diff --git a/Changelog.yaml b/Changelog.yaml
index 82b335bbdd..9e2088d165 100644
--- a/Changelog.yaml
+++ b/Changelog.yaml
@@ -4,6 +4,120 @@
 # for important features/bug fixes.
 # Also, each release can have new and improved recipes.
 
+- version: 0.7.39
+  date: 2011-01-14
+
+  new features:
+    - title: "A new 'highlight matches' search mode" 
+      description: >
+        "There is now a checkbox next to the search bar named 'Highlight'. If you check it, searching will highlight
+        all matched books instead of filtering the book list to all matched books."
+
+    - title: "RTF Input: Improved support for conversion of images. The bug where some images were shrunk should no longer happen"
+
+    - title: "Template language: Allow you to create your own formatting functions. Accessible via Preferences->Advanced->Template functions"
+
+    - title: "News download: Convert various HTML 5 tags into <div> to support readers that cannot handle HTML 5 tags"
+
+    - title: "RTF metadata: Add support for publisher and tags."
+      tickets: [6657]
+
+    - title: "BibTeX catalog: Add support for custom columns"
+
+    - title: "TXT Input: Support for textile markup"
+
+    - title: "Various minor tweaks to improve usability of Preferences->Plugins"
+
+    - title: "TXT Output: Convert <hr> to scene break marker."
+
+    - title: "Support for the Archos 70"
+
+    - title: "SONY Driver: Add an option to automatically refresh the covers on every connect. Accessible via: Preferences->Plugins->Device interface plugins"
+
+    - title: "Add access to the larger template editor from plugboards via context menu."
+
+    - title: "Speed improvement when connecting a large library to a device"
+
+    - title: "Speedup when searching on multiple words in a large library"
+
+    - title: "TXT Input: Add a heauristic formatting processor"
+
+
+  bug fixes:
+    - title: "Fix bug that caused automatic news removal to remove any book that has a tag that contains the word 'news' instead of only books that have the tag News"
+
+    - title: "Refactor the downloading social metadata message box to allow canceling."
+      tickets: [8234]
+
+    - title: "Kobo drive does not deal with Null value in DateCreated column"
+      tickets: [8308]
+
+    - title: "MOBI Input: Fix regression that caused images placed inside svg tags to be discarded"
+
+    - title: "Fix selecting Tablet output profile would actually select the Samsung Galaxy S profile"
+
+    - title: "Catalog generation: Fix a condition that could cause TOCs to not be properly generated in MOBI format catalogs"
+      tickets: [8295]
+
+    - title: "Zip file reading: Be more tolerant when a zip file has a damaged file directory"
+
+    - title: "RTF Input: Various code cleanups. Go back to trying to handle unicode mappings without pre-processing. This will mean that some RTF files that used to convert, won't anymore. Please open tickets and attach them."
+      tickets: [8171]
+
+    - title: "ImageMagick: When identifying an image don't read the entire image"
+
+    - title: "FB2 Output: Add cover to FB2 metadata."
+
+    - title: "Fix inability to customize builting recipe when more than one recipe has the same name"
+      tickets: [8281]
+
+    - title: "RTF Input: Fix regression that broke the Preprocess HTML option"
+
+    - title: "Fix XSS vulnerability in content server."
+      tickets: [7980]
+
+    - title: "TXT Output: Clean up and produce consistant output. Spacing around headings. Headings are not indented when using the remove paragraph spacing option."
+
+    - title: "Catalog generation: Handle invalid covers gracefully"
+
+    - title: "Email settings: Before displaying the email test dialog warn the user that it will expose their email password"
+
+    - title: "PDB Output: Fix regression that caused some PDB files to not work with other software"
+      tickets: [8231]
+
+  improved recipes:
+    - Financial Times UK
+    - Globe and Mail
+    - Wired Daily
+    - MIT Technology Review
+    - MSNBC
+    - expansion.com
+    - New York Times
+    - Heraldo de Aragon
+    - Exiled online
+
+  new recipes:
+    - title: "Yakima Herald and Tri-City Herald"
+      author: "Laura Gjovaag"
+
+    - title: "Wichita Eagle"
+      author: "Jason Cameron"
+
+    - title: "Pressthink and Zero Hedge"
+      author: "Darko Miletic"
+
+    - title: "tyzden"
+      author: "zemiak"
+
+    - title: "El Correo"
+      author: "desUBIKado"
+
+    - title: "Cicero"
+      author: "mad"
+
+    - title: "El Publico"
+      author: "Gerardo Diez"
+
 - version: 0.7.38
   date: 2011-01-07
 
diff --git a/src/calibre/constants.py b/src/calibre/constants.py
index 2443c55d9d..e2fe1df942 100644
--- a/src/calibre/constants.py
+++ b/src/calibre/constants.py
@@ -2,7 +2,7 @@ __license__   = 'GPL v3'
 __copyright__ = '2008, Kovid Goyal kovid@kovidgoyal.net'
 __docformat__ = 'restructuredtext en'
 __appname__   = 'calibre'
-__version__   = '0.7.38'
+__version__   = '0.7.39'
 __author__    = "Kovid Goyal <kovid@kovidgoyal.net>"
 
 import re