Nexia Embarks Upon Fashion and Retail Concept.

SALT LAKE CITY -- Nexia Holdings Inc. (OTCBB: NEXH) announced today that it has formed a new wholly owned subsidiary named Gold Fusion Laboratories Inc. (GFL). The formation of GFL is in preparation for the acquisition of all the assets and liabilities relating to Black Chandelier. Diversified Holdings X Inc. ("DHX") currently operates Black Chandelier, which has two open retail locations, a Web site and is currently in negotiations for a third Utah location. Black Chandelier designs, produces and manufactures 90% of all items sold in its stores that are 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.

The first Black Chandelier retail location has been in operation for more than two years in Trolley Square, a mall owned and operated by Simon Property Group (NYSE: SPG). Recently, a new location was designed as a pilot store to be used as a model for the opening of additional stores. The newly designed Black Chandelier is located in the Gateway Shopping Center in downtown Salt Lake City. Visit the store at http://www.blackchandelier.com/Gateway.html. Richard Surber stated his expectations, "This location is on target to generate approximately $800,000 in gross revenues during its first year of operations."

Year to date the Black Chandelier operations have generated approximately $175,000 in gross revenues. The Nexia team is exploring the potential for opening 20 additional stores in the United States and abroad over the next 3-5 years. Our goal is to build a retail operation that will generate $50M in gross revenues per year by the fifth year of operations. The feasibility of generating this type of revenue and supporting the stated level of expansion is currently being analyzed by Nexia.

Surber expects Nexia to close on the purchase of the Black Chandelier operations from DHX in the next 30 to 45 days. The terms of the purchase are currently being considered as the transaction will be deemed a related party transaction since the sole owner of DHX is Nexia's CEO Richard Surber.

Surber is currently pressing ahead with locating additional locations for Black Chandelier retail locations in Utah and Arizona.

Additional information on Black Chandelier, its fashion offerings and the retail operations can be found on its Web site at www.blackchandelier.com and ordering items from the clothing lines can be made on its e-store which can be found at www.blackchandelier.biz.

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 is not a solicitation to buy or sell any securities. Investors are encourages to invest no more money than they can afford to lose.

This press release may contain 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. Although Nexia Holdings believes these assumptions are reasonable, no assurance can be given that they will prove correct. These forward-looking statements involve a number of risks and uncertainties, including an expectation of substantial increase in sales by Black Chandelier and raising substantial funds for expansion. The actual results that Nexia Holdings may achieve could differ materially from any forward-looking statements due to such risks and uncertainties.