       Consolidated Balance Sheets as of December 31,  2001
                 and 2000.
                      Consolidated Statements of Income for the years ended
                 December 31, 2001, 2000, and 1999.
                       Consolidated  Statement of Changes in  Stockholders'
                 Equity  for the years ended December 31, 2001,  2000,  and
                 1999.
                       Consolidated Statements of Cash Flows for the  years
                 ended December 31, 2001, 2000, and 1999.
                      Notes to Consolidated Financial Statements.
                        The   individual   financial  statements   of   the
                 Registrant's subsidiaries have been omitted, as  they  are
                 all  included  in  the  consolidated financial  statements
                 referred to above.

             (a)  (2) Financial Statement Schedules
                       Schedule II.  Valuation and Qualifying Accounts  for
                 the three years ended December 31, 2001.

                           Schedules   other  than   those
                 listed  above  are  omitted  because  they   are
                 either  not required, are not applicable or  the
                 required   information  is  presented   in   the
                 Consolidated Financial Statements.

             (a)  (3) Exhibits
                      Exhibit No.    Description
                      2(4)      Plan of acquisition
                      3.1(1)    Articles of Incorporation as amended
                      3.2(2)    Bylaws, as amended
                      10.2(3)   Agreement of Amendment between the Company
                                and Martha Markowitz
                      10.3(5)   Executive Bonus Program  and
                                Endorsement  Split  Dollar  Life   Insurance
                                Agreements  between the Company  and  Dwight
                                A.  Beacham, Nathan S. Eckhart and Barry  J.
                                Holben
                      21       Subsidiaries of the registrant
                      99.1(6)  Audit Committee Charter

              1.       Incorporated  by  reference  to  the  exhibit
                     filed with the Registrants Annual Report on Form  10-K
                     for the year ended December 31, 1984.
              2.       Incorporated  by  reference  to  the  exhibit
                     filed  with the Registrants Quarterly Report  on  Form
                     10-Q for the period ended September 30, 1996.
              3.       Incorporated  by  reference  to  the  exhibit
                     filed with the Registrants Annual Report on Form  10-K
                     for the year ended December 31, 1992.
              4.       Incorporated by reference to the exhibit filed with the
                     Registrants Current Report on form 8-K dated
                     August 1, 1995.
              5.       Incorporated by reference to the exhibit filed with the
                     Registrants Quarterly Report on Form 10-Q for the
                     period ended September 30, 1999.
              6.       Incorporated by reference to the exhibit filed with the
                     Registrants Annual Report on Form 10-K for the
                     year ended December 31, 2000.

             (b)   Reports  on  Form  8-K.  None  filed  during  fourth
                   quarter of 2001.

SIGNATURES

Pursuant  to  the  requirements of Section 13 or 15 (d) of  the  Securities
Exchange  Act  of 1934, the registrant has duly caused this  report  to  be
signed on its behalf by the undersigned, thereunto duly authorized.


                                     ALLEN ORGAN COMPANY



Date:  March 12, 2002                          /s/STEVEN A. MARKOWITZ
                                               Steven A. Markowitz
                                               Chief Executive   Officer,
                                               President   and  Director


Date:  March 12, 2002                          /s/NATHAN S. ECKHART
                                               Nathan S. Eckhart
                                               Vice President-Finance,
                                               Chief Financial and
                                               Principal Accounting Officer

Date:  March 12, 2002                          /s/LEONARD W. HELFRICH
                                               Leonard W. Helfrich
                                               Director

Date:  March 12, 2002                          /s/JEFFREY L. SCHUCKER
                                               Jeffrey L. Schucker
                                               Director

     Allen Organ Company and Subsidiaries

     Schedule II - Valuation and Qualifying Accounts

     For the Years Ended December 31, 2001, 2000 and 1999


                                               Additions
                      Balance at   Additions    Charged      Write      Balance
                      Beginning    Charged to   to Other    Offs And    at End
    Description        Of Year      Expense     Accounts   Recoveries   Of Year


  Year Ended
  December 31, 2001
  Allowance for
   Doubtful Accounts  $ 428,791    $ 96,259    $   -     $ (174,558) $  350,492
  Valuation
   Allowance
   Deferred Tax
   Asset                100,000     900,000        -           -      1,000,000

  Year Ended
  December 31, 2000
  Allowance for
   Doubtful Accounts  $ 300,823    $174,034    $   -     $  (46,066) $  428,791
  Valuation
   Allowance
   Deferred Tax
   Asset                194,000       -            -        (94,000)    100,000

  Year Ended
  December 31, 1999
  Allowance for
   Doubtful Accounts  $ 191,057    $109,766    $   -     $     -     $  300,823
  Valuation
   Allowance
   Deferred Tax
   Asset                 94,000     100,000        -           -        194,000