diff --git a/Makefile b/Makefile
index 11bc446..1b8f964 100644
--- a/Makefile
+++ b/Makefile
@@ -12,6 +12,8 @@
 # in the file LICENSE.
 # ------------------------------------------------------------------
 
+VERSION=1.0.8
+
 SHELL=/bin/sh
 
 # To assist in cross-compiling
@@ -107,6 +109,9 @@
 	echo ".so man1/bzgrep.1" > $(PREFIX)/man/man1/bzfgrep.1
 	echo ".so man1/bzmore.1" > $(PREFIX)/man/man1/bzless.1
 	echo ".so man1/bzdiff.1" > $(PREFIX)/man/man1/bzcmp.1
+	if ( test ! -d $(PREFIX)/lib/pkgconfig ) ; then mkdir -p $(PREFIX)/lib/pkgconfig ; fi
+	sed -e "s/@@VERSION@@/$(VERSION)/g;s#@@PREFIX@@#$(PREFIX)#g" bzip2.pc.in > $(PREFIX)/lib/pkgconfig/bzip2.pc
+	sed -e "s/@@VERSION@@/$(VERSION)/g;s#@@PREFIX@@#$(PREFIX)#g" libbz2.pc.in > $(PREFIX)/lib/pkgconfig/libbz2.pc
 
 clean: 
 	rm -f *.o libbz2.a bzip2 bzip2recover \
@@ -137,7 +142,7 @@
 distclean: clean
 	rm -f manual.ps manual.html manual.pdf
 
-DISTNAME=bzip2-1.0.8
+DISTNAME=bzip2-$(VERSION)
 dist: check manual
 	rm -f $(DISTNAME)
 	ln -s -f . $(DISTNAME)
diff --git a/Makefile-libbz2_so b/Makefile-libbz2_so
index 1f0739b..0c94517 100644
--- a/Makefile-libbz2_so
+++ b/Makefile-libbz2_so
@@ -20,6 +20,9 @@
 # in the file LICENSE.
 # ------------------------------------------------------------------
 
+MAJOR_VERSION=1
+MAJOR_MINOR_VERSION=$(MAJOR_VERSION).0
+VERSION=$(MAJOR_MINOR_VERSION).8
 
 SHELL=/bin/sh
 CC=gcc
@@ -34,14 +37,29 @@
       decompress.o \
       bzlib.o
 
-all: $(OBJS)
-	$(CC) -shared -Wl,-soname -Wl,libbz2.so.1.0 -o libbz2.so.1.0.8 $(OBJS)
-	$(CC) $(CFLAGS) -o bzip2-shared bzip2.c libbz2.so.1.0.8
-	rm -f libbz2.so.1.0
-	ln -s libbz2.so.1.0.8 libbz2.so.1.0
+all: $(OBJS)
+	$(CC) -shared -Wl,-soname -Wl,libbz2.so.$(MAJOR_MINOR_VERSION) -o libbz2.so.$(VERSION) $(OBJS)
+	$(CC) $(CFLAGS) -o bzip2-shared bzip2.c libbz2.so.$(VERSION)
+	rm -f libbz2.so.$(MAJOR_MINOR_VERSION)
+	ln -s libbz2.so.$(VERSION) libbz2.so.$(MAJOR_MINOR_VERSION)
+	rm -f libbz2.so.$(MAJOR_VERSION)
+	ln -s libbz2.so.$(VERSION) libbz2.so.$(MAJOR_VERSION)
+	rm -f libbz2.so
+	ln -s libbz2.so.$(VERSION) libbz2.so
+
+install:
+	if ( test ! -d $(PREFIX)/lib ) ; then mkdir -p $(PREFIX)/lib ; fi
+	cp -fa libbz2.so.$(VERSION)              $(PREFIX)/lib
+	chmod a+r                               $(PREFIX)/lib/libbz2.so.$(VERSION)
+	cp -fa libbz2.so.$(MAJOR_MINOR_VERSION)  $(PREFIX)/lib
+	cp -fa libbz2.so.$(MAJOR_VERSION)        $(PREFIX)/lib
+	cp -fa libbz2.so                         $(PREFIX)/lib
+	if ( test ! -d $(PREFIX)/lib/pkgconfig ) ; then mkdir -p $(PREFIX)/lib/pkgconfig ; fi
+	sed -e "s/@@VERSION@@/$(VERSION)/g;s#@@PREFIX@@#$(PREFIX)#g" bzip2.pc.in  > $(PREFIX)/lib/pkgconfig/bzip2.pc
+	sed -e "s/@@VERSION@@/$(VERSION)/g;s#@@PREFIX@@#$(PREFIX)#g" libbz2.pc.in > $(PREFIX)/lib/pkgconfig/libbz2.pc
 
 clean: 
-	rm -f $(OBJS) bzip2.o libbz2.so.1.0.8 libbz2.so.1.0 bzip2-shared
+	rm -f $(OBJS) bzip2.o libbz2.so.$(VERSION) libbz2.so.$(MAJOR_MINOR_VERSION) libbz2.so.$(MAJOR_VERSION) libbz.so bzip2-shared
 
 blocksort.o: blocksort.c
 	$(CC) $(CFLAGS) -c blocksort.c
diff --git a/bzip2.pc.in b/bzip2.pc.in
new file mode 100644
index 0000000..74a527c
--- /dev/null
+++ b/bzip2.pc.in
@@ -0,0 +1,13 @@
+prefix=@@PREFIX@@
+exec_prefix=\${prefix}/bin
+libdir=\${prefix}/lib
+sharedlibdir=\${prefix}/lib
+includedir=\${prefix}/include
+
+Name: bzip2
+Description: BZip2 compression library
+Version: @@VERSION@@
+
+Requires:
+Libs: -L\${prefix}/lib -lbz2
+Cflags: -I\${prefix}/include
diff --git a/libbz2.pc.in b/libbz2.pc.in
new file mode 100644
index 0000000..ed08e7f
--- /dev/null
+++ b/libbz2.pc.in
@@ -0,0 +1,13 @@
+prefix=@@PREFIX@@
+exec_prefix=\${prefix}/bin
+libdir=\${prefix}/lib
+sharedlibdir=\${prefix}/lib
+includedir=\${prefix}/include
+
+Name: libbz2
+Description: BZip2 compression library
+Version: @@VERSION@@
+
+Requires:
+Libs: -L\${prefix}/lib -lbz2
+Cflags: -I\${prefix}/include