diff --git a/spring-batch-core/src/main/java/org/springframework/batch/core/configuration/xml/StepParser.java b/spring-batch-core/src/main/java/org/springframework/batch/core/configuration/xml/StepParser.java
index 187fa215c..649b77337 100644
--- a/spring-batch-core/src/main/java/org/springframework/batch/core/configuration/xml/StepParser.java
+++ b/spring-batch-core/src/main/java/org/springframework/batch/core/configuration/xml/StepParser.java
@@ -16,6 +16,7 @@
 package org.springframework.batch.core.configuration.xml;
 
 import java.util.ArrayList;
+import java.util.Arrays;
 import java.util.Collection;
 import java.util.List;
 
@@ -26,10 +27,12 @@ import org.springframework.batch.core.job.flow.support.state.EndState;
 import org.springframework.batch.core.job.flow.support.state.StepState;
 import org.springframework.beans.factory.BeanCreationException;
 import org.springframework.beans.factory.config.BeanDefinition;
+import org.springframework.beans.factory.config.BeanReference;
 import org.springframework.beans.factory.config.RuntimeBeanReference;
 import org.springframework.beans.factory.parsing.BeanComponentDefinition;
 import org.springframework.beans.factory.support.AbstractBeanDefinition;
 import org.springframework.beans.factory.support.BeanDefinitionBuilder;
+import org.springframework.beans.factory.support.ManagedList;
 import org.springframework.beans.factory.support.RootBeanDefinition;
 import org.springframework.beans.factory.xml.ParserContext;
 import org.springframework.util.StringUtils;
@@ -194,11 +197,17 @@ public class StepParser {
 	 * @return the TaskletStep bean
 	 */
 	protected RootBeanDefinition parseChunkOriented(Element element, ParserContext parserContext) {
-		
-		System.out.println("PARSING PROCESS!!!");
-		
-    	RootBeanDefinition bd = new RootBeanDefinition("org.springframework.batch.core.step.item.SimpleStepFactoryBean", null, null);
-		
+
+    	RootBeanDefinition bd;
+
+		String faultTolerant = element.getAttribute("fault-tolerant");
+        if ("true".equals(faultTolerant)) {
+        	bd = new RootBeanDefinition("org.springframework.batch.core.step.item.FaultTolerantStepFactoryBean", null, null);
+        }
+        else {
+        	bd = new RootBeanDefinition("org.springframework.batch.core.step.item.SimpleStepFactoryBean", null, null);
+        }
+
         String readerBeanId = element.getAttribute("reader");
         if (StringUtils.hasText(readerBeanId)) {
             RuntimeBeanReference readerRef = new RuntimeBeanReference(readerBeanId);
@@ -224,13 +233,61 @@ public class StepParser {
         String transactionManager = element.getAttribute("transaction-manager");
         RuntimeBeanReference tx = new RuntimeBeanReference(transactionManager);
         bd.getPropertyValues().addPropertyValue("transactionManager", tx);
-		
+
+        handleExceptionElement(element, bd, "skippable-exception-classes", "skippableExceptionClasses");
+        
+        handleExceptionElement(element, bd, "retryable-exception-classes", "retryableExceptionClasses");
+        
+        handleExceptionElement(element, bd, "fatal-exception-classes", "fatalExceptionClasses");
+
+        handleListenersElement(element, bd, parserContext);
+        
         bd.setRole(BeanDefinition.ROLE_SUPPORT);
         
         return bd;
 
 	}
 
+	private void handleExceptionElement(Element element, RootBeanDefinition bd, 
+			String attributeName, String propertyName) {
+		String exceptions = 
+        	DomUtils.getChildElementValueByTagName(element, attributeName);
+        if (StringUtils.hasLength(exceptions)) {
+	        String[] exceptionArray = StringUtils.tokenizeToStringArray(
+	        		StringUtils.delete(exceptions, ","), "\n");
+	        if (exceptionArray.length > 0) {
+	        	bd.getPropertyValues().addPropertyValue(propertyName, exceptionArray);
+	        }
+        }
+	}
+
+	@SuppressWarnings("unchecked")
+	private void handleListenersElement(Element element, RootBeanDefinition bd, ParserContext parserContext) {
+		Element listenersElement = 
+        	DomUtils.getChildElementByTagName(element, "listeners");
+		if (listenersElement != null) {
+			List<String> listenerRefs = new ArrayList<String>(); 
+			List<BeanReference> listenerBeans = new ArrayList<BeanReference>(); 
+			List<Element> listenerElements = 
+	        	DomUtils.getChildElementsByTagName(listenersElement, "listener");
+			if (listenerElements != null) {
+				for (Element listenerElement : listenerElements) {
+					String listenerRef = listenerElement.getAttribute("ref");
+						if (StringUtils.hasText(listenerRef)) {
+							listenerRefs.add(listenerRef);
+					        RuntimeBeanReference bean = new RuntimeBeanReference(listenerRef);
+							if (bean != null) {
+								listenerBeans.add(bean);
+							}
+						}
+				}
+			}
+	        ManagedList arguments = new ManagedList();
+	        arguments.addAll(listenerBeans);
+        	bd.getPropertyValues().addPropertyValue("listeners", arguments);
+		}
+	}
+
 	/**
 	 * @param element
 	 * @param parserContext
diff --git a/spring-batch-core/src/main/resources/org/springframework/batch/core/configuration/xml/spring-batch-2.0.xsd b/spring-batch-core/src/main/resources/org/springframework/batch/core/configuration/xml/spring-batch-2.0.xsd
index 51b5dc4b5..6d665fea0 100644
--- a/spring-batch-core/src/main/resources/org/springframework/batch/core/configuration/xml/spring-batch-2.0.xsd
+++ b/spring-batch-core/src/main/resources/org/springframework/batch/core/configuration/xml/spring-batch-2.0.xsd
@@ -215,6 +215,60 @@
 	<xsd:complexType name="chunkOrientedType">
 		<xsd:complexContent>
 			<xsd:extension base="stepDefType">
+				<xsd:sequence>
+					<xsd:element name="listeners" minOccurs="0" maxOccurs="1">
+						<xsd:annotation>
+							<xsd:documentation><![CDATA[
+							List of all listeners for the step definition
+							]]>
+							</xsd:documentation>
+						</xsd:annotation>
+						<xsd:complexType>
+							<xsd:sequence>
+								<xsd:element name="listener">
+									<xsd:complexType>
+										<xsd:attribute name="ref" type="xsd:string"/>
+										<xsd:attribute name="class" type="xsd:string"/>
+									</xsd:complexType>
+								</xsd:element>
+							</xsd:sequence>
+						</xsd:complexType>
+					</xsd:element>
+					<xsd:element name="skippable-exception-classes" minOccurs="0" maxOccurs="1">
+						<xsd:annotation>
+							<xsd:documentation><![CDATA[
+							The newline-separated, list of exception classes that are skippable
+							]]>
+							</xsd:documentation>
+						</xsd:annotation>
+						<xsd:simpleType>
+							<xsd:restriction base="xsd:string"/>
+						</xsd:simpleType>
+					</xsd:element>
+					<xsd:element name="retryable-exception-classes" minOccurs="0" maxOccurs="1">
+						<xsd:annotation>
+							<xsd:documentation><![CDATA[
+							The newline-separated, list of exception classes that are skippable
+							]]>
+							</xsd:documentation>
+						</xsd:annotation>
+						<xsd:simpleType>
+							<xsd:restriction base="xsd:string"/>
+						</xsd:simpleType>
+					</xsd:element>
+					<xsd:element name="fatal-exception-classes" minOccurs="0" maxOccurs="1">
+						<xsd:annotation>
+							<xsd:documentation><![CDATA[
+							The newline-separated, list of exception classes that are skippable
+							]]>
+							</xsd:documentation>
+						</xsd:annotation>
+						<xsd:simpleType>
+							<xsd:restriction base="xsd:string"/>
+						</xsd:simpleType>
+					</xsd:element>
+				</xsd:sequence>
+				<xsd:attribute name="fault-tolerant" type="xsd:boolean" default="false" use="optional"/>
 				<xsd:attribute name="reader" type="xsd:string" use="required">
 					<xsd:annotation>
 						<xsd:documentation><![CDATA[
diff --git a/spring-batch-core/src/test/java/org/springframework/batch/core/configuration/xml/StepWithChunkOrientedJobParserTests.java b/spring-batch-core/src/test/java/org/springframework/batch/core/configuration/xml/StepWithChunkOrientedJobParserTests.java
index ffa669af7..79627acf1 100644
--- a/spring-batch-core/src/test/java/org/springframework/batch/core/configuration/xml/StepWithChunkOrientedJobParserTests.java
+++ b/spring-batch-core/src/test/java/org/springframework/batch/core/configuration/xml/StepWithChunkOrientedJobParserTests.java
@@ -50,6 +50,9 @@ public class StepWithChunkOrientedJobParserTests {
 	@Autowired
 	private TestReader reader;
 	
+	@Autowired
+	private TestListener listener;
+	
 	@Autowired
 	private TestProcessor processor;
 	
@@ -71,5 +74,6 @@ public class StepWithChunkOrientedJobParserTests {
 		assertTrue(reader.isExecuted());
 		assertTrue(processor.isExecuted());
 		assertTrue(writer.isExecuted());
+		assertTrue(listener.isExecuted());
 	}
 }
diff --git a/spring-batch-core/src/test/java/org/springframework/batch/core/configuration/xml/TestListener.java b/spring-batch-core/src/test/java/org/springframework/batch/core/configuration/xml/TestListener.java
new file mode 100644
index 000000000..b762506f8
--- /dev/null
+++ b/spring-batch-core/src/test/java/org/springframework/batch/core/configuration/xml/TestListener.java
@@ -0,0 +1,17 @@
+package org.springframework.batch.core.configuration.xml;
+
+import org.springframework.batch.core.StepExecution;
+import org.springframework.batch.core.StepExecutionListener;
+import org.springframework.batch.repeat.ExitStatus;
+
+public class TestListener extends AbstractTestComponent implements StepExecutionListener {
+
+	public ExitStatus afterStep(StepExecution stepExecution) {
+		return null;
+	}
+
+	public void beforeStep(StepExecution stepExecution) {
+		executed = true;
+	}
+
+}
diff --git a/spring-batch-core/src/test/resources/org/springframework/batch/core/configuration/xml/StepWithChunkOrientedJobParserTests-context.xml b/spring-batch-core/src/test/resources/org/springframework/batch/core/configuration/xml/StepWithChunkOrientedJobParserTests-context.xml
index d47c41207..2fa0ba9dd 100644
--- a/spring-batch-core/src/test/resources/org/springframework/batch/core/configuration/xml/StepWithChunkOrientedJobParserTests-context.xml
+++ b/spring-batch-core/src/test/resources/org/springframework/batch/core/configuration/xml/StepWithChunkOrientedJobParserTests-context.xml
@@ -8,7 +8,11 @@
 	
 	<job id="job">
 		<step name="step1">
-			<chunk-oriented reader="reader" processor="processor" writer="writer"/>
+			<chunk-oriented reader="reader" processor="processor" writer="writer">
+				<listeners>
+					<listener ref="listener"/>
+				</listeners>
+			</chunk-oriented>
 		</step>
 	</job>
 
@@ -18,4 +22,6 @@
 	
 	<beans:bean id="writer" class="org.springframework.batch.core.configuration.xml.TestWriter"/>
 
+	<beans:bean id="listener" class="org.springframework.batch.core.configuration.xml.TestListener"/>
+
 </beans:beans>
\ No newline at end of file