diff --git a/configure.ac b/configure.ac
index 8b1c56aa21..9aad3e6060 100644
--- a/configure.ac
+++ b/configure.ac
@@ -9,7 +9,7 @@ AM_CONFIG_HEADER(config.h)
 
 GST_VERSION_MAJOR=0
 GST_VERSION_MINOR=3
-GST_VERSION_MICRO=07
+GST_VERSION_MICRO=1
 
 dnl we use a datestamped release tag during CVS development
 dnl GST_VERSION_RELEASE=`date +%Y%m%d`