HALIFAX ANNOUNCES SECOND QUARTER FINANCIAL RESULTS
Company Posts Sixth Consecutive Quarter of Sequential Earnings Growth;
Quarterly Revenues Rise 20%

ALEXANDRIA, VA - October 29, 2002 - Halifax Corporation (AMEX:HX) today announced its financial results for the quarter ended September 30, 2002.
Revenues increased 20% to $14.1 million from $11.7 million in the second quarter of last year. 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 $190,000, or $0.09 per basic and diluted share, for the second quarter of fiscal 2003 compared to $60,000, or $0.03 per basic and diluted share, for the same quarter of fiscal 2002.

According to Charles McNew, president and CEO, “Our determination to focus on market penetration and customer satisfaction is having a positive impact on both revenue and earnings growth. We now have reported six consecutive quarters of sequential earnings improvement.”

For the six months ended September 30, 2002, revenues were $28.1 million compared to $22.5 million for the same period last year. Net income was $333,000, or $0.15 per basic and diluted share, for the first six months of this year compared to $78,000, or $0.04 per basic and diluted share, for the same period of the prior year.

McNew noted, “We continue to build our portfolio of larger, long-term contracts, including the $20 million renewal with the Virginia Department of Transportation announced last week. We’re becoming a recognized leader in providing enterprise maintenance and seat management services, both of which are major revenue contributors and have enabled us to grow our profit margins over the past two years.

“ Despite the difficult market conditions, Halifax is building a solid base of business in our targeted IT niches, and we continue to believe that the Company is well positioned for long-term growth,” he concluded.

The Company will host a conference call for investors at 11 a.m. EST on Tuesday, October 29, 2002, to review the financial and operational results for the quarter. The conference call phone number is 800-207-3341 for U.S. callers and 415-908-4739 for international callers. The conference call replay will be available from 1 p.m. EST on Tuesday, October 29, 2002, to 1 p.m. EST on Wednesday, October 30. The replay number is 800-633-8284 for U.S. callers and 402-977-9140 for international callers; the reservation number is 20999317.

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.