HALIFAX ANNOUNCES FISCAL 2002 FINANCIAL RESULTS
Company Reports Fourth Quarter Revenue Increase of 17% and EPS of $0.05;
Fourth Consecutive Quarter of Sequential Earnings Growth

ALEXANDRIA, Va., May 29 /PRNewswire-FirstCall/ -- Halifax Corporation (Amex: HX) today announced its financial results for the fourth quarter and fiscal year ended March 31, 2002.

For the year, revenues from continuing operations were $49.4 million versus $51.8 million for fiscal 2001. The modest decline in revenues was primarily due to reductions in lower margin hardware orders. The Company reported operating income of $996,000 for the current year compared to an operating loss of $1.4 million for fiscal year 2001. Income from continuing operations was $302,000, or $0.14 per share, for the current year versus a loss from continuing operations of $840,000, or $0.42 per share.

The Company reported net income of $302,000, or $0.14 per basic and diluted share, for fiscal 2002 compared to $1.1 million, or $0.54 per basic and diluted share, for the prior year. The 2001 financial results included non-operating income of $1.6 million from embezzlement recoveries, a gain of $1.7 million from the sale of discontinued operations, and income from discontinued operations of $244,000. Excluding the positive effects of embezzlement recoveries and discontinued operations, the Company would have reported a net loss of $2.4 million for fiscal 2001.

For the quarter ended March 31, 2002, revenues were $13.7 million versus $11.7 million for the comparable period in 2001, an increase of 17%. The revenue increase was principally due to increased orders from Federal Communications Services customers and growth in Enterprise Maintenance revenue. Net income for the quarter ended March 31, 2002, was $115,000, or $0.05 per basic and diluted share, versus a net loss of $2.0 million, or $0.99 per share, for the comparable quarter of 2001.

Charles McNew, president and chief executive officer, stated, "Our aggressive pursuit of the IT services and solutions marketplace is rapidly transforming the Company. The targeted niches we serve in both the government and commercial sectors are growing, and we're continuing to add higher-margin business. Our backlog has increased 89 percent during the past year and now stands at $71 million.

" Our employee base has increased 22 percent over the past year, and we are continuing to add talented IT professionals to our team."

He added, "We are delighted to complete fiscal 2002 with four consecutive quarters of sequential earnings growth. Revenues have also improved sequentially beginning with the second quarter of this fiscal year. With continued growth in our core businesses, the success we're seeing in extending our IT services to the federal government, and the outsourcing services we're providing to the large systems integrators, we believe the Company is positioned to continue on a similar track for fiscal 2003."

The Company will host a conference call for investors at 11 a.m. EDT on Wednesday, May 29, 2002, to review the financial and operational results for the quarter and the year. The conference call phone number is 888-391-0236 for U.S. callers and 212-676-5377 for international callers. The conference call replay will be available from 1 p.m. EDT on Wednesday, May 29, 2002, to 1 p.m. EDT on Thursday, May 30. The replay number is 800-633-8284 for US callers and 858-812-6440 for international callers. The reservation number is 20629116.

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 Services.