diff --git a/KNOWN_ISSUES b/KNOWN_ISSUES
index 4db58a7d9e985445e5b35890b5fc628419dd784c..934ca7b714bd7cc988c12bee526c9564d2364273 100644
--- a/KNOWN_ISSUES
+++ b/KNOWN_ISSUES
@@ -4,7 +4,7 @@ Features not supported
 Here is a list of the most notable features that are not supported in the
 current version of Knot.
 
-* Other DNS classes than IN (CH, CS, HS)
+* Other DNS classes than IN, partially CH (CS, HS)
 * Dynamic updates with signed zones have following limitations:
   - Knot DNS doesn't automatically sign incoming RRs
   - Removing of RRSIG without covered type specification
diff --git a/NEWS b/NEWS
index f00c3066b99822a0aa9586c764fbe1a1f2b84c38..657d042a062a12e0c024ab3cdc21d9922faf752c 100644
--- a/NEWS
+++ b/NEWS
@@ -1,19 +1,23 @@
 Knot DNS NEWS
 
-v1.3.0-dev - ??, 2013
+v1.3.0-rc1 - Jun 4, 2013
 ---------------------------
 
 Features:
-        * faster zone parser
-        * full support for EUI and ILNP resource records
-        * lower memory footprint for large zones
-        * no compilation of zones
-        * improved scheduling of zone transfers
-        * logging of serials and timing information for zone transfers
-        * config: 'groups' keyword allowing to create groups of remotes
-        * config: 'include' keyword allowing other file includes
-        * client utilities: kdig, khost, knsupdate
-        * server identification using TXT/CH queries (RFC 4892)
+        * Faster zone parser
+        * Full support for EUI and ILNP resource records
+        * Lower memory footprint for large zones
+        * No compilation of zones
+        * Improved scheduling of zone transfers
+        * Logging of serials and timing information for zone transfers
+        * Config: 'groups' keyword allowing to create groups of remotes
+        * Config: 'include' keyword allowing other file includes
+        * Client utilities: kdig, khost, knsupdate
+        * Server identification using TXT/CH queries (RFC 4892)
+	* Improved build scripts
+	* Improved dname compression and performance
+Bugfixes:
+	* Fixed creating of PID file when dropping privileges
 
 v1.2.0 - Mar 29, 2013
 ---------------------
diff --git a/configure.ac b/configure.ac
index 8c5c7a1e612416128e80c556aebc1ef6f0db3741..2ee2c5ac77a92bba73326388fb7548d11ed1b2b0 100644
--- a/configure.ac
+++ b/configure.ac
@@ -1,7 +1,7 @@
 #                                               -*- Autoconf -*-
 
 AC_PREREQ([2.60])
-AC_INIT([knot], [1.3.0-dev], [knot-dns@labs.nic.cz])
+AC_INIT([knot], [1.3.0-rc1], [knot-dns@labs.nic.cz])
 AM_INIT_AUTOMAKE([gnits subdir-objects dist-bzip2 dist-xz -Wall -Werror])
 AM_SILENT_RULES([yes])
 AC_CONFIG_SRCDIR([src/knot/main.c])