EXHIBIT 99.1


                     HALIFAX SIGNS NEW NATIONWIDE
            MAINTENANCE SERVICES CONTRACT FOR $6.7 MILLION

         Total Potential Value Expected to Exceed $20 Million

ALEXANDRIA, VA - September 21, 2004 - Halifax Corporation (AMEX-HX)
today announced that it has been awarded a new contract to provide
nationwide computer maintenance service and support for a consumer
products retail chain with over 5,000 locations.  The initial value of
the contract, which runs through December 2005, is $6.7 million, with
the potential value estimated at more than $20 million if the client
extends the contract through 2008.

Charles McNew, president and chief executive officer, stated, "This is
a major win for Halifax, solidifying our position as a prominent player
in the Point Of Sale maintenance and support marketplace.

"Our partner model and our focus on delivery of creative and cost-
effective enterprise maintenance solutions are creating a valuable
stream of long-term business," he said.  "During the past month, we
have announced long-term bookings of nearly $50 million, and the sales
team is continuing to develop additional large-scale opportunities."

He added, "We are pleased to be announcing such positive news and we
will continue to diligently pursue future growth and enhanced
shareholder value."

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.