diff --git a/CHANGES.txt b/CHANGES.txt
index 57ba9512..b4c8d8c3 100644
--- a/CHANGES.txt
+++ b/CHANGES.txt
@@ -3,7 +3,8 @@
 -----
 
 - Added support for Apple Xcode 3
-- Changed arguments to GCC link step to fix static linking 
+- Changed arguments to GCC link step to fix static linking
+- Fixed ManagedExtension setting for Visual Studio
 
 
 -------
diff --git a/src/actions/vstudio/vs200x_vcproj.lua b/src/actions/vstudio/vs200x_vcproj.lua
index 5af1bd4a..8746d851 100644
--- a/src/actions/vstudio/vs200x_vcproj.lua
+++ b/src/actions/vstudio/vs200x_vcproj.lua
@@ -524,7 +524,7 @@
 				_p('\t\t\tConfigurationType="%s"', _VS.cfgtype(cfg))
 				_p('\t\t\tCharacterSet="%s"', iif(cfg.flags.Unicode, 1, 2))
 				if cfg.flags.Managed then
-					_p('\t\t\tManagedExtensions="true"')
+					_p('\t\t\tManagedExtensions="1"')
 				end
 				_p('\t\t\t>')