diff --git a/ChangeLog b/ChangeLog
index 923abdbd2..dd422341a 100644
--- a/ChangeLog
+++ b/ChangeLog
@@ -1,5 +1,8 @@
 2008-07-31  Badlop  <badlop@process-one.net>
 
+	* README: Update location where mnesia, ebin and priv directories
+	are installed; install headers and doc (EJAB-696)
+
 	* doc/guide.tex: Update Process-one name to ProcessOne (EJAB-708)
 	* doc/guide.html: Likewise
 	* doc/api/overview.edoc: Likewise
diff --git a/README b/README
index df5c68281..e798e9095 100644
--- a/README
+++ b/README
@@ -30,9 +30,11 @@ To install ejabberd, run this command with system administrator rights
   sudo make install
 
 These commands will:
- - Install a startup script: /sbin/ejabberdctl
- - Install ejabberd in /var/lib/ejabberd/
  - Install the configuration files in /etc/ejabberd/
+ - Install ejabberd binary, header and runtime files in /lib/ejabberd/
+ - Install the administration script: /sbin/ejabberdctl
+ - Install ejabberd documentation in /share/doc/ejabberd/
+ - Create a spool directory: /var/lib/ejabberd/
  - Create a directory for log files: /var/log/ejabberd/