Appliance Recycling Centers of America Announces Peter P. Hausback to Executive Vice President and CFO
February 27, 2008
Minneapolis, MN

Appliance Recycling Centers of America, Inc. (Nasdaq: ARCI) today announced that it has hired Peter P. Hausback, MBA, CPA, to the newly created position of Executive Vice President and Chief Financial Officer. Hausback will also serve on the company’s Board of Directors.

As head of the Accounting, Human Resources, Information Systems, and Recycling Center Departments, Hausback holds responsibility for directing all aspects of ARCA’s utilities management, including the direct reorganization and operations of the company’s satellite programs. He also works in conjunction with President and CEO Jack Cameron to develop new business opportunities, investors and contacts.

Hausback brings 25 years of financial management and operations experience with various Fortune 500 and middle market public companies to ARCA. Hausback’s executive industry experience includes an extensive array of retail companies with global operations, including Granite City Food & Brewery, where as CFO he led the finance, accounting and IT departments, as well as all corporate office administration, while managing the external SEC reporting process and the SOX 404 implementation process. He specializes in capital formation, financing, strategic planning, investor relations, SEC reporting, and merger and acquisitions, along with corporate governance including Sarbanes-Oxley 404. As CFO and VP of Red Lion Hotels, Inc., he managed the overall budgeting process, led a major review and implementation of restructuring and divestment strategy, and implemented the company’s first cash forecasting system. Hausback worked as a senior internal auditor for Security Pacific Corp. in LA while putting himself through a BS in Business Administration from California State University in Long Beach, then became a senior auditor at Price Waterhouse LLP in San Francisco. His Executive MBA from Saint Mary’s College of California, in Moraga, CA, came later, while he was CFO and VP Finance of Il Fornaio (America) Corp, which he helped take public.

“Now that we are reaching various new levels as a middle market company, Peter Hausback adds a strong level of experience to our existing team of professionals to support the continued long-term growth of ARCA. His new position with us reflects the outstanding skills and depth of expertise he has established through 25 years of experience in executive financial management and operations. His knowledge will contribute immediately to ARCA’s success,” commented Edward (Jack) Cameron, CEO and President.

About ARCA

Through its ApplianceSmart operation, ARCA is one of the nation’s leading retailers of special-buy household appliances, including such leading brands as Maytag, GE, Whirlpool, Frigidaire, Jenn-Air, Amana and Magic Chef. 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 significant discount to full retail, offers a 100% money-back guarantee and provides warranties on parts and labor.

As of February 2008, ApplianceSmart is operating 15 factory outlets: five in the Minneapolis/St. Paul market; three in the Columbus, Ohio, market; two in the Atlanta market; two in San Antonio, Texas; and one in Los Angeles. ARCA is also one of the largest recyclers of major household appliances for the energy conservation programs of electric utilities.

Statements about ARCA’s outlook are forward-looking and involve risks and uncertainties, including but not limited to: the strength of recycling programs, the growth of appliance retail sales, the speed at which individual retail stores reach profitability, and other factors discussed in the Company’s filings with the Securities and Exchange Commission.