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

                          FORM 8-K

                       CURRENT REPORT

 Pursuant to Section 13 or 15(d) of the Securities Exchange
                         Act of 1934



Date of Report:           March 7, 2000
                (Date of earliest event reported)



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



     Pennsylvania                 0-275            23-1263194
(State or other jurisdiction   (Commission       (IRS Employer
  of incorporation)            File Number)   Identification No.)


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



                         610-966-2200
       (Registrants telephone number, including area code)

Item 5    Other Events

     Allen Organ Company (NASDAQ-AORGB) Macungie, PA today
announced that it is exploring strategic alternatives for
its subsidiary Eastern Research, Inc. (ERI).  These
alternatives include a public offering by the Company or
ERI, divestiture, merger or other options, which would
provide ERI with resources to continue its growth.
     Allen Organ Company operates in four industry segments:
Musical Instruments, Data Communications, Electronic
Assemblies and Audio Equipment.  The Company's consolidated
revenue was $58,018,742 and $44,966,075 for 1999 and 1998
respectively.  Consolidated income from operations was
$1,812,856 for 1999, as compared to a loss from operations
of $2,284,484 in 1998.
     ERI is one of three company subsidiaries operating in
the Data Communications segment and accounted for
approximately $20,150,000 and $8,220,000 of the Company's
1999 and 1998 revenue, respectively.  ERI incurred a loss
from operations of approximately $664,000 and $2,488,000 for
1999 and 1998, respectively.
     ERI designs, manufactures and markets a broad line of
products for Digital Access Cross-connect, Integrated Access
and Internetworking solutions.  Its mission is to develop
products to meet the needs of network service providers as
well as corporate end-users, and to become the leading
supplier of next generation integrated access and narrowband
cross-connect technology.
     ERI's products are sold directly and through a network
of selected distributors and resellers.  The customer base
includes major end-user corporations, public carriers,
Internet Service Providers and systems integrators.  ERI has
also developed strategic customer relationships to expand
distribution of its products.  Additional information about
ERI and its products is available on its Web site:
http//www.erinc.com.
     The Company is weighing various alternatives for ERI
and has not decided on what course of action is in the
Company's best interest nor when this evaluation will be
completed.



                         Signatures

Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned hereunto duly
authorized.
                                     ALLEN ORGAN COMPANY

Date:   March 7, 2000                /s/ STEVEN MARKOWITZ
                                   Steven Markowitz, President