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
distribution center, the second facility in this market) and in San Antonio,
(a new market for ApplianceSmart).  This expansion will increase the
number of ApplianceSmart outlets nationally to 12.

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
revenues also included a contribution from a new residential energy
conservation program in Connecticut, jointly sponsored by The United
Illuminating Company and The Connecticut Light & Power Company.  In addition, initial revenues were recognized from a one-year contract with San Diego Gas & Electric.