ALEXANDRIA, VA - September 2, 2003 - Halifax Corporation (AMEX:HX)

today announced that on August 29, 2003, it completed its acquisition

of Microserv, Inc., a hardware maintenance solutions company, located

in suburban Seattle, Washington.  Founded in 1985 and privately held,

Microserv provides high-availability hardware maintenance services to a

nationwide customer base.  Halifax acquired the outstanding stock of

Microserv for a total value of approximately $3.0 million, excluding

earn-out arrangements.



According to Charles McNew, president and CEO, "We are pleased to

welcome Microserv to the Halifax family as we complete this important

step in the evolution of our services platform.  As previously

discussed, we expect this acquisition to be accretive to earnings in

the first year while increasing our second-half revenues by 15 to 20

percent.  Furthermore, we have expanded our geographic base and

strengthened our service delivery capability.  Microserv also adds a

number of prestigious customers to our roster, and enhances our ability

to grow our partnership arrangements with the global service provider

community.  It should also be noted that Fairmount Partners, our

financial advisor, was instrumental in helping us to successfully

complete this transaction."



He added, "We will continue to aggressively pursue our strategy of

extending our leadership position in the enterprise maintenance

solutions marketplace with the ultimate long-term goal of meaningful

shareholder value enhancement."



The Microserv shareholders, in exchange for all of the outstanding

shares of common stock of Microserv, received consideration, subject to

certain possible post-closing adjustments, consisting of 442,078 shares

of Halifax common stock; a note in the principal amount of $493,394

with an 18-month term, accruing interest at the rate of 5% per annum;

cash in the amount of $360,000; and through an earn-out, the right to

receive an additional $250,000 payable in cash, or a combination of

cash and Halifax common stock.  The consideration is subject to certain

reductions if the working capital and net assets on the closing date

are less than certain levels at March 31, 2003.



Microserv shareholders received certain demand and piggyback

registration rights and will be subject to a 12-month prohibition on

any transfers of common stock acquired in the merger.  In addition, the

Microserv shareholders are required to provide the Company with a right

of first offer to purchase certain shares of Halifax common stock

acquired in the merger.  To the extent Microserv shareholders continue

to hold greater than 50% of the aggregate number of shares of common

stock issued in the merger, Microserv shareholders have the right to

nominate one member to Halifax's board of directors.



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.



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 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.