Item 2.01: Completion of Acquisition or Disposition of Assets

Sale and lease back of St. Louis Park Building

On September 25, 2009, Appliance Recycling Centers of America, Inc. (the "Company") completed its agreement with Japs-Olson Company (the "Purchaser") to sell and lease back its St. Louis Park building. The building is a 126,000 square foot facility which includes the Company's executive offices, a processing and recycling center and a retail store. Pursuant to the agreement entered into on August 11, 2009, the Company sold its St. Louis Park building to the Purchaser for $4.7 million in cash and leased the building back over an initial lease term of five years. The sale of the building provided the Company with approximately $2.0 million in cash after the repayment of the mortgage.

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