Appliance Recycling Centers of America Reports Litigation Summary Judgment

MINNEAPOLIS, Jan. 12 /PRNewswire-FirstCall/ -- Appliance Recycling Centers of
America, Inc. (Nasdaq: ARCI) today reported that on January 6 the U.S.
District Court for the Central District of California granted defendants JACO
Environmental, Inc. et al. a summary judgment in ARCA's lawsuit against the
parties for unfair competition and false advertising brought by the Company in
2004. The ruling was made by the same judge who had earlier denied summary
judgment to the defendants. No claims were asserted against ARCA in the
litigation by the defendants.

Edward R. (Jack) Cameron, ARCA's president and CEO stated: "We are
disappointed by the ruling and believe that it is contrary to the law and
facts in this case. We plan to pursue our rights to an appeal of the decision
and will oppose efforts by the defendants to collect any costs, which we
believe would be minimal, in connection with this matter." Cameron added that
the ruling would have no impact on the Company's method of recycling or its
ability to conduct existing or future business.

ARCA originally sued JACO and its employees Michael Dunham and Terry Jacobsen
in 2004. In addition to the claims ruled on in this motion, ARCA sought to
invalidate a patent that had been obtained improperly by Dunham and Jacobsen
as it was based almost entirely on a procedure for recycling that ARCA had
been using for many years. Dunham was formerly a consultant to ARCA.

Shortly after the case was brought, JACO and the individual defendants avoided
trial on the patent invalidity issue by promising that they would not sue or
threaten to sue ARCA or any of its customers on the patent they had obtained.
That agreement remains in place and has not been changed by the most recent
ruling of the Court.

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 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 January 2009, ApplianceSmart
was operating nineteen factory outlets: six in the Minneapolis/St. Paul
market; one in Rochester, Minn.; four in the Columbus, Ohio, market; five in
the Atlanta market; and three in San Antonio, Texas. A sixth retail outlet in
the Atlanta market is scheduled for January 2009, which will bring the total
number of ApplianceSmart stores to twenty.

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.

SOURCE Appliance Recycling Centers of America, Inc.

Edward R. (Jack) Cameron, CEO, or Peter Hausback, EVP and CFO, both of ARCA,
+1-952-930-9000