KELLYS IDENTIFIES PRIME REVERSE MERGER CANDIDATE

Kellys Coffee Group, Inc. today announced that it has identified a prime reverse merger candidate. The target companys valuation exceeds the net worth qualifications required by NASDAQ for quotation as a Small Cap issuer. Kellys expects that a binding letter agreement or definitive share exchange agreement will be signed no later than February 15, 2002, and a Form 8K filed within 15 days of closing the merger.

Salt Lake City, Utah February 6, 2002 - Kellys Coffee Group, Inc.(OTCBB: KLYS) today announced that it has identified a prime reverse merger candidate. The target companys valuation exceeds the net worth qualifications required by NASDAQ for quotation as a Small Cap issuer. Kellys expects that a binding letter agreement or definitive share exchange agreement will be signed no later than February 15, 2002, and a Form 8K filed within 15 days of closing the merger.

Kellys intends to change its name to Nexia Holdings, Inc. to better reflect the broad based business opportunities presented by the target company. Kellys has already filed a Preliminary Schedule 14C with the Securities and Exchange Commission setting forth the disclosures required for a name change.

The reverse merger is contingent upon both the target candidates auditors rendering an instructional memorandum to provide an analysis as to the ability of the target candidate to preserve certain tax loss carry forwards, and the completion of due diligence.

Mr. Richard Surber, Kellys President and CEO, believes that the completion of this 'reverse merger will be the first in a series of transactions designed to enhance shareholder value."

Kellys is currently a shell company with no operations and no significant assets. Investors are strongly encouraged not to invest any monies which they cannot afford to lose. Additionally, Kellys strongly encourages the public to read the above information in conjunction with its Form 10KSB for December 31, 2000, and 10QSB for September 31, 2001. In addition, investor should be cognizant of the fact that no substantive disclosure on the target will be made until the Form 8K is filed. Kellys prior disclosures can be viewed at www.sec.gov.

A number of statements contained in this press release are forward-looking statements which are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, notwithstanding the fact that such Act may not be available to Kellys . These forward-looking statements involve a number of risks and uncertainties, including the timely development, and market acceptance of products and technologies, competitive market conditions, successful integration of acquisitions and the ability to secure sufficient financing to complete the transaction. The actual results that Kellys may achieve could differ materially from any forward-looking statements due to such risks and uncertainties.