diff --git a/NEWS b/NEWS
index 3e8f171..937db41 100644
--- a/NEWS
+++ b/NEWS
@@ -1,6 +1,16 @@
 Changes from previous version of pkgconf
 ========================================
 
+Changes from 1.2.0 to 1.2.1:
+----------------------------
+
+* Bug fixes:
+  - pkg: properly separate static and virtual packages so they are not inappropriately
+    optimized out of the dependency graph (#108)
+
+* Enhancements:
+  - many code fixes spotted by coverity
+
 Changes from 1.1.0 to 1.2.0:
 ----------------------------
 
diff --git a/configure.ac b/configure.ac
index fd6d347..eba4fb9 100644
--- a/configure.ac
+++ b/configure.ac
@@ -12,7 +12,7 @@ dnl implied.  In no event shall the authors be liable for any damages arising
 dnl from the use of this software.
 
 AC_PREREQ([2.68])
-AC_INIT([pkgconf], [1.2.0], [http://github.com/pkgconf/pkgconf/issues])
+AC_INIT([pkgconf], [1.2.1], [http://github.com/pkgconf/pkgconf/issues])
 AC_CONFIG_SRCDIR([main.c])
 AC_CONFIG_HEADERS([libpkgconf/config.h])
 AC_CHECK_FUNCS([strlcpy strlcat strndup realpath cygwin_conv_path])