diff --git a/PC/os2emx/Makefile b/PC/os2emx/Makefile
index 296200b6e08..fae7fb4c978 100644
--- a/PC/os2emx/Makefile
+++ b/PC/os2emx/Makefile
@@ -91,7 +91,7 @@ ifeq ($(MODE),debug)
   CFLAGS+=	-g -O
   LDFLAGS+=	-g
 else
-  CFLAGS+=	-s -O2 -fomit-frame-pointer
+  CFLAGS+=	-s -O3 -fomit-frame-pointer
   LDFLAGS+=	-s
 endif
 CFLAGS+=	$(PY_DEF)
@@ -515,28 +515,16 @@ $(PYTHON.DEF): $(PYTHON.LIB)
 	@echo DATA MULTIPLE NONSHARED >>$@
 	@echo EXPORTS >>$@
 	$(EXPLIB) -u $(PYTHON.LIB) |\
-	 sed -e "/ .init.*/s/^ /; /" \
-		-e "/ .pcre_.*/s/^ /; /" \
-		-e "/ .array_methods/s/^ /; /" \
-		-e "/ .fast_save_leave/s/^ /; /" \
-		-e "/ .dlopen/s/^ /; /" \
-		-e "/ .dlsym/s/^ /; /" \
-		-e "/ .dlclose/s/^ /; /" \
-		-e "/ .dlerror/s/^ /; /" \
-		-e "/ .cycle_type/s/^ /; /" \
-		-e "/ .dropwhile_type/s/^ /; /" \
-		-e "/ .takewhile_type/s/^ /; /" \
-		-e "/ .islice_type/s/^ /; /" \
-		-e "/ .starmap_type/s/^ /; /" \
-		-e "/ .imap_type/s/^ /; /" \
-		-e "/ .chain_type/s/^ /; /" \
-		-e "/ .ifilter_type/s/^ /; /" \
-		-e "/ .ifilterfalse_type/s/^ /; /" \
-		-e "/ .count_type/s/^ /; /" \
-		-e "/ .izip_type/s/^ /; /" \
-		-e "/ .repeat_type/s/^ /; /" \
-		-e "/ ._Py_re_.*/s/^ /; /" \
-		-e "/ ._Py_MD5.*/s/^ /; /" >>$@
+	 sed -e "/^  .init.*/s/^ /; /" \
+		-e "/^  .pcre_.*/s/^ /; /" \
+		-e "/^  .array_methods/s/^ /; /" \
+		-e "/^  .fast_save_leave/s/^ /; /" \
+		-e "/^  .dlopen/s/^ /; /" \
+		-e "/^  .dlsym/s/^ /; /" \
+		-e "/^  .dlclose/s/^ /; /" \
+		-e "/^  .dlerror/s/^ /; /" \
+		-e "/^  ._Py_re_.*/s/^ /; /" \
+		-e "/^  ._Py_MD5.*/s/^ /; /" >>$@
 
 $(PYTHON.IMPLIB): $(PYTHON.DEF)
 	$(IMPLIB) -o $@ $^
diff --git a/PC/os2emx/README.os2emx b/PC/os2emx/README.os2emx
index 7201908907e..b8d2115becc 100644
--- a/PC/os2emx/README.os2emx
+++ b/PC/os2emx/README.os2emx
@@ -554,10 +554,15 @@ error.
 I have not attempted to compile Python with any version of gcc prior to 
 v2.8.1.
 
-While gcc supports more aggressive optimisation than I use, a lot of 
-benchmarking indicates that Python's performance is at best only 
-marginally improved by more aggressive optimisation, at least on my 
-hardware (AMD Athlon 1.4GHz, VIA C3 800MHz).
+This release sees the default optimisation change to 
+"-O3 -fomit-frame-pointer".  This works fine too for pgcc 2.95 but not 
+for gcc 3.2.1.
+
+With gcc 3.2.1, -O3 causes 2 unexpected test failures: test_format and 
+test_unicode.  Both these tests pass if -O2 is instead of -O3 with this 
+compiler, and the performance difference is negligible (in contrast to 
+gcc 2.8.1 and pgcc 2.95, where the performance difference between the 
+2 optimisation settings approaches 10%).
 
 17.  os.spawnv() and os.spawnve() expose EMX's library routines rather 
 than use the emulation in os.py.
diff --git a/PC/os2emx/pyconfig.h b/PC/os2emx/pyconfig.h
index 206223f4b86..33fbda27e63 100644
--- a/PC/os2emx/pyconfig.h
+++ b/PC/os2emx/pyconfig.h
@@ -31,12 +31,12 @@
  * imported from the Python core DLL aren't duplicated.
  */
 #ifdef Py_BUILD_CORE
-#  define PyAPI_FUNC(RTYPE)     RTYPE
+#  define PyAPI_FUNC(RTYPE)	RTYPE
 #else
-#  define PyAPI_FUNC(RTYPE)     extern RTYPE
+#  define PyAPI_FUNC(RTYPE)	extern RTYPE
 #endif
-#define PyAPI_DATA(RTYPE)       extern RTYPE
-#define PyMODINIT_FUNC  void
+#define PyAPI_DATA(RTYPE)	extern RTYPE
+#define PyMODINIT_FUNC	void
 
 /* Use OS/2 flavour of threads */
 #define WITH_THREAD	1
diff --git a/PC/os2emx/python23.def b/PC/os2emx/python23.def
index 7c33327e1f1..2927fbae04d 100644
--- a/PC/os2emx/python23.def
+++ b/PC/os2emx/python23.def
@@ -1070,18 +1070,6 @@ EXPORTS
 
 ; From python23_s.lib(itertoolsmodule)
 ;  "inititertools"
-;  "cycle_type"
-;  "dropwhile_type"
-;  "takewhile_type"
-;  "islice_type"
-;  "starmap_type"
-;  "imap_type"
-;  "chain_type"
-;  "ifilter_type"
-;  "ifilterfalse_type"
-;  "count_type"
-;  "izip_type"
-;  "repeat_type"
 
 ; From python23_s.lib(_localemodule)
 ;  "init_locale"