diff --git a/src/cmp/cmpc-wt.lsp b/src/cmp/cmpc-wt.lsp
index 6e9f346bb..fef692d2c 100644
--- a/src/cmp/cmpc-wt.lsp
+++ b/src/cmp/cmpc-wt.lsp
@@ -90,6 +90,10 @@
 	(wt1 #\}))
       (baboon :format-control "Mismatch in C blocks")))
 
+(defmacro with-indentation (&body body)
+  `(let ((*opened-c-braces* (1+ *opened-c-braces*)))
+     ,@body))
+
 ;;;
 ;;; LABELS AND JUMPS
 ;;;
diff --git a/src/cmp/cmpcatch.lsp b/src/cmp/cmpcatch.lsp
index b3f9cbf3e..1c45cc6c7 100644
--- a/src/cmp/cmpcatch.lsp
+++ b/src/cmp/cmpcatch.lsp
@@ -22,29 +22,31 @@
 
 (defun c2catch (c1form tag body)
   (declare (ignore c1form))
-  (let* ((new-destination (tmp-destination *destination*)))
-    (let* ((*destination* 'VALUE0))
+  (let* ((new-destination (tmp-destination *destination*))
+	 (code (incf *last-label*)))
+    (let ((*destination* 'VALUE0))
       (c2expr* tag))
     (let* ((*destination* new-destination)
-	   (code (incf *last-label*))
-	   (*exit* (next-label))
-	   (*unwind-exit* (list* *exit* 'FRAME *unwind-exit*)))
+	   (*unwind-exit* (cons 'FRAME *unwind-exit*)))
       (if (member new-destination '(TRASH VALUES))
 	  (progn
 	    (wt-nl "if (ecl_frs_push(cl_env_copy," 'VALUE0 ")==0) {")
 	    (wt-comment "BEGIN CATCH ~A" code)
-	    (c2expr body)
-	    (wt-nl "}"))
+	    (with-indentation
+		(c2expr* body)))
 	  (progn
 	    (wt-nl "if (ecl_frs_push(cl_env_copy," 'VALUE0 ")) {")
 	    (wt-comment "BEGIN CATCH ~A" code)
-	    (unwind-exit 'VALUES t)
-	    (wt-nl "}")
-	    (c2expr body)))
-      (wt-label *exit*)
-      (wt-nl "ecl_frs_pop(cl_env_copy);")
-      (wt-comment "END CATCH ~A" code)
-      )
+	    (with-indentation
+		(with-exit-label (label)
+		  (let ((*exit* label))
+		    (unwind-exit 'VALUES))))
+	    (wt-nl "} else {")
+	    (with-indentation
+		(c2expr* body)))))
+    (wt-nl "}")
+    (wt-nl "ecl_frs_pop(cl_env_copy);")
+    (wt-comment "END CATCH ~A" code)
     (unwind-exit new-destination)))
 
 (defun c1unwind-protect (args)