diff --git a/spring-webflow/changelog.txt b/spring-webflow/changelog.txt
index b53abfa4..84b111bc 100644
--- a/spring-webflow/changelog.txt
+++ b/spring-webflow/changelog.txt
@@ -25,6 +25,8 @@ Package org.springframework.webflow.conversation
 Package org.springframework.webflow.engine
 * FlowExecutionImpl.handleException() now also tries to handle FlowExecutionExceptions that
   occur during exception handling (SWF-261).
+* The XmlFlowBuilder now also supports OGNL expressions in the "to" attribute of a transition
+  when using the "on-exception" attribute (SWF-269).
 
 Package org.springframework.webflow.execution
 * Added FlowExecutionListener.sessionCreated(RequestContext, FlowSession) callback, useful for
diff --git a/spring-webflow/src/main/java/org/springframework/webflow/engine/builder/xml/XmlFlowBuilder.java b/spring-webflow/src/main/java/org/springframework/webflow/engine/builder/xml/XmlFlowBuilder.java
index 508b2612..a860e4b2 100644
--- a/spring-webflow/src/main/java/org/springframework/webflow/engine/builder/xml/XmlFlowBuilder.java
+++ b/spring-webflow/src/main/java/org/springframework/webflow/engine/builder/xml/XmlFlowBuilder.java
@@ -657,6 +657,8 @@ public class XmlFlowBuilder extends BaseFlowBuilder implements ResourceHolder {
 		for (Iterator it = transitionElements.iterator(); it.hasNext();) {
 			Element transitionElement = (Element)it.next();
 			if (!StringUtils.hasText(transitionElement.getAttribute(ON_EXCEPTION_ATTRIBUTE))) {
+				// the "on-exception transition" is not really a transition but rather
+				// a FlowExecutionExceptionHandler (see parseTransitionExecutingExceptionHandlers)
 				transitions.add(parseTransition(transitionElement));
 			}
 		}
@@ -1038,6 +1040,8 @@ public class XmlFlowBuilder extends BaseFlowBuilder implements ResourceHolder {
 		for (Iterator it = transitionElements.iterator(); it.hasNext();) {
 			Element transitionElement = (Element)it.next();
 			if (StringUtils.hasText(transitionElement.getAttribute(ON_EXCEPTION_ATTRIBUTE))) {
+				// the "on-exception transitions" are not really transitions but rather
+				// FlowExecutionExceptionHandlers
 				exceptionHandlers.add(parseTransitionExecutingExceptionHandler(transitionElement));
 			}
 		}
@@ -1048,7 +1052,9 @@ public class XmlFlowBuilder extends BaseFlowBuilder implements ResourceHolder {
 	private FlowExecutionExceptionHandler parseTransitionExecutingExceptionHandler(Element element) {
 		TransitionExecutingStateExceptionHandler handler = new TransitionExecutingStateExceptionHandler();
 		Class exceptionClass = (Class)fromStringTo(Class.class).execute(element.getAttribute(ON_EXCEPTION_ATTRIBUTE));
-		handler.add(exceptionClass, element.getAttribute(TO_ATTRIBUTE));
+		TargetStateResolver targetStateResolver = (TargetStateResolver)fromStringTo(TargetStateResolver.class).execute(
+				element.getAttribute(TO_ATTRIBUTE));
+		handler.add(exceptionClass, targetStateResolver);
 		handler.getActionList().addAll(parseAnnotatedActions(element));
 		return handler;
 	}
diff --git a/spring-webflow/src/test/java/org/springframework/webflow/engine/builder/xml/XmlFlowBuilderTests.java b/spring-webflow/src/test/java/org/springframework/webflow/engine/builder/xml/XmlFlowBuilderTests.java
index e6b5c5bc..e096a874 100644
--- a/spring-webflow/src/test/java/org/springframework/webflow/engine/builder/xml/XmlFlowBuilderTests.java
+++ b/spring-webflow/src/test/java/org/springframework/webflow/engine/builder/xml/XmlFlowBuilderTests.java
@@ -15,6 +15,7 @@
  */
 package org.springframework.webflow.engine.builder.xml;
 
+import java.io.IOException;
 import java.math.BigDecimal;
 
 import junit.framework.TestCase;
@@ -34,7 +35,10 @@ import org.springframework.webflow.engine.builder.FlowAssembler;
 import org.springframework.webflow.engine.support.ApplicationViewSelector;
 import org.springframework.webflow.engine.support.TransitionExecutingStateExceptionHandler;
 import org.springframework.webflow.execution.Event;
-import org.springframework.webflow.test.MockRequestContext;
+import org.springframework.webflow.execution.FlowExecutionException;
+import org.springframework.webflow.execution.ViewSelection;
+import org.springframework.webflow.execution.support.ApplicationView;
+import org.springframework.webflow.test.MockRequestControlContext;
 
 /**
  * Test case for XML flow builder.
@@ -47,13 +51,13 @@ public class XmlFlowBuilderTests extends TestCase {
 
 	private Flow flow;
 
-	private MockRequestContext context;
+	private MockRequestControlContext context;
 
 	protected void setUp() throws Exception {
 		XmlFlowBuilder builder = new XmlFlowBuilder(new ClassPathResource("testFlow1.xml", XmlFlowBuilderTests.class),
 				new TestFlowServiceLocator());
 		flow = new FlowAssembler("testFlow1", builder).assembleFlow();
-		context = new MockRequestContext();
+		context = new MockRequestControlContext(flow);
 	}
 
 	private Event createEvent(String id) {
@@ -69,8 +73,18 @@ public class XmlFlowBuilderTests extends TestCase {
 		assertEquals(5, flow.getVariables().length);
 		assertEquals(1, flow.getStartActionList().size());
 		assertEquals(1, flow.getEndActionList().size());
-		assertEquals(1, flow.getExceptionHandlerSet().size());
+		assertEquals(2, flow.getExceptionHandlerSet().size());
 		assertTrue(flow.getExceptionHandlerSet().toArray()[0] instanceof TransitionExecutingStateExceptionHandler);
+		assertTrue(flow.getExceptionHandlerSet().toArray()[1] instanceof TransitionExecutingStateExceptionHandler);
+		TransitionExecutingStateExceptionHandler handler =
+			(TransitionExecutingStateExceptionHandler)flow.getExceptionHandlerSet().toArray()[1];
+		FlowExecutionException exception =
+			new FlowExecutionException("testFlow1", "actionState1", "test", new IOException());
+		assertTrue(handler.handles(exception));
+		context.getFlowScope().put("testTargetState", "endState1");
+		ViewSelection view = handler.handle(exception, context);
+		assertTrue(view instanceof ApplicationView);
+		assertEquals("endView1", ((ApplicationView)view).getViewName());
 
 		ActionState actionState1 = (ActionState)flow.getState("actionState1");
 		assertNotNull(actionState1);
diff --git a/spring-webflow/src/test/java/org/springframework/webflow/engine/builder/xml/testFlow1.xml b/spring-webflow/src/test/java/org/springframework/webflow/engine/builder/xml/testFlow1.xml
index 1cded018..14e4955a 100644
--- a/spring-webflow/src/test/java/org/springframework/webflow/engine/builder/xml/testFlow1.xml
+++ b/spring-webflow/src/test/java/org/springframework/webflow/engine/builder/xml/testFlow1.xml
@@ -119,6 +119,7 @@
 
 	<global-transitions>
 		<transition on-exception="org.springframework.webflow.TestException" to="endState1" />
+		<transition on-exception="java.io.IOException" to="${flowScope.testTargetState}"/>
 	</global-transitions>
 
 	<end-actions>