SALT LAKE CITY, Jan. 28, 2011 /PRNewswire/ -- Nexia Holdings, Inc. (Pink Sheets: NXHD) reports that it has executed a Settlement Agreement to retire 200,000 shares of Nexia's restricted Series C Preferred Stock, with a stated conversion value of $1,000,000, for the return of 200,000 shares of Preferred Convertible Stock held by Nexia in another pink sheet company.  The agreement was executed on January 10, 2011 and the return of the outstanding shares of Series C Preferred Stock was completed on January 24, 2011 by the delivery of the necessary documents to the transfer agent for Nexia.

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Richard Surber, CEO of Nexia, commented, "Retiring $1M worth of Series C Convertible Preferred is one of many steps that I am taking to improve the capital structure of Nexia. Nexia Holdings has also sent out a proposal to modify the manner in which Series C Preferred shares may be converted into shares of common stock.  The full text of the proposed amendment will be posted on our Nexia Facebook page and www.otcmarkets.com at the appropriate time.  The board of directors is taking immediate action to limit conversions of preferred shares into shares of common stock based upon relatively recent changes in the securities laws."

Mr. Surber continued, "Additionally, shareholders should note that Nexia Holdings is currently taking the position that officers, directors, and affiliates may not sell any shares of common stock into the open market until such time as Nexia has been fully reporting for 12 months.  The above facts remove the possibility of any portion of $2.5M worth of convertible preferred stock from hitting the open markets for a minimum of 18 months.  Even after Nexia becomes fully reporting, insiders cannot sell more than 1% of total issued and outstanding shares every 90 days under Rule 144."

About Nexia Holdings, Inc.:

Nexia Holdings, Inc. (PINKSHEETS: NXHD), headquartered in Salt Lake City, Utah, is a diversified holdings company with operations in entertainment, health & beauty, and real estate.  Nexia Holdings owns a majority interest in Green Endeavors, Inc., (GRNE) www.green-endeavors.com, which operates Landis Salons, Inc. and Landis Salons II, Inc., www.landissalons.com, hair salons built around the world-class AVEDA™ product line.  Through its newly acquired entertainment division, Revel Entertainment, Inc., Nexia has plans to produce additional independent films and acquire the rights to several independent films. For more information, visit www.nexiaholdings.com.

Nexia strongly encourages the public to read the above information in conjunction with its reports filed at www.pinksheets.com.  Nexia will require a significant influx of capital in order to effectively execute upon its various operational plans.  The actual results that Nexia may achieve could differ materially from any forward-looking statements due to such risks and uncertainties.  Investors should not invest more than they can afford to lose in penny stocks.

SOURCE Nexia Holdings, Inc.