Index: src/org/jruby/evaluator/ASTInterpreter.java
===================================================================
--- src/org/jruby/evaluator/ASTInterpreter.java	(revision 4558)
+++ src/org/jruby/evaluator/ASTInterpreter.java	(working copy)
@@ -1426,6 +1426,10 @@
                 // falsely set $! to nil and this sets it back to something valid.  This should 
                 // get fixed at the same time we address bug #1296484.
                 runtime.getGlobalVariables().set("$!", raisedException);
+                
+                if (runtime.getClass("SystemExit") == raisedException.getMetaClass()) {
+                    throw raiseJump;
+                }                
 
                 RescueBodyNode rescueNode = iVisited.getRescueNode();
 
Index: src/org/jruby/RubyThread.java
===================================================================
--- src/org/jruby/RubyThread.java	(revision 4558)
+++ src/org/jruby/RubyThread.java	(working copy)
@@ -233,7 +233,7 @@
         }
     }
 
-    private RubyThread(Ruby runtime, RubyClass type) {
+    protected RubyThread(Ruby runtime, RubyClass type) {
         super(runtime, type);
         this.threadService = runtime.getThreadService();
         // set to default thread group
@@ -676,14 +676,16 @@
     public void exceptionRaised(RaiseException exception) {
         assert isCurrent();
 
-        Ruby runtime = exception.getException().getRuntime();
-        if (abortOnException(runtime)) {
+        RubyException rubyException = exception.getException();
+        Ruby runtime = rubyException.getRuntime();
+        if (rubyException.getMetaClass() == runtime.getClass("SystemExit")) {
+            threadService.getMainThread().raise(rubyException, Block.NULL_BLOCK);            
+        } else if (abortOnException(runtime)) {
             // FIXME: printError explodes on some nullpointer
             //getRuntime().getRuntime().printError(exception.getException());
-        	// TODO: Doesn't SystemExit have its own method to make this less wordy..
-            RubyException re = RubyException.newException(getRuntime(), getRuntime().getClass("SystemExit"), exception.getMessage());
-            re.setInstanceVariable("status", getRuntime().newFixnum(1));
-            threadService.getMainThread().raise(re, Block.NULL_BLOCK);
+            RubyException systemExit = RubySystemExit.newInstance(runtime, 1);
+            systemExit.message = rubyException.message;
+            threadService.getMainThread().raise(systemExit, Block.NULL_BLOCK);
         } else {
             exitingException = exception;
         }
Index: src/org/jruby/Ruby.java
===================================================================
--- src/org/jruby/Ruby.java	(revision 4558)
+++ src/org/jruby/Ruby.java	(working copy)
@@ -2111,9 +2111,7 @@
     }
 
     public RaiseException newSystemExit(int status) {
-        RubyClass exc = getClass("SystemExit");
-        IRubyObject[]exArgs = new IRubyObject[]{newFixnum(status), newString("exit")};
-        return new RaiseException((RubyException)exc.newInstance(exArgs, Block.NULL_BLOCK));
+        return new RaiseException(RubySystemExit.newInstance(this, status));
     }
 
     public RaiseException newIOError(String message) {
Index: src/org/jruby/RubySystemExit.java
===================================================================
--- src/org/jruby/RubySystemExit.java	(revision 4558)
+++ src/org/jruby/RubySystemExit.java	(working copy)
@@ -49,6 +49,14 @@
         systemExitClass.defineAnnotatedMethods(RubySystemExit.class, callbackFactory);
         
         return systemExitClass;
+    } 
+    
+    public static RubySystemExit newInstance(Ruby runtime, int status) {
+        RubyClass exc = runtime.getClass("SystemExit");
+        IRubyObject[] exArgs = new IRubyObject[] { 
+                runtime.newFixnum(status),
+                runtime.newString("exit") };
+        return (RubySystemExit) exc.newInstance(exArgs, Block.NULL_BLOCK);
     }    
 
     protected RubySystemExit(Ruby runtime, RubyClass exceptionClass) {
Index: src/org/jruby/compiler/impl/StandardASMCompiler.java
===================================================================
--- src/org/jruby/compiler/impl/StandardASMCompiler.java	(revision 4558)
+++ src/org/jruby/compiler/impl/StandardASMCompiler.java	(working copy)
@@ -2322,6 +2322,18 @@
                         cg.params(ThreadContext.class, IRubyObject.class, Object.class, String.class, String.class, String[].class, int.class, int.class, int.class, int.class, CallConfiguration.class)));
             }
         }
+        
+        public void rethrowIfSystemExit() {
+            method.invokevirtual(cg.p(RubyException.class), "getMetaClass", cg.sig(RubyClass.class));
+            loadRuntime();
+            method.ldc("SystemExit");
+            method.invokevirtual(cg.p(Ruby.class), "getClass", cg.sig(RubyClass.class, String.class));
+            Label ifEnd = new Label();
+            method.if_acmpne(ifEnd);
+            loadException();
+            method.athrow();
+            method.label(ifEnd);
+        }
     }
 
     public class ASMClosureCompiler extends AbstractMethodCompiler {
Index: src/org/jruby/compiler/ASTCompiler.java
===================================================================
--- src/org/jruby/compiler/ASTCompiler.java	(revision 4558)
+++ src/org/jruby/compiler/ASTCompiler.java	(working copy)
@@ -2617,8 +2617,10 @@
             public void branch(MethodCompiler context) {
                 context.loadException();
                 context.unwrapRaiseException();
+                context.duplicateCurrentValue();
                 context.assignGlobalVariable("$!");
                 context.consumeCurrentValue();
+                context.rethrowIfSystemExit();
                 compileRescueBody(rescueNode.getRescueNode(), context);
             }
         };
Index: src/org/jruby/compiler/MethodCompiler.java
===================================================================
--- src/org/jruby/compiler/MethodCompiler.java	(revision 4558)
+++ src/org/jruby/compiler/MethodCompiler.java	(working copy)
@@ -454,6 +454,7 @@
     public void checkWhenWithSplat();
     public void createNewEndBlock(ClosureCallback body);
     public void runBeginBlock(StaticScope scope, ClosureCallback body);
+    public void rethrowIfSystemExit();
     
     public MethodCompiler chainToMethod(String name, ASTInspector inspector);
 }