diff --git a/setup.py b/setup.py
index 5b5b0d610f0..860cc056cbd 100644
--- a/setup.py
+++ b/setup.py
@@ -7,11 +7,11 @@
 from setuptools import setup, find_packages
 
 MAJOR = 0
-MINOR = 3
-MICRO = 2
-ISRELEASED = False
+MINOR = 4
+MICRO = 0
+ISRELEASED = True
 VERSION = '%d.%d.%d' % (MAJOR, MINOR, MICRO)
-QUALIFIER = ''
+QUALIFIER = 'rc1'
 
 
 DISTNAME = 'xray'