diff --git a/core/src/main/java/com/google/zxing/oned/Code128Writer.java b/core/src/main/java/com/google/zxing/oned/Code128Writer.java
index 0f3a0645b..7614acfa4 100644
--- a/core/src/main/java/com/google/zxing/oned/Code128Writer.java
+++ b/core/src/main/java/com/google/zxing/oned/Code128Writer.java
@@ -106,8 +106,27 @@ public final class Code128Writer extends OneDimensionalCodeWriter {
       if (newCodeSet == codeSet) {
         // Encode the current character
         if (codeSet == CODE_CODE_B) {
-          patternIndex = contents.charAt(position) - ' ';
-          position += 1;
+          switch (contents.charAt(position)) {
+            case ESCAPE_FNC_1:
+              patternIndex = CODE_FNC_1;
+              position++;
+              break;
+            case ESCAPE_FNC_2:
+              patternIndex = CODE_FNC_2;
+              position++;
+              break;
+            case ESCAPE_FNC_3:
+              patternIndex = CODE_FNC_3;
+              position++;
+              break;
+            case ESCAPE_FNC_4:
+              patternIndex = CODE_FNC_4_B; // FIXME if this ever outputs Code A
+              position++;
+              break;
+            default:
+              patternIndex = contents.charAt(position) - ' ';
+              position++;
+          }
         } else { // CODE_CODE_C
           switch (contents.charAt(position)) {
             case ESCAPE_FNC_1:
diff --git a/core/src/test/java/com/google/zxing/oned/Code128WriterTestCase.java b/core/src/test/java/com/google/zxing/oned/Code128WriterTestCase.java
new file mode 100644
index 000000000..e3c266ad3
--- /dev/null
+++ b/core/src/test/java/com/google/zxing/oned/Code128WriterTestCase.java
@@ -0,0 +1,33 @@
+package com.google.zxing.oned;
+
+import org.junit.Test;
+
+import com.google.zxing.BarcodeFormat;
+import com.google.zxing.Writer;
+import com.google.zxing.WriterException;
+import com.google.zxing.common.BitMatrix;
+
+import static org.junit.Assert.*;
+
+public class Code128WriterTestCase {
+	private static final String FNC3 = "10111100010";
+	private static final String START_CODE_B = "11010010000";
+	public static final String QUIET_SPACE = "00000";
+	public static final String STOP = "1100011101011";
+	
+	@Test
+	public void testEncodeWithFunc3() throws WriterException {
+		String toEncode = "\u00f3" + "123";
+		//                                                       "1"            "2"             "3"          check digit 51
+		String expected = QUIET_SPACE + START_CODE_B + FNC3 + "10011100110" + "11001110010" + "11001011100" + "11101000110" + STOP + QUIET_SPACE;
+		
+		Writer writer = new Code128Writer();
+		BitMatrix result = writer.encode(toEncode, BarcodeFormat.CODE_128, 0, 0);
+		
+		StringBuilder actual = new StringBuilder(result.getWidth());
+		for (int i = 0; i < result.getWidth(); i++) {
+			actual.append(result.get(i, 0) ? '1' : '0');
+		}
+		assertEquals(expected, actual.toString());
+	}
+}