diff --git a/debian/changelog b/debian/changelog
index e1cb4579..8e674450 100644
--- a/debian/changelog
+++ b/debian/changelog
@@ -10,6 +10,7 @@ debian-cd (3.0.6) UNRELEASED; urgency=low
 
   [ Steve McIntyre ]
   * Rename list2cds to sort_deps
+  * Fix how directory trees are created in update-cd. Closes: #503911
 
  -- Frans Pop <fjp@debian.org>  Sun, 02 Nov 2008 00:03:00 +0100
 
diff --git a/update-cd b/update-cd
index c3435f38..47d79769 100755
--- a/update-cd
+++ b/update-cd
@@ -149,7 +149,7 @@ copy_file () {
     ROOTDIR=$1
 	shift
 	FILE=$1
-    DIR=`echo $FILE | sed 's?/[-_\.A-Za-z0-9\+]*$??'`
+    DIR=`dirname $FILE`
     if [ ! -d $ROOTDIR/$DIR ] ; then
         mkdir -p $ROOTDIR/$DIR
     fi