diff --git a/ANNOUNCE b/ANNOUNCE
index efa998d18..3fb484e2b 100644
--- a/ANNOUNCE
+++ b/ANNOUNCE
@@ -344,6 +344,7 @@ Version 1.6.0beta20 [March 28, 2012]
   Recognize known sRGB ICC profiles while reading and issue a warning about
     it, if PNG_WARN_IF_iCCP_IS_sRGB_SUPPORTED is defined.
   Added checksum-icc.c to contrib/tools
+  Prevent PNG_EXPAND+PNG_SHIFT doing the shift twice.
 
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diff --git a/CHANGES b/CHANGES
index 50ce595db..97c7e2c3a 100644
--- a/CHANGES
+++ b/CHANGES
@@ -4095,6 +4095,7 @@ Version 1.6.0beta20 [March 28, 2012]
   Recognize known sRGB ICC profiles while reading and issue a warning about
     it, if PNG_WARN_IF_iCCP_IS_sRGB_SUPPORTED is defined.
   Added checksum-icc.c to contrib/tools
+  Prevent PNG_EXPAND+PNG_SHIFT doing the shift twice.
 
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 (subscription required; visit
diff --git a/pngrtran.c b/pngrtran.c
index 9419c332a..ef4eca1d1 100644
--- a/pngrtran.c
+++ b/pngrtran.c
@@ -1866,12 +1866,15 @@ png_init_read_transformations(png_structrp png_ptr)
 
 #ifdef PNG_READ_SHIFT_SUPPORTED
    if ((png_ptr->transformations & PNG_SHIFT) &&
+      !(png_ptr->transformations & PNG_EXPAND) &&
        (png_ptr->color_type == PNG_COLOR_TYPE_PALETTE))
    {
       int i;
       int istop = png_ptr->num_palette;
       int shift = 8 - png_ptr->sig_bit.red;
 
+      png_ptr->transformations &= ~PNG_SHIFT;
+
       /* significant bits can be in the range 1 to 7 for a meaninful result, if
        * the number of significant bits is 0 then no shift is done (this is an
        * error condition which is silently ignored.)