Acacia Diversified Holdings, Inc. (OTC QB: ACCA) Announces Major Asset Acquisition

Ocala, Florida, July 10, 2013 (GLOBE NEWSWIRE) -- Acacia Diversified Holdings, Inc. (OTC: ACCA) (the "Company")today announced that it has acquired the assets of Red PhoenixExtracts, Inc., a privately held Fort Pierce, Florida manufacturerof healthy citrus products derived from citrus peel material. RedPhoenix recently discontinued its manufacturing operations at theend of June, commensurate with the close of the summer citrusseason in Florida. The Company consummated its acquisition ofsubstantially all of the assets of Red Phoenix via a stock purchasearrangement on July 10, 2013.

As a part of that acquisition Red Phoenix also agreed totransfer its proprietary manufacturing technologies as well as therecognized "Red Phoenix" brand to Acacia. "This acquisitionrepresents the beginning of a new business era for AcaciaDiversified," stated Steve Sample, Chairman of the Board ofDirectors and Chief Executive Officer for the Company. Hecontinued, "We believe that the acquisition of the Red Phoenixbrand and its proprietary technologies represents an excitingopportunity for our shareholders in a growing marketplace."

The acquired assets will be placed into Acacia's new,wholly-owned, manufacturing subsidiary and will be used to conductbusiness under the "Red Phoenix" brand. In connection with theacquisition, two members of the senior management of Red Phoenix,including its former president, William J. Howe, and its OperationsManager, Clarence Shivers, will join the Acacia subsidiary inbringing their expertise to the venture. "We are thrilled to haveBill and Clarence as key members of the new Acacia Diversifiedteam," said Sample. "I fully expect their expertise to beinvaluable to us as we move into this dynamic new marketplace."

The details of the Red Phoenix asset acquisition is more fullydetailed in the Company's Current Report on Form 8-K filed with theUnited States Securities and Exchange Commission on July 10,2013.  This and other reports of the Company may be viewed onthe SEC website at www.sec.gov ordirectly on the Company's website at www.acacia.bz/sec/sec.htm.

About Acacia Diversified Holdings, Inc.

Acacia Diversified Holdings, Inc. ("Acacia" or the "Company"), aTexas corporation, was originally formed as Gibbs Construction,Inc. in 1984, and had its IPO in 1996.  Following thedifficulties of the financial crisis in 2000 and loss of itslargest clients, Gibbs was forced to reorganize, and emerged undernew control in 2006. Changing its name to Acacia Automotive, Inc.in 2007, it acquired and operated automotive auctions until 2012,when it discontinued its remaining auto auction operations,simultaneously changing its name to Acacia Diversified holdings,Inc. and reposturing itself as a diversified holding company. The acquisition of the assets of Red Phoenix Extracts, Inc. isAcacia's first effort to enter the citrus products industry in itsplan to become active in that venue.

About Acacia's New Red Phoenix Subsidiary

Acacia intends to operate its new wholly owned citrus byproductsmanufacturing subsidiary as Red Phoenix Extracts, Inc. from twoadjacent leased facilities located at 3495 S. U.S. Hwy.1, Bldgs.12-E and 12-W, Fort Pierce, Florida 34982.  The newmanufacturing subsidiary is anticipated to commence full operationsat the start of the Florida citrus season in the fall of2013.  The Company's new subsidiary currently has verbal andwritten commitments for orders of its products comprising a majorportion of its production capacity for the coming season, and willseek to identify other opportunities and prospects for furthergrowth and expansion in the industry.

Forward-Looking Statements

Statements in this press release may be "forward-lookingstatements" within the meaning of the Private Securities LitigationReform Act of 1995. Words such as "anticipate", "believe","estimate", "expect", "intend" and similar expressions, as theyrelate to the company or its management, identify forward-lookingstatements. These statements are based on current expectations,estimates and projections about the company's business based, inpart, on assumptions made by management. These statements are notguarantees of future performance and involve risks, uncertaintiesand assumptions that are difficult to predict. Therefore, actualoutcomes and results may, and probably will, differ materially fromwhat is expressed or forecasted in such forward-looking statementsdue to numerous factors, including those described above and thoserisks discussed from time to time in Acacia Diversified Holdings,Inc.'s filings with the Securities and Exchange Commission. Inaddition, such statements could be affected by risks anduncertainties related to Acacia's (i) product demand, market andcustomer acceptance of its citrus byproducts and other goods, (ii)ability to obtain financing to expand its operations, (iii) abilityto attract qualified sales representatives, (iv) competition,pricing and development difficulties, (v) ability to successfullyintegrate the citrus byproducts manufacturing subsidiary into itsoperations, and (vi)  general industry and market conditionsand growth rates and general economic conditions. Anyforward-looking statements speak only as of the date on which theyare made, and the Company does not undertake any obligation toupdate any forward-looking statement to reflect events orcircumstances after the date of this release. Information onAcacia's website does not constitute a part of this release.

Contact Information:

Mr. Steven Sample, CEO

Investor.relations@acacia.bz

(352) 427-6848