Appliance Recycling Centers Reports 3Q Financials

Appliance Recycling Centers of America Inc., headquartered in Minneapolis, has reported revenues of $14,543,000 in the third quarter of 2004 ended October 2, an increase of 23 percent from $11,865,000 in the corresponding period for 2003.  ARCA reported net income of
$260,000, or $0.08 per diluted share, an improvement from earnings
of $41,000, or $0.01 per diluted share, in the third quarter of 2003.

For the first nine months of 2004, revenues totaled $39,135,000, up 20 percent from $32,613,000 in the comparable period of 2003.  ARCA's net loss for this period came to $514,000 or $0.21 per share, down significantly from the net loss of $1,251,000 or $0.53 per share in the first nine months of 2003.

Same-store sales of the eight ApplianceSmart factory outlets that were
open during the complete third quarters of 2004 and 2003 rose 9 percent.  Total retail sales of all nine ApplianceSmart outlets rose 18 percent to $10,838,000 on a quarter-over-quarter basis, which included a strong contribution from the new factory outlet serving the Atlanta market.

ARCA recently announced that three new ApplianceSmart outlet stores will
be opened during the fourth quarter: in St. Paul, Minn.(the fifth in the
Minneapolis/St. Paul market), in Atlanta (a combination factory outlet and

Recycling revenues came to $3,199,000 in the third quarter, an increase of
29 percent from the year-earlier period.  This strong growth reflected the positive impact of consistent and effective advertising in support of California's
statewide Residential Appliance Recycling Program.  Third quarter recycling