diff --git a/VERSION b/VERSION
index 23aa839..0495c4a 100644
--- a/VERSION
+++ b/VERSION
@@ -1 +1 @@
-1.2.2
+1.2.3
diff --git a/generate.c b/generate.c
index a9cddc9..edce39d 100644
--- a/generate.c
+++ b/generate.c
@@ -1296,7 +1296,10 @@ mkd_text(char *bfr, int size, FILE *output, int flags)
     
     reparse(bfr, size, 0, &f);
     emblock(&f);
-    fwrite(T(f.out), S(f.out), 1, output);
+    if ( flags & CDATA_OUTPUT )
+	___mkd_xml(T(f.out), S(f.out), output);
+    else
+	fwrite(T(f.out), S(f.out), 1, output);
 
     ___mkd_freemmiot(&f, 0);
     return 0;
diff --git a/markdown.h b/markdown.h
index c56ae0f..794343d 100644
--- a/markdown.h
+++ b/markdown.h
@@ -120,5 +120,6 @@ extern void ___mkd_freefootnotes(MMIOT *);
 extern void ___mkd_initmmiot(MMIOT *, void *);
 extern void ___mkd_freemmiot(MMIOT *, void *);
 extern void ___mkd_freeLineRange(Line *, Line *);
+extern void ___mkd_xml(char *, int, FILE *);
 
 #endif/*_MARKDOWN_D*/
diff --git a/mkdio.c b/mkdio.c
index cf5cb1c..b0a5704 100644
--- a/mkdio.c
+++ b/mkdio.c
@@ -190,22 +190,8 @@ mkd_generatehtml(Document *p, FILE *output)
     int szdoc;
 
     if ( (szdoc = mkd_document(p, &doc)) != EOF ) {
-	if ( p->ctx->flags & CDATA_OUTPUT ) {
-	    char c;
-
-	    while ( szdoc-- > 0 ) {
-		if ( !isascii(c = *doc++) )
-		    continue;
-		switch (c) {
-		case '<': fputs("&lt;", output);   break;
-		case '>': fputs("&gt;", output);   break;
-		case '&': fputs("&amp;", output);  break;
-		case '"': fputs("&quot;", output); break;
-		case '\'':fputs("&apos;", output); break;
-		default:  putc(c,output);          break;
-		}
-	    }
-	}
+	if ( p->ctx->flags & CDATA_OUTPUT )
+	    ___mkd_xml(doc, szdoc, output);
 	else
 	    fwrite(doc, szdoc, 1, output);
 	putc('\n', output);
diff --git a/resource.c b/resource.c
index 9ae9b20..c5272ef 100644
--- a/resource.c
+++ b/resource.c
@@ -143,3 +143,25 @@ mkd_cleanup(Document *doc)
 	free(doc);
     }
 }
+
+
+/* write output in XML format
+ */
+void
+___mkd_xml(char *p, int size, FILE *out)
+{
+    char c;
+
+    while ( size-- > 0 ) {
+	if ( !isascii(c = *p++) )
+	    continue;
+	switch (c) {
+	case '<': fputs("&lt;", out);   break;
+	case '>': fputs("&gt;", out);   break;
+	case '&': fputs("&amp;", out);  break;
+	case '"': fputs("&quot;", out); break;
+	case '\'':fputs("&apos;", out); break;
+	default:  putc(c,out);          break;
+	}
+    }
+}