Exhibit 99.1


                  HALIFAX ANNOUNCES $29 MILLION AWARD
                            WITH U.S. ARMY


ALEXANDRIA, VA - September 7, 2004 - Halifax Corporation (AMEX: HX)
today announced the award of a Blanket Purchase Agreement (BPA) against
the Federal Supply Schedule for Infrastructure Support Services with
the U.S. Army.  The estimated value is $29 million over a five-year
term.

Under the BPA, Halifax will provide engineering support, installation
and activation services of communications and electronic systems,
training support and provisioning of equipment.  Halifax has provided
support services to the U.S. Army since 1983, primarily through cleared
personnel.

Charles McNew, president and chief executive officer, stated, "We are
delighted to continue our long-standing relationship with the U.S.
Army.  Our Secure Network Services team has done a fine job in
delivering creative and cost-effective solutions in a time-sensitive
fashion, and we look forward to continuing our relationship with this
important customer."

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.