diff --git a/war/plugin.jelly b/war/plugin.jelly
index 464c838d..1cad8b92 100644
--- a/war/plugin.jelly
+++ b/war/plugin.jelly
@@ -28,22 +28,22 @@
 
   <!--==================================================================-->
   <!-- Default goal : Builds a war file                                 -->
-  <!--==================================================================-->    
+  <!--==================================================================-->
   <goal name="war" prereqs="war:war" description="Build a war file"/>
 
   <!--==================================================================-->
   <!-- Initializations                                                  -->
-  <!--==================================================================-->    
+  <!--==================================================================-->
   <goal name="war:init">
 
     <ant:available property="webSourcesPresent" type="dir"
       file="${maven.war.src}"/>
- 
+
   </goal>
-  
+
   <!--==================================================================-->
   <!-- Builds a war file                                                -->
-  <!--==================================================================-->    
+  <!--==================================================================-->
   <goal name="war:war" prereqs="war:webapp" description="Build a war file">
 
     <j:choose>
@@ -51,7 +51,7 @@
         <ant:fail>You must define currentVersion in your POM.</ant:fail>
       </j:when>
     </j:choose>
-    
+
     <ant:echo>Building WAR ${pom.artifactId}</ant:echo>
 
     <!-- build dependency list -->
@@ -60,7 +60,7 @@
         <j:set var="maven.war.classpath" value="${maven.war.classpath} ${dep.artifact}"/>
       </j:if>
     </j:forEach>
-    
+
     <ant:available property="maven.war.manifest.available"
       file="${maven.war.manifest}"/>
 
@@ -71,9 +71,9 @@
     </j:if>
 
     <ant:mkdir dir="${maven.war.build.dir}" />
-    <ant:jar 
+    <ant:jar
          destfile="${maven.war.build.dir}/${maven.war.final.name}"
-         basedir="${maven.war.webapp.dir}"         
+         basedir="${maven.war.webapp.dir}"
          index="${maven.war.index}">
 
       <j:set var="licenseFileName"><license:fileName/></j:set>
@@ -141,8 +141,8 @@
 
   <!--==================================================================-->
   <!-- Copies webapp files to target dir                                   -->
-  <!--==================================================================-->    
-  <goal name="war:war-resources" prereqs="war:init" 
+  <!--==================================================================-->
+  <goal name="war:war-resources" prereqs="war:init"
     description="Copy webapp resources to target directory">
 
     <ant:mkdir dir="${maven.war.webapp.dir}"/>
@@ -151,12 +151,13 @@
     <ant:mkdir dir="${webapp.build.webinf}"/>
 
     <j:if test="${webSourcesPresent == 'true'}">
-      <ant:copy todir="${maven.war.webapp.dir}" filtering="on"
+      <ant:copy todir="${maven.war.webapp.dir}" filtering="${maven.war.src.filtering}"
                 preservelastmodified="true"
                 overwrite="${maven.war.resources.overwrite}">
-        <ant:fileset dir="${maven.war.src}"
-          includes="${maven.war.src.includes}"
-          excludes="${maven.war.src.excludes}">
+        <ant:fileset dir="${maven.war.src}">
+            <include name="${maven.war.src.includes}"/>
+            <exclude name="${maven.war.src.excludes}"/>
+            <exclude name="${maven.war.expansion.excludes}"/>
         </ant:fileset>
         <j:if test="${maven.war.property.expansion}" >
           <ant:filterchain>
@@ -164,21 +165,35 @@
           </ant:filterchain>
         </j:if>
       </ant:copy>
+      <j:if test="${maven.war.property.expansion}" >
+          <ant:copy todir="${maven.war.webapp.dir}" filtering="false"
+                preservelastmodified="true"
+                overwrite="${maven.war.resources.overwrite}">
+            <ant:fileset dir="${maven.war.src}">
+                <include name="${maven.war.expansion.excludes}"/>
+            </ant:fileset>
+          </ant:copy>
+        </j:if>
     </j:if>
-    
+
     <util:available file="${maven.war.webxml}">
       <ant:copy file="${maven.war.webxml}"
         tofile="${webapp.build.webinf}/web.xml"
-        filtering="on"
+        filtering="${maven.war.src.filtering}"
         overwrite="${maven.war.webxml.overwrite}" />
+        <j:if test="${maven.war.property.expansion}" >
+          <ant:filterchain>
+            <ant:expandproperties/>
+          </ant:filterchain>
+        </j:if>
     </util:available>
 
   </goal>
 
   <!--==================================================================-->
   <!-- Builds an expanded webapp                                        -->
-  <!--==================================================================-->    
-  <goal name="war:webapp" prereqs="war:war-resources,test:test" 
+  <!--==================================================================-->
+  <goal name="war:webapp" prereqs="war:war-resources,test:test"
     description="Build a webapp directory">
 
     <!-- If maven.test.skip != true, java:compile is attained in test:test -->
@@ -195,35 +210,35 @@
     <j:set var="webapp.build.classes" value="${webapp.build.webinf}/classes"/>
 
     <j:forEach var="lib" items="${pom.artifacts}">
-      <j:set var="dep" value="${lib.dependency}"/>     
+      <j:set var="dep" value="${lib.dependency}"/>
       <j:if test="${dep.getProperty('war.bundle')=='true'}">
          <j:choose>
-           <j:when test="${dep.type =='jar' or dep.type =='ejb' or dep.type == 'ejb-client'}"> 
+           <j:when test="${dep.type =='jar' or dep.type =='ejb' or dep.type == 'ejb-client'}">
              <ant:mkdir dir="${webapp.build.lib}"/>
-             <ant:copy todir="${webapp.build.lib}" file="${lib.path}"/>  
-           </j:when> 
-           <j:when test="${dep.type =='tld'}"> 
+             <ant:copy todir="${webapp.build.lib}" file="${lib.path}"/>
+           </j:when>
+           <j:when test="${dep.type =='tld'}">
              <ant:mkdir dir="${webapp.build.tlds}"/>
-             <ant:copy todir="${webapp.build.tlds}" file="${lib.path}"/>  
-           </j:when> 
-         </j:choose>           
-      </j:if>  
+             <ant:copy todir="${webapp.build.tlds}" file="${lib.path}"/>
+           </j:when>
+         </j:choose>
+      </j:if>
       <!-- TO BE REMOVED -->
       <j:if test="${dep.getProperty('war.bundle.jar')=='true'}">
-         <ant:echo> 
-            DEPRECATION WARNING:            
+         <ant:echo>
+            DEPRECATION WARNING:
             Use : war.bundle instead of war.bundle.jar
           </ant:echo>
         <ant:mkdir dir="${webapp.build.lib}"/>
         <ant:copy todir="${webapp.build.lib}" file="${lib.path}"/>
-      </j:if>  
+      </j:if>
       <!-- END OF TO BE REMOVED -->
 
-      <j:set var="targetPath" value="${dep.getProperty('war.target.path')}"/> 
+      <j:set var="targetPath" value="${dep.getProperty('war.target.path')}"/>
       <j:if test="${!empty(targetPath)}">
         <ant:copy todir="${maven.war.webapp.dir}/${targetPath}" file="${lib.path}"/>
       </j:if>
-    </j:forEach>            
+    </j:forEach>
 
     <util:available file="${maven.build.dest}">
       <ant:mkdir dir="${webapp.build.classes}"/>
@@ -239,78 +254,78 @@
 
   <!--==================================================================-->
   <!-- Install the war in the local repository                          -->
-  <!--==================================================================-->    
+  <!--==================================================================-->
   <goal name="war:install"
         prereqs="war:war"
         description="Install the war in the local repository">
-     
+
      <artifact:install
         artifact="${maven.war.build.dir}/${maven.war.final.name}"
         type="war"
-        project="${pom}"/> 
-  
+        project="${pom}"/>
+
   </goal>
-  
+
   <!--==================================================================-->
   <!-- Install the snapshot version of the war in the local repository  -->
-  <!--==================================================================-->      
+  <!--==================================================================-->
   <goal name="war:install-snapshot"
-        prereqs="war:war" 
+        prereqs="war:war"
         description="Install the snapshot version of the war in the local repository">
-        
+
       <artifact:install-snapshot
         artifact="${maven.war.build.dir}/${maven.war.final.name}"
         type="war"
-        project="${pom}"/> 
-        
+        project="${pom}"/>
+
   </goal>
 
   <!--==================================================================-->
   <!-- Deploys the war to the remote repository                         -->
-  <!--==================================================================-->      
-  <goal name="war:deploy" 
-        prereqs="war:war" 
+  <!--==================================================================-->
+  <goal name="war:deploy"
+        prereqs="war:war"
         description="Deploys the war to the remote repository">
 
      <artifact:deploy
         artifact="${maven.war.build.dir}/${maven.war.final.name}"
         type="war"
-        project="${pom}"/>   
-        
-  </goal>      
-        
+        project="${pom}"/>
+
+  </goal>
+
   <!--==================================================================-->
   <!-- Deploys the snapshot of the war to the remote repository         -->
-  <!--==================================================================-->      
-  <goal name="war:deploy-snapshot" 
+  <!--==================================================================-->
+  <goal name="war:deploy-snapshot"
         prereqs="war:war"
-        description="Deploys the snapshot version of  the war to remote repository">  
+        description="Deploys the snapshot version of  the war to remote repository">
 
      <artifact:deploy-snapshot
         artifact="${maven.war.build.dir}/${maven.war.final.name}"
         type="war"
-        project="${pom}"/>    
-        
+        project="${pom}"/>
+
   </goal>
-  
-  
+
+
   <!--==================================================================-->
   <!-- Clean                                                            -->
-  <!--==================================================================-->  
+  <!--==================================================================-->
     <goal name="war:clean"
         prereqs="war:init"
-        description="Remove all artifacts created by war plugin">  
+        description="Remove all artifacts created by war plugin">
 
       <!-- TODO: delete also snapshot and md5 files -->
       <j:if test="${context.getVariable('maven.war.webapp.dir') != context.getVariable('maven.war.src')}">
         <ant:delete dir="${maven.war.webapp.dir}"/>
       </j:if>
-      <ant:delete file="${maven.war.build.dir}/${maven.war.final.name}" quiet="true" failonerror="false"/>          
+      <ant:delete file="${maven.war.build.dir}/${maven.war.final.name}" quiet="true" failonerror="false"/>
     </goal>
-    
+
   <!--==================================================================-->
   <!-- In-place deployment of the web application                       -->
-  <!--==================================================================-->  
+  <!--==================================================================-->
   <goal name="war:inplace"
     prereqs="war:init"
     description="Deploy a webapp into maven.war.src - in particular setting up WEB-INF/lib and WEB-INF/classes">
@@ -318,13 +333,13 @@
     <j:if test="${webSourcesPresent == 'true'}">
       <attainGoal name="war:webapp"/>
     </j:if>
-  </goal> 
+  </goal>
 
   <!--==================================================================-->
   <!-- Special no-op goal which can be used by other plugin which need  -->
   <!-- to get access to any of this plugin's property. This is          -->
   <!-- temporary, until we get explicit plugin dependencies.            -->
-  <!--==================================================================-->    
+  <!--==================================================================-->
   <goal name="war:load">
     <echo>DEPRECATED: war:load is deprecated, please use maven:get tags</echo>
   </goal>
diff --git a/war/plugin.properties b/war/plugin.properties
index 4decc600..cdb6691f 100644
--- a/war/plugin.properties
+++ b/war/plugin.properties
@@ -32,6 +32,16 @@ maven.war.src=${maven.src.dir}/webapp
 maven.war.src.includes=**
 maven.war.src.excludes=
 
+# The files to excludes when filtering is used
+# Note: Files are relative to maven.war.src and are copied afterwards
+# without filtering (use this option for binary files namely that will
+# get corrupted if expansion is applied on them).
+maven.war.expansion.excludes=
+
+# Indicates whether token filtering should take
+# place during the copy. Default is true.
+maven.war.src.filtering=on
+
 # Whether to perform property expansion for
 # copied resources.
 maven.war.property.expansion=false
diff --git a/war/src/plugin-test/test05/LICENSE.txt b/war/src/plugin-test/test05/LICENSE.txt
new file mode 100644
index 00000000..6192027b
--- /dev/null
+++ b/war/src/plugin-test/test05/LICENSE.txt
@@ -0,0 +1 @@
+Sample license
\ No newline at end of file
diff --git a/war/src/plugin-test/test05/maven.xml b/war/src/plugin-test/test05/maven.xml
new file mode 100644
index 00000000..60890968
--- /dev/null
+++ b/war/src/plugin-test/test05/maven.xml
@@ -0,0 +1,40 @@
+<!-- 
+/*
+ * Licensed to the Apache Software Foundation (ASF) under one or more
+ * contributor license agreements.  See the NOTICE file distributed with
+ * this work for additional information regarding copyright ownership.
+ * The ASF licenses this file to You under the Apache License, Version 2.0
+ * (the "License"); you may not use this file except in compliance with
+ * the License.  You may obtain a copy of the License at
+ * 
+ *      http://www.apache.org/licenses/LICENSE-2.0
+ * 
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+ -->
+<project xmlns:j="jelly:core"
+         xmlns:assert="assert"
+         xmlns:u="jelly:util">
+
+  <goal name="testPlugin" prereqs="test-war"/>
+  
+  <goal name="test-war" prereqs="clean">
+    <attainGoal name="war"/>
+    <j:set var="warFile" value="${maven.build.dir}/${pom.artifactId}.war"/>
+    <j:set var="warDir" value="${maven.build.dir}/${pom.artifactId}"/>
+    <assert:assertFileExists file="${warFile}"/>
+    <assert:assertFileExists file="${warDir}/WEB-INF/lib/commons-logging-1.0.4.jar"/>
+    <assert:assertFileExists file="${warDir}/images/logo.png"/>
+    <!-- check for index.html content-->
+    <j:set var="unzipDir" value="${maven.build.dir}/unzippedWar"/>
+    <mkdir dir="${unzipDir}"/>
+    <unzip src="${warFile}" dest="${unzipDir}"/>
+
+    <assert:assertFileContains file="${unzipDir}/index.html"
+                               match="test-maven-war-plugin-expand-excludes"/>
+  </goal>
+</project>
\ No newline at end of file
diff --git a/war/src/plugin-test/test05/project.properties b/war/src/plugin-test/test05/project.properties
new file mode 100644
index 00000000..4e247735
--- /dev/null
+++ b/war/src/plugin-test/test05/project.properties
@@ -0,0 +1,10 @@
+
+#
+# Expand properties
+maven.war.property.expansion=true
+
+maven.war.expansion.excludes=images/**
+
+#
+# Property being replaced
+my.cool.property=${pom.artifactId}
diff --git a/war/src/plugin-test/test05/project.xml b/war/src/plugin-test/test05/project.xml
new file mode 100644
index 00000000..8170aaa4
--- /dev/null
+++ b/war/src/plugin-test/test05/project.xml
@@ -0,0 +1,56 @@
+<?xml version="1.0" encoding="UTF-8"?>
+<!--
+/*
+ * Licensed to the Apache Software Foundation (ASF) under one or more
+ * contributor license agreements.  See the NOTICE file distributed with
+ * this work for additional information regarding copyright ownership.
+ * The ASF licenses this file to You under the Apache License, Version 2.0
+ * (the "License"); you may not use this file except in compliance with
+ * the License.  You may obtain a copy of the License at
+ *
+ *      http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+ -->
+
+
+<project>
+  <pomVersion>3</pomVersion>
+  <id>test-maven-war-plugin-expand-excludes</id>
+  <name>Maven War Plugin 05</name>
+  <groupId>maven</groupId>
+  <currentVersion>1.0</currentVersion>
+  <organization>
+    <name>Apache Software Foundation</name>
+    <url>http://www.apache.org/</url>
+    <logo>http://maven.apache.org/images/apache-maven-project.png</logo>
+  </organization>
+  <inceptionYear>2001</inceptionYear>
+  <package>org.apache.maven</package>
+  <logo>http://maven.apache.org/images/maven.gif</logo>
+  <description>Test for Maven War plugin, tests maven.war.expansion.excludes</description>
+  <shortDescription>test for maven.war.expansion.excludes</shortDescription>
+  <url>http://maven.apache.org/maven-1.x/plugins/war/</url>
+  <siteDirectory>/www/maven.apache.org/maven-1.x/plugins/war/</siteDirectory>
+  <repository>
+    <connection>scm:svn:http://svn.apache.org/repos/asf/maven/maven-1/plugins/trunk/war/</connection>
+    <url>http://svn.apache.org/viewcvs.cgi/maven/maven-1/plugins/trunk/war/</url>
+  </repository>
+  <dependencies>
+    <dependency>
+      <groupId>commons-logging</groupId>
+      <artifactId>commons-logging</artifactId>
+      <version>1.0.4</version>
+      <url>http://jakarta.apache.org/commons/logging.html</url>
+      <properties>
+        <war.bundle>true</war.bundle>
+        <war.manifest.classpath>true</war.manifest.classpath>
+      </properties>
+    </dependency>
+  </dependencies>
+</project>
diff --git a/war/src/plugin-test/test05/src/webapp/images/logo.png b/war/src/plugin-test/test05/src/webapp/images/logo.png
new file mode 100644
index 00000000..81f80d81
Binary files /dev/null and b/war/src/plugin-test/test05/src/webapp/images/logo.png differ
diff --git a/war/src/plugin-test/test05/src/webapp/index.html b/war/src/plugin-test/test05/src/webapp/index.html
new file mode 100644
index 00000000..a57c1fc5
--- /dev/null
+++ b/war/src/plugin-test/test05/src/webapp/index.html
@@ -0,0 +1,26 @@
+<!-- 
+/*
+ * Licensed to the Apache Software Foundation (ASF) under one or more
+ * contributor license agreements.  See the NOTICE file distributed with
+ * this work for additional information regarding copyright ownership.
+ * The ASF licenses this file to You under the Apache License, Version 2.0
+ * (the "License"); you may not use this file except in compliance with
+ * the License.  You may obtain a copy of the License at
+ * 
+ *      http://www.apache.org/licenses/LICENSE-2.0
+ * 
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+ -->
+<html>
+  <body>
+    <h1>Simple WebApp Home</h1>
+    <p>
+      This is a html page for ${my.cool.property}
+    </p>
+  </body>
+</html>
\ No newline at end of file
diff --git a/war/xdocs/changes.xml b/war/xdocs/changes.xml
index b76c53a7..9528cd6e 100644
--- a/war/xdocs/changes.xml
+++ b/war/xdocs/changes.xml
@@ -25,6 +25,11 @@
   </properties>
   <body>
     <release version="1.6.3-SNAPSHOT" date="in SVN">
+      <action dev="snicoll" type="fix" issue="MPWAR-65">Added maven.war.expansion.excludes property
+          to exclude files during a property expansion copy (Fixes corruption of binary files).
+          Applied property expansion to web.xml handling for consistency. Introduced the maven.war.src.filtering
+          property to control whether filtering is enabled or not when copying webapp resources.
+      </action>
       <action dev="ltheussl" type="fix" issue="MPWAR-36">Only create tld and lib folders if corresponding dependencies are present.</action>
       <action dev="ltheussl" type="fix" issue="MPWAR-45" due-to="Kim Dykeman">war:inplace should check for maven.war.src.</action>
       <action dev="ltheussl" type="fix">
diff --git a/war/xdocs/properties.xml b/war/xdocs/properties.xml
index 4eb20ba8..e7300b06 100644
--- a/war/xdocs/properties.xml
+++ b/war/xdocs/properties.xml
@@ -44,20 +44,40 @@
           <td>maven.war.src.includes</td>
           <td>Yes</td>
           <td>
-            Comma or space separated list of Ant path patterns specifycing
+            Comma or space separated list of Ant path patterns specifying
             what files and directories from <code>${maven.war.src}</code>
-            should be included in the web application. All files are included 
-            by default.
+            that should be included in the web application. All files are
+            included by default.
           </td>
         </tr>
         <tr>
           <td>maven.war.src.excludes</td>
           <td>Yes</td>
           <td>
-            Comma or space separated list of Ant path patterns specifycing
+            Comma or space separated list of Ant path patterns specifying
             what files and directories from <code>${maven.war.src}</code>
-            should be excluded from the web application. No files are excluded 
-            by default.
+            that should be excluded from the web application. No files are
+            excluded by default.
+          </td>
+        </tr>
+        <tr>
+          <td>maven.war.expansion.excludes</td>
+          <td>Yes</td>
+          <td>
+            Comma or space separated list of Ant path patterns specifying
+            the files and directories from <code>${maven.war.src}</code> that
+            should be excluded from the copy when performing property expansion.
+            If property expansion is not enabled this property is ignored. Files
+            in this excludes list are copied to the webapp without property
+            expansion afterwards. No files are excluded by default.
+          </td>
+        </tr>
+        <tr>
+          <td>maven.war.src.filtering</td>
+          <td>Yes</td>
+          <td>
+            Indicates whether token filtering should take place during the copy.
+            Default is true.
           </td>
         </tr>
         <tr>