Exhibit 99.1



       HALIFAX SIGNS NEW CONTRACTS TOTALING MORE THAN $6 MILLION


ALEXANDRIA, VA - July 18, 2006 - Halifax Corporation (AMEX:HX) today
announced that it has signed multiple new enterprise maintenance
solutions contracts and service agreements with various partners.  The
annual value of the contracts, in total, is about $6.2 million.  The
Company commences services under all the contracts/agreements this
month.

The contracts are expected to generate revenues of about $4.2 million
for the Company's 2007 fiscal year, which closes on March 31, 2007.

The new customers include a large national retailer, a prominent
financial services company and a major aerospace firm.  Halifax will be
providing a broad spectrum of managed services in association with its
global service partners.

Charles McNew, president and chief executive officer, stated, "We have
been experiencing a recent spurt in activity as evidenced by the
continued strengthening of our sales pipeline and our newly signed
business.  Several of these new contracts, if extended, offer the
prospect of more significant revenues in the 2008 fiscal year and
beyond.

"Our determination to provide premium caliber service levels at highly
competitive pricing levels continues to facilitate our growth in the
managed services provider marketplace.  We're pleased that our top-tier
partners are a continuing source of new business, and I'm confident
that this will result in meaningful future growth."

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.

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.

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