Nexia Sells Majority-Owned Subsidiary for $2.65 Million.

Business Editors/Real Estate Writers

SALT LAKE CITY--(BUSINESS WIRE)--July 8, 2003

Nexia Holdings Inc. (OTCBB: NXIA) announced today that on June 30, 2003, it restructured its holdings in certain subsidiaries and sold its interest in Wichita Development Corp. (Pink Sheets: WHDV) to Diversified Financial Resources Corp. (OTCBB: DFRC) in a transaction valued at $2.65 million. The transaction consists of the elimination of approximately $1.5 million in debt from the consolidated balance sheet of NXIA, a $150,000 note and 1,000,000 shares of DFRC stock with a guaranteed liquidation value of not less than $1 million over a period of 24 months. The sale was made in an effort to reduce negative cash flow and further improve the financial condition of NXIA.

In an inter-company tax-free transaction, WHDV exchanged its shareholdings in Kearns Development Corp. (Kearns) for the Diversified Holdings I Inc. (DHI) shareholdings in Salt Lake Development Corp. (SLDC). (DHI, Kearns and SLDC were all subsidiaries of NXIA at the time of the restructuring. See Item 1 Description of Business in the Dec. 31, 2002, NXIA Form 10KSB for a diagram of the corporate structure of NXIA). Subsequent to the inter-company transfers, NXIA sold to DFRC 100% of its shareholdings in WHDV. At the time of the sale of NXIA's shareholdings in WHDV, WHDV's real estate holdings consisted of two office buildings and a building with 18 residential apartments and a ground floor retail space.

NXIA sold its shares of WHDV in exchange for a note in the amount of $150,000 and 1,000,000 shares of DFRC's restricted shares of common stock with a guaranteed liquidation value of not less than $1 million. In addition, NXIA will no longer have to consolidate approximately $1.5 million in debt currently on the books of WHDV and SLDC. NXIA's president, Richard Surber, commented, "The sale of WHDV is part of NXIA's plan to further streamline its operations, cut costs and reduce negative cash flow while preserving the upside profit potential from the sale of WHDV's properties. Furthermore, NXIA's consulting subsidiary Hudson Consulting Group Inc. will be retained to assist WHDV in resubmitting its application to become traded on the OTCBB. Hudson is currently assisting DFRC with its plans to build a natural resources company. NXIA may be the beneficiary of significant upside potential through liquidation of its 1,000,000 shares of restricted DFRC's stock over the next 24 months."

The gross market value of WHDV's real estate holdings is estimated at $2.5 million with underlying debt of approximately $1.4 million. The real estate was being held at a depreciated cost basis of approximately $1,501,950.

The real estate held by WHDV or its subsidiaries includes the following:

NXIA headquarters located at 268 West 400 South in Salt Lake City. The building is two stories with 14,347 net rentable square feet of office space. SLDC purchased the property on March 6, 1998, by exercising its option to purchase the property through the payment of $418,762. SLDC financed the purchase price and borrowed an additional sum of $222,489, which is secured by the property. On Dec. 31, 2002, the outstanding debt on the property was $569,410 with monthly payments of $5,934. The estimated market value is approximately $1 million based upon a dated MAI appraisal.

SLDC purchased a two-story 18-unit apartment building, located at 2402 Wall Ave. in Ogden, Utah, on July 23, 1998. The property includes an additional 7,500 square feet of commercial space. The total purchase price was $850,000. The balance owed at Dec. 31, 2002, was $590,560. The estimated market value is approximately $900,000 based upon management's opinion.

The Trade Center Building: The building was purchased for $540,554 on Aug. 30, 2000. The Trade Center Building, which opened in 1921, is located in the downtown business district of Wichita, Kan., at 120 S. Market St. The building is a 48,500-square-foot, seven-story office building. WHDV holds title to the property subject to a mortgage of $273,173 at Dec. 31, 2002. The taxed assessed value of the building is $600,000.

The loans on the Wichita and Salt Lake City properties have been paid current since the filing of Nexia's 10-QSB for the quarter ended March 30, 2003. The Ogden property is currently in default and efforts are being made with the assistance of Hudson to refinance the existing debt.

Nexia is currently reviewing the potential of renovating office space in the Wallace-Bennett building where Nexia could relocate its offices within the next 12 months. The Wallace Bennett building is a 30,000-plus-square-foot turn-of-the-century building held by NXIA's majority-owned subsidiary, Wasatch Capital Corp.

NXIA is a holding company with operations in real estate and financial consulting sectors. Investors are strongly encouraged not to make an investment which they cannot afford to lose. Additionally, Nexia strongly encourages the public to read the above information in conjunction with its Form 10KSB for Dec. 31, 2002, and 10QSB for March 30, 2003. These disclosures can be viewed at www.sec.gov. We further advise our readers to visit the Nexia Holdings Inc. Web site at www.nexiaholdings.com.

This press release may contain forward-looking statements that are based on a number of assumptions, including expectations for continued market growth and anticipated revenue levels. Although Nexia 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 NXIA's ability to liquidate the DFRC shares at favorable prices based upon DFRC's current illiquid market for its securities. The actual results that NXIA may achieve could differ materially from any forward-looking statements due to such risks and uncertainties.