diff --git a/NEWS b/NEWS
index 27a4dd3..0dc0b27 100644
--- a/NEWS
+++ b/NEWS
@@ -1,3 +1,8 @@
+* fuse-overlayfs-0.7.8
+
+- report correctly the number of links for a directory also for subsequent stat calls.
+- stop looking up the ino in the lower layers if the file could not be opened.
+
 * fuse-overlayfs-0.7.7
 
 - make sure the destination is deleted before doing a rename(2).  It prevents a left
diff --git a/configure.ac b/configure.ac
index 9c2bc57..aad4682 100644
--- a/configure.ac
+++ b/configure.ac
@@ -1,5 +1,5 @@
 AC_PREREQ([2.69])
-AC_INIT([fuse-overlayfs], [0.7.7], [giuseppe@scrivano.org])
+AC_INIT([fuse-overlayfs], [0.7.8], [giuseppe@scrivano.org])
 AC_CONFIG_SRCDIR([main.c])
 AC_CONFIG_HEADERS([config.h])