Nexia Receives $1.7 M Valuation on Black Chandelier Acquisition.

SALT LAKE CITY -- Nexia Holdings, Inc. (OTCBB:NEXH) announced its subsidiary, Gold Fusion Laboratories, Inc. ("GFL"), has received an independent valuation, as of August 31, 2006, reporting the fair market value of the assets and operations of Black Chandelier at $1,700,000.

The valuation is based upon the discounted future earnings and discounted future cash flow of Black Chandelier. This valuation is expected to allow Nexia to increase its reported gross assets by $1,390,000 and net equity by approximately $900,000. The earlier acquisition and valuation of Landis LLC provided for estimated increases of gross assets by $1,065,000 and net equity by approximately $800,000.

Accordingly, Nexia's gross assets as a result of these two acquisitions should increase by $2,555,000 and net equity should increase $1,700,000. As of June 30, 2006, Nexia reported total assets of $5,622,842 and total stockholders' equity of $2,685,713. Nexia's CFO Richard Surber expects gross assets to exceed $7,000,000 and net equity to exceed $4,000,000 for the nine months ended September 30, 2006.

Year to date Black Chandelier's operations have generated estimated revenues of $314,548. Nexia projects that the Black Chandelier operations will generate total revenues of at least $800,000 for the fiscal year ending December 31, 2006. The Black Chandelier operations are expected to generate gross revenues of $2,000,000 for the fiscal year ending December 31, 2007.

Richard Surber, GFL's and Nexia's CEO, observed that: "The growth and plans for expansion of the Black Chandelier product lines are expected to be significant over the next two to five years. Current results are meeting or exceeding our expectations. The continued innovation and creativity of the upcoming product lines gives us great hope for the continued success of the Black Chandelier brand."

The valuation was performed by Kelly R. Johnson, MBA, CPA/ABV, DABFA of Norman Townsend & Johnson, LLC of Salt Lake City.

Nexia is diligently searching for an additional $250,000 to $500,000 equity investment from accredited investors to complete its 2006 expansion and merchandising plans.

Nexia Holdings, Inc. is a diversified holdings company with interests in real estate, beauty, and the fashion industry. For more information on Nexia and its family of companies visit our websites at www.nexiaholdings.com, www.landissalon.com and www.blackchandelier.com.

This press release may contain forward-looking statements that are based on a number of assumptions, including an immediate cash infusion of at least $250,000 for the purchase and manufacture of inventories. 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. The actual results that Nexia Holdings and/or Black Chandelier may achieve could differ materially from any forward-looking statements due to such risks and uncertainties.