APPLIANCE RECYCLING CENTERS OF AMERICA INC

38 years of experience. Building a Reputation. 23 years publicly traded. Maximizing Core Competencies. Energy efficiency sponsors nationwide. Unraveling the Potential. 18 innovative ENERGY STAR® partner retail stores. Lessening the Negative Impact of Appliance Disposal on the Environment. Over 4 million appliances recycled.

ARCA’s (NASDAQ:ARCI) 39 years of experience in the appliance industry includes nearly two decades of providing energy efficiency services. A pioneer in developing cutting-edge technologies to serve its clients, ARCA maximizes materials recycling while protecting natural resources from the environmentally damaging substances found in old appliances.

With more than 850 million major household appliances currently used in the United States, ARCA's three business components are uniquely positioned in the industry to work together to provide a full array of appliance-related services for our customers.

ARCA's three interrelated operations touch all aspects of the life of a major household appliance: our eighteen company-owned stores under the name ApplianceSmart, Inc.® are in the business of selling new appliances directly to consumers; ARCA's regional centers process appliances at end of life to remove environmentally damaging substances and produce material byproducts for recycling; and ARCA Advanced Processing, LLC employs advanced technology to refine traditional appliance recycling techniques to achieve optimal environmental benefits. Together these three business sectors create synergies that allow us to accomplish what no one component could do alone.

Deeply rooted in ARCA’s values is a culture based on a shared vision of customer service excellence, environmental integrity, technological innovation, community involvement and environmental stewardship. ARCA is a proud supporter of the PACER Center (Parent Advocacy Coalition for Educational Rights), a Minnesota based non-profit whose mission is to expand opportunities and enhance the quality of life of children and young adults with disabilities and their parents nationwide. ARCA also actively supports the AESP Foundation, which is the 501 (c)(3) philanthropic arm of the Association of Energy Service Professionals. Additional charitable contributions and volunteer events, on behalf of ARCA and its subsidiaries, are coordinated throughout each year. Additionally, ARCA and the company’s subsidiaries conduct business in a manner committed to the following:

Our Customers

• We will treat our customers with kindness and respect and uphold their standards and reflect their values as we serve them.
• We will aspire to lead our industry in providing innovative yet cost-effective systems and technology to enhance the services we provide.
• We will perform our role with integrity and protect the security of the information our customers entrust to us.
• We will remain committed to energy efficiency and only engage in business transactions which further our commitment.

Our Shareholders

• We will endeavor to deliver value for our shareholders by committing ourselves to the company’s long-term profitability and growth.
• We will seek to disclose information to our shareholders fully, accurately and in a timely manner.
• We will stand accountable to our shareholders for our business decisions.
• We will strive to adhere to the code of conduct and ethics standards set forth for our company.

Our Vendors

• We will work to foster an atmosphere of partnership and cooperation with our vendors to enable us to meet our customers’ needs efficiently and economically.
• We will seek to provide opportunities for disadvantaged business enterprises to compete in supplying us with products and services.
• We will audit our vendors’ facilities, procedures and documentation periodically to verify that their operations and conduct meet our high standards and ethics.

Our Employees

• We will strive to employ a diverse workforce, regarding each other with mutual respect and encouraging open dialogue.
• We will recognize and reward individual abilities and develop skills of each team member.
• We will create a safe and healthy work environment and enforce safe work habits throughout our operation.

Our Environment

• We will strive to make sound business decisions, acting as responsible stewards of the environment through all levels of our business.
• We will aim to maximize recycling and the use of recycled and recyclable products and minimize the creating and disposal of waste.
• We will devote our resources to staying attentive to industry advancements that will help us continue to protect the environment while meeting or exceeding all applicable government standards.

ARCA’s recycling and retail operations support one another to create synergies that are unparalleled in the industry. ApplianceSmart, Inc.'s buying power enables ARCA Recycling, Inc. to supply ENERGY STAR® appliances for utility-sponsored replacement programs at prices well below those of our primary competitors. Similarly, ARCA’s recycling capabilities have made it possible for ApplianceSmart to become a partner in the U.S. EPA’s Responsible Appliance Disposal (RAD) Program. ApplianceSmart is one of only four retailers in the nation-and the only independent retailer- to have committed to the stringent recycling standards established by the RAD Program. ARCA Advanced Processing, LLC (AAP) is strengthened by the technology and processes developed over the years in ARCA’s legacy utility recycling business, and ARCA’s traditional recycling operations benefit from the expertise AAP is gaining in high-tech, high-volume production.

Each component of our recycling and retail operations complements the others to create a dynamic company filling a crucial role in the appliance industry. The strengths of ARCA’s legacy recycling and retail businesses combined with evolving opportunities for AAP position us for a new era of innovation and growth.