Halifax Corporation
5250 Cherokee Avenue
Alexandria, VA 22312
Phone 703 750 2202
or 800 944 2543

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HALIFAX ANNOUNCES SECOND QUARTER FINANCIAL RESULTS

ALEXANDRIA, VA – November 16, 2009 – Halifax Corporation of Virginia (HALX.PK OTC) today announced its financial results for the quarter September 30, 2009.

Revenues for of three months ended September 30, 2009 were $7.6 million compared to $8.9 million for the prior year. For the six months ended September 30, 2009, revenues were $15.3 million compared to $17.9 million for the same period last year. The decrease in revenues in 2009 was attributable to the termination of certain large nation-wide enterprise maintenance contracts.

The Company reported operating income of $105,000 for the three months ended September 30, 2009, compared to operating income of $347,000 for the same period last year. For the six months ended September 30, 2009 the Company reported operating income of $239,000 compared to $664,000 for the six months ended September 30, 2008. The reduction in operating income was primarily due to lower revenues due to lengthening sales cycles, somewhat offset by lower operating costs.

The Company reported net income of $44,000, or $.01 per basic and diluted share for the three months and $227,000, or $.07 per basic and diluted share for the six months ended September 30, 2009.

Charles McNew, President and Chief Executive Officer, stated, “The current quarter, as expected, was relatively flat compared to the first quarter of FY 2010. We are pleased to continue our string of profitable quarters and we remain reasonably optimistic looking forward, given the pressures in the maintenance service marketplace and the economic environment in general.”

“We also continue to see growth potential for our supply chain services program, Enterprise Logistics Solutions, which is affording the company multiple higher margin business process outsourcing opportunities.”

The Company will host a conference call for investors at 11 a.m. EST on Monday, November 16, 2009, to review the financial and operational results for the quarter. The conference call phone number is 800-952-3470 for U.S. callers and 212-231-2904 for international callers. The conference call replay will be available from 1 p.m. EST on Monday, November 16, 2009, to 1 p.m. EST on Tuesday, November 17, 2009. The replay number is 800-633-8284 for U.S. callers and 402-977-9140 for international callers. The reservation number is 21443257.

Founded in 1967, Halifax Corporation of Virginia is an enterprise logistics and 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 enterprise logistics solutions and high availability hardware maintenance services. More information on Halifax can be found at www.hxcorp.com.

Certain statements made by the Company which are not historical facts may be considered forward-looking statements, including, without limitation, statements as to trends, management’s beliefs, views, expectations and opinions, which are based upon a number of assumptions concerning future conditions that ultimately may prove to be inaccurate. Such forward-looking statements are subject to risks and uncertainties and may be affected by various factors described in the Risk Factors section in the Company's Annual Report on Form 10-K that may cause actual results to differ materially from those in the forward-looking statements. For further information that could affect the Company’s financial statements, please refer to the Company’s reports filed with the Securities and Exchange Commission.

Summary Provided

For investor relations information, contact Halifax Corporation:
Tammy Erwin (703) 658-2422 or terwin@hxcorp.com
Certain statements made by the Company which are not historical facts may be considered forward-looking statements, including, without limitation, statements as to trends, management's beliefs, expectations and opinions, which are based upon a number of assumptions concerning future conditions that ultimately may prove to be inaccurate. Such forward-looking statements are subject to risks and uncertainties and may be affected by various factors that may cause actual results to differ materially from those in the forward-looking statements. For further information that could affect the Company's financial statements, please refer to the Company's reports filed with the Securities and Exchange Commission.
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