diff --git a/libgfortran/ChangeLog b/libgfortran/ChangeLog
index ac9e2710a28..69a205949bf 100644
--- a/libgfortran/ChangeLog
+++ b/libgfortran/ChangeLog
@@ -1,3 +1,9 @@
+2008-06-28  Jerry DeLisle  <jvdelisle@gcc.gnu.org>
+
+	PR fortran/36657
+	* io/list_read.c (read_character): Check for '!' along with separators.
+	(find_nml_name): Likewise and eat the comment if found.
+
 2008-06-17  Ralf Wildenhues  <Ralf.Wildenhues@gmx.de>
 
 	* configure: Regenerate.
diff --git a/libgfortran/io/list_read.c b/libgfortran/io/list_read.c
index ffa23693a86..82c288f6c6e 100644
--- a/libgfortran/io/list_read.c
+++ b/libgfortran/io/list_read.c
@@ -1083,7 +1083,7 @@ read_character (st_parameter_dt *dtp, int length __attribute__ ((unused)))
      invalid.  */
  done:
   c = next_char (dtp);
-  if (is_separator (c))
+  if (is_separator (c) || c == '!')
     {
       unget_char (dtp, c);
       eat_separator (dtp);
@@ -2916,13 +2916,14 @@ find_nml_name:
 
   /* A trailing space is required, we give a little lattitude here, 10.9.1.  */ 
   c = next_char (dtp);
-  if (!is_separator(c))
+  if (!is_separator(c) && c != '!')
     {
       unget_char (dtp, c);
       goto find_nml_name;
     }
 
-  eat_separator (dtp);
+  if (c == '!')
+    eat_line (dtp);
 
   /* Ready to read namelist objects.  If there is an error in input
      from stdin, output the error message and continue.  */