diff --git a/README b/README
index 3bfccff9..c9ebd097 100644
--- a/README
+++ b/README
@@ -4,7 +4,7 @@
           \__\__/\____/\_____/__/ ____  ___
                 / _/ /    \    \ /  _ \/ _/
                /  \_/   / /   \ \   __/  \__
-               \____/____/\_____/_____/____/v0.2.1
+               \____/____/\_____/_____/____/v0.3.0
 
 Description:
 ============
diff --git a/configure.ac b/configure.ac
index 918638e2..3b344f0e 100644
--- a/configure.ac
+++ b/configure.ac
@@ -1,4 +1,4 @@
-AC_INIT([libwebp], [0.2.1],
+AC_INIT([libwebp], [0.3.0],
         [http://code.google.com/p/webp/issues],,
         [http://developers.google.com/speed/webp])
 AC_CANONICAL_TARGET
diff --git a/src/Makefile.am b/src/Makefile.am
index fa09440f..bfcd1985 100644
--- a/src/Makefile.am
+++ b/src/Makefile.am
@@ -33,7 +33,7 @@ libwebp_la_LIBADD += utils/libwebputils.la
 # other than the ones listed on the command line, i.e., after linking, it will
 # not have unresolved symbols. Some platforms (Windows among them) require all
 # symbols in shared libraries to be resolved at library creation.
-libwebp_la_LDFLAGS = -no-undefined -version-info 4:1:0
+libwebp_la_LDFLAGS = -no-undefined -version-info 4:2:0
 libwebpincludedir = $(includedir)/webp
 pkgconfig_DATA = libwebp.pc
 
diff --git a/src/dec/vp8i.h b/src/dec/vp8i.h
index 4f5192e2..1aa92385 100644
--- a/src/dec/vp8i.h
+++ b/src/dec/vp8i.h
@@ -27,8 +27,8 @@ extern "C" {
 
 // version numbers
 #define DEC_MAJ_VERSION 0
-#define DEC_MIN_VERSION 2
-#define DEC_REV_VERSION 1
+#define DEC_MIN_VERSION 3
+#define DEC_REV_VERSION 0
 
 #define ONLY_KEYFRAME_CODE      // to remove any code related to P-Frames
 
diff --git a/src/enc/vp8enci.h b/src/enc/vp8enci.h
index 5b08092e..6164703e 100644
--- a/src/enc/vp8enci.h
+++ b/src/enc/vp8enci.h
@@ -27,8 +27,8 @@ extern "C" {
 
 // version numbers
 #define ENC_MAJ_VERSION 0
-#define ENC_MIN_VERSION 2
-#define ENC_REV_VERSION 1
+#define ENC_MIN_VERSION 3
+#define ENC_REV_VERSION 0
 
 // intra prediction modes
 enum { B_DC_PRED = 0,   // 4x4 modes