diff -ur qemu-snapshot-2008-04-01_05-patch1/target-arm/helper.c qemu-snapshot-2008-04-01_05-patch2/target-arm/helper.c
--- qemu-snapshot-2008-04-01_05-patch1/target-arm/helper.c	2008-04-12 23:07:46.000000000 +0200
+++ qemu-snapshot-2008-04-01_05-patch2/target-arm/helper.c	2008-04-12 23:15:22.000000000 +0200
@@ -562,6 +562,8 @@
     env->regs[12] = v7m_pop(env);
     env->regs[14] = v7m_pop(env);
     env->regs[15] = v7m_pop(env);
+    env->thumb = env->regs[15] & 1;
+    env->regs[15] &= ~1;
     xpsr = v7m_pop(env);
     xpsr_write(env, xpsr, 0xfffffdff);
     /* Undo stack alignment.  */
@@ -634,7 +636,7 @@
     }
     /* Switch to the hander mode.  */
     v7m_push(env, xpsr);
-    v7m_push(env, env->regs[15]);
+    v7m_push(env, env->regs[15] | (env->thumb?1:0));
     v7m_push(env, env->regs[14]);
     v7m_push(env, env->regs[12]);
     v7m_push(env, env->regs[3]);