Appliance Recycling Centers of America Announces Extension of Credit Agreement With PNC Bank

Appliance Recycling Centers of America Announces Extension of Credit Agreement
                                With PNC Bank

PR Newswire

MINNEAPOLIS, April 1, 2013

MINNEAPOLIS, April 1, 2013 /PRNewswire/ -- Appliance Recycling Centers of
America, Inc. (NASDAQ: ARCI), a leading provider of appliance retailing and
recycling services, today announced that the Company has entered into a
two-year extension of its credit agreement with PNC Bank, National Association
(PNC), which includes a senior secured revolving line of credit and term loan.
The extension of the credit agreement, which was signed on March 14, 2013,
extends the agreement to January 24, 2016.

Under terms of the extension, ARCA may borrow an aggregate principal amount of
up to $15 million under the revolving line of credit, the same amount allowed
under the original three-year credit agreement signed on January 24, 2011. The
Company intends to use the revolving line of credit for ongoing working
capital needs and general corporate purposes.

The extension of the credit agreement waived the Company's prior events of
default related to the minimum fixed charge coverage ratio and the limitation
on loans to affiliates and also reset the financial covenants.

Edward R. (Jack) Cameron, president and chief executive officer, commented,
"We appreciate the confidence that PNC Bank has shown in ARCA by extending its
credit agreement for an additional two years. The $15 million revolving line
of credit, combined with the decisive steps we are taking in 2013 to improve
our operational execution and profitability, better positions us to capitalize
on future growth opportunities."

About ARCA
ARCA's three business components are uniquely positioned in the industry to
work together to provide a full array of appliance-related services. ARCA
Advanced Processing, LLC employs advanced technology to refine traditional
appliance recycling techniques to achieve optimal revenue-generating and
environmental benefits. ARCA is also the exclusive North American distributor
for UNTHA Recycling Technology (URT), one of the world's leading manufacturers
of technologically advanced refrigerator recycling systems and recycling
facilities for electrical household appliances and electronic scrap. ARCA's
regional centers process appliances at end of life to remove environmentally
damaging substances and produce material byproducts for recycling for
approximately 150 utilities in the U.S. and Canada. Nineteen company-owned
stores under the name ApplianceSmart, Inc.^® sell new appliances directly to
consumers and provide affordable ENERGY STAR^® options for energy efficiency
appliance replacement programs.

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.

Website: http://www.ARCAInc.com
Contact: Edward R. (Jack) Cameron, CEO, (952) 930-9000
 
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