diff --git a/gpgme/ChangeLog b/gpgme/ChangeLog
index 4605d67d..a4969766 100644
--- a/gpgme/ChangeLog
+++ b/gpgme/ChangeLog
@@ -1,3 +1,8 @@
+2007-09-13  Marcus Brinkmann  <marcus@g10code.de>
+
+	* rungpg.c (gpg_new): Handle return value of _gpgme_getenv (fixes
+	small memory leak).
+
 2007-09-07  Marcus Brinkmann  <marcus@g10code.de>
 
 	* Makefile.am (libgpgme_qt_la_SOURCES): Move
diff --git a/gpgme/rungpg.c b/gpgme/rungpg.c
index a8fc8ad1..70293f83 100644
--- a/gpgme/rungpg.c
+++ b/gpgme/rungpg.c
@@ -463,6 +463,8 @@ gpg_new (void **engine, const char *file_name, const char *home_dir)
     goto leave;
 
   rc = _gpgme_getenv ("DISPLAY", &dft_display);
+  if (rc)
+    goto leave;
   if (dft_display)
     {
       rc = add_arg (gpg, "--display");
@@ -471,8 +473,6 @@ gpg_new (void **engine, const char *file_name, const char *home_dir)
 
       free (dft_display);
     }
-  if (rc)
-    goto leave;
 
   if (isatty (1))
     {
@@ -489,7 +489,7 @@ gpg_new (void **engine, const char *file_name, const char *home_dir)
 	  if (!rc)
 	    {
 	      rc = _gpgme_getenv ("TERM", &dft_ttytype);
-	      if (!rc)
+	      if (rc)
 		goto leave;
 
 	      rc = add_arg (gpg, "--ttytype");