ARCA Press Release

Appliance Recycling Centers of America (ARCA) Announces Filing of Appeal
March 10, 2009
Minneapolis, MN

Appliance Recycling Centers of America, Inc. (“ARCA”) (NASDAQ: ARCI) today announced that it has filed an appeal with the Ninth Circuit Court of Appeals in California seeking to have the court set aside the summary judgment handed down in January in its litigation with JACO Environmental, Inc and two individuals. ARCA believes that the decision by the trial judge was in error and contrary to the law relating to unfair competition and false advertising. ARCA believes it is entitled to its day in court against JACO for damages caused by its actions even though JACO has promised not to sue ARCA or its customers on the disputed patent that is at the heart of the litigation. ARCA expects that a decision on the appeal will be handed down in late 2009 or early 2010.

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