HALIFAX ANNOUNCES NEW CONTRACTS AND
EXTENSIONS TOTALING $7.1 MILLION

ALEXANDRIA, VA – January 6, 2004 – Halifax Corporation (AMEX:HX) today announced that it has been awarded new technology services business totaling $7.1 million. It signed $3.8 million in contracts with several nationwide commercial accounts for high-availability hardware maintenance services that will be delivered over the next 24 months. Halifax also announced contracts totaling $3.3 million for secure network services for the Department of Defense, including the U.S. Army and the intelligence community, with work to be performed over the coming year.

Charles McNew, president and CEO, noted, “Our third quarter, completed on December 31, 2003, was quite strong from a bookings standpoint, and our visibility on the near-term pipeline of potential new business is encouraging. Our recognition as a reliable and trusted partner to the global service enterprise maintenance provider community continues to position the Company for meaningful growth opportunities.”

McNew noted that the recent Microserv acquisition was successfully integrated during the third quarter. “The acquisition has been positive, and we continue to evaluate certain other strategic acquisition candidates.

“We enter 2004 with a growing stable of satisfied customers, a dedicated field force, and a strategic direction within the enterprise maintenance solutions marketplace that positions our Company for ongoing improvement in shareholder value,” he added.

Founded in 1967, Halifax Corporation is an enterprise maintenance solutions company providing a wide range of technology services to commercial and government customers throughout the United States. The Company’s principal products are high availability hardware maintenance services, technology deployment and integration services, and secure network program services. More information on Halifax can be found at www.hxcorp.com.