diff --git a/VERSION b/VERSION
index 96d76a91..690f5d30 100644
--- a/VERSION
+++ b/VERSION
@@ -1 +1 @@
-Version 1.99.7 (2012-03-19 15:45:58) dev
+Version 1.99.7 (2012-03-19 15:51:10) dev
diff --git a/gluon/html.py b/gluon/html.py
index ae14f167..3ca402e2 100644
--- a/gluon/html.py
+++ b/gluon/html.py
@@ -266,13 +266,14 @@ def URL(
             args = items[1:] + args
         else:
             function = f
-        if '.' in function:
-            function, extension = function.split('.', 1)
 
         # if the url gets a static resource, don't force extention
         if controller == 'static':
             extension = None
 
+        if '.' in function:
+            function, extension = function.split('.', 1)
+
     function2 = '%s.%s' % (function,extension or 'html')
 
     if not (application and controller and function):