<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>3
<FILENAME>arca012800_ex99.txt
<DESCRIPTION>EXHIBIT 99 PRESS RELEASE
<TEXT>
                                                                      Exhibit 99


[LOGO]
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


              APPLIANCE RECYCLING CENTERS OF AMERICA, INC. REPORTS
                     STRONG SECOND QUARTER OPERATING RESULTS


              APPLIANCESMART SAME-STORE RETAIL SALES INCREASED 22%

JULY 25, 2001--MINNEAPOLIS, MN--Appliance Recycling Centers of America, Inc.
(OTC BB: ARCI) today reported revenues of $10,095,000, an increase of 73% from
$5,819,000 in the year-earlier period and also up from $7,764,000 in this year's
first quarter. Net income came to $393,000 or $0.13 per diluted share, up 15%
from $341,000 or $.12 per diluted share in the second quarter of 2000 and also
up from $316,000 or $.11 per diluted share in this year's first quarter.

Edward R. (Jack) Cameron, president and chief executive officer, said: "The
second quarter of 2001 was an excellent period for ARCA, reflecting the strength
of our ApplianceSmart retailing and California recycling operations. Consistent
with the forecast in our first quarter earnings release, net income growth was
restrained in the second quarter by start-up expenses related to the Spring
openings of new ApplianceSmart outlets. Also, we incurred additional expenses
associated with our award of a significant new contract for handling another
residential energy conservation program in California. We believe that our
expense structure will stabilize in the third quarter, permitting a larger
portion of our growing sales volume to drop to ARCA's bottom line. As a result,
we believe ARCA's prospects over the balance of 2001 are very bright."


<PAGE>


For the first six months of 2001, revenues totaled $17,859,000, an increase of
79% from $9,993,000 in the same period last year. First half earnings rose to
$709,000 or $0.24 per diluted share, from $632,000 or $0.22 per diluted share in
the first half of 2000.

ApplianceSmart retail sales increased 64% during the second quarter to
$4,940,000 compared to the same period in the prior year. Second quarter retail
revenues benefited from the sales contribution of three recently opened outlets
in Maplewood, MN (January 2001), Dayton, Ohio, (March 2001) and Columbus, Ohio
(May 2001). Second quarter same-store sales, a comparison of the four
ApplianceSmart outlets open during the entire second quarters of 2001 and 2000
increased 22%.

Recycling revenues increased 91% in this year's second quarter to $4,885,000
compared to the same period in the prior year. This growth was generated by two
residential energy conservation programs in California: the Summer Initiative
program and the recycling program sponsored by Southern California Edison
Company. Reflecting the strong acceptance of the Summer Initiative program by
California consumers, this program became fully subscribed in June when the
Company reached a total of 36,000 orders for recycling inefficient operating
refrigerators and freezers. This program goal was reached well ahead of
schedule, and the Company expects to complete all residential pick-ups and
recycling during the third quarter.

In an important recent development, ARCA entered into a contract (the Appliance
Early Retirement and Recycling Program) with the California Public Utilities
Commission (CPUC) in June to operate a refrigerator/freezer/room air conditioner
recycling program in San Diego and surrounding areas; a six-county region in
California's Central Valley, including the cities of Fresno and Stockton; and
the seven-county Bay Area, including the city of San Francisco. ARCA started
taking customer orders for the Appliance Early Retirement and Recycling Program
in San Diego in June. The program will be launched in the Central Valley and Bay
Area in September. The CPUC has budgeted $14 million to fund the recycling
program. The budget allocation includes $50 incentive payments to participants
for refrigerators and freezers and $25 incentive payments for room air
conditioners. Initial significant revenues from the new program are anticipated
in this year's second half. The program is a one-year contract through May 31,
2002.


<PAGE>


The Appliance Early Retirement and Recycling Program is expected to permanently
remove from service approximately 70,000 operating inefficient refrigerators,
freezers and room air conditioners. Administered by the CPUC and funded by
recently enacted California legislation, this new energy conservation program is
expected to reduce residential peak summer electricity demand by about 21
megawatts, the equivalent of a small power plant. The program will reduce
residential consumption of electricity by an estimated 105 million kilowatt
hours (kWh) per year, or enough to meet the total electricity needs of about
15,000 households a year for five years.

Based on current trends, the Company anticipates improved third quarter earnings
in comparison to this year's second quarter and the third quarter of 2000. The
Company does not plan to update this guidance prior to the release of its third
quarter operating results in October.

Through its ApplianceSmart (www.ApplianceSmart.com) operation, ARCA
(www.ARCAInc.com) 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.

                                     # # #

--------------------------------------------------------------------------------
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 www.ARCAInc.com.


<PAGE>


APPLIANCE RECYCLING CENTERS OF AMERICA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
2nd Quarter 2001 Results
(000'S OMITTED EXCEPT FOR SHARE AMOUNTS)
<TABLE>
<CAPTION>
                                                                   THREE MONTHS ENDED         SIX MONTHS ENDED
                                                                  ---------------------     ---------------------
                                                                   JUNE 30      JULY 1       JUNE 30      JULY 1
                                                                    2001         2000         2001         2000
                                                                  --------     --------     --------     --------
<S>                                                               <C>          <C>          <C>          <C>
REVENUES
     Retail                                                       $  4,940     $  3,020     $  9,668     $  5,227
     Recycling                                                       4,885        2,553        7,751        4,229
     ByProduct                                                         270          246          440          537
                                                                  --------     --------     --------     --------
          Total revenues                                          $ 10,095     $  5,819     $ 17,859     $  9,993

COST OF REVENUES                                                     6,164        3,280       10,774        5,450
                                                                  --------     --------     --------     --------
     Gross profit                                                 $  3,931     $  2,539     $  7,085     $  4,543

SELLING, GENERAL & ADMINISTRATIVE EXPENSES                           3,010        1,734        5,400        3,165
                                                                  --------     --------     --------     --------
    Operating income                                              $    921     $    805     $  1,685     $  1,378

OTHER INCOME (EXPENSE)
     Other income                                                       27            7           48            8
     Interest expense                                                 (270)        (225)        (510)        (412)
                                                                  --------     --------     --------     --------
     Income before provision for income taxes                     $    678     $    587     $  1,223     $    974

PROVISION FOR INCOME TAXES                                             285          246          514          342
                                                                  --------     --------     --------     --------
     NET INCOME                                                   $    393     $    341     $    709     $    632
                                                                  ========     ========     ========     ========
     BASIC INCOME PER COMMON SHARE                                    0.17         0.15         0.31         0.28
                                                                  ========     ========     ========     ========
     DILUTED INCOME PER COMMON SHARE                                  0.13         0.12         0.24         0.22
                                                                  ========     ========     ========     ========
     BASIC WEIGHTED AVERAGE NO. OF COMMON SHARES OUTSTANDING         2,287        2,287        2,287        2,287
                                                                  ========     ========     ========     ========
     DILUTED WEIGHTED AVERAGE NO. OF COMMON SHARES OUTSTANDING       2,957        2,920        2,910        2,866
                                                                  ========     ========     ========     ========
</TABLE>

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