- [bug] Fixed Py3K bug in the Babel extension.
diff --git a/CHANGES b/CHANGES
index f49c6f2..afb82d4 100644
--- a/CHANGES
+++ b/CHANGES
@@ -1,8 +1,11 @@
+
 0.7.3
 - [bug] AST supporting now supports tuple-packed
   function arguments inside pure-python def
   or lambda expressions.  [ticket:201]
 
+- [bug] Fixed Py3K bug in the Babel extension.
+
 0.7.2
 - [bug] Fixed regression in 0.7.1 where AST
   parsing for Py2.4 was broken.
diff --git a/mako/ext/babelplugin.py b/mako/ext/babelplugin.py
index 65f7e02..085938d 100644
--- a/mako/ext/babelplugin.py
+++ b/mako/ext/babelplugin.py
@@ -9,7 +9,7 @@
 
 from babel.messages.extract import extract_python
 
-from mako import lexer, parsetree
+from mako import lexer, parsetree, util
 
 def extract(fileobj, keywords, comment_tags, options):
     """Extract messages from Mako templates.
@@ -108,7 +108,7 @@
             translator_comments = \
                 [comment[1] for comment in translator_comments]
 
-        if isinstance(code, unicode):
+        if not util.py3k and isinstance(code, unicode):
             code = code.encode('ascii', 'backslashreplace')
         code = StringIO(code)
         for lineno, funcname, messages, python_translator_comments \