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Alexandria, VA 22312
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HALIFAX AWARDED SECURITY SOLUTION CONTRACTS
FROM TWO FEDERAL GOVERNMENT AGENCIES

ALEXANDRIA, VA - January 23, 2002 - Halifax Corporation (AMEX:HX) today announced it has been selected to provide network security products and services for the Department of Veterans Affairs and the Internal Revenue Service. Initial orders under these contracts totaled $560,000.

According to Charles McNew, president and chief executive officer, "We continue to expand our success in providing IT services to a range of federal government agencies. Security solutions, enterprise resource planning, and various e-government offerings comprise a growing amount of our federal services, capitalizing on our 30-year legacy of telecommunications support to the government."

The goal of both the Department of Veterans Affairs and the Internal Revenue Service is to reduce the amount of non-business-related Internet activity, with Halifax's security solutions focused on increasing network performance and employee productivity. The Company's solution is based on SurfControl's SuperScout Web Filter product suite. SurfControl, based in Scotts Valley, California, is a leading global security firm, providing the most advanced web and email filtering software on the market.

Tom Basile, vice president of sales and marketing for Halifax, stated, "Working with each of these premier federal agencies represents a significant milestone for Halifax's Network Security Practice and provides a foundation for offering similar services throughout the federal government. In addition, all of our network security solutions are easily procured by federal agencies under Halifax's GSA schedule contract."

He added, "Our proven approach in network security, coupled with SurfControl's world-class URL filtering solutions, helps clients identify risk as they follow a clear roadmap for security planning. These services assist clients in safeguarding their future success with solutions based on efficient processes and leading-edge technology."

Founded in 1967, Halifax Corporation provides a wide range of information technology services to commercial and government customers throughout the United States. The Company's principal products are Seat Management, Enterprise Maintenance Solutions, Network Security Solutions, e-Business/e-Government Development and Communication Services. Learn more about Halifax by visiting the new web site at www.hxcorp.com.

For investor relations information, contact Qorvis Communications:
Karen Vahouny (703) 744-7809 or kvahouny@qorvis.com
Certain statements made by the Company which are not historical facts may be considered forward-looking statements, including, without limitation, statements as to trends, management's beliefs, expectations and opinions, which are based upon a number of assumptions concerning future conditions that ultimately may prove to be inaccurate. Such forward-looking statements are subject to risks and uncertainties and may be affected by various factors that may cause actual results to differ materially from those in the forward-looking statements. For further information that could affect the Company's financial statements, please refer to the Company's reports filed with the Securities and Exchange Commission.