diff --git a/Foundation/Foundation_vs71.vcproj b/Foundation/Foundation_vs71.vcproj
index 2cc004fd6..75bcef9e9 100644
--- a/Foundation/Foundation_vs71.vcproj
+++ b/Foundation/Foundation_vs71.vcproj
@@ -1463,7 +1463,7 @@
 					RelativePath=".\src\NotificationQueue.cpp">
 				</File>
 				<File
-					RelativePath=".\src\Observer.cpp">
+					RelativePath=".\src\AbstractObserver.cpp">
 				</File>
 			</Filter>
 			<Filter
@@ -1478,9 +1478,15 @@
 				<File
 					RelativePath=".\include\Poco\NotificationQueue.h">
 				</File>
+				<File
+					RelativePath=".\include\Poco\AbstractObserver.h">
+				</File>
 				<File
 					RelativePath=".\include\Poco\Observer.h">
 				</File>
+				<File
+					RelativePath=".\include\Poco\NObserver.h">
+				</File>
 			</Filter>
 		</Filter>
 		<Filter
diff --git a/Foundation/Foundation_vs80.vcproj b/Foundation/Foundation_vs80.vcproj
index 9c5a00648..3b5d23eb3 100644
--- a/Foundation/Foundation_vs80.vcproj
+++ b/Foundation/Foundation_vs80.vcproj
@@ -1932,7 +1932,7 @@
 					>
 				</File>
 				<File
-					RelativePath=".\src\Observer.cpp"
+					RelativePath=".\src\AbstractObserver.cpp"
 					>
 				</File>
 			</Filter>
@@ -1951,10 +1951,18 @@
 					RelativePath=".\include\Poco\NotificationQueue.h"
 					>
 				</File>
+				<File
+					RelativePath=".\include\Poco\AbstractObserver.h"
+					>
+				</File>
 				<File
 					RelativePath=".\include\Poco\Observer.h"
 					>
 				</File>
+				<File
+					RelativePath=".\include\Poco\NObserver.h"
+					>
+				</File>
 			</Filter>
 		</Filter>
 		<Filter
diff --git a/Foundation/Makefile b/Foundation/Makefile
index ebb282fed..127b0b29d 100644
--- a/Foundation/Makefile
+++ b/Foundation/Makefile
@@ -1,7 +1,7 @@
 #
 # Makefile
 #
-# $Id: //poco/1.2/Foundation/Makefile#1 $
+# $Id: //poco/1.2/Foundation/Makefile#2 $
 #
 # Makefile for Poco Foundation
 #
@@ -18,7 +18,7 @@ objects = ArchiveStrategy ASCIIEncoding AsyncChannel Base64Decoder Base64Encoder
 	LoggingFactory LoggingRegistry LogStream NamedEvent NamedMutex NullChannel \
 	MemoryPool MD2Engine MD4Engine MD5Engine Manifest Message Mutex \
 	NestedDiagnosticContext Notification NotificationCenter \
-	NotificationQueue NullStream NumberFormatter NumberParser Observer \
+	NotificationQueue NullStream NumberFormatter NumberParser AbstractObserver \
 	Path PatternFormatter Process PurgeStrategy RWLock Random RandomStream \
 	RegularExpression RefCountedObject Runnable RotateStrategy \
 	SHA1Engine Semaphore SharedLibrary SimpleFileChannel \
diff --git a/Foundation/testsuite/src/NotificationCenterTest.cpp b/Foundation/testsuite/src/NotificationCenterTest.cpp
index 2ca4f033c..a47e5dac6 100644
--- a/Foundation/testsuite/src/NotificationCenterTest.cpp
+++ b/Foundation/testsuite/src/NotificationCenterTest.cpp
@@ -1,7 +1,7 @@
 //
 // NotificationCenterTest.cpp
 //
-// $Id: //poco/1.2/Foundation/testsuite/src/NotificationCenterTest.cpp#1 $
+// $Id: //poco/1.2/Foundation/testsuite/src/NotificationCenterTest.cpp#2 $
 //
 // Copyright (c) 2004-2006, Applied Informatics Software Engineering GmbH.
 // and Contributors.
@@ -35,11 +35,13 @@
 #include "CppUnit/TestSuite.h"
 #include "Poco/NotificationCenter.h"
 #include "Poco/Observer.h"
+#include "Poco/NObserver.h"
 #include "Poco/AutoPtr.h"
 
 
 using Poco::NotificationCenter;
 using Poco::Observer;
+using Poco::NObserver;
 using Poco::Notification;
 using Poco::AutoPtr;
 
@@ -131,6 +133,17 @@ void NotificationCenterTest::test5()
 }
 
 
+void NotificationCenterTest::testAuto()
+{
+	NotificationCenter nc;
+	nc.addObserver(NObserver<NotificationCenterTest, Notification>(*this, &NotificationCenterTest::handleAuto));
+	nc.postNotification(new Notification);
+	assert (_set.size() == 1);
+	assert (_set.find("handleAuto") != _set.end());
+	nc.removeObserver(NObserver<NotificationCenterTest, Notification>(*this, &NotificationCenterTest::handleAuto));
+}
+
+
 void NotificationCenterTest::testDefaultCenter()
 {
 	NotificationCenter& nc = NotificationCenter::defaultCenter();
@@ -174,6 +187,12 @@ void NotificationCenterTest::handleTest(TestNotification* pNf)
 }
 
 
+void NotificationCenterTest::handleAuto(const AutoPtr<Notification>& pNf)
+{
+	_set.insert("handleAuto");
+}
+
+
 void NotificationCenterTest::setUp()
 {
 	_set.clear();
@@ -194,6 +213,7 @@ CppUnit::Test* NotificationCenterTest::suite()
 	CppUnit_addTest(pSuite, NotificationCenterTest, test3);
 	CppUnit_addTest(pSuite, NotificationCenterTest, test4);
 	CppUnit_addTest(pSuite, NotificationCenterTest, test5);
+	CppUnit_addTest(pSuite, NotificationCenterTest, testAuto);
 	CppUnit_addTest(pSuite, NotificationCenterTest, testDefaultCenter);
 
 	return pSuite;
diff --git a/Foundation/testsuite/src/NotificationCenterTest.h b/Foundation/testsuite/src/NotificationCenterTest.h
index f59c7e9ef..933fb33a7 100644
--- a/Foundation/testsuite/src/NotificationCenterTest.h
+++ b/Foundation/testsuite/src/NotificationCenterTest.h
@@ -1,7 +1,7 @@
 //
 // NotificationCenterTest.h
 //
-// $Id: //poco/1.2/Foundation/testsuite/src/NotificationCenterTest.h#1 $
+// $Id: //poco/1.2/Foundation/testsuite/src/NotificationCenterTest.h#2 $
 //
 // Definition of the NotificationCenterTest class.
 //
@@ -39,6 +39,7 @@
 #include "Poco/Foundation.h"
 #include "CppUnit/TestCase.h"
 #include "Poco/Notification.h"
+#include "Poco/AutoPtr.h"
 #include <set>
 
 
@@ -56,6 +57,7 @@ public:
 	void test3();
 	void test4();
 	void test5();
+	void testAuto();
 	void testDefaultCenter();
 
 	void setUp();
@@ -68,6 +70,7 @@ protected:
 	void handle2(Poco::Notification* pNf);
 	void handle3(Poco::Notification* pNf);
 	void handleTest(TestNotification* pNf);
+	void handleAuto(const Poco::AutoPtr<Poco::Notification>& pNf);
 	
 private:
 	std::set<std::string> _set;
diff --git a/Net/samples/EchoServer/src/EchoServer.cpp b/Net/samples/EchoServer/src/EchoServer.cpp
index f884353e6..b29d817f0 100644
--- a/Net/samples/EchoServer/src/EchoServer.cpp
+++ b/Net/samples/EchoServer/src/EchoServer.cpp
@@ -1,7 +1,7 @@
 //
 // EchoServer.cpp
 //
-// $Id: //poco/1.2/Net/samples/EchoServer/src/EchoServer.cpp#2 $
+// $Id: //poco/1.2/Net/samples/EchoServer/src/EchoServer.cpp#3 $
 //
 // This sample demonstrates the SocketReactor and SocketAcceptor classes.
 //
@@ -37,7 +37,7 @@
 #include "Poco/Net/SocketNotification.h"
 #include "Poco/Net/StreamSocket.h"
 #include "Poco/Net/ServerSocket.h"
-#include "Poco/Observer.h"
+#include "Poco/NObserver.h"
 #include "Poco/Exception.h"
 #include "Poco/Thread.h"
 #include "Poco/Util/ServerApplication.h"
@@ -53,7 +53,8 @@ using Poco::Net::ReadableNotification;
 using Poco::Net::ShutdownNotification;
 using Poco::Net::ServerSocket;
 using Poco::Net::StreamSocket;
-using Poco::Observer;
+using Poco::NObserver;
+using Poco::AutoPtr;
 using Poco::Thread;
 using Poco::Util::ServerApplication;
 using Poco::Util::Application;
@@ -73,8 +74,8 @@ public:
 		Application& app = Application::instance();
 		app.logger().information("Connection from " + socket.peerAddress().toString());
 
-		_reactor.addEventHandler(_socket, Observer<EchoServiceHandler, ReadableNotification>(*this, &EchoServiceHandler::onReadable));
-		_reactor.addEventHandler(_socket, Observer<EchoServiceHandler, ShutdownNotification>(*this, &EchoServiceHandler::onShutdown));
+		_reactor.addEventHandler(_socket, NObserver<EchoServiceHandler, ReadableNotification>(*this, &EchoServiceHandler::onReadable));
+		_reactor.addEventHandler(_socket, NObserver<EchoServiceHandler, ShutdownNotification>(*this, &EchoServiceHandler::onShutdown));
 	}
 	
 	~EchoServiceHandler()
@@ -87,14 +88,13 @@ public:
 		catch (...)
 		{
 		}
-		_reactor.removeEventHandler(_socket, Observer<EchoServiceHandler, ReadableNotification>(*this, &EchoServiceHandler::onReadable));
-		_reactor.removeEventHandler(_socket, Observer<EchoServiceHandler, ShutdownNotification>(*this, &EchoServiceHandler::onShutdown));
+		_reactor.removeEventHandler(_socket, NObserver<EchoServiceHandler, ReadableNotification>(*this, &EchoServiceHandler::onReadable));
+		_reactor.removeEventHandler(_socket, NObserver<EchoServiceHandler, ShutdownNotification>(*this, &EchoServiceHandler::onShutdown));
 		delete [] _pBuffer;
 	}
 	
-	void onReadable(ReadableNotification* pNf)
+	void onReadable(const AutoPtr<ReadableNotification>& pNf)
 	{
-		pNf->release(); // we get ownership of the notification, but we do not need it, so we kiss it goodbye.
 		int n = _socket.receiveBytes(_pBuffer, BUFFER_SIZE);
 		if (n > 0)
 			_socket.sendBytes(_pBuffer, n);
@@ -102,9 +102,8 @@ public:
 			delete this;
 	}
 	
-	void onShutdown(ShutdownNotification* pNf)
+	void onShutdown(const AutoPtr<ShutdownNotification>& pNf)
 	{
-		pNf->release();
 		delete this;
 	}