diff --git a/VERSION b/VERSION
index 6712cef3..d7932aa6 100644
--- a/VERSION
+++ b/VERSION
@@ -1 +1 @@
-Version 1.99.7 (2012-03-12 15:15:29) dev
+Version 1.99.7 (2012-03-12 15:27:08) dev
diff --git a/gluon/html.py b/gluon/html.py
index abcf72df..0ac760f7 100644
--- a/gluon/html.py
+++ b/gluon/html.py
@@ -268,6 +268,10 @@ def URL(
         if '.' in function:
             function, extension = function.split('.', 1)
 
+        # if the url gets a static resource, don't force extention
+        if controller == 'static':
+            extension = None
+
     function2 = '%s.%s' % (function,extension or 'html')
 
     if not (application and controller and function):