HALIFAX ANNOUNCES THIRD QUARTER
FINANCIAL RESULTS

ALEXANDRIA, VA – February 10, 2005 - Halifax Corporation (AMEX: HX) today announced its financial results for the quarter ended December 31, 2004.

The Company reported a 17% revenue increase, with fiscal 2005 third quarter revenues of $15.6 million compared to nearly $13.4 million for the same period a year ago. The revenue growth was due primarily to the start of several new contracts in both high-availability maintenance services and secure network services. The Company reported an operating loss of $1.4 million for the third quarter of fiscal 2005 versus operating income of $352,000 for last year’s comparable quarter. As the Company reported in January 2005, the loss for the quarter was attributable to higher-than-expected ramp-up costs, operating costs and product failure rates associated with an enterprise maintenance contract, which was signed in the summer of 2004 and significantly expanded during the quarter ended December 31, 2004.

The net loss for the quarter ended December 31, 2004, was $1.0 million, or $0.33 per basic and diluted share, versus net income of $202,000, or $0.07 per basic and diluted share, for the comparable quarter of last year. As a result of further evaluation of contract performance, the net loss is $185,000 greater than forecasted in a Company release issued on January 18, 2005.

According to Charles McNew, president and chief executive officer, “The loss was a major disappointment, particularly given the previous 14 quarters of profitability we’d reported and continued balance sheet improvement. We have taken cost reduction actions and negotiated a revised pricing plan tied to specific customer expectations for equipment and support staff. As a result of these actions, we expect this contract to return to profitability for the long term.”

He noted, “We are proud of our track record for building solid, long-term customer relationships in both our federal and commercial businesses.”

For the nine months ended December 31, 2004, revenues were $43.8 million compared to $36.5 million for the same period last year, an increase of 20%. The operating loss for the nine months ended December 31, 2004 was $917,000 versus operating income of $864,000 for the same period last year. The net loss was $900,000 for the nine months ended December 31, 2004, or $0.30 per basic and diluted share, compared to net income of $405,000, or $0.16 per basic and diluted share, for the same period of last year.

The Company will host a conference call for investors at 11 a.m. EST on Thursday, February 10, 2005, to review the financial and operational results for the quarter. The conference call phone number is 800-443-7135 for U.S. callers and 212-676-5391 for international callers. The conference call replay will be available from 1 p.m. EST on Thursday, February 10, 2005, to 1 p.m. EST on Friday, February 11, 2005. The replay number is 800-633-8284 for U.S. callers and 402-977-9140 for international callers. The reservation number is 21231827.

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 regarding Halifax can be found at www.hxcorp.com. The information on the website listed above is not and should not be considered part of this document. This website is intended to be an inactive textual reference.