diff --git a/CHANGES b/CHANGES
index bf4f46343..0f0b39175 100644
--- a/CHANGES
+++ b/CHANGES
@@ -6,6 +6,10 @@
 
                                   Changelog
 
+Daniel S (11 July 2007)
+- Giancarlo Formicuccia reported and fixed a problem with a closed connection
+  to a proxy during CONNECT auth negotiation.
+
 Dan F (10 July 2007)
 - Fixed a curl memory leak reported by Song Ma with a modified version
   of the patch he suggested.  Added his test case as test289 to verify.
diff --git a/RELEASE-NOTES b/RELEASE-NOTES
index 89f140204..feffdbf8d 100644
--- a/RELEASE-NOTES
+++ b/RELEASE-NOTES
@@ -16,6 +16,7 @@ This release includes the following changes:
 This release includes the following bugfixes:
 
  o Test cases 31, 46, 61, 506, 517 now work in time zones that use leap seconds
+ o problem with closed proxy connection during HTTP CONNECT auth negotiation
 
 This release includes the following known bugs:
 
@@ -32,7 +33,6 @@ New curl mirrors:
 This release would not have looked like this without help, code, reports and
 advice from friends like these:
 
- Dan Fandrich, Song Ma, Daniel Black
+  Dan Fandrich, Song Ma, Daniel Black, Giancarlo Formicuccia
  
-
         Thanks! (and sorry if I forgot to mention someone)
diff --git a/lib/http.c b/lib/http.c
index 9c7a2bd11..a9b483dbd 100644
--- a/lib/http.c
+++ b/lib/http.c
@@ -1398,6 +1398,9 @@ CURLcode Curl_proxyCONNECT(struct connectdata *conn,
                   else if(Curl_compareheader(line_start,
                                              "Connection:", "close"))
                     closeConnection = TRUE;
+                  else if(Curl_compareheader(line_start,
+                                             "Proxy-Connection:", "close"))
+                    closeConnection = TRUE;
                   else if(2 == sscanf(line_start, "HTTP/1.%d %d",
                                       &subversion,
                                       &k->httpcode)) {