ARCA Press Release
Appliance Recycling Centers of America (ARCA) Announces Plans to Open the Sixth ApplianceSmart Factory Outlet in Atlanta Market and Twentieth Outlet Nationally
November 4, 2008
Minneapolis, MN
Appliance Recycling Centers of America, Inc. (NASDAQ: ARCI) today announced that it will open a 24,920 square-foot ApplianceSmart Factory Outlet in Conyers, Ga., in January 2009 to serve the southeastern suburbs of the Atlanta metropolitan area.
Located at 1380 Dogwood Drive, S.E., the outlet is part of the Conyers Plaza I Shopping Center. The new factory outlet will be ApplianceSmart’s sixth location in the Atlanta market and twentieth outlet nationally. The five other Atlanta outlets are located in Norcross, Smyrna, Lithia Springs and Stockbridge. ARCA previously announced that its fifth retail outlet will be located in Marietta.
Like all ApplianceSmart Factory Outlets, this new location will carry a wide range of special-buy major household appliance brands, including Whirlpool, Maytag, GE, Frigidaire, Jenn-Air, Amana, Bosch and KitchenAid. Special-buy appliances, which ApplianceSmart sells at a significant discount to retail, include new in-the-box closeouts, factory overruns, discontinued models and thousands of discounted out-of-box items.
Edward R. (Jack) Cameron, President and Chief Executive Officer, commented: “Atlanta is a great market for our concept. As we said in our recent announcement about the upcoming new retail outlet in Marietta, we believe there are various strategic locations in the Greater Atlanta market where we can continue to backfill. Our new factory outlet will be in a prime location with dense traffic patterns, wonderful visibility to commuters and shoppers, and a national competitor next door. By adding this outlet, not only will we increase our market penetration, we will also have greater economies of scale in our overall advertising spend and overhead expenses for the Atlanta market.”
About ARCA
ARCA (www.arcainc.com) is one of the nation’s largest recyclers of major household appliances for the energy conservation programs of electric utilities. Through its ApplianceSmart operation (www.appliancesmart.com), ARCA is also 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 manufacturers’ normal distribution channels. 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 November 2008, ApplianceSmart was operating seventeen factory outlets: six in the Minneapolis/St. Paul market; four in the Columbus, Ohio, market; four in the Atlanta market; and three in San Antonio, Texas. The Company previously announced that it will be opening two additional retail outlets in Marietta, Ga., and Rochester, Minn. The signing of the lease for Conyers, Ga., will bring the total count of ApplianceSmart stores to twenty.
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.
For Additional Information Contact: Edward R. (Jack) Cameron, CEO or
Peter Hausback, EVP and CFO
(952) 930-9000
