MINNEAPOLIS, July 28 /EMWNews/ -- Appliance Recycling

Centers of America, Inc. (Nasdaq: ARCI) today announced it has entered into

an agreement to become the exclusive North American distributor for UNTHA

Recycling Technology (URT), one of Europe's leading manufacturers of

technologically advanced refrigerator recycling systems and waste disposal

recycling facilities for electrical household appliances and electronic

scrap.



    In addition to marketing these systems to the recycling industry, ARCA

intends to install a URT system at one of its higher volume appliance

recycling facilities, where the system will treat entire refrigerators and

separate the various metals, plastic and de-gassed polyurethane foam

insulation into streams of fine and uniformly sized granules. As a result,

URT's systems help safeguard the environment through the proper handling

and recovery of waste byproducts, including polyurethane foam containing

CFCs, a contributor to greenhouse gas and global climate change. In

addition, by yielding a finer grade of steel, copper, aluminum and plastic,

the URT system will enable ARCA to generate significantly greater revenues

from the sales of these byproducts to scrap dealers and mills.



    Edward R. (Jack) Cameron, ARCA's President and Chief Executive Officer,

commented: "We are extremely pleased to be the exclusive North American

distributor for URT. In addition to maximizing the revenue potential of

recycling byproducts, URT refrigerator recycling systems play a key role in

solving a growing number of environmental issues, including CFC recovery,

hazardous waste disposal, effective resource recycling and reclamation, and

combating the problem of diminishing landfill capacity. URT and ARCA share

a mutual commitment to environmentally sound recycling and materials

reclamation, and we are proud to have established a strong relationship

with this industry-leading firm."



    Peter Hessler, URT's Managing Director, said: "We are gratified to be

working with ARCA, an acknowledged leader in environmentally sound

appliance recycling. URT historically has focused on Europe, but through

our relationship with ARCA, we now are intent upon penetrating the North

American recycling market with our technologically advanced recycling

systems and plants."



    URT is a member of the RAL Quality Assurance Association for the

Demanufacture of Refrigeration Equipment Containing CFC's, a European

organization created to guarantee quality in the refrigerator recycling

process and ensure compliance with existing environmental standards. In

addition, URT and ARCA are members of the Quality Association for the

Recycling of Refrigerator and Electrical/Electronic Equipment (QVKE), a

European organization of 35 recycling companies that works in partnership

with the UBA (Germany's EPA), public waste management agencies,

manufacturers and retailers.

    About ARCA



    ARCA (http://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

(http://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 virtually new appliances at a discount

to full retail, offers a 100% money-back guarantee and provides warranties

on parts and labor. As of July 2008, ApplianceSmart was operating 16

factory outlets: six in the Minneapolis/St. Paul market; four in the

Columbus, Ohio, market; four in the Atlanta market; and two in San Antonio,

Texas.



    About URT






    For more information about URT, visit

http://www.untha-recyclingtechnik.com.



    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.