SOURCE: Nexia Holdings, Inc.

October 02, 2007 08:30 ET

Nexia Announces Settlement of Debt

SALT LAKE CITY, UT--(Marketwire - October 2, 2007) - Nexia Holdings, Inc. (OTCBB: NEXA), a diversified holding company with operations in real estate, health & beauty and fashion retail, announced today that it has settled all claims arising from a debenture issued in 2004. Nexia has issued 200,000 shares of Series C Preferred Stock to settle the claims in the amount of approximately $278,000. The parties have signed an Agreement and General Release that provides that all claims are being released in exchange for the preferred stock that is being issued.

Richard Surber, CEO of Nexia, said, "I am pleased with this opportunity to exchange debt for equity in the Company and believe that it will serve to strengthen the balance sheet and improve the financial performance of the Company, especially over the long term. I am excited to have this investment in Nexia's future growth and the confidence it expresses in our potential to achieve continued success."

About Nexia Holdings Inc.

Nexia Holdings Inc. (OTCBB: NEXA), headquartered in Salt Lake City, Utah, is a diversified holdings company with operations in health & beauty, fashion retail and real estate. The Company has been acquiring undervalued properties in the Salt Lake City area since the early 1990s. Nexia owns a majority interest in Landis Lifestyle Salon, http://www.landissalon.com, a hair salon built around the world-class AVEDA™ product line. Through its Gold Fusion Laboratories subsidiary, Nexia owns the innovative retail and design firm Black Chandelier and its related brands. Black Chandelier is expanding nationwide, and currently operates four retail locations and online operations at www.blackchandelier.com. For more information, visit http://www.nexiaholdings.com.

Nexia strongly encourages the public to read the above information in conjunction with its Form 10-KSB for December 31, 2006 and 10-QSB for the quarter ended June 30, 2007. Nexia's Disclosures can be viewed at www.nexiaholdings.com and www.sec.gov.

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