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<TYPE>EX-99
<SEQUENCE>3
<FILENAME>arca021259_ex99.txt
<DESCRIPTION>PRESS RELEASE
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                                                                      EXHIBIT 99


[LOGO] ARCA(R)             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, CEO
                         (952) 930-9000
                         RICHARD G. CINQUINA, EQUITY MARKET PARTNERS
                         (612) 338-0810

                  APPLIANCE RECYCLING CENTERS OF AMERICA, INC.

                      REPORTS RECORD 2001 OPERATING RESULTS

March 5, 2002--Minneapolis, MN--Appliance Recycling Centers of America, Inc.
(OTC BB: ARCI) today reported record revenues of $43,810,000 for the year ended
December 29, 2001, an increase of 104% from $21,479,000 in 2000. Net income came
to $2,646,000 or $0.86 per diluted share in 2001, up significantly from $926,000
or $0.32 per diluted share a year ago.

For the fourth quarter of 2001, revenues totaled $12,306,000, a substantial
increase from $5,298,000 in the year-earlier period. Fourth quarter earnings
came to $360,000 or $0.11 per diluted share, compared to $39,000 or $0.01 per
diluted share in the fourth quarter of 2000.

Edward R. (Jack) Cameron, president and chief executive officer, said: "ARCA's
record performance in 2001 reflects the strength of both our ApplianceSmart
retailing and energy conservation-related recycling operations in California. In
the fourth quarter, which is a seasonally weak period for appliance retail
sales, ApplianceSmart sales nearly doubled, reflecting, we believe, the steadily
growing consumer appeal of our special-buy retail concept. Retail sales also
benefited from the 80% growth of our ApplianceSmart network. During the past
year, we opened four new factory outlets and closed one smaller store. Several
of these new factory outlets, including those in Apple Valley, Minnesota (opened
in October), and Columbus, Ohio (Columbus Square opened in May), are performing
exceptionally well. In addition, our ApplianceSmart operation is benefiting from
the addition of the Maytag and Frigidaire line of appliances, which have
significantly expanded consumer choice at our factory outlets. The validity of
our reverse logistics systems has been steadily affirmed by the growing number
of appliance manufacturers served by ApplianceSmart. This makes us very
optimistic about the future of our ApplianceSmart operation."

<PAGE>


For the full year, same-store ApplianceSmart sales, a comparison of the four
factory outlets open during all of 2001 and 2000, increased 25%. Fourth quarter
same-store sales, a comparison of the five stores in the fourth quarters of 2001
and 2000, were up 9%. Total retail sales increased 90% in the fourth quarter and
by 78% for the full year.

The substantial growth in ARCA's recycling revenues during 2001 was generated by
three residential energy conservation programs in California, two of which were
established in direct response to the state's energy crisis: the state-funded
Summer Initiative program that was completed in the third quarter and the
state-funded Early Retirement and Recycling program that runs through May 2002.
The Company also continued to handle the recycling program sponsored by Southern
California Edison Company. Plans for a 2002 statewide recycling program that
will be administered by Edison are currently being reviewed by California
regulatory authorities. The Company also is aggressively pursuing new and
potentially significant appliance recycling programs in other states, reflecting
growing national interest in residential energy conservation programs.

Cameron added: "We believe that 2002 will be another good year for ARCA. Since
appliance retailing based on our special-buy concept represents ARCA's long-term
future, we plan to continue investing heavily in this business. Our goal is to
further accelerate ApplianceSmart's sales growth, which is key to the future
success of this operation. Toward this end, we expect to open three to four
additional factory outlets in 2002, including a 30,000-square-foot superstore
factory outlet that is scheduled to open in mid-March in a retail complex in
southeastern Columbus, Ohio. In all, we anticipate another year of improved
ApplianceSmart sales. At this early stage of the year, we currently anticipate
reduced recycling volumes in California, reflecting current state allocations
for fewer energy conservation-related recycling programs than in 2001. This does
not represent an unusual development, since the number and size of recycling
programs will always fluctuate due to prevailing energy and budgetary
considerations. However, as noted earlier, we are aggressively pursuing a number
of significant recycling opportunities in other parts of the nation that, if
received in a timely manner, could have a positive impact on ARCA's 2002
operating results."

Expenses related to the March opening of the new Columbus ApplianceSmart factory
outlet, combined with the normal seasonal slowdown in appliance sales and
outlook for reduced recycling revenues, are expected to generate results at or
near breakeven for the first quarter of 2002 ending March 30.

<PAGE>


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 March 2002, ApplianceSmart was operating nine factory outlets: four
in the Minneapolis/St. Paul market; two in the Columbus, Ohio, market; two in
the Dayton, 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
                      ---------------

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       APPLIANCE RECYCLING CENTERS OF AMERICA, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS
4th Quarter 2001 Results
(000'S OMITTED EXCEPT FOR SHARE AMOUNTS)

<TABLE>
<CAPTION>
                                                                       THREE MONTHS             TWELVE MONTHS
                                                                           ENDED                    ENDED
                                                                  ---------------------     ---------------------
                                                                   DEC. 29      DEC. 30      DEC. 29      DEC. 30
                                                                    2001         2000         2001         2000
                                                                  --------     --------     --------     --------
<S>                                                               <C>          <C>          <C>          <C>
REVENUES
     Retail                                                       $  6,585     $  3,472     $ 22,037     $ 12,379
     Recycling                                                       5,375        1,624       20,506        8,140
     Byproduct                                                         346          202        1,267          960
                                                                  --------     --------     --------     --------
          Total revenues                                          $ 12,306     $  5,298     $ 43,810     $ 21,479

COST OF REVENUES                                                     7,654        3,325       26,481       12,558
                                                                  --------     --------     --------     --------
     Gross profit                                                 $  4,652     $  1,973     $ 17,329     $  8,921

SELLING, GENERAL & ADMINISTRATIVE EXPENSES                           3,874        1,796       12,580        6,958
                                                                  --------     --------     --------     --------
    Operating income                                              $    778     $    177     $  4,749     $  1,963

OTHER INCOME (EXPENSE)
     Other income                                                       17           96           88          385
     Interest expense                                                 (284)        (207)      (1,074)        (841)
                                                                  --------     --------     --------     --------
     Income before provision for income taxes                     $    511     $     66     $  3,763     $  1,507

PROVISION FOR INCOME TAXES                                             151           27        1,117          581
                                                                  --------     --------     --------     --------
     NET INCOME                                                   $    360     $     39     $  2,646     $    926
                                                                  ========     ========     ========     ========

     BASIC INCOME PER COMMON SHARE                                    0.16         0.02         1.15         0.40
                                                                  ========     ========     ========     ========

     DILUTED INCOME PER COMMON SHARE                                  0.11         0.01         0.86         0.32
                                                                  ========     ========     ========     ========

     BASIC WEIGHTED AVERAGE NO. OF COMMON SHARES OUTSTANDING         2,297        2,287        2,291        2,287
                                                                  ========     ========     ========     ========

     DILUTED WEIGHTED AVERAGE NO. OF COMMON SHARES OUTSTANDING       3,307        2,889        3,068        2,889
                                                                  ========     ========     ========     ========
</TABLE>

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