MINNEAPOLIS, Jan. 12 /PRNewswire-FirstCall/ -- Appliance Recycling Centers of America, Inc. (Nasdaq: ARCI) today reported that on January 6 the U.S. District Court for the Central District of California granted defendants JACO Environmental, Inc. et al. a summary judgment in ARCA's lawsuit against the parties for unfair competition and false advertising brought by the Company in 2004. The ruling was made by the same judge who had earlier denied summary judgment to the defendants. No claims were asserted against ARCA in the litigation by the defendants.

Edward R. (Jack) Cameron, ARCA's president and CEO stated: "We are disappointed by the ruling and believe that it is contrary to the law and facts in this case. We plan to pursue our rights to an appeal of the decision and will oppose efforts by the defendants to collect any costs, which we believe would be minimal, in connection with this matter." Cameron added that the ruling would have no impact on the Company's method of recycling or its ability to conduct existing or future business.

ARCA originally sued JACO and its employees Michael Dunham and Terry Jacobsen in 2004. In addition to the claims ruled on in this motion, ARCA sought to invalidate a patent that had been obtained improperly by Dunham and Jacobsen as it was based almost entirely on a procedure for recycling that ARCA had been using for many years. Dunham was formerly a consultant to ARCA.

Shortly after the case was brought, JACO and the individual defendants avoided trial on the patent invalidity issue by promising that they would not sue or threaten to sue ARCA or any of its customers on the patent they had obtained. That agreement remains in place and has not been changed by the most recent ruling of the Court.

About ARCA

ARCA (www.arcainc.com) is one of the nation's largest recyclers of major household appliances for the energy conservation programs of electric utilities. Through its ApplianceSmart operation (www.appliancesmart.com), ARCA also is one of the nation's leading retailers of special-buy household appliances, primarily those manufactured by Maytag, GE, Frigidaire and Whirlpool. 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 new appliances at a discount to full retail, offers a 100% money-back guarantee and provides warranties on parts and labor. As of January 2009, ApplianceSmart was operating nineteen factory outlets: six in the Minneapolis/St. Paul market; one in Rochester, Minn.; four in the Columbus, Ohio, market; five in the Atlanta market; and three in San Antonio, Texas. A sixth retail outlet in the Atlanta market is scheduled for January 2009, which will bring the total number of ApplianceSmart stores to twenty.

This press release contains statements that are forward-looking statements as defined within the Private Securities Litigation Reform Act of 1995, including statements regarding ARCA's future success. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the statements made, including the risks associated with general economic conditions, competition in the retail and recycling industries and regulatory risks. Other factors that could cause operating and financial results to differ are described in ARCA's periodic reports filed with the Securities and Exchange Commission. Other risks may be detailed from time to time in reports to be filed with the SEC.

SOURCE Appliance Recycling Centers of America, Inc.