diff --git a/README b/README
index 05f8b1f71109aa7235e8c96adebaa5aac183ae4d..afe7e381c99324ca3b04308e977f70b957a12e26 100644
--- a/README
+++ b/README
@@ -104,6 +104,18 @@ the string "u_boot" or on "U_BOOT". Example:
 	IH_OS_U_BOOT		u_boot_hush_start
 
 
+Versioning:
+===========
+
+U-Boot uses a 3 level version number containing a version, a
+sub-version, and a patchlevel: "U-Boot-2.34.5" means version "2",
+sub-version "34", and patchlevel "4".
+
+The patchlevel is used to indicate certain stages of development
+between released versions, i. e. officially released versions of
+U-Boot will always have a patchlevel of "0".
+
+
 Directory Hierarchy:
 ====================
 
diff --git a/include/version.h b/include/version.h
index e10c62fcadca3fc1adad85221406d6b2b79568d5..5a95754697bd13879ddb97da56d160b326536b27 100644
--- a/include/version.h
+++ b/include/version.h
@@ -24,6 +24,6 @@
 #ifndef	__VERSION_H__
 #define	__VERSION_H__
 
-#define	U_BOOT_VERSION	"U-Boot 0.1.1"
+#define	U_BOOT_VERSION	"U-Boot 0.2.0"
 
 #endif	/* __VERSION_H__ */