diff --git a/src/calibre/ebooks/rtf/xsl.py b/resources/templates/rtf.xsl
similarity index 71%
rename from src/calibre/ebooks/rtf/xsl.py
rename to resources/templates/rtf.xsl
index be58683958..7d633a0038 100644
--- a/src/calibre/ebooks/rtf/xsl.py
+++ b/resources/templates/rtf.xsl
@@ -1,27 +1,10 @@
-#########################################################################
-#                                                                       #
-#                                                                       #
-#   copyright 2002 Paul Henry Tremblay                                  #
-#                                                                       #
-#   This program is distributed in the hope that it will be useful,     #
-#   but WITHOUT ANY WARRANTY; without even the implied warranty of      #
-#   MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE. See the GNU    #
-#   General Public License for more details.                            #
-#                                                                       #
-#   You should have received a copy of the GNU General Public License   #
-#   along with this program; if not, write to the Free Software         #
-#   Foundation, Inc., 59 Temple Place, Suite 330, Boston, MA            #
-#   02111-1307 USA                                                      #
-#                                                                       #
-#                                                                       #
-#########################################################################
-
-xhtml = '''\
 <?xml version="1.0"?>
 <xsl:stylesheet version="1.0"
     xmlns:xsl="http://www.w3.org/1999/XSL/Transform"
     xmlns:html="http://www.w3.org/1999/xhtml"
     xmlns:rtf="http://rtf2xml.sourceforge.net/"
+    xmlns:c="calibre"
+    extension-element-prefixes="c"
     exclude-result-prefixes="rtf"
 >
 
@@ -147,7 +130,7 @@ xhtml = '''\
                     <xsl:text>generator</xsl:text>
                 </xsl:attribute>
                 <xsl:attribute name="content">
-                    <xsl:text>http://rtf2xml.sourceforge.net/</xsl:text>
+                    <xsl:text>http://calibre-ebook.com</xsl:text>
                 </xsl:attribute>
             </xsl:element>
 
@@ -233,9 +216,7 @@ xhtml = '''\
             <xsl:text>span.italic-bold{font-style:italic;font-weight:bold}&#xA;</xsl:text>
             <xsl:text>span.italic-underline{font-style:italic;text-decoration:underline}&#xA;</xsl:text>
             <xsl:text>span.bold-underline{font-weight:bold;text-decoration:underline}&#xA;</xsl:text>
-            <xsl:for-each select="//rtf:inline">
-                <xsl:call-template name="parse-inline"/>
-            </xsl:for-each>
+            <xsl:text>&#xA;</xsl:text>
         </xsl:document>
     </xsl:template>
 
@@ -287,52 +268,6 @@ xhtml = '''\
         </xsl:if>
     </xsl:template>
 
-    <xsl:template name="parse-inline">
-        <xsl:variable name="num-attrs" select="count(@*)"/>
-        <xsl:choose>
-            <xsl:when test="$num-attrs = 1 and @italics"/>
-            <xsl:when test="$num-attrs = 1 and @bold"/>
-            <xsl:when test="$num-attrs = 1 and @underline"/>
-            <xsl:when test="$num-attrs = 2 and @italics and @bold"/>
-            <xsl:when test="$num-attrs = 2 and @italcs and @underline"/>
-            <xsl:when test="$num-attrs = 2 and @bold and @underline"/>
-            <xsl:otherwise>
-                <xsl:text>span.</xsl:text>
-                <xsl:value-of select="generate-id(.)"/>
-                <xsl:text>{</xsl:text>
-                <xsl:if test="@italics = 'true'">
-                    <xsl:text>font-style:italic;</xsl:text>
-                </xsl:if>
-                <xsl:if test="@italics = 'false'">
-                    <xsl:text>font-style:normal;</xsl:text>
-                </xsl:if>
-                <xsl:if test="@bold = 'true'">
-                    <xsl:text>font-weight:bold;</xsl:text>
-                </xsl:if>
-                <xsl:if test="@bold = 'false'">
-                    <xsl:text>font-weight:normal;</xsl:text>
-                </xsl:if>
-                <xsl:if test="@underline and @underline != 'false'">
-                    <xsl:text>text-decoration:underline;</xsl:text>
-                </xsl:if>
-                <xsl:if test="@underline= 'false'">
-                    <xsl:text>text-decoration:none;</xsl:text>
-                </xsl:if>
-                <xsl:if test="@strike-through = 'true'">
-                    <xsl:text>text-decoration:line-through;</xsl:text>
-                </xsl:if>
-                <xsl:if test="@strike-through = 'false'">
-                    <xsl:text>text-decoration:none;</xsl:text>
-                </xsl:if>
-                <xsl:if test="@font-size">
-                    <xsl:text>font-size:</xsl:text>
-                        <xsl:value-of select="@font-size"/>
-                        <xsl:text>pt;</xsl:text>
-                </xsl:if>
-                <xsl:text>}</xsl:text>
-            </xsl:otherwise>
-        </xsl:choose>
-    </xsl:template>
 
     <xsl:template match="rtf:inline">
         <xsl:variable name="num-attrs" select="count(@*)"/>
@@ -345,45 +280,7 @@ xhtml = '''\
             <xsl:otherwise>
                 <xsl:element name="span">
                     <xsl:attribute name="class">
-                        <xsl:choose>
-                            <xsl:when test="$num-attrs=1 and @italics='true'">
-                                <xsl:text>italic</xsl:text>
-                            </xsl:when>
-                            <xsl:when test="$num-attrs=1 and @italics='false'">
-                                <xsl:text>no-italic</xsl:text>
-                            </xsl:when>
-                            <xsl:when test="$num-attrs=1 and @bold='true'">
-                                <xsl:text>bold</xsl:text>
-                            </xsl:when>
-                            <xsl:when test="$num-attrs=1 and @bold='true'">
-                                <xsl:text>bold</xsl:text>
-                            </xsl:when>
-                            <xsl:when test="$num-attrs=1 and @bold='false'">
-                                <xsl:text>no-bold</xsl:text>
-                            </xsl:when>
-                            <xsl:when test="$num-attrs=1 and @underlined">
-                                <xsl:choose>
-                                    <xsl:when test="not(@underlined='false')">
-                                        <xsl:text>underline</xsl:text>
-                                    </xsl:when>
-                                    <xsl:otherwise>
-                                        <xsl:text>no-underline</xsl:text>
-                                    </xsl:otherwise>
-                                </xsl:choose>
-                            </xsl:when>
-                            <xsl:when test="$num-attrs=2 and @bold='true' and @italics='true'">
-                                <xsl:text>italic-bold</xsl:text>
-                            </xsl:when>
-                            <xsl:when test="$num-attrs=2 and @italics='true' and @underline and @underline != 'false'">
-                                <xsl:text>italic-underline</xsl:text>
-                            </xsl:when>
-                            <xsl:when test="$num-attrs=2 and @bold='true' and @underline and @underline != 'false'">
-                                <xsl:text>bold-underline</xsl:text>
-                            </xsl:when>
-                            <xsl:otherwise>
-                                <xsl:value-of select="generate-id(.)"/>
-                            </xsl:otherwise>
-                        </xsl:choose>
+                        <c:inline-class/>
                     </xsl:attribute>
                     <xsl:apply-templates/>
                 </xsl:element>
@@ -539,4 +436,3 @@ xhtml = '''\
     </xsl:template>
 
 </xsl:stylesheet>
-'''
diff --git a/src/calibre/ebooks/rtf/input.py b/src/calibre/ebooks/rtf/input.py
index 51e6862e7b..e1c1fd4a22 100644
--- a/src/calibre/ebooks/rtf/input.py
+++ b/src/calibre/ebooks/rtf/input.py
@@ -2,12 +2,48 @@ from __future__ import with_statement
 __license__   = 'GPL v3'
 __copyright__ = '2008, Kovid Goyal <kovid at kovidgoyal.net>'
 
-import os, glob, re
+import os, glob, re, textwrap
 
 from lxml import etree
 
 from calibre.customize.conversion import InputFormatPlugin
 
+class InlineClass(etree.XSLTExtension):
+
+    FMTS = ('italics', 'bold', 'underlined', 'strike-through', 'small-caps')
+
+    def __init__(self, log):
+        etree.XSLTExtension.__init__(self)
+        self.log = log
+        self.font_sizes = []
+        self.colors = []
+
+    def execute(self, context, self_node, input_node, output_parent):
+        classes = []
+        for x in self.FMTS:
+            cls = x if input_node.get(x, None) == 'true' else 'no-'+x
+            classes.append(cls)
+        none = True
+        for x in self.FMTS:
+            if 'no-'+x not in classes:
+                none = False
+                break
+        if none:
+            classes = ['none']
+        fs = input_node.get('font-size', False)
+        if fs:
+            if fs not in self.font_sizes:
+                self.font_sizes.append(fs)
+            classes.append('fs%d'%self.font_sizes.index(fs))
+        fc = input_node.get('font-color', False)
+        if fc:
+            if fc not in self.colors:
+                self.colors.append(fc)
+            classes.append('col%d'%self.colors.index(fc))
+
+        output_parent.text = ' '.join(classes)
+
+
 class RTFInput(InputFormatPlugin):
 
     name        = 'RTF Input'
@@ -21,15 +57,15 @@ class RTFInput(InputFormatPlugin):
         parser = ParseRtf(
             in_file    = stream,
             out_file   = ofile,
-            # Convert symbol fonts to unicode equivelents. Default
+            # Convert symbol fonts to unicode equivalents. Default
             # is 1
             convert_symbol = 1,
 
-            # Convert Zapf fonts to unicode equivelents. Default
+            # Convert Zapf fonts to unicode equivalents. Default
             # is 1.
             convert_zapf = 1,
 
-            # Convert Wingding fonts to unicode equivelents.
+            # Convert Wingding fonts to unicode equivalents.
             # Default is 1.
             convert_wingdings = 1,
 
@@ -94,9 +130,41 @@ class RTFInput(InputFormatPlugin):
             #open(name+'.hex', 'wb').write(enc)
         return imap
 
+    def write_inline_css(self, ic):
+        font_size_classes = ['span.fs%d { font-size: %spt }'%(i, x) for i, x in
+                enumerate(ic.font_sizes)]
+        color_classes = ['span.col%d { color: %s }'%(i, x) for i, x in
+                enumerate(ic.colors)]
+        css = textwrap.dedent('''
+        span.none {
+            text-decoration: none; font-weight: normal;
+            font-style: normal; font-variant: normal
+        }
+
+        span.italics { font-style: italic }
+        span.no-italics { font-style: normal }
+
+        span.bold { font-weight: bold }
+        span.no-bold { font-weight: normal }
+
+        span.small-caps { font-variant: small-caps }
+        span.no-small-caps { font-variant: normal }
+
+        span.underlined { text-decoration: underline }
+        span.no-underlined { text-decoration: none }
+
+        span.strike-through { text-decoration: line-through }
+        span.no-strike-through { text-decoration: none }
+
+        ''')
+        css += '\n'+'\n'.join(font_size_classes)
+        css += '\n' +'\n'.join(color_classes)
+        with open('styles.css', 'ab') as f:
+            f.write(css)
+
+
     def convert(self, stream, options, file_ext, log,
                 accelerators):
-        from calibre.ebooks.rtf.xsl import xhtml
         from calibre.ebooks.metadata.meta import get_metadata
         from calibre.ebooks.metadata.opf2 import OPFCreator
         from calibre.ebooks.rtf2xml.ParseRtf import RtfInvalidCodeException
@@ -124,15 +192,18 @@ class RTFInput(InputFormatPlugin):
             if name is not None:
                 pict.set('num', name)
         self.log('Converting XML to HTML...')
-        styledoc = etree.fromstring(xhtml)
+        inline_class = InlineClass(self.log)
+        styledoc = etree.fromstring(P('templates/rtf.xsl', data=True))
 
-        transform = etree.XSLT(styledoc)
+        extensions = { ('calibre', 'inline-class') : inline_class }
+        transform = etree.XSLT(styledoc, extensions=extensions)
         result = transform(doc)
         html = 'index.xhtml'
         with open(html, 'wb') as f:
             res = transform.tostring(result)
             res = res[:100].replace('xmlns:html', 'xmlns') + res[100:]
             f.write(res)
+        self.write_inline_css(inline_class)
         stream.seek(0)
         mi = get_metadata(stream, 'rtf')
         if not mi.title: