diff --git a/lib/ecdsa.js b/lib/ecdsa.js
index 6e2a630..5c2fadb 100644
--- a/lib/ecdsa.js
+++ b/lib/ecdsa.js
@@ -97,6 +97,7 @@ ECDSA.prototype.sig2pubkey = function() {
   var Q = R.mul(s).add(G.mul(eNeg)).mul(rInv);
 
   var pubkey = new Pubkey(Q);
+  pubkey.compressed = this.sig.compressed;
   pubkey.validate();
 
   return pubkey;
@@ -156,7 +157,7 @@ ECDSA.prototype.sign = function() {
     var s = k.invm(N).mul(e.add(d.mul(r))).mod(N);
   } while (r.cmp(0) <= 0 || s.cmp(0) <= 0);
 
-  this.sig = new Signature(r, s);
+  this.sig = new Signature(r, s, undefined, this.key.pubkey.compressed);
   return this.sig;
 };
 
diff --git a/lib/message.js b/lib/message.js
index a3b8018..126a241 100644
--- a/lib/message.js
+++ b/lib/message.js
@@ -65,7 +65,7 @@ Message.prototype.verify = function() {
     return this;
   }
 
-  var address = Address().fromPubkey(ecdsa.key.pubkey);
+  var address = Address().fromPubkey(ecdsa.key.pubkey, undefined, this.sig.compressed);
   //TODO: what if livenet/testnet mismatch?
   if (address.hashbuf.toString('hex') === this.address.hashbuf.toString('hex'))
     this.verified = true;
diff --git a/lib/signature.js b/lib/signature.js
index 965bcaa..775d9b4 100644
--- a/lib/signature.js
+++ b/lib/signature.js
@@ -2,17 +2,25 @@ var BN = require('./bn');
 var Point = require('./point');
 var Pubkey = require('./pubkey');
 
-var Signature = function Signature(r, s, i) {
+var Signature = function Signature(r, s, i, compressed) {
   if (!(this instanceof Signature))
-    return new Signature(r, s, i);
+    return new Signature(r, s, i, compressed);
 
   this.r = r;
   this.s = s;
   this.i = i; //public key recovery parameter in range [0, 3]
+  this.compressed = compressed;
 };
 
 Signature.prototype.fromCompact = function(buf) {
+  var compressed = true;
+  if (i < 0) {
+    var compressed = false;
+    i = i + 4;
+  }
+
   var i = buf.slice(0, 1)[0] - 27 - 4; //TODO: handle uncompressed pubkeys
+
   var b2 = buf.slice(1, 33);
   var b3 = buf.slice(33, 65);
 
@@ -23,6 +31,7 @@ Signature.prototype.fromCompact = function(buf) {
   if (b3.length !== 32)
     throw new Error('s must be 32 bytes');
 
+  this.compressed = compressed;
   this.i = i;
   this.r = BN().fromBuffer(b2);
   this.s = BN().fromBuffer(b3);
@@ -102,12 +111,17 @@ Signature.parseDER = function(buf) {
   return obj;
 };
 
-Signature.prototype.toCompact = function(i) {
+Signature.prototype.toCompact = function(i, compressed) {
   i = typeof i === 'number' ? i : this.i;
+  compressed = typeof compressed === 'boolean' ? compressed : this.compressed;
+
   if (!(i === 0 || i === 1 || i === 2 || i === 3))
     throw new Error('i must be equal to 0, 1, 2, or 3');
   
-  var b1 = new Buffer([i + 27 + 4]); //TODO: handle uncompressed pubkeys
+  var val = i + 27 + 4;
+  if (compressed === false)
+    val = val - 4;
+  var b1 = new Buffer([val]);
   var b2 = this.r.toBuffer({size: 32});
   var b3 = this.s.toBuffer({size: 32});
   return Buffer.concat([b1, b2, b3]);
diff --git a/test/test.message.js b/test/test.message.js
index 00e7bff..91b1123 100644
--- a/test/test.message.js
+++ b/test/test.message.js
@@ -56,6 +56,24 @@ describe('Message', function() {
       sigbuf.length.should.equal(1 + 32 + 32);
     });
 
+    it('should sign with a compressed pubkey', function() {
+      var key = Key().fromRandom();
+      key.pubkey.compressed = true;
+      var sigstr = Message.sign(messagebuf, key);
+      var sigbuf = new Buffer(sigstr, 'base64');
+      sigbuf[0].should.be.above(27 + 4 - 1);
+      sigbuf[0].should.be.below(27 + 4 + 4 - 1);
+    });
+
+    it('should sign with an uncompressed pubkey', function() {
+      var key = Key().fromRandom();
+      key.pubkey.compressed = false;
+      var sigstr = Message.sign(messagebuf, key);
+      var sigbuf = new Buffer(sigstr, 'base64');
+      sigbuf[0].should.be.above(27 - 1);
+      sigbuf[0].should.be.below(27 + 4 - 1);
+    });
+
   });
 
   describe('@verify', function() {