diff --git a/README.md b/README.md
index cddac15..f80d5c2 100644
--- a/README.md
+++ b/README.md
@@ -31,6 +31,16 @@ Please submit pull requests against https://github.com/release-engineering/kobo.
 Changelog
 =========
 
+kobo 0.39.0
+-----------
+
+### FEATURES & IMPROVEMENTS
+
+- client: `HubProxy` now accepts `transport_args` to customize the
+  instantiation of the default transport
+- `kobo.pkgset.FileCache` now implements `__contains__` for improved
+  performance
+
 kobo 0.38.0
 -----------
 
diff --git a/setup.py b/setup.py
index 3adb833..93de508 100755
--- a/setup.py
+++ b/setup.py
@@ -53,7 +53,7 @@
 
 setup(
     name            = "kobo",
-    version         = "0.38.0",
+    version         = "0.39.0",
     description     = "A pile of python modules used by Red Hat release engineering to build their tools",
     url             = "https://github.com/release-engineering/kobo/",
     author          = "Red Hat, Inc.",