diff --git a/gas/ChangeLog b/gas/ChangeLog
index b0b18bedb64..12e037417ae 100644
--- a/gas/ChangeLog
+++ b/gas/ChangeLog
@@ -1,3 +1,12 @@
+2005-03-01  Ramana Radhakrishnan  <ramana@gnumenor>
+
+	PR gas/708
+	* config/tc-arc.c(md_assemble):Initialize suffix for extension
+	suffixes also.
+	* testsuite/gas/arc/extensions.s:New file 
+	* testsuite/gas/arc/extensions.d:New file
+
+
 2005-03-01  Alan Modra  <amodra@bigpond.net.au>
 
 	* config/obj-coff.c (fixup_segment): Delete sy_mri_common assertion.
diff --git a/gas/config/tc-arc.c b/gas/config/tc-arc.c
index f5583a3d537..12dfd9dffbd 100644
--- a/gas/config/tc-arc.c
+++ b/gas/config/tc-arc.c
@@ -568,7 +568,7 @@ md_assemble (str)
 					       NULL);
 		  else
 		    insn |= suf->value << operand->shift;
-
+		  suffix = suf;
 		  str = t;
 		  found = 1;
 		}
diff --git a/gas/testsuite/gas/arc/extensions.d b/gas/testsuite/gas/arc/extensions.d
new file mode 100644
index 00000000000..07bd183987c
--- /dev/null
+++ b/gas/testsuite/gas/arc/extensions.d
@@ -0,0 +1,9 @@
+#as: -EL -marc8
+#objdump: -dr -EL
+
+.*: +file format elf32-.*arc
+
+Disassembly of section .text:
+
+00000000 <condcodeTest>:
+   0:	12 02 00 40 	40000212     add.isbusy r0,r0,r1
diff --git a/gas/testsuite/gas/arc/extensions.s b/gas/testsuite/gas/arc/extensions.s
new file mode 100644
index 00000000000..558dcb581b8
--- /dev/null
+++ b/gas/testsuite/gas/arc/extensions.s
@@ -0,0 +1,4 @@
+.extCondCode   isbusy, 0x12
+	.section .text
+condcodeTest:
+	add.isbusy r0,r0,r1