diff --git a/CImage.php b/CImage.php
index 8cb8601..e203bcb 100644
--- a/CImage.php
+++ b/CImage.php
@@ -147,13 +147,11 @@ class CImage {
       
         // Use newWidth and newHeigh as max width/height, image should not be larger.
         else {
-         if($this->width > $this->height) {
-            $factor = (float)$this->newWidth / (float)$this->width;
-            $this->newHeight = $factor * $this->height;
-          } else {
-            $factor = (float)$this->newHeight / (float)$this->height;
-            $this->newWidth = $factor * $this->width;
-          }
+          $ratioWidth = $this->width/$this->newWidth;
+          $ratioHeight = $this->height/$this->newHeight;
+          $ratio = ($ratioWidth > $ratioHeight) ? $ratioWidth : $ratioHeight;
+          $this->newWidth = $this->width / $ratio;
+          $this->newHeight = $this->height / $ratio;
         }
       } 
      
@@ -190,6 +188,8 @@ class CImage {
       $this->Output($this->pathToImage);
     }
     
+    //echo "{$this->newWidth}:{$this->newHeight}";
+    
     // Check cache before resizing.
     $this->newFileName = $this->CreateFilename();
     if(is_readable($this->newFileName)) {
diff --git a/README.md b/README.md
index 8e99c23..bc67aad 100644
--- a/README.md
+++ b/README.md
@@ -21,6 +21,11 @@ Mikael Roos (mos@dbwebb.se)
 Revision history
 ----------------
 
+v0.1.1 (2012-04-27) 
+
+* Corrected calculation where both width and height were set.
+
+
 v0.1 (2012-04-25) 
 
 * Initial release after rewriting some older code I had lying around.