Abstract: An extraction and transfer mechanism for modular containers in an automated storage and retrieval system of the type having a storage matrix of modular containers and a stacker crane with a vertically movable platform. The extraction and transfer mechanism is carried on the platform and when positioned adjacent a selected modular container, is arranged to extract the container from a first selected storage location laterally onto the platform, and to transfer the container in either lateral direction into a second selected empty storage location. The preferred embodiment uses a pair of continuous loop friction belt and collapsible hook assemblies, which both grasp and hook the sides of handleless modular containers for extraction and transfer.