'Net Income of $183,000 and Earnings Per Share of $.06' ALEXANDRIA, Va., Aug. 5 /PRNewswire-FirstCall/ -- Halifax Corporation of Virginia (NYSE Amex: HX) today announced its financial results for the quarter June 30, 2009. Revenues for of three months ended June 30, 2009 were $7.6 million compared to $9.0 million for the prior year. The decrease in revenues in 2009 was attributable to the termination of certain large nation-wide enterprise maintenance contracts. The Company reported operating income of $134,000, compared to operating income of $317,000 for the same period last year. The reduction in operating income was primarily due to lower revenues due to lengthening sales cycles, somewhat offset by lower operating costs. The Company reported net income of $183,000, or $.06 per basic and diluted share. Charles McNew, President and Chief Executive Officer, stated, "We are pleased to report another profitable quarter. While certain legacy revenue sources for a few maintenance customers are declining, our enterprise logistics solutions revenue is continuing to grow on a profitable basis." "We believe that this supply chain services program, which is affording the company multiple higher margin business process outsourcing opportunities, will position the company for improving long term performance." The Company will host a conference call for investors at 11 a.m. EDT on Wednesday, August 5, 2009, to review the financial and operational results for the quarter. The conference call phone number is 800-771-6692 for U.S. callers and 212-231-2903 for international callers. The conference call replay will be available from 1 p.m. EDT on Wednesday, August 5, 2009, to 1 p.m. EDT on Thursday, August 6, 2009. The replay number is 800-633-8284 for U.S. callers and 402-977-9140 for international callers. The reservation number is 21433302. Founded in 1967, Halifax Corporation of Virginia is an enterprise logistics and 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 enterprise logistics solutions and high availability hardware maintenance services. More information on Halifax can be found at http://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. Halifax Corporation Summary Financial Data (in 000's except per share amounts) For the three months ended June 30, Statements of operations 2009 2008 Revenues $7,662 $9,017 Cost of services 6,569 7,504 Gross profit 1,093 1,513 Selling, marketing, general & administrative 959 1,196 Operating Income 134 317 Other income 152 - Interest expense (83) (83) Income before income taxes 203 234 Income tax expense 20 31 Net income $183 $203 Earnings per common share - basic and diluted $0.06 $0.06 Weighted average number of common shares outstanding: Basic 3,175 3,175 Diluted 3,178 3,175 June 30, March 31, Balance Sheets 2009 2009 Current assets Cash $841 $766 Trade accounts receivable, net 5,523 6,794 Inventory, net 2,661 2,588 Prepaid expenses and other current assets 256 208 Total current assets 9,281 10,356 Property and equipment, net 643 727 Goodwill and intangibles, net 3,221 3,292 Other assets 42 56 Total assets $13,187 $14,431 Liabilities and Stockholders' Equity Current liabilities Accounts payable and accrued expenses $3,758 $4,546 Income tax payable 30 67 Deferred maintenance revenue 3,143 2,072 Bank debt 963 2,545 Auxiliary line of credit - - Current portion of long-term debt 268 331 Total current liabilities 8,162 9,561 Other long-term debt 120 141 Subordinated debt - affiliate 1,000 1,000 Deferred income 25 40 Total liabilities 9,307 10,742 Stockholders' equity 3,880 3,689 Total liabilities and stockholders' equity $13,187 $14,431 DATASOURCE: Halifax Corporation of Virginia CONTACT: Investor Relations, Tammy Erwin of Halifax Corporation of Virginia, +1-703-658-2422, Web Site: http://www.hxcorp.com/

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