Index: src/org/jruby/evaluator/ASTInterpreter.java
===================================================================
--- src/org/jruby/evaluator/ASTInterpreter.java	(revision 4781)
+++ src/org/jruby/evaluator/ASTInterpreter.java	(working copy)
@@ -1431,6 +1431,10 @@
                 // get fixed at the same time we address bug #1296484.
                 runtime.getGlobalVariables().set("$!", raisedException);
 
+                if (runtime.fastGetClass("SystemExit") == raisedException.getMetaClass()) {
+                    throw raiseJump;
+                }
+
                 RescueBodyNode rescueNode = iVisited.getRescueNode();
 
                 while (rescueNode != null) {
Index: src/org/jruby/RubyThread.java
===================================================================
--- src/org/jruby/RubyThread.java	(revision 4781)
+++ src/org/jruby/RubyThread.java	(working copy)
@@ -687,14 +687,16 @@
     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.fastGetClass("SystemExit")) {
+            threadService.getMainThread().raise(new IRubyObject[] {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().fastGetClass("SystemExit"), exception.getMessage());
-            re.fastSetInternalVariable("status", getRuntime().newFixnum(1));
-            threadService.getMainThread().raise(new IRubyObject[] {re}, Block.NULL_BLOCK);
+            RubyException systemExit = RubySystemExit.newInstance(runtime, 1);
+            systemExit.message = rubyException.message;
+            threadService.getMainThread().raise(new IRubyObject[] {systemExit}, Block.NULL_BLOCK);
             return;
         } else if (runtime.getDebug().isTrue()) {
             runtime.printError(exception.getException());
Index: src/org/jruby/Ruby.java
===================================================================
--- src/org/jruby/Ruby.java	(revision 4781)
+++ src/org/jruby/Ruby.java	(working copy)
@@ -2185,9 +2185,7 @@
     }
 
     public RaiseException newSystemExit(int status) {
-        RubyClass exc = fastGetClass("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 4781)
+++ src/org/jruby/RubySystemExit.java	(working copy)
@@ -51,6 +51,14 @@
         return systemExitClass;
     }    
 
+    public static RubySystemExit newInstance(Ruby runtime, int status) {
+        RubyClass exc = runtime.fastGetClass("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) {
         super(runtime, exceptionClass);
         status = runtime.getNil();
@@ -81,4 +89,4 @@
         return getRuntime().getFalse();
     }
 
-}
\ No newline at end of file
+}
Index: src/org/jruby/compiler/impl/StandardASMCompiler.java
===================================================================
--- src/org/jruby/compiler/impl/StandardASMCompiler.java	(revision 4781)
+++ src/org/jruby/compiler/impl/StandardASMCompiler.java	(working copy)
@@ -2354,6 +2354,18 @@
                         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 4781)
+++ src/org/jruby/compiler/ASTCompiler.java	(working copy)
@@ -2778,8 +2778,10 @@
                     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 4781)
+++ src/org/jruby/compiler/MethodCompiler.java	(working copy)
@@ -452,6 +452,7 @@
     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);
 }