Halifax Awarded State Contract Valued at $5 Million

Alexandria, VA - December 17, 2007 – Halifax Corporation (AMEX:HX) today
announced that it has signed a services contract with a state agency in Pennsylvania for the maintenance and installation of office and network telecommunications equipment. The contract, which commences on January 1, 2008, has a three year term with two option years and is expected to generate annual revenues of approximately $1 million.

Charles McNew, president and chief executive officer, stated,  “We are pleased to expand our field service role within the Commonwealth of Pennsylvania.  The government marketplace is viewed as an exciting area of expansion for the company.

“Our enhanced back office tool sets and our rapidly expanding product support capabilities are making wins of this nature more probable.  We are aggressively pursuing several sizeable multi-year deals and plan to be announcing additional new business in the near term.”

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.  This web site reference is intended to be an inactive textual reference, and the information on this web site is not incorporated into this document.