| THE      LGL GROUP, INC.                                   |
|------------------------------------------------------------|
| (Exact      name of registrant as specified in itscharter) |

| Delaware                                                            | 38-1799862                                |
|---------------------------------------------------------------------|-------------------------------------------|
| (State      or other jurisdiction of incorporation or organization) | (I.R.S.      Employer Identification No.) |

| 2525      Shader Rd., Orlando, Florida        | 32804           |
|-----------------------------------------------|-----------------|
| (Address      of principal executive offices) | (Zip      Code) |

| (407)      298-2000                                                                          |
|----------------------------------------------------------------------------------------------|
| (Registrant’s      telephone number, including area code)                              |
|                                                                                         |
|                                                                                         |
| (Former      name, former address and former fiscal year, if changed since last      report) |

| Large      accelerated filer  ̈                                                  | Accelerated      filer  ̈    |
|--------------------------------------------------------------------------------------|----------------------------------|
|                                                                                 |                             |
| Non-accelerated      filer  ̈ (Do      not check if a smaller reporting company) | Smaller      reporting company x |

| Class                              |   | Outstanding at May 16,  2008 |
|------------------------------------|--------|------------------------------|
| Common      Stock, $0.01 par value |   | 2,171,709                    |

----

INDEX

IN

----

| PART I.  | FINANCIAL INFORMATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |           |
|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------|
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |           |
| Item 1.  | Condensed Consolidated Financial Statements      (Unaudited)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |           |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |           |
|     | Condensed Consolidated Balance      Sheets:                                                                                                                    | 3              |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |           |
|     | –         March      31, 2008                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |           |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |           |
|     | –         December      31, 2007                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |           |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |           |
|     | Condensed Consolidated Statements of      Operations:                                                                                                          | 5              |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |           |
|     | –         Three      months ended March 31, 2008 and 2007                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |           |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |           |
|     | Condensed Consolidated Statements of Cash      Flows:                                                                                                          | 6              |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |           |
|     | –         Three      months ended March 31, 2008 and 2007                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |           |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |           |
|     | Notes to Condensed Consolidated Financial      Statements:                                                                                                     | 7              |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |           |
| Item 2.  | Management’s Discussion and Analysis of Financial Condition      and Results of Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |        13 |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |           |
| Item 3.  | Quantitative and Qualitative Disclosure About Market      Risk                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 16             |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |           |
| Item 4T. | Controls and Procedures                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 16             |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |           |
| PART II. | OTHER INFORMATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |           |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |           |
| Item 1.  | Legal Proceedings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 18             |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |           |
| Item 1A. | Risk Factors                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 18             |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |           |
| Item 5.  | Other Information                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 18             |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |           |
| Item 6.  | Exhibits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 18             |

----

INDEX

PAR

Ite

ONDE

|                                                                       |   | March      31,2008 |    |   | December      31,2007      (A) |   |
|----------------------------------------------------------------------------|--------|--------------------|---------|--------|--------------------------------|--------|
| ASSETS                                                                     |   |               |    |   |                           |   |
| Current      Assets:                                                       |   |               |    |   |                           |   |
| Cash      and cash equivalents                                             |   | $                  | 5,510   |   |                           | $      | 5,233 |   |
| Investments      - marketable securities                                   |   |               | 39      |   |                           |   | 48 |   |
| Accounts      receivable, less allowances of $419 and $415, respectively   |   |               | 6,145   |   |                           |   | 6,382 |   |
| Inventories                                                                |   |               | 5,260   |   |                           |   | 5,181 |   |
| Prepaid      expenses and other current assets                             |   |               | 397     |   |                           |   | 381 |   |
|       Assets      of Discontinued Operations |   |               | 4       |   |                           |   | 5 |   |
| Total      Current Assets                                                  |   |               | 17,355  |   |                           |   | 17,230 |   |
| Property,      Plant and Equipment:                                        |   |               |    |   |                           |   |   |   |
| Land                                                                       |   |               | 698     |   |                           |   | 698 |   |
| Buildings      and improvements                                            |   |               | 5,028   |   |                           |   | 5,020 |   |
| Machinery      and equipment                                               |   |               | 12,537  |   |                           |   | 12,541 |   |
| Gross      Property, Plant and Equipment                                   |   |               | 18,263  |   |                           |   | 18,259 |   |
| Less:      Accumulated Depreciation                                        |   |               | (13,420 | )      |                           |   | (13,196 | ) |
|       Net      Property, Plant and Equipment |   |               | 4,843   |   |                           |   | 5,063 |   |
| Deferred      Income Taxes                                                 |   |               | 111     |   |                           |   | 111 |   |
| Other      Assets                                                          |   |               | 420     |   |                           |   | 472 |   |
| Total      Assets                                                          |   | $                  | 22,729  |   |                           | $      | 22,876 |   |

----

INDEX

ENSE

|                                                                                                                                                           |   | March      31,2008 |   |   | December      31,2007      (A) |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|--------|--------|--------------------------------|--------|
| LIABILITIES      AND SHAREHOLDERS’ EQUITY                                                                                                                |   |               |   |   |                           |   |
| Current      Liabilities:                                                                                                                                      |   |               |   |   |                           |   |
| Note      payable to bank                                                                                                                                      |   | $                  | 1,621  |   |                           | $      | 1,035 |   |
| Trade      accounts payable                                                                                                                                    |   |               | 2,172  |   |                           |   | 2,535 |   |
| Accrued      compensation expense                                                                                                                              |   |               | 1,766  |   |                           |   | 1,481 |   |
| Accrued      professional fees                                                                                                                                 |   |               | 262    |   |                           |   | 51 |   |
| Swap      liability on hedge contracts                                                                                                                         |   |               | 182    |   |                           |   | 80 |   |
|             Other accrued expenses                                                                                               |   |               | 482    |   |                           |   | 640 |   |
| Current      maturities of long-term debt                                                                                                                      |   |               | 403    |   |                           |   | 419 |   |
| Liabilities      of Discontinued Operations                                                                                                                    |   |               | 185    |   |                           |   | 231 |   |
| Total      Current Liabilities                                                                                                                                 |   |               | 7,073  |   |                           |   | 6,472 |   |
| Long-term      debt                                                                                                                                            |   |               | 3,954  |   |                           |   | 4,035 |   |
| Total      Liabilities                                                                                                                                         |   |               | 11,027 |   |                           |   | 10,507 |   |
|                                                                                                                                                           |   |               |   |   |                           |   |   |   |
| Commitments      and Contingencies                                                                                                                             |   |               |   |   |                           |   |   |   |
|                                                                                                                                                           |   |               |   |   |                           |   |   |   |
| Shareholders’      Equity:                                                                                                                               |   |               |   |   |                           |   |   |   |
| Common      stock, $0.01 par value - 10,000,000 shares authorized; 2,188,510 shares      issued; 2,171,709 and 2,167,202 shares outstanding,      respectively |   |               | 22     |   |                           |   | 22 |   |
| Additional      paid-in capital                                                                                                                                |   |               | 20,868 |   |                           |   | 20,921 |   |
| Accumulated      deficit                                                                                                                                       |   |               | (8,656 | )      |                           |   | (8,066 | ) |
| Accumulated      other comprehensive loss                                                                                                                      |   |               | (211   | )      |                           |   | (101 | ) |
| Treasury      stock, at cost, 16,801 and 21,308 shares, respectively                                                                                           |   |               | (321   | )      |                           |   | (407 | ) |
| Total      Shareholders’ Equity                                                                                                                          |   |               | 11,702 |   |                           |   | 12,369 |   |
| Total      Liabilities and Shareholders’ Equity                                                                                                          |   | $                  | 22,729 |   |                           | $      | 22,876 |   |

| (A) | The      Condensed Consolidated Balance Sheet at December 31, 2007 has been derived      from the audited financial statements at that date, but does not include      all of the information and footnotes required by accounting principles      generally accepted in the United States for complete financial statements. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

INDEX

ONDE

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | Three      Months EndedMarch      31, |      |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|-----------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | 2008                                  |      |   | 2007 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                  |      |   |   |   |
| REVENUES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | $                                     | 9,783     |   |   | $ | 9,377 |   |
| Cost      and expenses:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                  |      |   |   |   |   |   |
| Manufacturing      cost of sales                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                  | 7,154     |   |   |   | 7,416 |   |
| Selling      and administrative                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                  | 3,085     |   |   |   | 2,651 |   |
| OPERATING      LOSS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                  | (456      | ) |   |   | (690 | ) |
| Other      income (expense):                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                  |      |   |   |   |   |   |
| Investment      income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                  | --        |   |   |   | 1,526 |   |
| Interest      expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                  | (63       | ) |   |   | (89 | ) |
| Other      income (expense)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                  | (32       | ) |   |   | 163 |   |
|    Total      Other Income      (Expense)                                                                                              |   |                                  | (95       | ) |   |   | 1,600 |   |
| INCOME      (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                  | (551      | ) |   |   | 910 |   |
| Provision      for income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                  | (49       | ) |   |   | (58 | ) |
| INCOME (LOSS)      FROM CONTINUING OPERATIONS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                  | (600      | ) |   |   | 852 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                  |      |   |   |   |   |   |
| Income      (loss) from Discontinued Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                  | 10        |   |   |   | (204 | ) |
| NET      INCOME      (LOSS)                                                                                                                           |   | $                                     | (590      | ) |   | $ | 648 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                  |      |   |   |   |   |   |
| Weighted      average shares outstanding, basic and diluted.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                  | 2,167,563 |   |   |   | 2,154,702 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                  |      |   |   |   |   |   |
| BASIC      AND DILUTED INCOME (LOSS) PER SHARE FROM CONTINUING    OPERATIONS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | $                                     | (0.28     | ) |   | $ | 0.40 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                  |      |   |   |   |   |   |
| BASIC      AND DILUTED LOSS PER SHARE FROM DISCONTINUED OPERATIONS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                  | 0.01      |   |   |   | (0.10 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                  |      |   |   |   |   |   |
| BASIC      AND DILUTED NET INCOME (LOSS) PER SHARE                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | $                                     | (0.27     | ) |   | $ | 0.30 |   |

----

INDEX

DENSED

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | Three      Months EndedMarch      31, |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | 2008                                  |   |   | 2007 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                  |   |   |   |   |
| OPERATING      ACTIVITIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                  |   |   |   |   |
| Net      income (loss)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | $                                     | (590   | ) |   | $ | 648 |   |
| Adjustments      to reconcile net income (loss) to net cash used in operating      activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                  |   |   |   |   |   |   |
| Depreciation                                                                                                                                 |   |                                  | 255    |   |   |   | 280 |   |
| Stock      based compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                  | 33     |   |   |   | 21 |   |
| Amortization      of finite-lived intangible assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                  | 15     |   |   |   | 29 |   |
| Gain      realized on sale of marketable securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                  | --     |   |   |   | (1,526 | ) |
| Changes      in operating assets and liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                  |   |   |   |   |   |   |
|           Receivables                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                  | 237    |   |   |   | 444 |   |
|           Inventories                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                  | (79    | ) |   |   | 818 |   |
|     Accounts      payable and accrued liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                  | (23    | ) |   |   | (1,076 | ) |
|     Other      assets/liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                  | 20     |   |   |   | (152 | ) |
| Net cash used in operating      activities of continuing operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                  | (132   | ) |   |   | (514 | ) |
|   Net      cash (used in) provided by operating activities of discontinued      operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                  | (45    | ) |   |   | 231 |   |
|   Net      cash used in operating activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                  | (177   | ) |   |   | (283 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                  |   |   |   |   |   |   |
| INVESTING      ACTIVITIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                  |   |   |   |   |   |   |
| Capital      expenditures                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                  | (35    | ) |   |   | (38 | ) |
| Restricted      cash                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                  | --     |   |   |   | (1,100 | ) |
| Proceeds      from sale of marketable securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                  | --     |   |   |   | 2,292 |   |
| Net      cash (used in) provided by investing activities of continuing      operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                  | (35    | ) |   |   | 1,154 |   |
| Net      cash used in investing activities of discontinued    operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                  | --     |   |   |   | (5 | ) |
| Net      cash (used in) provided by investing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                  | (35    | ) |   |   | 1,149 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                  |   |   |   |   |   |   |
| FINANCING      ACTIVITIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                  |   |   |   |   |   |   |
| Net      borrowings on note payable to bank                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                  | 586    |   |   |   | 324 |   |
| Repayments      of long-term debt                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                  | (97    | ) |   |   | (307 | ) |
| Net      cash provided by financing activities of continuing    operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                  | 489    |   |   |   | 17 |   |
| Net      cash used in financing activities of discontinued    operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                  | --     |   |   |   | (650 | ) |
| Net      cash provided by (used in) financing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                  | 489    |   |   |   | (633 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                  |   |   |   |   |   |   |
| Increase      in cash and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                  | 277    |   |   |   | 233 |   |
| Cash      and cash equivalents at beginning of period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                  | 5,233  |   |   |   | 4,429 |   |
| Cash      and cash equivalents at end of period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | $                                     | 5,510  |   |   | $ | 4,662 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                  |   |   |   |   |   |   |
| Supplemental      Disclosure:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                  |   |   |   |   |   |   |
| Cash      paid for interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | $                                     | 98     |   |   | $ | 134 |   |
| Cash      paid for taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | $                                     | 230    |   |   | $ | 183 |   |
| Noncash      Financing Transactions:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                  |   |   |   |   |   |   |
| Issuance      of treasury shares for vested restricted      stock                                                                                                |   | $                                     | 86     |   |   | $ | -- |   |

----

INDEX

NOT

| A. | Subsidiaries      of the Registrant |
|----|-------------------------------------|

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | Owned By LGL |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|
| M-tron      Industries,      Inc.                                                                                                                                                                                           |   |         | 100.0 | % |
|         M-tron      Industries,      Ltd.                                                                                                                                           |   |         | 100.0 | % |
|         Piezo      Technology,      Inc.                                                                                                                                            |   |         | 100.0 | % |
|                 Piezo      Technology India Private      Ltd.                                                                               |   |         | 99.9 | % |
| Lynch      Systems,      Inc.                                                                                                                                                                                          |   |         | 100.0 | % |

| B. | Basis      of Presentation |
|----|----------------------------|

| C. | Investments |
|----|-------------|

|                   |   | Cost   |   |   | GrossUnrealized (Loss) |   |   | FairValue |   |
|------------------------|--------|--------|--------|--------|-----------------------------|--------|--------|-----------|--------|
|                   |   |   |   |   |                        |   |   |      |   |
| March      31, 2008    |   | $      | 68     |   |                        | $      | (29    | )         |   | $ | 39 |   |
| December      31, 2007 |   | $      | 68     |   |                        | $      | (20    | )         |   | $ | 48 |   |

----

INDEX

| D. | Inventories |
|----|-------------|

|                   |   | March      31,2008  |   |   | December      31,2007 |   |
|------------------------|--------|---------------------|--------|--------|-----------------------|--------|
|                   |   | (in      thousands) |   |
| Raw      materials     |   | $                   | 2,410  |   |                  | $      | 2,306 |   |
| Work      in process   |   |                | 1,582  |   |                  |   | 1,498 |   |
| Finished      goods    |   |                | 1,268  |   |                  |   | 1,377 |   |
| Total      Inventories |   | $                   | 5,260  |   |                  | $      | 5,181 |   |

| E. | Note      Payable to Banks and Long-Term Debt |
|----|-----------------------------------------------|

|                                                                                                                                                                                                             |   | March      31, 2008 |   |   | December      31,2007 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|--------|--------|-----------------------|--------|
| Note      Payable:                                                                                                                                                                                               |   | (in      thousands) |   |
| Mtron      revolving loan (First National Bank of Omaha (“FNBO”)) at 30-day LIBOR      plus 2.1% (5.18% at March 31, 2008), due June 2008                                                            |   | $                   | 1,621  |   |                  | $      | 1,035 |   |
|                                                                                                                                                                                                             |   |                |   |   |                  |   |   |   |
| Long-Term      Debt:                                                                                                                                                                                             |   |                |   |   |                  |   |   |   |
| Mtron      term loan (RBC) due October 2010.  The note bears interest at      LIBOR Base Rate plus 2.75%.  Interest rate swap converts loan to      a fixed rate, at 7.51% at March 31, 2008 |   | $                   | 2,875  |   |                  | $      | 2,894 |   |
| Mtron      term loan FNBO at 30-day LIBOR plus 2.1%. Interest rate swap converts loan      to a fixed rate, at 5.60% at March 31, 2008, due January    2013                                                      |   |                | 1,369  |   |                  |   | 1,430 |   |
| Rice      University Promissory Note at a fixed interest rate of 4.5%, due August      2009                                                                                                                      |   |                | 113    |   |                  |   | 130 |   |
|                                                                                                                                                                                                             |   |                | 4,357  |   |                  |   | 4,454 |   |
| Current      maturities                                                                                                                                                                                          |   |                | (403   | )      |                  |   | (419 | ) |
| Long      -Term Debt                                                                                                                                                                                             |   | $                   | 3,954  |   |                  | $      | 4,035 |   |

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INDEX

| F. | Stock      Based Compensation |
|----|-------------------------------|

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INDEX

| G. | Earnings      (Loss) Per Share |
|----|--------------------------------|

|                                  |   | Three      Months Ended March 31, |    |
|---------------------------------------|--------|-----------------------------------|---------|
|                                  |   | 2008                              |    |   | 2007 |   |
| Options      to purchase common stock |   |                              | 200,000 |   |   |   | 200,000 |   |
| Unvested      restricted stock        |   |                              | 12,264  |   |   |   | 30,000 |   |
| Total                                 |   |                              | 212,264 |   |   |   | 230,000 |   |

| H. | Other      Comprehensive Income (Loss) |
|----|----------------------------------------|

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | March      31,      |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | 2008                |   |   | 2007 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | (in      thousands) |   |
| Balance      beginning of      period                                                                                      |   | $                   | (101   | ) |   | $ | 1,790 |   |
| Deferred      loss on swap hedge      contracts                                                                            |   |                | (101   | ) |   |   | (10 | ) |
| Unrealized      (loss) gain on available-for-sale securities                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                | (9     | ) |   |   | 18 |   |
| Reclassification      adjustment for gains included in net income                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                | --     |   |   |   | (1,796 | ) |
| Balance      end of      period                                                                                                                |   | $                   | (211   | ) |   | $ | 2 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | March      31, 2008 |   |   | December      31, 2007 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|--------|--------|------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | (in      thousands) |   |
| Deferred      loss on swap hedge      contracts                                                                            |   | $                   | (182   | )      |                   | $      | (78 | ) |
| Unrealized      loss on available-for-sale securities                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                | (29    | )      |                   |   | (23 | ) |
| Accumulated      other comprehensive      loss                                                                                                 |   | $                   | (211   | )      |                   | $      | (101 | ) |

----

INDEX

| I. | Fair      Value Measurements |
|----|------------------------------|

|                       |   | Quoted      Prices in Active Markets for Identical Assets (Level    1) |   |   | Significant      Other Observable Inputs (Level 2) |   |   | Significant      Unobservable Inputs (Level 3) |   |   | March      31, 2008 |   |
|----------------------------|--------|------------------------------------------------------------------------|--------|--------|----------------------------------------------------|--------|--------|------------------------------------------------|--------|--------|---------------------|--------|
| Marketable      securities |   | $                                                                      | 39     |   |                                               | $      | --     |                                           |   | $      | --                  |   |   | $ | 39 |   |

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INDEX

|                                   |   | Quoted      Prices in Active Markets for Identical Assets (Level    1) |   |   | Significant      Other Observable Inputs (Level 2) |   |   | Significant      Unobservable Inputs (Level 3) |   |   | March      31, 2008 |   |
|----------------------------------------|--------|------------------------------------------------------------------------|--------|--------|----------------------------------------------------|--------|--------|------------------------------------------------|--------|--------|---------------------|--------|
| Swap      liability on hedge contracts |   | $                                                                      | --     |   |                                               | $      | 181    |                                           |   | $      | --                  |   |   | $ | 181 |   |

| J. | Significant      Foreign Sales |
|----|--------------------------------|

|                                                      |   | Three      Months Ended March      31, |   |
|-----------------------------------------------------------|--------|----------------------------------------|--------|
| Foreign      Revenues:                                    |   | 2008                                   |   |   | 2007 |   |
| Malaysia                                                  |   | $                                      | 1,587  |   |   | $ | 669 |   |
| China                                                     |   |                                   | 1,106  |   |   |   | 651 |   |
| Canada                                                    |   |                                   | 518    |   |   |   | 646 |   |
| Mexico                                                    |   |                                   | 430    |   |   |   | 605 |   |
| Thailand                                                  |   |                                   | 423    |   |   |   | -- |   |
| All      other foreign countries                          |   |                                   | 1,317  |   |   |   | 1,904 |   |
|      Total      foreign revenues |   | $                                      | 5,381  |   |   | $ | 4,475 |   |

| K. | Discontinued      Operations |
|----|------------------------------|

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INDEX

| L. | Commitments      and Contingencies |
|----|------------------------------------|

| M. | Income      Taxes |
|----|-------------------|

| N. | Related      Party Transactions |
|----|---------------------------------|

It

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It

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PA

Ite

Ite

Ite

Ite

| Exhibit      No. |   |  Description                                                                                                                                 |
|------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|
|             |   |                                                                                                                                              |
| 10(a)*           |   | Promissory      Note, dated January 24, 2008, by and among M-tron Industries, Ltd., Piezo      Technology, Inc. and First National Bank of Omaha. |
| 31(a)*           |   | Certification      by Principal Executive Officer pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002.                                 |
| 31(b)*           |   | Certification      by Principal Financial Officer pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002.                                 |
| 32(a)*           |   | Certification      by Principal Executive Officer pursuant to Section 906 of the      Sarbanes-Oxley Act of 2002.                                 |
| 32(b)*           |   | Certification      by Principal Financial Officer pursuant to Section 906 of the      Sarbanes-Oxley Act of 2002.                                 |

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INDEX

|                          |   | THE      LGL GROUP, INC. |
|-------------------------------|--------|--------------------------|
|                          |   |                     |
|                          |   |                     |
| Date:       May 20, 2008 |   | BY:                      | /s/      Robert Zylstra |
|                          |   |                     | Robert      Zylstra |
|                          |   |                     | President      and Chief Executive Officer(Principal      Executive Officer) |
|                          |   |                     |   |
|                          |   |                     |   |
| Date:       May 20, 2008 |   | BY:                      | /s/      Harold D. Castle |
|                          |   |                     | Harold      D. Castle |
|                          |   |                     | Chief      Financial Officer(Principal      Financial Officer) |

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