diff --git a/icu4c/source/common/Makefile.in b/icu4c/source/common/Makefile.in
index 0203652b5e..36e3293eb4 100644
--- a/icu4c/source/common/Makefile.in
+++ b/icu4c/source/common/Makefile.in
@@ -74,7 +74,7 @@ uscript.o usc_impl.o uvector.o ustack.o uvectr32.o ucmp8.o \
 uarrsort.o utrie.o uset.o uset_props.o uniset.o uniset_props.o ruleiter.o caniter.o unifilt.o unifunct.o usetiter.o \
 brkiter.o brkdict.o ubrk.o dbbi.o dbbi_tbl.o \
 rbbi.o rbbidata.o rbbinode.o rbbirb.o rbbiscan.o rbbisetb.o rbbistbl.o rbbitblb.o \
-serv.o servnotf.o servls.o servlu.o servlk.o servlkf.o servrbf.o servslkf.o \
+serv.o servnotf.o servls.o servlk.o servlkf.o servrbf.o servslkf.o locutil.o \
 uenum.o ustrenum.o uidna.o usprep.o punycode.o \
 cwchar.o filestrm.o util.o parsepos.o utrace.o locbased.o
 
diff --git a/icu4c/source/common/common.vcproj b/icu4c/source/common/common.vcproj
index bd41e4eb89..9db336a432 100644
--- a/icu4c/source/common/common.vcproj
+++ b/icu4c/source/common/common.vcproj
@@ -1174,6 +1174,12 @@
 						Outputs="..\..\include\unicode\$(InputFileName)"/>
 				</FileConfiguration>
 			</File>
+			<File
+				RelativePath=".\locutil.cpp">
+			</File>
+			<File
+				RelativePath=".\locutil.h">
+			</File>
 			<File
 				RelativePath=".\resbund.cpp">
 			</File>
@@ -1622,9 +1628,6 @@
 			<File
 				RelativePath=".\servls.cpp">
 			</File>
-			<File
-				RelativePath=".\servlu.cpp">
-			</File>
 			<File
 				RelativePath=".\servnotf.cpp">
 			</File>
diff --git a/icu4c/source/common/locutil.cpp b/icu4c/source/common/locutil.cpp
new file mode 100644
index 0000000000..dd3615b919
--- /dev/null
+++ b/icu4c/source/common/locutil.cpp
@@ -0,0 +1,265 @@
+/**
+ *******************************************************************************
+ * Copyright (C) 2002-2005, International Business Machines Corporation and    *
+ * others. All Rights Reserved.                                                *
+ *******************************************************************************
+ *
+ *******************************************************************************
+ */
+#include "unicode/utypes.h"
+
+#if !UCONFIG_NO_SERVICE
+
+#include "unicode/resbund.h"
+#include "cmemory.h"
+#include "ustrfmt.h"
+#include "locutil.h"
+#include "charstr.h"
+#include "ucln_cmn.h"
+#include "uassert.h"
+#include "umutex.h"
+
+// see LocaleUtility::getAvailableLocaleNames
+static Hashtable * LocaleUtility_cache = NULL;
+
+#define UNDERSCORE_CHAR ((UChar)0x005f)
+#define AT_SIGN_CHAR    ((UChar)64)
+#define PERIOD_CHAR     ((UChar)46)
+
+/*
+ ******************************************************************
+ */
+
+/**
+ * Release all static memory held by Locale Utility.  
+ */
+U_CDECL_BEGIN
+static UBool U_CALLCONV service_cleanup(void) {
+    if (LocaleUtility_cache) {
+        delete LocaleUtility_cache;
+        LocaleUtility_cache = NULL;
+    }
+    return TRUE;
+}
+U_CDECL_END
+
+U_NAMESPACE_BEGIN
+
+UnicodeString&
+LocaleUtility::canonicalLocaleString(const UnicodeString* id, UnicodeString& result)
+{
+  if (id == NULL) {
+    result.setToBogus();
+  } else {
+    // Fix case only (no other changes) up to the first '@' or '.' or
+    // end of string, whichever comes first.  In 3.0 I changed this to
+    // stop at first '@' or '.'.  It used to run out to the end of
+    // string.  My fix makes the tests pass but is probably
+    // structurally incorrect.  See below.  [alan 3.0]
+
+    // TODO: Doug, you might want to revise this...
+    result = *id;
+    int32_t i = 0;
+    int32_t end = result.indexOf(AT_SIGN_CHAR);
+    int32_t n = result.indexOf(PERIOD_CHAR);
+    if (n >= 0 && n < end) {
+        end = n;
+    }
+    if (end < 0) {
+        end = result.length();
+    }
+    n = result.indexOf(UNDERSCORE_CHAR);
+    if (n < 0) {
+      n = end;
+    }
+    for (; i < n; ++i) {
+      UChar c = result.charAt(i);
+      if (c >= 0x0041 && c <= 0x005a) {
+        c += 0x20;
+        result.setCharAt(i, c);
+      }
+    }
+    for (n = end; i < n; ++i) {
+      UChar c = result.charAt(i);
+      if (c >= 0x0061 && c <= 0x007a) {
+        c -= 0x20;
+        result.setCharAt(i, c);
+      }
+    }
+  }
+  return result;
+
+#if 0
+    // This code does a proper full level 2 canonicalization of id.
+    // It's nasty to go from UChar to char to char to UChar -- but
+    // that's what you have to do to use the uloc_canonicalize
+    // function on UnicodeStrings.
+
+    // I ended up doing the alternate fix (see above) not for
+    // performance reasons, although performance will certainly be
+    // better, but because doing a full level 2 canonicalization
+    // causes some tests to fail.  [alan 3.0]
+
+    // TODO: Doug, you might want to revisit this...
+    result.setToBogus();
+    if (id != 0) {
+        int32_t buflen = id->length() + 8; // space for NUL
+        char* buf = (char*) uprv_malloc(buflen);
+        char* canon = (buf == 0) ? 0 : (char*) uprv_malloc(buflen);
+        if (buf != 0 && canon != 0) {
+            U_ASSERT(id->extract(0, INT32_MAX, buf, buflen) < buflen);
+            UErrorCode ec = U_ZERO_ERROR;
+            uloc_canonicalize(buf, canon, buflen, &ec);
+            if (U_SUCCESS(ec)) {
+                result = UnicodeString(canon);
+            }
+        }
+        uprv_free(buf);
+        uprv_free(canon);
+    }
+    return result;
+#endif
+}
+
+Locale&
+LocaleUtility::initLocaleFromName(const UnicodeString& id, Locale& result)
+{
+    enum { BUFLEN = 128 }; // larger than ever needed
+
+    if (id.isBogus() || id.length() >= BUFLEN) {
+        result.setToBogus();
+    } else {
+        /*
+         * We need to convert from a UnicodeString to char * in order to
+         * create a Locale.
+         *
+         * Problem: Locale ID strings may contain '@' which is a variant
+         * character and cannot be handled by invariant-character conversion.
+         *
+         * Hack: Since ICU code can handle locale IDs with multiple encodings
+         * of '@' (at least for EBCDIC; it's not known to be a problem for
+         * ASCII-based systems),
+         * we use regular invariant-character conversion for everything else
+         * and manually convert U+0040 into a compiler-char-constant '@'.
+         * While this compilation-time constant may not match the runtime
+         * encoding of '@', it should be one of the encodings which ICU
+         * recognizes.
+         *
+         * There should be only at most one '@' in a locale ID.
+         */
+        char buffer[BUFLEN];
+        int32_t prev, i;
+        prev = 0;
+        for(;;) {
+            i = id.indexOf((UChar)0x40, prev);
+            if(i < 0) {
+                // no @ between prev and the rest of the string
+                id.extract(prev, INT32_MAX, buffer + prev, BUFLEN - prev, US_INV);
+                break; // done
+            } else {
+                // normal invariant-character conversion for text between @s
+                id.extract(prev, i - prev, buffer + prev, BUFLEN - prev, US_INV);
+                // manually "convert" U+0040 at id[i] into '@' at buffer[i]
+                buffer[i] = '@';
+                prev = i + 1;
+            }
+        }
+        result = Locale::createFromName(buffer);
+    }
+    return result;
+}
+
+UnicodeString&
+LocaleUtility::initNameFromLocale(const Locale& locale, UnicodeString& result)
+{
+    if (locale.isBogus()) {
+        result.setToBogus();
+    } else {
+        result.append(UnicodeString(locale.getName(), -1, US_INV));
+    }
+    return result;
+}
+
+const Hashtable*
+LocaleUtility::getAvailableLocaleNames(const UnicodeString& bundleID)
+{
+    // LocaleUtility_cache is a hash-of-hashes.  The top-level keys
+    // are path strings ('bundleID') passed to
+    // ures_openAvailableLocales.  The top-level values are
+    // second-level hashes.  The second-level keys are result strings
+    // from ures_openAvailableLocales.  The second-level values are
+    // garbage ((void*)1 or other random pointer).
+
+    UErrorCode status = U_ZERO_ERROR;
+    Hashtable* cache;
+    umtx_lock(NULL);
+    cache = LocaleUtility_cache;
+    umtx_unlock(NULL);
+
+    if (cache == NULL) {
+        cache = new Hashtable(status);
+        if (cache == NULL || U_FAILURE(status)) {
+            return NULL; // catastrophic failure; e.g. out of memory
+        }
+        cache->setValueDeleter(uhash_deleteHashtable);
+        Hashtable* h; // set this to final LocaleUtility_cache value
+        umtx_lock(NULL);
+        h = LocaleUtility_cache;
+        if (h == NULL) {
+            LocaleUtility_cache = h = cache;
+            cache = NULL;
+            ucln_common_registerCleanup(UCLN_COMMON_SERVICE, service_cleanup);
+        }
+        umtx_unlock(NULL);
+        delete cache;
+        cache = h;
+    }
+
+    U_ASSERT(cache != NULL);
+
+    Hashtable* htp;
+    umtx_lock(NULL);
+    htp = (Hashtable*) cache->get(bundleID);
+    umtx_unlock(NULL);
+
+    if (htp == NULL) {
+        htp = new Hashtable(status);
+        if (htp && U_SUCCESS(status)) {
+            CharString cbundleID(bundleID);
+            const char* path = (const char*) cbundleID;
+            if (*path == 0) path = NULL; // empty string => NULL
+            UEnumeration *uenum = ures_openAvailableLocales(path, &status);
+            for (;;) {
+                const UChar* id = uenum_unext(uenum, NULL, &status);
+                if (id == NULL) {
+                    break;
+                }
+                htp->put(UnicodeString(id), (void*)htp, status);
+            }
+            uenum_close(uenum);
+            if (U_FAILURE(status)) {
+                delete htp;
+                return NULL;
+            }
+            umtx_lock(NULL);
+            cache->put(bundleID, (void*)htp, status);
+            umtx_unlock(NULL);
+        }
+    }
+    return htp;
+}
+
+UBool
+LocaleUtility::isFallbackOf(const UnicodeString& root, const UnicodeString& child)
+{
+    return child.indexOf(root) == 0 &&
+      (child.length() == root.length() ||
+       child.charAt(root.length()) == UNDERSCORE_CHAR);
+}
+
+U_NAMESPACE_END
+
+/* !UCONFIG_NO_SERVICE */
+#endif
+
+
diff --git a/icu4c/source/common/locutil.h b/icu4c/source/common/locutil.h
new file mode 100644
index 0000000000..1a8871b752
--- /dev/null
+++ b/icu4c/source/common/locutil.h
@@ -0,0 +1,32 @@
+/**
+ *******************************************************************************
+ * Copyright (C) 2002-2005, International Business Machines Corporation and    *
+ * others. All Rights Reserved.                                                *
+ *******************************************************************************
+ *
+ *******************************************************************************
+ */
+#ifndef LOCUTIL_H
+#define LOCUTIL_H
+
+#include "unicode/utypes.h"
+#include "hash.h"
+
+U_NAMESPACE_BEGIN
+
+// temporary utility functions, till I know where to find them
+// in header so tests can also access them
+
+class U_COMMON_API LocaleUtility {
+public:
+  static UnicodeString& canonicalLocaleString(const UnicodeString* id, UnicodeString& result);
+  static Locale& initLocaleFromName(const UnicodeString& id, Locale& result);
+  static UnicodeString& initNameFromLocale(const Locale& locale, UnicodeString& result);
+  static const Hashtable* getAvailableLocaleNames(const UnicodeString& bundleID);
+  static UBool isFallbackOf(const UnicodeString& root, const UnicodeString& child);
+};
+
+U_NAMESPACE_END
+
+
+#endif
diff --git a/icu4c/source/common/servloc.h b/icu4c/source/common/servloc.h
index de24048e5b..d08b09e36e 100644
--- a/icu4c/source/common/servloc.h
+++ b/icu4c/source/common/servloc.h
@@ -33,6 +33,7 @@ U_NAMESPACE_END
 #include "uvector.h"
 
 #include "serv.h"
+#include "locutil.h"
 
 U_NAMESPACE_BEGIN
 
@@ -539,18 +540,6 @@ class U_COMMON_API ICULocaleService : public ICUService
   friend class ServiceEnumeration;
 };
 
-// temporary utility functions, till I know where to find them
-// in header so tests can also access them
-
-class U_COMMON_API LocaleUtility {
-public:
-  static UnicodeString& canonicalLocaleString(const UnicodeString* id, UnicodeString& result);
-  static Locale& initLocaleFromName(const UnicodeString& id, Locale& result);
-  static UnicodeString& initNameFromLocale(const Locale& locale, UnicodeString& result);
-  static const Hashtable* getAvailableLocaleNames(const UnicodeString& bundleID);
-  static UBool isFallbackOf(const UnicodeString& root, const UnicodeString& child);
-};
-
 U_NAMESPACE_END
 
     /* UCONFIG_NO_SERVICE */
diff --git a/icu4c/source/i18n/transreg.cpp b/icu4c/source/i18n/transreg.cpp
index b232d53138..fa747abe58 100644
--- a/icu4c/source/i18n/transreg.cpp
+++ b/icu4c/source/i18n/transreg.cpp
@@ -28,7 +28,7 @@
 #include "tridpars.h"
 #include "charstr.h"
 #include "uassert.h"
-#include "servloc.h"
+#include "locutil.h"
 
 // Enable the following symbol to add debugging code that tracks the
 // allocation, deletion, and use of Entry objects.  BoundsChecker has