diff --git a/Makefile.custom b/Makefile.custom
index 656edde..2852f37 100644
--- a/Makefile.custom
+++ b/Makefile.custom
@@ -1,6 +1,6 @@
 # ----------------------------------------------------------- -*- mode: sh -*-
 # Package version
-VERSION   := 0.78.3
+VERSION   := 0.78.4
 
 # Dummy default install dir - override from packaging scripts
 DESTDIR ?= /tmp/dsme-test-install
diff --git a/configure.ac b/configure.ac
index 04f2a4d..04584a0 100644
--- a/configure.ac
+++ b/configure.ac
@@ -1,5 +1,5 @@
 # Package name and version
-AC_INIT(dsme, 0.78.3)
+AC_INIT(dsme, 0.78.4)
 
 AM_INIT_AUTOMAKE
 
diff --git a/debian/changelog b/debian/changelog
index da241a3..f1fc123 100644
--- a/debian/changelog
+++ b/debian/changelog
@@ -1,3 +1,10 @@
+dsme (0.78.4) precise; urgency=low
+
+  * [dsme-wdd] Update authors list
+  * [dsme-wdd] Do not close watchdog file descriptors when daemonizing. Fixes MER#1870
+
+ -- Simo Piiroinen <simo.piiroinen@jollamobile.com>  Tue, 13 Feb 2018 09:36:00 +0200
+
 dsme (0.78.3) precise; urgency=low
 
   * [iphb] Take release time stamp from /etc/os-release. Fixes JB#40772
diff --git a/rpm/dsme.spec b/rpm/dsme.spec
index d5c0ca1..6a66deb 100644
--- a/rpm/dsme.spec
+++ b/rpm/dsme.spec
@@ -1,6 +1,6 @@
 Name:       dsme
 Summary:    Device State Management Entity
-Version:    0.78.3
+Version:    0.78.4
 Release:    0
 Group:      System/System Control
 License:    LGPLv2+