UNITED STATES
               SECURITIES AND EXCHANGE COMMISSION

                     Washington, D.C.  20549


                            FORM 8-K

                         CURRENT REPORT

 Pursuant to Section 13 and 15(d) of the Securities Exchange Act
                             of 1934


Date of Report (Date of earliest event reported):  December 22,
1999



                     HALIFAX CORPORATION
       (Exact name of registrant as specified in charter)




    Virginia             2-84160-W                54-0829246
(State or other       (Commission File         (IRS Employer
jurisdiction of           Number)            Identification No.)
incorporation))





  5250 Cherokee Avenue,  Alexandria, Virginia       22312
  (Address of principal executive offices)        (Zip Code)




Registrant's telephone number, including area code:(703) 750-2202



                              Not Applicable
  (Former name or former address, if changed since last report)

     



Item 5.     Other Matters

The Company announced the receipt of cash payments totaling $3.5
million, and other concessions, as a result of its ongoing
recovery efforts.  The payments, net of certain related expenses,
will have a positive impact on earnings for the quarter ending
December 31, 1999 of approximately $2.9 million.

Item 7.  Financial Statements and Exhibits

Press Release issued by the Company dated December 22, 1999.
     


                           SIGNATURES

Pursuant to the requirements of the Securities Exchange  Act
of  1934, the Registrant has duly caused this report  to  be
signed  on  its  behalf  by the undersigned  thereunto  duly
authorized.





                                        HALIFAX CORPORATION
                                             (Registrant)







     Date: January 4, 2000         By:  s/John J. Reis
                                        John J. Reis
                                         President






     Date: January 4, 2000         By: s/Charles L.McNew
                                       Charles L. McNew
                                       Executive V.P. & CFO



















For investor relations information, contact:
The Poretz Group, Investor Relations
Karen Vahouny (703) 506-1778 x224 or karen@poretz.com


                   HALIFAX RECOVERY ACTIVITIES
                      GENERATE $3.5 MILLION


ALEXANDRIA,  VA - December 22, 1999 - Halifax Corporation  (AMEX:
HX)  today announced that it has received cash payments  totaling
$3.5  million, and other concessions, as a result of its  ongoing
recovery  efforts.   These  payments,  net  of  certain   related
expenses,  will  have  a positive impact  on  earnings   for  the
quarter  ending December 31, 1999, of approximately $2.9 million.
The  specific  terms and conditions associated with the  payment,
including  the  identity  of  the  party,  are  subjects   of   a
confidentiality agreement that precludes disclosure.

The  $3.5  million  is the result of the steps taken  by  Halifax
against  various  parties it believed were  responsible  for  the
embezzlement  and related damages sustained by the  Company  over
the past four years. The Company is continuing to pursue recovery
activities  against  various  parties.  There  are,  however,  no
assurances  that  any  of the further recovery  actions  will  be
successful or, if successful, the extent or timing of any related
recoveries.

Jack  Reis,  president and chief executive  officer  of  Halifax,
stated,   "I  am  pleased to report that  we  have  made  further
progress  on  our  recovery efforts.  We intend  to  continue  to
pursue claims on behalf of the Company and its shareholders  that
we believe to be appropriate under the circumstances."

Founded  in  1967, Halifax Corporation offers  a  wide  range  of
information  technology, communications and maintenance  services
to  commercial  and  government customers throughout  the  United
States  and  overseas.  The Company generated revenues  of  $81.8
million  in  fiscal  1999  and  has approximately  650  employees
working at its Alexandria, Virginia, headquarters and in multiple
offices throughout the U.S.

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, 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.

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