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):  October 19, 1999



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




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



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 4.     CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANT

     This Form 8-K is being filed to report the resignation of the
     Company's former independent accountants and the engagement of new
     independent accountants

(a)(1)    Ernst & Young LLP (the "Former Accountants") resigned as the
     independent accountants for Halifax Corporation (the "Company") on
     October 19, 1999.

     No report prepared by the Former Accountants on the consolidated
     financial position of Halifax Corporation at March 31, 1999 and
     1998, and the consolidated results of operations and its cash
     flows of each of the three years in the period ended March 31,
     1999, contained an adverse opinion or disclaimer of opinion, or
     was qualified or modified as to uncertainty, audit scope, or
     accounting principles.

     In connection with the audit conducted by the Former Accountants
     for the fiscal year ended March 31, 1999, which was concluded on
     September 7,1999, and which included the consolidated balance
     sheets of Halifax Corporation as of March 31, 1999 and 1998, and
     the related consolidated statements of operations, changes in
     stockholder's equity (deficit) and cash flows for each of the
     three years in the period ended March 31, 1999, there were no
     disagreements between the Company and Ernst & Young on any matter
     of accounting principles or practices, financial statement
     disclosure, or auditing scope or procedure, which disagreements,
     if not resolved to the satisfaction of Ernst & Young, would have
     caused them to make reference thereto in their report on the
     financial statements for those years.

     The fiscal year 1999 audit was completed on September 7, 1999 with
     the issuance, by Ernst & Young, of a clean opinion as presented in
     the Company's Form 10-K which was filed with the SEC on September
     9, 1999.

     On October 5, 1999 the Company received a letter, dated September
     7, 1999, from Ernst & Young addressed to the Audit Committee.  The
     letter indicated that Ernst & Young had noted "matters of internal
     control and its operation" that they considered to be "material
     weaknesses".  The letter also indicated that,

          "these conditions were considered in determining the nature,
          timing, and extent of the procedures performed in our audit
          of Halifax Corporation's consolidated financial statements,
          and that this report does not affect our audit report dated
          September 7, 1999 on those financial statements".

     On August 25, 1999, Ernst & Young delivered a presentation to the
     Halifax Audit Committee.  The presentation was designed to present
     the audit process and related conclusions in some detail.  No
     reference was made during the conduct of this presentation to any
     material weaknesses at Halifax.


     The September 7th letter which was received on October 5th
     described the Company's operations as consisting of the operations
     of the parent company and a wholly owned subsidiary, Halifax
     Technology Services Company ("HTSC").  It further indicated that,

          "HTSC operated in a decentralized environment and utilized a
          separate accounting function from the Corporate office.  As a
          result, many transactions affecting HTSC were not under the
          control of Halifax Corporation's Chief Financial Officer.  To
          maintain strong internal controls in a decentralized
          operating environment such as Halifax Corporation, corporate
          oversight of the subsidiary's operations and financial
          reporting are essential.  As indicated in our 1998 Report to
          the Audit Committee, the Company's operating style did not
          provide for an optimal level of financial reporting oversight
          of HTSC by the corporate office.  This lack of Corporate
          oversight in the decentralized environment proved to be a
          material weakness in the internal control structure as
          evidenced by the embezzlement and restatement of the 1998 and
          1997 financial statements."

     The letter went on to say,

          "In 1998, we recommended the Company's organizational
          structure be changed to bring the accounting function at HTSC
          under the direct control of the corporate office and
          consolidate the accounting functions into one location."

     The June 5, 1998, Letter on Internal Control delivered to the
     Company by Ernst & Young, after describing the decentralized
     operating environment referenced above, stated,

          "While the Chief Financial Officer does have interaction with
          HTSC's accounting staff on a periodic basis, he does not have
          direct control over this group.  This separate structure
          facilitates a lack of consistency of accounting policies and
          practices and does not provide for an optimal level of
          financial reporting oversight of the subsidiary by Company
          financial management."

     The letter went on to say,

          "We recommend that the Company's organizational structure be
          changed to bring the accounting function at HTSC under the
          direct control of the Company's chief financial officer.  In
          addition, we recommend that the Company consider
          consolidating many of the accounting functions into one
          location to reduce costs and increase consistency related to
          the financial operations on a consolidated basis."

     The opening paragraph of this same 1998 letter stated,

          "we noted no matter involving internal control and its
          operation that we consider to be material weaknesses..."

     The identical quote was included in Ernst & Young's 1997 Report to
     the Audit Committee.

     In a response to the Halifax Audit Committee, dated August 7,
     1998, the Company adopted Ernst & Young's first recommendation
     indicating that,

          "The authority over the HTSC accounting department has been
          assigned to the Company's CFO."  However, in response to the
          second recommendation the Company stated, "The department
          will remain in Richmond since it currently operates a
          different accounting system.than employed at HQ.  The Company
          has a variety of accounting and management requirements .....
          which are not currently available from any one system.  We
          expect to operate on these two systems for the foreseeable
          future although we will make all adjustments to integrate the
          systems, accounting personnel and locations that are
          effective and cost conscious."

     Immediately upon the discovery of the embezzlement event, the
     Company consolidated all check writing, cash and cash management
     functions under Halifax Corporate.  On July 19, 1999, the Company
     hired a new executive vice president to consolidate all of the
     Company's administrative and accounting functions.  That
     individual was named to the additional post of Chief Financial
     Officer on September 9, 1999.


(a)(2)    Effective October 26, 1999, the Board of Directors appointed
     the accounting firm  of Deloitte & Touche LLP as independent
     public accountants for the Company based on the recommendation of
     the Audit Committee, to replace Ernst & Young. The Company, during
     the two most recent fiscal years and the subsequent interim period
     prior to the engagement of Deloitte & Touche LLP did not consult
     with Deloitte & Touche LLP with regard to any of the matters
     listed in Regulation S-K Items 304 (a) (i) or (ii).


     


                              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:                              October  26,  1999     By:
     s/John J. Reis
                                             John J. Reis
                                             President






     Date: October  26, 1999           By: s/Charles L. McNew
                                             Charles L. McNew
                                             Executive V.P. & CFO















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                           Ernst & Young LLP
                     1225 Connecticut Avenue, N.W.
                        Washington, D.C.  20036
                         Phone (202) 327-6000


October 22, 1999

Mr. John J. Reis
President & CEO
Halifax Corporation
5250 Cherokee Avenue
Alexandria, VA  22312

Dear Mr. Reis:

This is to confirm that the client-auditor relationship between HALIFAX
CORPORATION (Commission File Number 0-12712) and Ernst & Young LLP has
ceased.

                                   Very truly yours,


                                   /s/ Ernst & Young LLP

Copy to  Office of the Chief Accountant
         SECPS Letter File
         Securities and Exchange Commission
         Mail Stop 11-3
         450 fifth Street, N.W.
         Washington, D.C. 20549


  Ernst & Young LLP is a member of Ernst & Young International, Ltd.




                           Ernst & Young LLP
                     1225 Connecticut Avenue, N.W.
                        Washington, D.C.  20036
                         Phone (202) 327-6000



October 26, 1999

Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, DC 20549

Gentlemen:

We have read Item 4 of Form 8-K dated October 26, 1999, of Halifax
Corporation and are in agreement with the statements contained in the
first, second, third, fourth, fifth, seventh and eighth paragraphs
therein. We make no comment with respect to the other statements of the
registrant contained therein.


                                   Very truly yours,


                                   /s/ Ernst & Young LLP



  Ernst & Young LLP is a member of Ernst & Young International, Ltd.