diff --git a/harbour/ChangeLog b/harbour/ChangeLog
index 75fc760eb8..d58d0d4ef1 100644
--- a/harbour/ChangeLog
+++ b/harbour/ChangeLog
@@ -16,6 +16,10 @@
    The license applies to all entries newer than 2009-04-28.
 */
 
+2011-07-16 14:53 UTC+0200 Viktor Szakats (harbour.01 syenar.hu)
+  * contrib/hbmlzo/core.c
+    ! fixed uninitialized variable in rare error case (signaled by msvc warning)
+
 2011-07-16 14:49 UTC+0200 Viktor Szakats (harbour.01 syenar.hu)
   * contrib/hbmxml/3rd/minixml/config.h
     ! fixed redefinition of snprintf and vsnprintf macros (upstream bugs)
diff --git a/harbour/contrib/hbmlzo/core.c b/harbour/contrib/hbmlzo/core.c
index eaef734be0..80c721b251 100644
--- a/harbour/contrib/hbmlzo/core.c
+++ b/harbour/contrib/hbmlzo/core.c
@@ -133,7 +133,10 @@ HB_FUNC( HB_LZO1X_1_COMPRESS )
          int         r;
 
          if( wrkmem == NULL )
+         {
             r = LZO_E_OUT_OF_MEMORY; /* out of memory */
+            dst_len = 0;
+         }
          else
          {
             r = lzo1x_1_compress( ( lzo_bytep ) src, src_len, dst, &dst_len, wrkmem );