diff --git a/PLASMA-BLD1.PO b/PLASMA-BLD1.PO
index fcc08ee..698488e 100644
Binary files a/PLASMA-BLD1.PO and b/PLASMA-BLD1.PO differ
diff --git a/src/toolsrc/codegen.c b/src/toolsrc/codegen.c
index c8eb630..1ceb4f6 100755
--- a/src/toolsrc/codegen.c
+++ b/src/toolsrc/codegen.c
@@ -232,6 +232,14 @@ void idglobal_size(int type, int size, int constsize)
     else if (size)
         emit_data(0, 0, 0, size);
 }
+void idlocal_size(int size)
+{
+    localsize += size;
+    if (localsize > 255)
+    {
+        parse_error("Local variable size overflow\n");
+    }
+}
 int id_tag(char *name, int len)
 {
     int i;
diff --git a/src/toolsrc/parse.c b/src/toolsrc/parse.c
index 6188e7e..e10561f 100755
--- a/src/toolsrc/parse.c
+++ b/src/toolsrc/parse.c
@@ -1170,8 +1170,13 @@ int parse_var(int type, long basesize)
     {
         if (idlen)
             id_add(idstr, idlen, type, size);
-        else
-            emit_data(0, 0, 0, size);
+        else if (!(type & EXTERN_TYPE))
+        {
+            if (type & LOCAL_TYPE)
+                idlocal_size(size);
+            else
+                emit_data(0, 0, 0, size);
+        }
     }
     return (1);
 }
diff --git a/src/toolsrc/parse.pla b/src/toolsrc/parse.pla
index dd81daa..e5f8588 100644
--- a/src/toolsrc/parse.pla
+++ b/src/toolsrc/parse.pla
@@ -941,8 +941,12 @@ def parse_var(type, basesize)#0
             else
                 new_iddata(idptr, idlen, type, size)
             fin
-        elsif not (type & (EXTERN_TYPE|LOCAL_TYPE))
-            emit_fill(size)
+        elsif not type & EXTERN_TYPE
+            if type & LOCAL_TYPE
+                framesize = framesize + size
+            else
+                size_iddata(type, size, 0)
+            fin
         fin
     fin
 end
diff --git a/src/toolsrc/plasm.pla b/src/toolsrc/plasm.pla
index 42fd156..eeb5ffb 100644
--- a/src/toolsrc/plasm.pla
+++ b/src/toolsrc/plasm.pla
@@ -411,7 +411,7 @@ include "toolsrc/parse.pla"
 //
 // Look at command line arguments and compile module
 //
-puts("PLASMA Compiler, Version 1.0\n")
+puts("PLASMA Compiler, Version 1.01\n")
 arg = argNext(argFirst)
 if ^arg and ^(arg + 1) == '-'
     opt = arg + 2
diff --git a/src/toolsrc/symbols.h b/src/toolsrc/symbols.h
index 4fc90ce..9eb8cb6 100755
--- a/src/toolsrc/symbols.h
+++ b/src/toolsrc/symbols.h
@@ -46,4 +46,6 @@ int id_tag(char *name, int len);
 int id_const(char *name, int len);
 int id_type(char *name, int len);
 void idglobal_size(int type, int size, int constsize);
+void idlocal_size(int size);
+void idlocal_size(int size);
 int tag_new(int type);