ARCA Press Release

Appliance Recycling Centers of America (ARCA) Opens Recycling Center in Springfield, Illinois,
to Serve Two New Utility Customers
October 14, 2008
Minneapolis, MN

Appliance Recycling Centers of America, Inc. (NASDAQ: ARCI) today announced that it has opened a processing and recycling facility in Springfield, Illinois, to provide appliance recycling services for residential electric customers of Ameren Illinois Utilities and City Water, Light and Power, the utility company operated by the city of Springfield. Each utility is sponsoring a three-year appliance recycling program as a component of its energy conservation portfolio.

ARCA’s Springfield facility, which is located in a 23,000-square-foot industrial building at 1615 West Jefferson, is designed with a capability to process more than 300 refrigerators, freezers and room air conditioners daily. At peak demand, the turnkey collection and recycling operation is expected to employ up to fifteen local employees to serve the central and southern Illinois markets.

Edward R. (Jack) Cameron, President and Chief Executive Officer, said: “We are extremely pleased to have this opportunity to open an appliance processing and recycling facility in Springfield to provide services for the programs being sponsored by Ameren Illinois Utilities and City Water, Light and Power. By capitalizing upon ARCA’s extensive experience in high-volume, environmentally-safe appliance recycling, these utilities will reduce residential electricity demand, lower the energy bills of their customers and provide significant environmental benefits.”

He continued: “In addition, we believe that locating our new facility in central Illinois makes good strategic sense for pursuing other recycling opportunities throughout the region. With the heightened public interest in conserving energy and combating global climate change, we believe that ARCA’s Springfield operation is positioned to capitalize on the growing need for environmentally sound appliance recycling services in the Midwest.”

About ARCA

ARCA is one of the nation’s largest recyclers of major household appliances for the energy conservation programs of electric utilities. The company currently provides appliance recycling and replacement services for more than forty electric utility companies and public power authorities in the United States and Canada.

This press release contains statements that are forward-looking statements as defined within the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the statements made, including the risks associated with general economic conditions, competition in the retail and recycling industries and regulatory risks. Other factors that could cause operating and financial results to differ are described in ARCA’s periodic reports filed with the Securities and Exchange Commission. Other risks may be detailed from time to time in reports to be filed with the SEC.

Visit our website at www.arcainc.com.

For Additional Information Contact:                            Edward R. (Jack) Cameron, CEO or
                                                                               Peter Hausback, EVP and CFO
                                                                               (952) 930-9000