HALIFAX ANNOUNCES FIRST QUARTER FINANCIAL RESULTS
Quarterly Revenue Increase of 30%, Company Posts
Fifth Consecutive Quarter of Sequential Earnings Growth

ALEXANDRIA, VA - July 25, 2002 - Halifax Corporation (AMEX:HX) today announced its financial results for the quarter ended June 30, 2002.

Revenues were $14 million compared to $10.8 million in the first quarter of last year, a 30% increase. The increase was principally due to improved recurring revenue from several long-term Enterprise Maintenance contracts and significant growth related to the Federal Communications services provided to the U.S. Army.

Net income was $143,000, or $0.07 per basic and diluted share, for the first quarter of fiscal 2003 compared to $18,000, or $0.01 per basic and diluted share, for the same quarter of fiscal 2002.

According to Charles McNew, president and chief executive officer, “Our aggressive pursuit of the managed services IT marketplace is continuing to transform our Company, as evidenced by improvement in both gross profit margins and revenues. The targeted outsourcing niches we serve in both the government and commercial sectors are growing. Our backlog stands at a healthy $68.4 million, as of June 30, 2002.”

He added, “We are proud of our recent performance, which includes five consecutive quarters of earnings growth and a 30% increase in revenues over last year’s comparable quarter. With continued growth potential in our core businesses, prospects for the expansion of our IT services to the federal government and the outsourcing services provided to the large systems integrators, we believe, despite a highly competitive marketplace, that the Company is positioned for sustainable long-term growth.”

The Company will host a conference call for investors at 11a.m. EDT on Thursday, July 25, 2002, to review the financial and operational results for the quarter. The conference call phone number is 888-343-1842 for U.S. callers and 212-271-4775 for international callers. The conference call replay will be available from 1 p.m. EDT on Thursday, July 25, 2002, to 1 p.m. EDT on Friday, July 26. The replay number is 800-633-8284 for U.S. callers and 402-977-9140 for international callers; the reservation number is 20769446.

Founded in 1967, Halifax Corporation is a managed services company providing 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.