HALIFAX ANNOUNCES SECOND QUARTER
FINANCIAL RESULTS

Quarterly EPS of $0.06 Represents
Three-Fold Increase over First Quarter Performance

ALEXANDRIA, VA – October 30, 2003 – Halifax Corporation (AMEX:HX) today announced its financial results for the quarter ended September 30, 2003.

For the quarter ended September 30, 2003, revenues were $12.5 million versus $14.1 million for the comparable period of 2002, a decrease of 13%. The revenue decrease was primarily due to reductions in hardware orders from government customers, a trend that has continued for several quarters and reflects the Company’s strategy to emphasize a services-oriented model. Revenues were also negatively affected by pricing adjustments associated with certain contract extensions.

Net income for the quarter ended September 30, 2003, was $152,000, or $0.06 per basic and diluted share, versus $190,000, or $0.09 per basic and diluted share, for the comparable quarter of last year.

Compared to the quarter ended June 30, 2003, revenues increased 17% and net income rose 198%.

Charles McNew, president and chief executive officer, noted, “We’re pleased with the improvement we’ve made over the previous quarter, with revenues and profits up significantly. Our services strategy is visibly positioning the Company for continued growth in the enterprise maintenance solutions marketplace.

“Our quarterly earnings results reflect the benefit of reduced overhead costs, as we continue to refine our cost structure to support effective service delivery. Our service business continues to grow as is evidenced by our backlog of $56.3 million, which is up for the third consecutive quarter.”

For the six months ended September 30, 2003, revenues were $23.1 million compared to $28.1 million for the same period last year. Net income was $203,000, or $0.09 per basic and $0.08 per diluted share, for the first six months of this year compared to $333,000, or $0.15 per basic and diluted share, for the same period of the prior year.

McNew added, “We are completing the final phases of the integration of the Microserv acquisition, and we continue to expect to generate accretive earnings and improved market positioning as we move forward. Additionally, our balance sheet continues to improve as a result of sustained profitability, the recent private placement and a corresponding reduction in debt.”

He added, “We are bullish regarding our future prospects, and we believe that our leadership position in the enterprise maintenance solutions marketplace will continue to afford ongoing improvement in shareholder value.”

The Company will host a conference call for investors at 11 a.m. EST on Thursday, October 30, 2003, to review the financial and operational results for the quarter. The conference call phone number is 888-882-0114 for U.S. callers and 212-346-6468 for international callers. The conference call replay will be available from 1 p.m. EST on Thursday, October 30, 2003 to 1 p.m. EST on Friday, October 31, 2003. The replay number is 800-633-8284 for U.S. callers and 402-977-9140 for international callers. The reservation number is 21164516.

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, and secure network program services. More information on Halifax can be found at www.hxcorp.com.