ARCA Press Release

Appliance Recycling Centers of America (ARCA) Awarded Contract by Xcel Energy
May 26, 2009
Minneapolis, MN

Appliance Recycling Centers of America, Inc. (NASDAQ: ARCI) today announced that it has been awarded a contract by Xcel Energy to provide refrigerator recycling services for the utility’s residential electric customers in Colorado and New Mexico. The program is scheduled to begin on June 1, 2009 and run through December 31, 2010.

Through this program, participating utility customers who turn in operating but energy inefficient refrigerators will be eligible for a $35.00 incentive check. The incentive, which will be paid by Xcel Energy, is designed to offset the costs normally incurred when disposing of an old refrigerator, often in favor of a new and more energy efficient model. ARCA currently provides services for nineteen other electric utility programs in the U.S. and Canada.

Edward R. (Jack) Cameron, President and Chief Executive Officer, said: “We are extremely pleased to have the opportunity to provide turnkey appliance recycling services for this energy efficiency program sponsored by Xcel Energy. By capitalizing on ARCA’s extensive experience in high-volume, environmentally sound appliance recycling, Xcel Energy will reduce residential electricity demand, help lower their customers’ energy bills and provide public environmental benefits.”

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. The company currently provides appliance recycling and replacement services for nineteen energy efficiency programs in the U.S. 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.

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