diff --git a/reactos/subsys/system/expand/.cvsignore b/reactos/subsys/system/expand/.cvsignore
new file mode 100644
index 00000000000..571dd1b7ec0
--- /dev/null
+++ b/reactos/subsys/system/expand/.cvsignore
@@ -0,0 +1,4 @@
+*.o
+*.sym
+*.map
+*.exe
diff --git a/reactos/subsys/system/expand/expand.c b/reactos/subsys/system/expand/expand.c
new file mode 100644
index 00000000000..ece8f04a659
--- /dev/null
+++ b/reactos/subsys/system/expand/expand.c
@@ -0,0 +1,53 @@
+/*
+ * Copyright 1997 Victor Schneider
+ * Copyright 2002 Alexandre Julliard
+ *
+ * This library is free software; you can redistribute it and/or
+ * modify it under the terms of the GNU Lesser General Public
+ * License as published by the Free Software Foundation; either
+ * version 2.1 of the License, or (at your option) any later version.
+ *
+ * This library is distributed in the hope that it will be useful,
+ * but WITHOUT ANY WARRANTY; without even the implied warranty of
+ * MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the GNU
+ * Lesser General Public License for more details.
+ *
+ * You should have received a copy of the GNU Lesser General Public
+ * License along with this library; if not, write to the Free Software
+ * Foundation, Inc., 59 Temple Place, Suite 330, Boston, MA  02111-1307  USA
+ */
+
+#include <stdlib.h>
+#include <stdio.h>
+#include <string.h>
+#include <windows.h>
+#include <lzexpand.h>
+
+int main(int argc, char *argv[])
+{
+  OFSTRUCT SourceOpenStruct1, SourceOpenStruct2;
+  LONG ret;
+  HFILE hSourceFile, hDestFile;
+
+  if (argc < 2)
+  {
+      fprintf( stderr, "ReactOS File Expansion Utility Version 1.0\n", argv[0] );
+      fprintf( stderr, "Copyright Victor Schneider 1997\n\n", argv[0] );
+      fprintf( stderr, "Usage: %s infile [outfile]\n", argv[0] );
+      return 1;
+  }
+  hSourceFile = LZOpenFile(argv[1], &SourceOpenStruct1, OF_READ);
+  if (argv[2])
+      hDestFile = LZOpenFile(argv[2], &SourceOpenStruct2, OF_CREATE | OF_WRITE);
+  else
+  {
+      char OriginalName[MAX_PATH];
+      GetExpandedName(argv[1], OriginalName);
+      hDestFile = LZOpenFile(OriginalName, &SourceOpenStruct2, OF_CREATE | OF_WRITE);
+  }
+  ret = LZCopy(hSourceFile, hDestFile);
+  LZClose(hSourceFile);
+  LZClose(hDestFile);
+  if (ret <= 0) fprintf(stderr,"LZCopy failed: return is %ld\n",ret);
+  return (ret <= 0);
+}
diff --git a/reactos/subsys/system/expand/makefile b/reactos/subsys/system/expand/makefile
new file mode 100644
index 00000000000..3e27e5fc503
--- /dev/null
+++ b/reactos/subsys/system/expand/makefile
@@ -0,0 +1,21 @@
+# 
+
+PATH_TO_TOP = ../../..
+
+TARGET_NORC = yes
+
+TARGET_TYPE = program
+
+TARGET_APPTYPE = console
+
+TARGET_NAME = expand
+
+TARGET_SDKLIBS = lz32.a
+
+TARGET_OBJECTS = $(TARGET_NAME).o
+
+include $(PATH_TO_TOP)/rules.mak
+
+include $(TOOLS_PATH)/helper.mk
+
+# EOF