On September 19, 2012, Registrant entered into a Lease agreement under which Registrant agreed to lease approximately 116,000 square feet of warehouse and office space in Lake Zurich, Illinois, of which approximately 98,000 square feet consists of warehouse space. The Lease is to commence on November 1, 2012 and expires on February 28, 2017. The Lease provides for base rental payments of (i) $25,000.00 per month commencing on March 1, 2013 through October 31, 2013, (ii) $27,708.33 per month commencing on November 1, 2013 through October 31, 2014,
(iii) $30,416.67 per month commencing on November 1, 2014 through October 31, 2015, (iv) $33,125.00 per month commencing on November 1, 2015 through October 31, 2016 and (v) 35,833.33 per month commencing on November 1, 2016 through February 28, 2017. In addition to the base rental payments, Registrant will be obligated to pay, each month during the term, an amount equal to one twelfth of the estimated annual real estate taxes on the property and will also pay all utilities charges and maintenance costs with respect to the building during the term.

The Lease includes an option of Registrant to extend the lease from March 1, 2017 to February 29, 2020.

Registrant presently intends to utilize the premises to warehouse principally finished goods and to conduct balloon inflation operations and to utilize portions of the office space for customer service and warehouse operations.

On September 21, 2012, Registrant issued a press release relating to the Lease a copy of which is attached hereto as Exhibit 99.1.

Item No. 9.01 - Exhibit



The following exhibit are attached hereto:



     Exhibit No.   Exhibit

     99.1          Press Release dated September 21, 2012, captioned: "CTI
                   Industries Corporation Leases Expanded Facilities."