diff --git a/docs/NEWS b/docs/NEWS
index 26390e17..d50b5e11 100644
--- a/docs/NEWS
+++ b/docs/NEWS
@@ -74,6 +74,9 @@ Version 1.3 ()
 Version 1.2.1 ()
 ------------------------------------------------------------------------
 
+    * Fix proper encoding of '%' sign when used in post titles
+      (garvinhicking)
+      
     * Encode RSS feed links, Patch by Hanno Boeck
 
     * Fix spartacus filter listing showing event plugin groups in the
diff --git a/include/functions_permalinks.inc.php b/include/functions_permalinks.inc.php
index 8d07ff6c..ca97a35c 100644
--- a/include/functions_permalinks.inc.php
+++ b/include/functions_permalinks.inc.php
@@ -22,6 +22,7 @@ if (defined('S9Y_FRAMEWORK_PERMALINKS')) {
 function serendipity_makeFilename($str, $stripDots = false) {
     static $from = array(
                      ' ',
+                     '%',
 
                      'Ä',
                      'ä',
@@ -65,6 +66,7 @@ function serendipity_makeFilename($str, $stripDots = false) {
 
     static $to   = array(
                      '-',
+                     '%25',
 
                      'AE',
                      'ae',