Appliance Recycling Centers of America Awarded Contract by CPS Energy to Provide Refrigerator and Freezer Recycling Services in San Antonio, Texas

SAN ANTONIO, June 1 /PRNewswire-FirstCall/ -- Appliance Recycling Centers of America, Inc. (Nasdaq: ARCI) today announced that it has been awarded a three-year contract by the City of San Antonio, Texas, acting through its City Public Service Board (CPS Energy), to provide refrigerator and freezer recycling services for CPS Energy's electric customers. The program will begin June 1, 2010 and run through May 2013.

Through this program, participating utility customers who turn in operating but energy inefficient refrigerators and freezers will be eligible for a $35.00 credit to their CPS Energy account. Additionally, customers who purchase new ENERGY STAR®-qualified refrigerators and freezers and recycle the replaced unit will receive a $100.00 credit to their CPS Energy account. The credits are an incentive to encourage the utility's electric customers to replace retired units with more efficient ENERGY STAR®-qualified models; permanently retire old, energy inefficient units from service; and recycle the old appliances in an environmentally sound manner. CPS Energy anticipates that the removal of energy-wasting refrigerators and freezers throughout their service territory will deliver long-term electrical energy savings and peak demand reduction.

Edward R. (Jack) Cameron, ARCA's President and Chief Executive Officer, said: "CPS Energy's decision to offer appliance recycling program services to its customers is a good indication of the benefits utilities realize when energy inefficient appliances are removed from operation. San Antonio residents who participate in the program will not only reduce their home's energy usage, but will also contribute to environmental initiatives to protect land, air and water resources."

For further program information or to participate, please visit www.CPSEnergy.com or call 1-866-472-9376.

About ARCA

ARCA (www.ARCAInc.com), one of the nation's largest recyclers of major household appliances for the energy conservation programs of electric utilities, currently provides services for 150 utility programs in the U.S. and Canada. Toxic chemicals and environmentally harmful materials such as ozone-depleting refrigerants, PCBs, mercury and oil are carefully recovered in the decommissioning process for destruction or disposal, preventing them from contaminating soil, air and water resources. 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 General Electric, Electrolux and Whirlpool. These special-buy appliances, which include close-outs, factory overruns and discontinued models, 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 May 2010, ApplianceSmart was operating 19 factory outlets: six in the Minneapolis/St. Paul market; one in the Rochester, Minn., market; four in the Columbus, Ohio, market; six in the Atlanta market; and two in San Antonio, Texas.

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