diff --git a/README.md b/README.md
index ae998192d..dda0ee0c6 100644
--- a/README.md
+++ b/README.md
@@ -1,5 +1,5 @@
 # Digi Embedded Yocto (DEY) 4.0
-## Release 4.0-r2
+## Release 4.0-r3
 
 This document provides information about Digi Embedded Yocto,
 Digi International's professional embedded Yocto development environment.
diff --git a/meta-digi-dey/conf/distro/dey.conf b/meta-digi-dey/conf/distro/dey.conf
index eab3cf9bf..e6e8793e8 100644
--- a/meta-digi-dey/conf/distro/dey.conf
+++ b/meta-digi-dey/conf/distro/dey.conf
@@ -2,7 +2,7 @@ require conf/distro/poky.conf
 
 DISTRO = "dey"
 DISTRO_NAME = "Digi Embedded Yocto"
-DISTRO_VERSION = "4.0-r2"
+DISTRO_VERSION = "4.0-r3"
 
 SDK_VENDOR = "-deysdk"