Appliance Recycling Centers of America (ARCA) Raises $3.1 Million Through Private Placement of Common Stock

Appliance Recycling Centers of America (ARCA) Raises $3.1 Million
Through Private Placement of Common Stock 


MINNEAPOLIS, Jan. 3  /PRNewswire-FirstCall/ -- Appliance Recycling Centers of
America, Inc. (OTC:ARCI) (BULLETIN BOARD: ARCI)  today announced that it has
successfully completed a private placement of 1,150,000 shares of its common
stock that generated net proceeds to ARCA of approximately $3.1 million.

Priced at $3.00 per share, the common stock issued through the private
placement brings ARCA's fully diluted shares outstanding to approximately
4,000,000.

The proceeds from the placement will be used to support the opening of
additional ApplianceSmart factory outlets and for general corporate purposes.
ARCA currently operates 12 retail stores, including three new ApplianceSmart
outlets opened in the fourth quarter of 2004.

Edward R. (Jack) Cameron, president and chief executive officer, commented:
"The capital raised through this private placement will greatly facilitate the
continued expansion of our ApplianceSmart operation.  We have made significant
progress over the past year at building and strengthening our retail business. 
Backed by the proceeds from this transaction, we are optimistic about the
prospects of our ApplianceSmart operation in 2005."

  The private placement was managed by Lantern Investments, Inc.

  About ARCA


Through its ApplianceSmart ( http://www.appliancesmart.com/ ) operation, ARCA
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 late December 2004,
ApplianceSmart was operating 12 factory outlets: five in the Minneapolis/St.
Paul market; three in the Columbus, Ohio, market; two in the Atlanta market;
one in San Antonio, Texas and one in Los Angeles.  ARCA is also one of the
nation's largest recyclers of major household appliances for the energy
conservation programs of electric utilities.

Statements about ARCA's outlook are forward-looking and involve risks and
uncertainties, including but not limited to: the strength of recycling
programs, the growth of appliance retail sales, the speed at which individual
retail stores reach profitability, and other factors discussed in the Company's
filings with the Securities and Exchange Commission.

Visit our web site at http://www.arcainc.com/ . 

DATASOURCE: Appliance Recycling Centers of America, Inc.



CONTACT: Edward R. (Jack) Cameron of Appliance Recycling Centers of

America, [phone]; or Richard G. Cinquina of Equity Market Partners,

[phone]



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

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