8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

Date of Report:  August 3, 2004

(Date of earliest event reported)

Appliance Recycling Centers of America, Inc.

(Exact name of registrant as specified in its charter)

Minnesota	000-19621	41-1454591
(State or other jurisdiction of incorporation or organization)	Commission File No.	(I.R.S. Employer Identification No.)
7400 Excelsior Boulevard Minneapolis, MN
		55426-4517
(Address of principal executive offices)

(952) 930-9000

(Registrant’s telephone number, including area code)

TABLE OF CONTENTS

EX099.1 PRESS RELEASE

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ITEM 7:  FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS

(c)Exhibits

Exhibit Number	Description
99.1	Press Release dated August 3, 2004

ITEM 12:  RESULTS OF OPERATIONS AND FINANCIAL CONDITION

The following information is furnished pursuant to Item 12, “Disclosure of Results of Operations and Financial Condition.”

On August 3, 2004, Appliance Recycling Centers of America, Inc. issued a press release announcing that it will open a 36,000-square-foot ApplianceSmart factory outlet superstore in San Antonio, Texas, in October.  A copy of the press release is attached as an exhibit to this filing on Form 8-K.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

APPLIANCE RECYCLING CENTERS OF AMERICA, INC.

Date:  August 3, 2004	/s/ Linda Koenig
	Linda Koenig, Vice President of Finance

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Exhibit Index

Exhibit Number	Description
99.1	Press Release dated August 3, 2004

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EX-99.1

Exhibit 99.1

Appliance Recycling Centers of America, Inc.
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

ARCA Announces Plans to Open ApplianceSmart

Factory Outlet in San Antonio in October

August 3, 2004—Minneapolis, MN—Appliance Recycling Centers of America, Inc. (OTC BB: ARCI) today announced that it will open a 36,000-square-foot ApplianceSmart factory outlet superstore in San Antonio, Texas, in October.

Located off I-35/I-410 near the Windsor Park Mall in the northeastern metro area, the new factory outlet will be ARCA’s first retail location in the San Antonio area and tenth nationally.  The San Antonio outlet will be one of the largest appliance showrooms in Texas.

Like all ApplianceSmart factory outlet superstores, the new San Antonio location will carry a wide range of special-buy major household appliance brands, including Maytag, GE, Frigidaire, Whirlpool, KitchenAid, Jenn-Air, Amana, Magic Chef and Roper.  Special-buy appliances, which ApplianceSmart sells at a significant discount to retail, include new in-the-box closeouts, factory overruns, discontinued models and thousands of discounted out-of-box items.

Edward R. (Jack) Cameron, president and chief executive officer, commented: “Due to the soundness of our special-buy retail concept, we believe ApplianceSmart will become a strong presence in the San Antonio marketplace in a relatively short period of time.  Our new San Antonio factory outlet, which will offer customers an unprecedented selection of high-quality, discount-priced appliances, will benefit from its excellent, high-traffic location.  Marking our initial entry into Texas, this expansion will also position us to open additional ApplianceSmart factory outlets in that area of the country.”

The company previously announced that second quarter same-store sales of the eight ApplianceSmart factory outlets open during the complete second quarters of 2003 and 2002 rose 13%.  Total retail sales increased 26% for the quarter, paced by the strong performance of the new outlet serving the Atlanta market.  As of July 2004, ApplianceSmart was operating nine outlets: four in the Minneapolis/St. Paul market; three in the Columbus, Ohio, market; one in the Atlanta market and one in Los Angeles.

About ARCA

Through its ApplianceSmart operation, ARCA is one of the nation’s leading retailers of special-buy household appliances.  These special-buy appliances, which typically are not integrated into the manufacturer’s normal distribution channel, are sold by ApplianceSmart at a discount to full retail.  ApplianceSmart offers a 100% money-back guarantee as well as warranties on parts and labor.  ARCA is also one of the nation’s largest recyclers of major household appliances for the energy conservation programs of electric utilities.

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Statements about ARCA’s outlook are forward-looking and involve risks and uncertainties, including but not limited to: the speed at which individual ApplianceSmart outlets reach profitability, the growth of appliance retail sales, the strength of energy conservation recycling programs, and other factors discussed in the Company’s filings with the Securities and Exchange Commission.

Visit our web sites at www.arcainc.com and www.appliancesmart.com.