diff --git a/Shorewall/changelog.txt b/Shorewall/changelog.txt
index e6bf77b29..eea69339a 100644
--- a/Shorewall/changelog.txt
+++ b/Shorewall/changelog.txt
@@ -4,6 +4,8 @@ Changes in 3.4.0 Final
 
 2)  Restore missing function merge_macro_source_dest.
 
+3)  Fix obscure bug in rule activation logic.
+
 Changes in 3.4.0 RC 3
 
 1)  Add warning about 'loose' and 'balance'
diff --git a/Shorewall/compiler b/Shorewall/compiler
index 52c8af613..b7ba7d6cc 100755
--- a/Shorewall/compiler
+++ b/Shorewall/compiler
@@ -4350,7 +4350,7 @@ activate_rules()
 			    #
 			    chain1=excl_${EXCLUSION_SEQ}
 			    EXCLUSION_SEQ=$(( $EXCLUSION_SEQ + 1 ))
-			    eval ${chain}_${zone}_ex=$chain1
+			    eval ${chain}_${zone1}_ex=$chain1
 			    createchain $chain1 no
 			    add_exclusions filter $chain1 $exclusions1
 			    run_iptables -A $chain1 -j $chain
diff --git a/Shorewall/releasenotes.txt b/Shorewall/releasenotes.txt
index 3d79fd9a0..5133cbc79 100644
--- a/Shorewall/releasenotes.txt
+++ b/Shorewall/releasenotes.txt
@@ -39,6 +39,9 @@ Problems Corrected in 3.4.0 Final.
 
 	   merge_macro_source_dest: command not found
 
+3)  An obscure bug in rule activation having to do with the new
+    exclusion feature in /etc/shorewall/hosts has been corrected.
+
 Migration Considerations:
 
 If you are migrating from a Shorewall version earlier than 3.2.0 then
@@ -673,7 +676,12 @@ New Features in Shorewall 3.4:
     /etc/shorewall/params and those required at run-time may be set in
     /etc/shorewall/init.
 
-    Note: EXPORTPARAMS was actually introduced in Shorewall version
+    Note 1: If you need shell variables values in your
+    /etc/shorewall/stop or /etc/shorewall/stopped script, then you need
+    to set their values in /etc/shorewall/stop. /etc/shorewall/init is
+    not invoked during processing of the 'stop' and 'clear' commands.
+
+    Note 2: EXPORTPARAMS was actually introduced in Shorewall version
     3.2.9. It is described here for the benefit of those who did not
     install that version.