HALIFAX SIGNS NEW CONTRACTS TOTALING MORE THAN $6 MILLION

ALEXANDRIA, VA – July 18, 2006 – Halifax Corporation (AMEX:HX) today announced that it has signed multiple new enterprise maintenance solutions contracts and service agreements with various partners. The annual value of the contracts, in total, is about $6.2 million. The Company commences services under all the contracts/agreements this month.

The contracts are expected to generate revenues of about $4.2 million for the Company’s 2007 fiscal year, which closes on March 31, 2007.

The new customers include a large national retailer, a prominent financial services company and a major aerospace firm. Halifax will be providing a broad spectrum of managed services in association with its global service partners.

Charles McNew, president and chief executive officer, stated, “We have been experiencing a recent spurt in activity as evidenced by the continued strengthening of our sales pipeline and our newly signed business. Several of these new contracts, if extended, offer the prospect of more significant revenues in the 2008 fiscal year and beyond.

“Our determination to provide premium caliber service levels at highly competitive pricing levels continues to facilitate our growth in the managed services provider marketplace. We’re pleased that our top-tier partners are a continuing source of new business, and I’m confident that this will result in meaningful future growth.”

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. More information on Halifax can be found at www.hxcorp.com.