Appliance Recycling Centers of America Announces U.S. District Court Dismisses Action Filed by JACO Environmental, Inc., SEG Basis GmbH, and SEG Umwelt-Service GmbH
May 21, 2007
Minneapolis, MN

Appliance Recycling Centers of America, Inc. (Nasdaq Capital Market: ARCI) announced today that United States District Court for the Central District of California, Judge John F. Walter, presiding, dismissed the action for lack of prosecution. This means that the case is over unless the Court sets aside the dismissal or a new action is filed after the appropriate pretrial investigation of asserted claims.

About ARCA

ARCA is one of the nation’s largest recyclers of major household appliances for the energy conservation programs of electric utilities. Through its ApplianceSmart (www.ApplianceSmart.com) operation, ARCA (www.arcainc.com) also is one of the nation’s leading retailers of special-buy household appliances, primarily those manufactured by Maytag, GE, Frigidaire and Whirlpool. These special-buy appliances, which include close-outs, factory overruns and scratch-and-dent units, typically are not integrated into the manufacturer’s normal distribution channel. ApplianceSmart sells these virtually new appliances at a discount to full retail, offers a 100% money-back guarantee and provides warranties on parts and labor.

As of May 2007, ApplianceSmart was operating 15 factory outlets: five in the Minneapolis/St. Paul market; three in the Columbus, Ohio, market; four in the Atlanta market; two in San Antonio, Texas; and one in Los Angeles.

Please visit our websites www.ApplianceSmart.com and www.ARCAinc.com