diff --git a/VERSION.txt b/VERSION.txt
index 5e2cc0f8c16..94136d61bfb 100644
--- a/VERSION.txt
+++ b/VERSION.txt
@@ -8,6 +8,7 @@ jetty-7.0.0.RC6-SNAPSHOT
  + JETTY-1093 Request.toString throws exception when size exceeds 4k
  + 288514 AbstractConnector does not handle InterruptedExceptions on shutdown
  + 288466 LocalConnector is not thread safe
+ + 288772 Failure to connect does not set status to EXCEPTED
 
 jetty-6.1.20 27 August 2009
  + JETTY-838 Don't log and throw
@@ -27,7 +28,7 @@ jetty-6.1.20 27 August 2009
  + JETTY-1080 Ignore files that would be extracted outside the destination directory when unpacking WARs
  + JETTY-1081 Handle null content type in GzipFilter
  + JETTY-1084 Disable GzipFilter for HEAD requests
- + JETTY-1085 Allow url sessionID if cookie invalid 
+ + JETTY-1085 Allow url sessionID if cookie invalid
  + JETTY-1086 Added UncheckedPrintWriter to avoid ignored EOFs
  + JETTY-1087 Chunked SSL non blocking input
  + JETTY-1098 Upgrade jsp to SJSAS-9_1_1-B60F-07_Jan_2009
@@ -80,7 +81,7 @@ jetty-6.1.19 1 July 2009
  + JETTY-1049 Improved transparent proxy usability
  + JETTY-1054 Avoid double deploys
  + JETTY-1055 Cookie quoting
- + JETTY-1057 Error page stack trace XSS 
+ + JETTY-1057 Error page stack trace XSS
  + JETTY-1058 Handle trailing / with aliases on
  + JETTY-1062 Don't filter cometd message without data
 
diff --git a/jetty-client/src/main/java/org/eclipse/jetty/client/HttpDestination.java b/jetty-client/src/main/java/org/eclipse/jetty/client/HttpDestination.java
index ed0e1c2ae07..d0092542f48 100644
--- a/jetty-client/src/main/java/org/eclipse/jetty/client/HttpDestination.java
+++ b/jetty-client/src/main/java/org/eclipse/jetty/client/HttpDestination.java
@@ -4,11 +4,11 @@
 // All rights reserved. This program and the accompanying materials
 // are made available under the terms of the Eclipse Public License v1.0
 // and Apache License v2.0 which accompanies this distribution.
-// The Eclipse Public License is available at 
+// The Eclipse Public License is available at
 // http://www.eclipse.org/legal/epl-v10.html
 // The Apache License v2.0 is available at
 // http://www.opensource.org/licenses/apache2.0.php
-// You may elect to redistribute this code under either of these licenses. 
+// You may elect to redistribute this code under either of these licenses.
 // ========================================================================
 package org.eclipse.jetty.client;
 
@@ -30,8 +30,8 @@ import org.eclipse.jetty.io.ByteArrayBuffer;
 import org.eclipse.jetty.util.log.Log;
 
 /**
- * 
- * 
+ *
+ *
  */
 public class HttpDestination
 {
@@ -159,7 +159,7 @@ public class HttpDestination
                     starting = true;
                 }
             }
-            
+
             if (!starting)
             {
                 try
@@ -192,7 +192,7 @@ public class HttpDestination
         }
         return connection;
     }
-    
+
     /* ------------------------------------------------------------------------------- */
     public HttpConnection reserveConnection(long timeout) throws IOException
     {
@@ -221,7 +221,7 @@ public class HttpDestination
                 if (_idle.size() > 0)
                     connection = _idle.remove(_idle.size()-1);
             }
-            
+
             if (connection==null)
                 return null;
 
@@ -267,6 +267,7 @@ public class HttpDestination
             {
                 HttpExchange ex = _queue.removeFirst();
                 ex.getEventListener().onConnectionFailed(throwable);
+                ex.setStatus(HttpExchange.STATUS_EXCEPTED);
             }
         }
 
@@ -342,7 +343,7 @@ public class HttpDestination
     {
         if (connection.isReserved())
             connection.setReserved(false);
-        
+
         if (close)
         {
             try
diff --git a/jetty-client/src/test/java/org/eclipse/jetty/client/ConnectionFailedTest.java b/jetty-client/src/test/java/org/eclipse/jetty/client/ConnectionFailedTest.java
new file mode 100644
index 00000000000..e5cf7cd0aaf
--- /dev/null
+++ b/jetty-client/src/test/java/org/eclipse/jetty/client/ConnectionFailedTest.java
@@ -0,0 +1,55 @@
+package org.eclipse.jetty.client;
+
+import java.util.concurrent.CountDownLatch;
+import java.util.concurrent.TimeUnit;
+
+import junit.framework.TestCase;
+
+/**
+ * @version $Revision$ $Date$
+ */
+public class ConnectionFailedTest extends TestCase
+{
+    public void testConnectionFailed() throws Exception
+    {
+        HttpClient httpClient = new HttpClient();
+        httpClient.start();
+
+        CountDownLatch latch = new CountDownLatch(1);
+        HttpExchange exchange = new ConnectionFailedExchange(latch);
+        exchange.setAddress(new Address("localhost", 8080));
+        exchange.setURI("/");
+
+        httpClient.send(exchange);
+
+        boolean passed = latch.await(1000, TimeUnit.MILLISECONDS);
+        assertTrue(passed);
+
+        long wait = 100;
+        long maxWait = 10 * wait;
+        long curWait = wait;
+        while (curWait < maxWait && !exchange.isDone(exchange.getStatus()))
+        {
+            Thread.sleep(wait);
+            curWait += wait;
+        }
+
+        assertEquals(HttpExchange.STATUS_EXCEPTED, exchange.getStatus());
+    }
+
+    private class ConnectionFailedExchange extends HttpExchange
+    {
+        private final CountDownLatch latch;
+
+        private ConnectionFailedExchange(CountDownLatch latch)
+        {
+            this.latch = latch;
+        }
+
+        @Override
+        protected void onConnectionFailed(Throwable ex)
+        {
+            latch.countDown();
+        }
+    }
+}