SOURCE: Nexia Holdings, Inc.

August 12, 2008 08:30 ET

Nexia CEO Letter to Shareholders

SALT LAKE CITY, UT--(Marketwire - August 12, 2008) - Nexia Holdings, Inc. (OTCBB: NXHD) reported that Richard Surber, the President and CEO of the Company, has released the following letter addressed to Nexia's shareholders:

Dear Shareholders:

In light of recent communication from several of shareholders I felt it appropriate to write a general response to inform you of our current plans and to explain some of our recent actions. We recently carried out a 1 for 1,000 reverse stock split to decrease the number of outstanding shares and to increase the share price per share as an effort to create a more attractive structure to a broader base of investors. It also became necessary to change our independent certifying accounting firm, which has led to our retaining a new accounting firm which in the short term has caused an increase in costs and delays in our accounting processes. However, over the long term I believe the change in auditors will decrease our outside auditing costs. We hope to have many of our accounting issues behind us so that Nexia can move forward and secure the financing available to us upon the completion of our S-1 offering document that has been in process for almost three years now. Upon the offering document clearing comments with the Securities and Exchange Commission, Nexia may be able to raise up to $10M pursuant an equity line of credit.

We have recently hired a new designer for our clothing division and have closed our underperforming retail outlets with a renewed focus on online sales of the Black Chandelier apparel products we design and produce. We have retained two professionals to seek out and evaluate potential salon acquisitions to grow the Landis Lifestyle Salon brand beyond our two operating locations. We are continuing our efforts to bring Green Endeavors, Ltd. (PINKSHEETS: GRNE) to become a fully reporting stand alone company which would be spun off to Nexia's shareholders. Our expectation is that GRNE will become a national mid range salon company that operates under the guidelines of Aveda. Aveda is an earth friendly, organic based product that is own by one of the largest cosmetics companies in the world, Esteé Lauder.

Nexia has been challenged by tight credit, low demand for its common stock, a downturn in the retail clothing market and rising compliance and accounting costs. I and the staff of Nexia are working on all fronts to overcome these challenges. We have decreased spending, hired investment relations firms. In addition, we are retooling our clothing product mix and focusing on growth through the acquisition of salons to improve our financial position. Our two existing salons are on track to generate at least $2.3M in gross revenues. I would like to acquire a minimum of 25 additional salons that on average generate at least $1M in revenues per salon.

Over the coming weeks and months, I will expound upon many of the items mentioned in this letter. I remain dedicated to making Nexia and its operations successful over the long term.

Sincerely,

Richard Surber, President and CEO of Nexia Holdings, Inc.

About Nexia Holdings, Inc.

Nexia Holdings, Inc. (OTCBB: NXHD), headquartered in Salt Lake City, Utah, is a diversified holdings company with operations in real estate, health & beauty, and fashion retail. Nexia owns a majority interest in Landis Lifestyle Salon, www.landissalon.net, a hair salon built around the world-class AVEDA™ product line. Through its Style Perfect, Inc. subsidiary, Nexia owns the innovative retail and design firm Black Chandelier and its related brands. Black Chandelier currently operates one retail location and online store 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-K for December 31, 2007 and the subsequent quarter of 2008. Nexia's disclosures can be viewed at www.nexiaholdings.com and www.sec.gov.

This press release contains forward-looking statements. 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.