RECELLULAR TO RECYCLE FOUR MILLION PHONES IN 2007, EXTENDING LEADERSHIP OF EMERGING INDUSTRY

 

 

DEXTER, Mich., Jan. 7 – In 2007, ReCellular expects to recycle or resell more than four million cell phones – four times more than the company processed five years ago. As a result, ReCellular will extend its lead in wireless recycling with pioneering programs in marketing reconditioned handsets, charity fundraising programs and component recycling.

 

The company’s explosive growth began in 1991, when Chuck and Allan Newman recognized that an increasing number of consumers were using and replacing cell phones. As a result, these consumers were discarding an increasing number of functional handsets every year.

 

That trend continues today as the average U.S. consumer replaces their cell phone every 18 months. Americans retire an estimated 130 million cell phones each year, only a fraction of which are reused or recycled. ReCellular’s successful business of extracting value from these discarded phones was recently recognized as one Inc. Magazine’s “Green 50” companies leading the green revolution in business.

 

“We are humbled by Inc.’s recognition of our business,” says Chuck Newman, ReCellular CEO and President. “We set out to build a business that benefits consumers, the wireless industry and the environment. That mission has helped grow the company from a handful of employees in 1991 to hundreds of employees on three continents today.”

 

Indeed, in 1991 ReCellular was a Michigan start-up company of five employees. Today, the company employs 250 people, with facilities in Michigan, Texas, China and Brazil. These employees have processed more than 15 million cell phones since 1991, establishing ReCellular as the benchmark in the growing industry of wireless recycling.

 

Wireless Trade-in Programs:
In 2007, ReCellular expects to collect an estimated 4 million phones, collecting more than 15,000 phones every work day. Cell phone donations have grown exponentially over the past five years, fueled by the growth of the wireless industry and ReCellular’s efforts to build consumer awareness of wireless recycling.

 

“Not many people know you can recycle cell phones,” says Newman. “We’re working to change that, and to make recycling your cell phone as convenient as possible. Ultimately, we want customers to automatically think of recycling their phones just like they currently do with glass, paper and plastics.”

 

ReCellular offers consumers a number of ways to securely and conveniently recycle their old cell phones. Individual consumers can visit www.ReCellularTradeIn.com to earn up to $50 in Best Buy digital dollars by recycling their phone, based on phone model.

 

In addition, consumers can donate their phones to charity at one of 40,000 ReCellular drop-off sites for wireless retailers, manufacturers and carriers nationwide. ReCellular expects the Cell Phone Donation Program to raise more than $5 million for numerous national and local charities in 2007, paying charities an average of $10 for every phone collected. For information on starting a fundraising program or to find a drop off site, consumers can visit www.wirelessrecycling.com.

 

To protect consumer privacy, ReCellular developed the Cell Phone Data Eraser™, available through both web sites. The Cell Phone Data Eraser is a free online resource that enables consumers to quickly and effectively erase personal cell phone information – such as call history, contact information, text messages and photos – from more than 600 cell phone models prior to recycling or donation.

 

Reconditioned Handsets:
Approximately half of the phones ReCellular processes are reconditioned and resold to wholesale companies in over 40 countries around the world. ReCellular expects to generate more than $60 million in sales in 2007, accounting for 25 percent of the global market for reconditioned wireless phones and accessories.

 

“We are able to offer wholesalers a reliable source of phones in near-new condition, which they can package for resale,” says Newman. “There is an astounding demand for these phones around the world, particularly in developing markets where new phones are cost-prohibitive.”

 

ReCellular stocks more than 50,000 refurbished phones available for wholesale purchase, with prices starting at $30. In addition, ReCellular also offers wholesalers and wireless repair companies with an exhaustive supply of refurbished accessories and components, from batteries to circuit boards.

 

Recycling:
Handsets and components that cannot be refurbished are dismantled and recycled. In 2007, ReCellular expects to recycle 1 million pounds of materials, working with recycling partners to reclaim materials from virtually every component that is donated, such as:

• Gold, silver and palladium from circuit boards
• Copper wiring from phone chargers
• Nickel, iron, cadmium and lead from battery packs
• Plastic from phone cases and accessories

 

ReCellular’s recycling program event extends to the paper and cardboard shipping materials used for donations. In 2006, ReCellular voluntarily submitted their environmental and recycling practices for ISO 14001 certification.

 

“The ISO 14001 certification is a symbol of our original mission to build a business that is both socially and environmentally responsible,” says Newman.

 

Wireless Trade-in Facts:

• ReCellular expects to collect 4 million cell phones in 2007, collecting over 15,000 phones every work day.
• ReCellular expects to raise more than $5 million in 2007 for national and local charities through the Cell Phone Donation Program.
• ReCellular offers more than 40,000 donation drop-off sites through wireless retailers, manufacturers and carriers nationwide.
• ReCellular’s Cell Phone Data Eraser™, available at www.ReCellularTradeIn.com, offers instructions to erase personal cell phone for almost 600 cell phone models.

 

Reconditioned Product Facts:

• ReCellular expects to generate $60 million in sales of reconditioned phones and accessories to businesses worldwide in 2007.
• ReCellular often carries more than 50,000 reconditioned phones for wholesale, as well as accessories and components.
• ReCellular sells phones to customers in more than 40 countries, and currently controls 25 percent of the global market for used cell phones and components.

 

Recycling Facts:

• In 2007, ReCellular expects to recycle 1 million pounds of unsalvageable cell phones and accessories.
• ReCellular’s recycling partners reclaim copper wiring from phone chargers; precious metals like gold and silver from circuit boards; nickel, iron and cadmium from battery packs, and plastics from phone cases and accessories.
• ReCellular recycling efforts were recognized by Inc. Magazine, which named the company one of “The Green 50” companies for 2006 that are leading the green revolution in business.

 

Industry Facts:

• The average consumer replaces their cell phone every 18 months, even though most phones are still functional.
• An estimated 130 million cell phones are retired in the U.S. every year.
• In 2006, an estimated 2.4 billion people around the world had wireless phones, and 80 percent of the world’s population had wireless coverage.

 

About ReCellular Inc.:
With offices in the United States, Hong Kong, and Brazil, ReCellular Inc. is the world’s foremost collector, reseller and recycler of used wireless phones and accessories. We provide solutions for the collection, reuse and recycling of used personal electronics that generate financial return for our partners, quality products for our customers, funding for charity organizations, and protection of the environment. Corporate and wholesale information is available at www.ReCellular.com. Consumer information, including the Cell Phone Data Eraser™ and charity fundraising information, is available at www.wirelessrecycling.com.