diff --git a/docs/news.txt b/docs/news.txt
index 454b862ba44810c82812c1246b9c44c9238e198d..e134fd4ef5ed640f777896814dbd8258c0270d90 100644
--- a/docs/news.txt
+++ b/docs/news.txt
@@ -14,6 +14,9 @@ tip
 
 * Fixed issue #107 - Can't install if a directory in cwd has the same name as the package you're installing.
 
+* Fixed issue #39 - --install-option="--prefix=~/.local" ignored with -e.
+Thanks Ronny Pfannschmidt and Wil Tan.
+
 
 
 0.8