HALIFAX ANNOUNCES FINANCIAL RESULTS FOR THE THIRD QUARTER
Operating Income Continues Upward Trend;
Company Reports Quarterly EPS of $0.05 Versus $0.01 Last Year

ALEXANDRIA, VA - February 14, 2002 - Halifax Corporation (AMEX:HX) today announced its financial results for the third quarter ended December 31, 2001.
Revenues for the three months ended December 31, 2001, were $13.2 million compared to $14.7 million for the same quarter last year, a 10% decrease. The revenue decline was due to a decrease in hardware sales associated with several contracts.

The Company reported operating income of $264,000 for the third quarter of this year compared to $254,000 for the same quarter of last year. For the quarter ended December 31, 2001, net income was $109,000, or $0.05 per basic and diluted share, compared to $23,000, or $0.01 per basic share and diluted share, for the same quarter last year.

Charles McNew, president and chief executive officer, noted, "Our strategy is paying off in the form of a growing portfolio of larger and longer-term contracts, which are generating higher margins than our prior contract base. As a result, we have generated sequential quarterly earnings growth this fiscal year."

For the nine months ended December 31, 2001, revenues were $35.7 million compared to $40.0 million for the same period last year. Operating income for the nine months ended December 31, 2001, was $706,000, compared to $165,000 for the comparable period last year. Net income was $187,000, or $0.09 per basic and diluted share, for the first nine months of this year compared to $3.1 million, or $1.53 per basic share and $1.46 per diluted share, for the first nine months of last year. Last year's results included the positive effects of embezzlement recoveries, as well as income from and the gain on the sale of its operational outsourcing division. Excluding embezzlement recoveries of $1.8 million and income from and gains from discontinued operations of $1.8 million, the Company would have reported a net loss of $566,000 for the first nine months of last year.

According to McNew, "Our contract backlog has nearly doubled since the beginning of the year from $37.5 million to more than $72 million. This includes a number of new contracts in the retail, utility and health care markets, as well as the growth in the federal government IT business. Our sales pipeline, which feeds our backlog, is growing even more rapidly. Both trends reflect our success in leveraging our strengths in our targeted business niches and penetrating existing and new vertical markets for our IT services and solutions business."
He concluded, "Given the counter cyclical nature of our enterprise maintenance marketplace and the growing demand for our federal government IT services, we remain cautiously optimistic about our near-term growth prospects."

The Company will host a conference call for investors at 11 a.m. EST on Thursday, February 14, 2002, to review the financial and operation results for the quarter. The conference call phone number is 800-340-5803 for U.S. callers and 212-993-0221 for international callers. The conference call replay will be available from 1 p.m. EST on Thursday, February 14, 2002, to 1 p.m. EST on Friday, February 15. The replay number is 800-633-8284 for US callers and 858-812-6440 for international callers. The reservation number is 20344579.

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 Enterprise Maintenance Solutions, Seat Management/IT Solutions and Federal Communications Service.