ARCA Press Release

Appliance Recycling Centers of America (ARCA) Announces Hiring of Jeffrey M. Brown
as Vice President of Recycling Systems
February 23, 2009
Minneapolis, MN

Appliance Recycling Centers of America, Inc. (NASDAQ: ARCI) today announced that the company has hired Jeffrey M. Brown for the newly created position of Vice President of Recycling Systems.

Brown will focus on developing sales and appliance recycling opportunities for ARCA, which holds exclusive North American distributorship of UNTHA Recycling Technology (URT), one of Europe’s leading manufacturers of technologically advanced refrigerator recycling systems and waste disposal recycling facilities for electrical household appliances and electronic scrap. The URT system helps safeguard the environment through the proper handling and recovery of waste byproducts, including polyurethane foam containing CFCs, a contributor to greenhouse gas and global climate change.

Additionally, the URT system treats entire refrigerators to separate metals, plastic and de-gassed polyurethane foam insulation into high-quality streams of fine and uniformly sized granules. This will enable ARCA to generate significantly greater revenues from the sales of byproducts in markets where a URT system has been installed at one of the company’s regional recycling facilities.

In his new position, Brown will work to develop ARCA’s appliance recycling business with manufacturers, retailers and other entities that have opted to become partners in the U.S. EPA’s Responsible Appliance Disposal (RAD) Program. Using best practices, RAD partners sponsor recycling programs that recover ozone-depleting substances; recycle metals, plastics and glass; and properly dispose of environmentally damaging materials found in unwanted appliances. The URT shredding system exceeds the stringent requirements for the rate of recovery of ozone-depleting substances and greenhouse gases set by RAD, the Montreal Protocol, Europe’s WEEE Forum, and the United Nations Environmental Program.

Brown brings to ARCA 27 years of sales, marketing and merchandising experience with Whirlpool Corporation, including management of retail field sales, national sales, corporate marketing, and corporate merchandising. Most recently, Brown worked closely with retail appliance dealers and appliance recyclers to develop a reverse logistics dealer network to manage discontinued, obsolete and damaged products for Whirlpool Corporation.

Edward R. (Jack) Cameron, President and CEO, commented: “Jeff Brown brings a high level of industry experience to ARCA’s newly created position of Vice President of Recycling Systems. With his depth of expertise established through 27 years in appliance manufacturing and retailing management, we believe that Jeff will have a tremendous impact on bringing ARCA’s services to the emerging market for large-scale appliance recycling systems and services in North America.”

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 20 years of providing services to more than 75 investor-owned and municipal electric utility companies, ARCA has set the standard for providing large- and small-scale appliance management services, including collection, processing and recycling. Since 1976, ARCA has recycled over 2,500,000 appliances through a variety of energy efficiency programs, as well as through contracts with manufacturers, retailers and local governments, in the United States and Canada.

Through its ApplianceSmart operation (www.appliancesmart.com), ARCA 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 new appliances at a discount to full retail, offers a 100% money-back guarantee and provides warranties on parts and labor. As of February 2009, ApplianceSmart was operating twenty factory outlets: six in the Minneapolis/St. Paul market; one in the Rochester, Minn.; four in the Columbus, Ohio, market; six in the Atlanta market; and three in San Antonio, Texas.

This press release contains statements that are forward-looking statements as defined within the Private Securities Litigation Reform Act of 1995, including statements regarding ARCA’s future success. 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