HALIFAX ANNOUNCES NEW CONTRACT VALUED AT $3 MILLION
Company Also Reports Termination of SEC Investigation
Announced in January 2001

ALEXANDRIA, VA - June 5, 2002 - Halifax Corporation (AMEX:HX) today announced that it has been awarded a $3 million contract by the Army Corps of Engineers for the installation of a communications network at a newly constructed facility. The work will be performed during the next six months.

The Company also reported that it has been notified by the Securities & Exchange Commission that the SEC's investigation, dating back to January 2001, has been terminated, with no enforcement actions recommended. The investigation related to a previously reported embezzlement in 1999 by one of the Company's prior employees.

According to Charles McNew, president and chief executive officer, "We are pleased to be selected for this critical project. Our federal communications services marketplace continues to expand at an exciting pace."

McNew added, "With the termination of the SEC's investigation, this now closes the chapter on the embezzlement. We will continue to focus on continued future revenue and earnings growth."

For the year ended March 31, 2002, the Company reported four quarters of sequential earnings growth on an expanding revenue base, contract backlog of $71 million, and a strengthening balance sheet.

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.