Reconditioned Systems, Inc. News Release

444 West Fairmont

Tempe, Arizona 85282 Contact: Investor Relations

(480) 968-1772 (Telephone)

(480) 894-1907 (Fax)

“RSI reports Third Quarter 2007 results”

Tempe, Arizona, February 16, 2007

Dear Fellow Shareholders:

I am pleased to report that Reconditioned Systems, Inc. (“RSI”) had another profitable quarter. However, our sales and earnings were not as good as last year’s third quarter due to two primary factors; first, the move of our manufacturing facility this summer and second, the continuing competition from low price clone imports. Although we had planned the move to minimize disruption of manufacturing, the inevitable distractions had a definite impact on our business. The low price clone systems have been tough competition and will likely impact our sales for the next several years. However, I am confident that as we maintain the quality of our product, that these inferior systems’ success will not endure.

For the three months ended December 31 2006, RSI made $163 thousand on sales of $4.7 million. This compares to a profit of $200 thousand on sales of $5.5 million for the quarter ending December 31, 2005. We have decided to combine our two manufacturing plants into the new facility in Tempe. This should allow us to reduce our costs and hopefully increase our margins. We hope to effect this change in April, which is the beginning of our fiscal year.

I regret to announce that Dan Beck, who founded Beck Office Systems (“BOS”), has decided to retire from the company. He has done a tremendous job for the company since the merger of BOS and RSI. The merger was a resounding success, and has made a significant contribution to sales and earnings over the past three years. We will miss his leadership and counsel on the Board of Directors as well.

We have named Carl Grending to head all sales for the entire company. This is in recognition of the excellent job he has done managing our Albuquerque facility. Historically, the company sales were managed by location. This change will allow us to better focus on our corporate sales strategy.

The economy has definitely slowed, especially in the housing sector, but inflation should trend higher for 2007, and interest rates should also rise. This could be a problem for the economy and we remain cautious for this next year.

/S/ Scott W. Ryan

Scott W. Ryan

Chairman of the Board

Reconditioned Systems, Inc.

New Release

February 16, 2007

Page -2-

Summary Statement of Operations
	For The Three Months Ended		For the Nine Months Ended
	December 31, 2006 (Unaudited)	December 31, 2005 (Unaudited)	December 31, 2006 (Unaudited)	December 31, 2005 (Unaudited)
Sales	$4,760,781	$5,048,208	$13,725,109	$15,248,315
Net income before provision for income taxes	$269,458	$361,990	$768,159	$1,040,194
Net income *	$163,501	$212,815	$466,317	$608,914
Basic earnings per share	$0.13	$0.17	$0.37	$0.48
Basic weighted average number of common shares outstanding	1,248,862	1,246,961	1,247,847	1,267,089
Diluted earnings per common and equivalent share	$0.13	$0.17	$0.37	$0.48
Diluted weighted average number of common and equivalent shares outstanding	1,277,680	1,246,961	1,263,881	1,267,089

* Net of estimated income tax expense/benefit.

Summary Balance Sheet as of
	December 31, 2006 (Unaudited)	December 31, 2005 (Unaudited)		December 31, 2006 (Unaudited)	December 31, 2005 (Unaudited)
Assets			Liabilities and Equity
Cash	$1,449,220	$1,625,762	Accounts payable	$1,117,310	$1,005,488
Accounts receivable	1,971,659	1,700,655	Customer deposits	272,060	341,547
Inventory	1,975,367	1,852,339	Other current liabilities	649,916	1,001,327
Property & equipment	889,928	765,898	Stockholders’ equity	4,598,109	4,076,581
Other assets	351,221	480,289
Total	$6,637,395	$6,424,943	Total	$6,637,395	$6,424,943

Note: The Company’s quarterly press releases are available on our website www.resy.net under Inventor Relations. Any shareholder who would like to sell shares back to the Company should contact the Investor Relations Department at 800-280-5000.