Nexia Signs Asset Purchase Agreement with Face Value of $1 Million.

SALT LAKE CITY -- Nexia Holdings Inc. (OTCBB: NEXH) announced today that its subsidiary, Gold Fusion Laboratories Inc. (GFL), executed an asset purchase agreement to acquire the assets, inventory and receivables of Diversified Holdings X Inc. (DHX), relating to its operation of Black Chandelier. Nexia, through GFL, will issue 70,000 shares of its Series A Preferred Stock, and a note in the amount of $300,000. Nexia's CEO Richard Surber expects GFL to close on the purchase of the Black Chandelier operations on or before Sept. 30, 2006. The transaction will be deemed a related party transaction, since the sole owner of DHX is Surber.

Black Chandelier's gross revenues in 2006 are at $225,010 as of Aug. 13.

DHX currently operates Black Chandelier, which has two retail locations, and a Web site through which it markets its products to the public. Black Chandelier designs, produces and manufactures a majority of the items sold in its stores 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). The newest location was designed as a pilot store to be used as a model for the opening of additional stores. The newly designed Black Chandelier opened in the middle of June 2006, and did nearly $40,000 in revenues for the month of July. The new location is located in the Gateway Shopping Center in downtown Salt Lake City, and can be viewed on the Web at http://www.blackchandelier.com/Gateway.html.

The Gateway store, a property operated by the Boyer Group, is expected to generate at least $800 in revenues per square foot in its first year of operations. Surber noted that, "Based upon preliminary reception by consumers and professionals in the retail industry, it is evident that this concept needs the necessary capital and resources that Nexia as a public company can provide to grow the Black Chandelier and Jared Gold brands."

Plans are underway to open at least 20 additional Black Chandelier retail locations throughout the United States. The Black Chandelier team is focusing on opening 20 or more locations over the next five years. Black Chandelier plans to prove that its retail stores warrant significant investment by a major real estate concern. The investment by such a real estate concern would most likely be limited to the necessary tenant improvements to build out each of the Black Chandelier retail stores in shopping malls that have average retail sales that exceed $400 per square foot on an annual basis.

Surber stated that, "Black Chandelier's initial retail sales goal is to generate on average $1,000 per square foot on an annual basis. Generating $1,000 per square foot will speak volumes to a major real estate concern that owns properties throughout the United States. We are offering an alternative to big box retailers such as Gap Inc. (NYSE: "GPS") or Hot Topic (NYSE: "HOT").

"Our alternative involves Gold," Surber continued, "we are interested in opening stores that will range in size from 1,000 square feet up to 2,200 square feet, depending on the demographics of each retail location. Our long-term goal will be to secure continuing growth such that in five years gross sales through all retail and wholesale operations will be in the range of $50 million a year."

For additional information on Black Chandelier, its fashion offerings and its Salt Lake retail operations, go to www.blackchandelier.com. To order items from Black Chandelier, go to 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 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 operations 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.