diff --git a/CHANGES b/CHANGES
index 3c3c362..35498e0 100644
--- a/CHANGES
+++ b/CHANGES
@@ -1,3 +1,6 @@
+2.0.1
+Fixed issue with no_proxy variable not being honoured (Mechanize driver).
+
 2.0.0
 Upgraded to Capybara 2.0+ and the latest versions of remaining gems.
 Removed monkey patches, reclassifying some as "extensions".
diff --git a/Gemfile.lock b/Gemfile.lock
index f6edc78..82fa625 100644
--- a/Gemfile.lock
+++ b/Gemfile.lock
@@ -1,7 +1,7 @@
 PATH
   remote: .
   specs:
-    frameworks-capybara (2.0.0)
+    frameworks-capybara (2.0.1)
       capybara
       capybara-mechanize
       cucumber
diff --git a/lib/frameworks/cucumber.rb b/lib/frameworks/cucumber.rb
index 409b7ae..915d125 100644
--- a/lib/frameworks/cucumber.rb
+++ b/lib/frameworks/cucumber.rb
@@ -109,6 +109,17 @@ def setup_mechanize(agent, http_proxy=nil)
       agent.ca_file = ENV['CA_CERT_LOCATION'] if ENV['CA_CERT_LOCATION']
       agent.set_proxy(http_proxy.scan(/http:\/\/(.*):80/)[0][0].to_s,80) if http_proxy && !http_proxy.empty?
 
+      # The above proxy setting ignores any no_proxy variable setting:
+      # added the following to circumvent this
+      if(http_proxy)
+        no_proxy = ENV['NO_PROXY'] || ENV['no_proxy']
+        if(no_proxy)
+          # The no_proxy query string argument must not contain spaces
+          no_proxy_qs = no_proxy.gsub(/[, ]+/,',')
+          agent.agent.http.proxy = URI(http_proxy + '?no_proxy=' + no_proxy_qs)
+        end
+      end
+
       #This is necessary because Mech2 does not ship with root certs like Mech1 did and boxes may not have the OpenSSL set installed
       agent.verify_mode = OpenSSL::SSL::VERIFY_NONE
 
diff --git a/lib/version.rb b/lib/version.rb
index 4a2c3e6..0558b6f 100644
--- a/lib/version.rb
+++ b/lib/version.rb
@@ -1,3 +1,3 @@
 module FrameworksCapybara
-  VERSION = '2.0.0'
+  VERSION = '2.0.1'
 end
diff --git a/spec/frameworks_cucumber_spec.rb b/spec/frameworks_cucumber_spec.rb
index f00a305..1d10a6a 100644
--- a/spec/frameworks_cucumber_spec.rb
+++ b/spec/frameworks_cucumber_spec.rb
@@ -247,5 +247,33 @@
       agent.proxy_addr.should == 'mycache.co.uk'
     end
 
+   it "the proxy should be ignored if the no_proxy exclusion is set" do
+      proxy_host = 'mycache.co.uk'
+      proxy_port = '80'
+      proxy_uri = 'http://'  + proxy_host + ':' + proxy_port
+      no_proxy = 'ignore_this_host'
+      ENV['NO_PROXY'] = no_proxy
+      agent = new_mechanize(http_proxy=proxy_uri)
+      expect(agent).to be_a_kind_of Mechanize
+      expect(agent.agent.http.proxy_uri.host).to eq(proxy_host)
+      expect(agent.agent.http.proxy_uri.port).to eq(proxy_port.to_i)
+      no_proxy_array = [ no_proxy ]
+      expect(agent.agent.http.no_proxy).to eq(no_proxy_array)
+    end
+
+    it "the proxy should be ignored if the no_proxy exclusion is set with multiple values" do
+      proxy_host = 'mycache.co.uk'
+      proxy_port = '80'
+      proxy_uri = 'http://'  + proxy_host + ':' + proxy_port
+      no_proxy1 = 'ignore_this_host'
+      no_proxy2 = '.and.this.domain'
+      ENV['NO_PROXY'] = no_proxy1 + ', ' + no_proxy2
+      agent = new_mechanize(http_proxy=proxy_uri)
+      expect(agent).to be_a_kind_of Mechanize
+      expect(agent.agent.http.proxy_uri.host).to eq(proxy_host)
+      expect(agent.agent.http.proxy_uri.port).to eq(proxy_port.to_i)
+      no_proxy_array = [ no_proxy1, no_proxy2 ]
+      expect(agent.agent.http.no_proxy).to eq(no_proxy_array)
+    end
   end
 end