HALIFAX ANNOUNCES SECOND QUARTER FINANCIAL RESULTS

       Profitability Improves Significantly; Margins Improve to 13% from 10.7 %

Alexandria, VA - November 15, 2007 – Halifax Corporation (AMEX:HX) today announced its financial results for the quarter ended September 30, 2007.

Revenues for the second quarter of fiscal 2008 were $11.9 million versus $12.4 million for the same period in fiscal 2007. The revenue decrease was due to the loss of certain low margin service contracts and reductions in product sales.

The gross profit margin for this year’s second quarter was $1.6 million, or 13% of revenues, versus $1.3 million or 10.7% of revenues, for the same period a year ago.  Operating income was $402,000 for the quarter ended September 30, 2007, compared to $188,000 for the same period the prior year.

The Company reported net income of $202,000, or $0.06 per basic and diluted share, for the quarter ended September 30, 2007, compared to net income of $22,000, or $0.01 per basic and diluted share, for the same period the prior year.

Charles McNew, president and chief executive officer, stated, “The improvement in our operating and net income is directly related to a deliberate shift in our business mix toward higher-margin business.  Our fixed costs are continuing to decline as a result of new software tools, which are being implemented to significantly reduce manual tasks in the back office, field service and call management functions.  We are also very encouraged by the recent scale and volume of new business bid activity.”

For the six months ended September 30, 2007, revenues were $24.4 million compared to $25.1 million for the same period last year.  The gross profit margin was $3.0 million, or 12.5% of revenues, up from $2.8 million, or 11.2% of revenues, for the first half of last year.  Operating income was $722,000 for the first half of fiscal 2008 versus $514,000 for the same period a year ago.  Net income for the first half of this year was $337,000, or $0.11 per basic and diluted share, versus $106,000, or $0.03 per basic and diluted share, for the first half of the prior year.

The Company will host a conference call for investors at 11:00 a.m. EDT on Thursday November 15, 2007, to review financial and operational results for the quarter.  The conference call phone number is 800-952-6697 for U.S. callers and 212-231-2902 for international callers.  The conference replay will be available from 1 p.m. EDT on Thursday, November 15, 2007, to 1 p.m. EDT on Friday, November 16, 2007. The replay number is 800-633-8284 for U.S. callers and 402-977-9140 for international callers.  The reservation number is 21355210.

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.