October 16, 2008

Appliance Recycling Centers of America (ARCA) Awarded Contracts By Three Texas Utilities

MINNEAPOLIS, Oct. 16 /PRNewswire-FirstCall/ -- Appliance Recycling Centers of America, Inc. today announced that it has been awarded contracts by AEP Texas Central Company, AEP Texas North Company and Southwestern Electric Power Company to provide appliance recycling services for residential electric customers in the utilities' service territories. The programs are scheduled to run through December 31, 2009.

Through these programs, participating utility customers who turn in old, operating but energy inefficient refrigerators and freezers will be eligible for a $35.00 incentive check. ARCA currently provides services for two other electric utility programs in Texas.

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 the energy efficiency programs sponsored by AEP Texas Central Company, AEP Texas North Company and Southwestern Electric Power Company. By capitalizing on ARCA's extensive experience in high-volume, environmentally sound appliance recycling, these utilities will reduce residential electricity demand, help lower their customers' energy bills and provide public environmental benefits."

About ARCA

ARCA 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 more than forty electric utility companies and public power authorities in the United States 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.

Visit our website at http://www.arcainc.com/.

Appliance Recycling Centers of America, Inc.

CONTACT: Edward R. (Jack) Cameron, CEO, or Peter Hausback, EVP and CFO,+1-952-930-9000, both of Appliance Recycling Centers of America, Inc.

Web site: http://www.arcainc.com/