Reconditioned Systems, Inc. News Release

444 West Fairmont

Tempe, Arizona 85282 Contact: Investor Relations

(480) 968-1772 (Telephone)

(480) 894-1907 (Fax)

“RSI reports Fourth Quarter 2006 results”

Tempe, Arizona, May 15 , 2006

Dear Fellow Shareholders:

I am pleased to report that Reconditioned Systems, Inc. (“RSI”) was profitable again this quarter. In fact, we have exceeded our budget for sales and earnings for the year, booked record annual sales and pre-tax earnings for the company, and we were profitable every quarter of the fiscal year for the second year in a row. This year was the best since I first took over as chairman of the board in 1995. I am extremely proud of our employees and their accomplishments, especially our CEO Dirk Anderson.

For the three months ending March 31 2006, RSI made pre-tax income of $545 thousand on sales of $5.4 million. This compares to a pre-tax profit of $197 thousand on sales of $4.6 million for the quarter ending March 31, 2005. Once again this is a strong relative performance and validates the very difficult decisions and changes that we made over the last several years. By becoming a non-reporting public company, we saved a substantial amount of money, and combined with our other cost cutting resulted in this excellent performance.

The first quarter GNP for 2006 should be very strong, but several sectors of the economy are beginning to slow, including housing and consumer spending. The mortgage refinancing of the last several years has left the consumer with a higher debt burden and a strained budget due to higher energy prices and little real wage gains. Higher interest rates and inflation should also put a strain on the economy this year. Corporate earnings remain strong however, and capital spending may keep the economy from faltering, but a recession is possible later this year. We have positioned ourselves well, however, and are cautiously optimistic about our business this next fiscal year ending March 31, 2007. We are budgeting for sales and earnings equal to those for the 2006 fiscal year end.

We are beginning to consolidate more operations of Beck Office Systems into RSI and this next year we expect to see some significant cost savings. Meanwhile, our wholesale department continues to be our best performing division and generates the majority of our profits. Congratulations to Melissa Kimball who manages the division.

Last year the company paid its first ever cash dividend of $0.20 per share. This year the board voted to pay a dividend of $0.33 on August 31, 2006, to shareholders of record June 30, 2006. We are pleased to again reward our loyal shareholders; however, any future dividends will depend on our performance and financial position.

/S/ Scott W. Ryan

Scott W. Ryan

Chairman of the Board

Reconditioned Systems, Inc.

New Release

May 15, 2006

Page -2-

Summary Consolidated Statement of Operations
	For The Three Months Ended		For the Year Ended
	March 31, 2006 (Unaudited)	March 31, 2005 (Unaudited)	March 31, 2006 (Unaudited)	March 31, 2005 (Unaudited)
Sales	$5,422,725	$4,522,837	$20,671,040	$19,084,146
Net income before provision for income taxes and loss on investment	$545,095	$297,113	$1,585,289	$905,035
Loss on investment	$-	$(100,000)	$ -	$(100,000)
Net income *	$314,200	$1,787	$923,114	$437,709
Basic earnings per share *	$0.25	$0.00	$0.73	$0.35
Basic weighted average number of common shares outstanding	1,246,657	1,272,053	1,261,981	1,245,112
Diluted earnings per common and equivalent share *	$0.25	$0.00	$0.73	$0.35
Diluted weighted average number of common and equivalent shares outstanding	1,247,888	1,272,053	1,262,289	1,268,190

Summary Consolidated Balance Sheet as of
	March 31, 2006 (Unaudited)	March 31, 2005 (Unaudited)		March 31, 2006 (Unaudited)	March 31, 2005 (Unaudited)
Assets			Liabilities and Equity
Cash	$2,438,832	$998,716	Accounts payable	$1,120,568	$708,756
Accounts receivable	2,027,233	1,643,749	Customer deposits	375,929	437,194
Inventory	1,682,816	1,883,117	Accrued wages, commission and benefits	849,261	533,612
Property & equipment	705,469	851,452	Other current liabilities *	324,288	221,955
Other assets	206,396	340,430	Stockholders’ equity *	4,390,700	3,815,947
Total	$7,060,746	$5,717,464	Total	$7,060,746	$5,717,464

* Income taxes have been estimated at 42% of pretax income and may be revised upon completion of the company’s tax returns.

Note: The Company’s 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.