Appliance Recycling Centers of America Increases Credit Line to Finance Inventories of Growing ApplianceSmart Retail Operation
February 21, 2008
Minneapolis, MN

Appliance Recycling Centers of America, Inc. (Nasdaq: ARCI) today announced that it has increased its line of credit from $14 million to $18 million. The new line of credit will be used primarily to finance inventories of ARCA’s growing ApplianceSmart retail operation and to support the recycling operation. Edward R. (Jack) Cameron, president and chief executive officer, commented: “We have made substantial process over the past year in strengthening our ApplianceSmart and energy efficiency program operations. This increased credit line will facilitate the continued expansion of our business as 2008 progresses.”

About ARCA

Through its ApplianceSmart (www.ApplianceSmart.com) operation, ARCA (www.arcainc.com) 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 December 2007, ApplianceSmart was operating 15 factory outlets: five in the Minneapolis/St. Paul market; four in the Columbus, Ohio, market; four in the Atlanta market; and two in San Antonio, Texas.

ARCA is also one of the nation’s largest recyclers of major household appliances for the energy conservation programs of electric utilities.