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    ARCA            APPLIANCE RECYCLING CENTERS OF AMERICA, INC.
INCORPORATED        7400 EXCELSIOR BOULEVARD, MINNEAPOLIS MN 55426 (952)930-9000



FOR IMMEDIATE RELEASE                FOR MORE INFORMATION CONTACT:
                                     Edward R. (Jack) Cameron (952) 930-9000
                                     Richard G. Cinquina, Equity Market Partners
                                     (612)338-0810


     ARCA SAYS IT INCORRECTLY REPORTED THE SAME-STORE SALES INCREASE PERCENT
                        IN THIRD QUARTER EARNINGS RELEASE

         PREVIOUSLY-REPORTED RECORD THIRD QUARTER REVENUES AND EARNINGS
                 ARE UNCHANGED BY CORRECTION TO SAME-STORE SALES

NOVEMBER 8, 2001--MINNEAPOLIS, MN--Appliance Recycling Centers of America, Inc.
(OTC BB: ARCI) today said that it incorrectly calculated the same-store sales
increase percent of its ApplianceSmart outlets in the Company's third quarter
earnings release dated October 29, 2001. In its release, the Company said third
quarter ApplianceSmart same-store sales increased 22%, based on a comparison of
the four outlets open during the entire third quarters of 2001 and 2000.
However, five ApplianceSmart outlets were actually open during this period,
resulting in an 8% increase in third quarter same-store sales.

Edward R. (Jack) Cameron, president and chief executive officer, said: "We
sincerely regret this inadvertent error in our third quarter same-store sales
calculation. However, we want to emphasize that the record revenues of
$13,645,000 and record earnings of $0.50 per diluted share that we reported in
our third quarter earnings release are unchanged as a result of this correction.
Also unchanged is our positive outlook for this year's fourth quarter."

ABOUT ARCA
Through its ApplianceSmart (www.ApplianceSmart.com) operation, ARCA is one of
the nation's leading retailers of special-buy household appliances, primarily
those manufactured by Whirlpool Corporation. 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 April 2001, ApplianceSmart was operating three stores in the
Minneapolis/St. Paul market; two in the Dayton, Ohio, market; two in the
Columbus, Ohio, market; and one in Los Angeles. ARCA is also one of the largest
recyclers of major household appliances for the energy conservation programs of
electric utilities.

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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.
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Visit our web site at www.arcainc.com.