ARCA Press Release

Appliance Recycling Centers of America (ARCA) Enters Joint Venture
to Provide Refrigerator Recycling Services in Mexico
June 5, 2009
Minneapolis, MN

Appliance Recycling Centers of America, Inc. (NASDAQ: ARCI) today announced that through a joint venture with a Mexican corporation, Diagnostico y Administracion de Logistica Inversa SA de CV (DALI), it will provide refrigerator recycling services for more than 160 appliance retailers and manufacturers participating in a refrigerator replacement program sponsored by the Mexican government.

Through this energy efficiency program, the government offers residents of Mexico low-interest financing and a cash rebate of up to 50 percent of the cost of a new, energy efficient refrigerator when an old, operating refrigerator is turned in for recycling. Major new-appliance retailers, including Wal-Mart and Sears, deliver the new appliance to the customer and collect the old unit for recycling.

DALI operates more than 35 facilities throughout Mexico to process the old refrigerators to remove and properly manage all environmentally harmful substances, including CFC refrigerants and oil, and recycle metals, plastics and glass. The company expects to open additional recycling centers to meet the demands of the program, which has been funded to permanently remove approximately 400,000 working refrigerators from service.

Edward R. (Jack) Cameron, President and Chief Executive Officer, said: “We are extremely pleased to have entered into this joint venture with DALI to provide appliance recycling services for one of Mexico’s largest energy efficiency programs. The expansion of our recycling operations into Mexico provides us with the opportunity to permanently remove these appliances from the power grid and lessen the negative impact of appliance disposal on the environment. We are proud to work with DALI to prevent the release of ozone-depleting and high global-warming-potential refrigerants while properly handling the other environmentally damaging materials found in old refrigerators.”

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 is also the exclusive North American distributor for UNTHA Recycling Technology (URT), one of the world’s leading manufacturers of technologically advanced refrigerator recycling systems and recycling facilities for electrical household appliances and electronic scrap.

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 June 2009, ApplianceSmart was operating 20 factory outlets: six in the Minneapolis/St. Paul market; one in Rochester, Minn., market, four in the Columbus, Ohio, market; six in the Atlanta market; and three in San Antonio, Texas. As previously announced, the Company will open an ApplianceSmart Factory Outlet in Cumming, Ga., in August 2009.

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