diff --git a/src/.nuget/packages.config b/src/.nuget/packages.config
index 12e394bff8eca0f2fa51da3ad0f5e87e4339aa86..811f6a6763bf282346c4ff84f2f18948731dc409 100644
--- a/src/.nuget/packages.config
+++ b/src/.nuget/packages.config
@@ -1,7 +1,7 @@
 <?xml version="1.0" encoding="utf-8"?>
 <!-- Copyright (c) Microsoft Open Technologies, Inc.  All Rights Reserved.  Licensed under the Apache License, Version 2.0.  See License.txt in the project root for license information. -->
 <packages>
-  <package id="Microsoft.Net.ToolsetCompilers" version="1.0.0-rc2-20150319-05" targetFramework="net45" />
-  <package id="Microsoft.Net.RoslynDiagnostics" version="1.0.0-rc2-20150319-05" targetFramework="net45" />
+  <package id="Microsoft.Net.ToolsetCompilers" version="1.0.0-rc2-20150413-02" targetFramework="net45" />
+  <package id="Microsoft.Net.RoslynDiagnostics" version="1.0.0-rc2-20150413-02" targetFramework="net45" />
   <package id="FakeSign" version="0.9.2" targetFramework="net45" />
 </packages>
diff --git a/src/EditorFeatures/CSharpTest/EditAndContinue/RudeEditTopLevelTests.cs b/src/EditorFeatures/CSharpTest/EditAndContinue/RudeEditTopLevelTests.cs
index 6eb03852fc8e08ec4bd29175fba19fd8ecb2b2c9..ff6ce37a100863d8a47aab5af1de326e69d0dd9c 100644
--- a/src/EditorFeatures/CSharpTest/EditAndContinue/RudeEditTopLevelTests.cs
+++ b/src/EditorFeatures/CSharpTest/EditAndContinue/RudeEditTopLevelTests.cs
@@ -3136,6 +3136,42 @@ public void MethodUpdate_Iterator_YieldBreak()
             VerifyPreserveLocalVariables(edits, preserveLocalVariables: true);
         }
 
+        [WorkItem(1087305)]
+        [Fact]
+        public void MethodUpdate_LabeledStatement()
+        {
+            string src1 = @"
+class C
+{
+    static void Main(string[] args)
+    {
+        goto Label1;
+ 
+    Label1:
+        {
+            Console.WriteLine(1);
+        }
+    }
+}";
+            string src2 = @"
+class C
+{
+    static void Main(string[] args)
+    {
+        goto Label1;
+ 
+    Label1:
+        {
+            Console.WriteLine(2);
+        }
+    }
+}";
+
+            var edits = GetTopEdits(src1, src2);
+
+            edits.VerifyRudeDiagnostics();
+        }
+
         #endregion
 
         #region Operators
diff --git a/src/Features/CSharp/EditAndContinue/StatementSyntaxComparer.cs b/src/Features/CSharp/EditAndContinue/StatementSyntaxComparer.cs
index 8c944e05ed0bd4811aa135174b1b4f3c7e1400d8..52ab6cf11963703ffddc02024f2de8e5a2ab1431 100644
--- a/src/Features/CSharp/EditAndContinue/StatementSyntaxComparer.cs
+++ b/src/Features/CSharp/EditAndContinue/StatementSyntaxComparer.cs
@@ -767,6 +767,7 @@ private bool TryComputeWeightedDistance(BlockSyntax leftBlock, BlockSyntax right
                     return true;
 
                 case SyntaxKind.Block:
+                case SyntaxKind.LabeledStatement:
                     distance = ComputeWeightedBlockDistance(leftBlock, rightBlock);
                     return true;
 
diff --git a/src/Tools/Microsoft.CodeAnalysis.Toolset.Open/Targets/VSL.Settings.targets b/src/Tools/Microsoft.CodeAnalysis.Toolset.Open/Targets/VSL.Settings.targets
index 827acf609687248b6365f035a0b4dc28c856a89d..9b4965360bf3a1cc93dcec9cd1275f9e67affadf 100644
--- a/src/Tools/Microsoft.CodeAnalysis.Toolset.Open/Targets/VSL.Settings.targets
+++ b/src/Tools/Microsoft.CodeAnalysis.Toolset.Open/Targets/VSL.Settings.targets
@@ -54,8 +54,8 @@
   <!-- Import the global NuGet packages -->
   <PropertyGroup>
     <ToolsetCompilerPackageName>Microsoft.Net.ToolsetCompilers</ToolsetCompilerPackageName>
-    <ToolsetCompilerPropsFilePath>$(NuGetPackagesPath)\Microsoft.Net.ToolsetCompilers.1.0.0-rc2-20150319-05\build\Microsoft.Net.ToolsetCompilers.props</ToolsetCompilerPropsFilePath>
-    <RoslynDiagnosticsPropsFilePath>$(NuGetPackagesPath)\Microsoft.Net.RoslynDiagnostics.1.0.0-rc2-20150319-05\build\Microsoft.Net.RoslynDiagnostics.props</RoslynDiagnosticsPropsFilePath>
+    <ToolsetCompilerPropsFilePath>$(NuGetPackagesPath)\Microsoft.Net.ToolsetCompilers.1.0.0-rc2-20150413-02\build\Microsoft.Net.ToolsetCompilers.props</ToolsetCompilerPropsFilePath>
+    <RoslynDiagnosticsPropsFilePath>$(NuGetPackagesPath)\Microsoft.Net.RoslynDiagnostics.1.0.0-rc2-20150413-02\build\Microsoft.Net.RoslynDiagnostics.props</RoslynDiagnosticsPropsFilePath>
     <AdditionalFileItemNames>$(AdditionalFileItemNames);PublicAPI</AdditionalFileItemNames>
   </PropertyGroup>