Nexia Acquires Black Chandelier's Accelerating Operations.

SALT LAKE CITY -- Nexia Holdings Inc. (OTCBB: NEXH) announced today that its subsidiary Gold Fusion Laboratories Inc. (GFL) closed on the Asset Purchase Agreement signed Aug. 15, 2006. Through this agreement GFL will acquire the assets, inventory, and receivables of Diversified Holdings X Inc. (DHX) relating to its operation of Black Chandelier. Nexia, to close the purchase, has issued 70,000 shares of its Series A Preferred Stock and GFL has delivered a note in the amount of $300,000 and, in an addendum signed at closing, has agreed to issue two billion restricted shares of Nexia common stock to DHX. The transaction has been deemed a related party transaction, since the sole owner of DHX is Nexia's CEO Richard Surber.

GFL currently operates two Black Chandelier retail locations in Salt Lake and a store on the Web at www.blackchandelier.biz. Black Chandelier designs, produces, and manufactures a majority of the items sold under the trademarks: Black Chandelier, Jared Gold, Olfactory Surrealism and Pink Chandelier. The stores also carry merchandise from Wrangler Jeans, Le Sportsac, Taschen books, Lomography Cameras, and Tokidoki Italy. To find additional information about Black Chandelier go to www.blackchandelier.com.

The first Black Chandelier retail location has been in operation for over two years in Trolley Square, a mall owned and operated by Simon Property Group (NYSE: SPG). The newest location, opened in mid-June, was designed as a pilot store to be used as a model for the opening of additional stores, and can be viewed at http://www.blackchandelier.com/Gateway.html. The outrageous visual nature of the store and the exclusive product has caused a sharp incline in the company's profits.

Black Chandelier's stores in the Salt Lake area previously reported sales figures for the month of August 2006 of $74,500. Sales during 2006 continued to demonstrate dramatic increases in comparison to sales in 2005. June 2006 sales increased 193% from June 2005 and July 2006 increased 315% from July 2005. The continuing media attention given to Black Chandelier has lead to the growth of Black Chandelier sales through these existing retail outlets, as well as attracting attention from the country's largest retail real estate developers.

Plans to open additional Black Chandelier retail locations has increased to 50 additional locations throughout the United States over the next five years, in efforts to reach its $50 million in gross sales per year goal. The company is currently in negotiations for two additional locations to open before the 2006 holiday sales season. Nexia's president, Richard Surber, stated, "It is very exciting to be working with highly respected professional landlords like General Growth Properties (NYSE: GGP) and Terranet Investments. I expect that these premier locations (and working with blue chip companies such as General Growth Properties) will contribute greatly to the success of Black Chandelier. It also lays the groundwork for Black Chandelier's continued future expansion."

Nexia strongly encourages the public to read the above information in conjunction with its Form 10-KSB for Dec. 31, 2005 and for the subsequent quarters during 2006. Nexia's disclosures can be viewed at www.nexiaholdings.com and www.sec.gov.

This press release contains forward-looking statements that are based on a number of assumptions, including the successful completion of the marketing plans and expansion of Black Chandelier operation in a short period of time. The above statements further assume that Nexia can obtain sufficient capital to execute expansion plans through outside investments including but not limited to obtaining significant leasehold improvements and sufficient lines of credit to fund the design and manufacture of Black Chandelier products on a substantially larger scale. Nexia's assumptions are further contingent upon the appeal of its products and concepts to at least one major or national REIT or other retail shopping mall owner. There are no assurances that such assumptions will prove correct. These forward-looking statements involve a number of risks and uncertainties, including an expectation of substantial increase in sales. The actual results that Nexia Holdings may achieve could differ materially from any forward-looking statements due to such risks and uncertainties.