diff --git a/Lib/contextlib.py b/Lib/contextlib.py
new file mode 100644
index 0000000..33d83a6
--- /dev/null
+++ b/Lib/contextlib.py
@@ -0,0 +1,138 @@
+"""Utilities for with-statement contexts.  See PEP 343."""
+
+import sys
+
+__all__ = ["contextmanager", "nested", "closing"]
+
+class GeneratorContextManager(object):
+    """Helper for @contextmanager decorator."""
+
+    def __init__(self, gen):
+        self.gen = gen
+
+    def __context__(self):
+        return self
+
+    def __enter__(self):
+        try:
+            return self.gen.next()
+        except StopIteration:
+            raise RuntimeError("generator didn't yield")
+
+    def __exit__(self, type, value, traceback):
+        if type is None:
+            try:
+                self.gen.next()
+            except StopIteration:
+                return
+            else:
+                raise RuntimeError("generator didn't stop")
+        else:
+            try:
+                self.gen.throw(type, value, traceback)
+            except StopIteration:
+                pass
+
+
+def contextmanager(func):
+    """@contextmanager decorator.
+
+    Typical usage:
+
+        @contextmanager
+        def some_generator(<arguments>):
+            <setup>
+            try:
+                yield <value>
+            finally:
+                <cleanup>
+
+    This makes this:
+
+        with some_generator(<arguments>) as <variable>:
+            <body>
+
+    equivalent to this:
+
+        <setup>
+        try:
+            <variable> = <value>
+            <body>
+        finally:
+            <cleanup>
+
+    """
+    def helper(*args, **kwds):
+        return GeneratorContextManager(func(*args, **kwds))
+    try:
+        helper.__name__ = func.__name__
+        helper.__doc__ = func.__doc__
+    except:
+        pass
+    return helper
+
+
+@contextmanager
+def nested(*contexts):
+    """Support multiple context managers in a single with-statement.
+
+    Code like this:
+
+        with nested(A, B, C) as (X, Y, Z):
+            <body>
+
+    is equivalent to this:
+
+        with A as X:
+            with B as Y:
+                with C as Z:
+                    <body>
+
+    """
+    exits = []
+    vars = []
+    exc = (None, None, None)
+    try:
+        try:
+            for context in contexts:
+                mgr = context.__context__()
+                exit = mgr.__exit__
+                enter = mgr.__enter__
+                vars.append(enter())
+                exits.append(exit)
+            yield vars
+        except:
+            exc = sys.exc_info()
+    finally:
+        while exits:
+            exit = exits.pop()
+            try:
+                exit(*exc)
+            except:
+                exc = sys.exc_info()
+        if exc != (None, None, None):
+            raise
+
+
+@contextmanager
+def closing(thing):
+    """Context manager to automatically close something at the end of a block.
+
+    Code like this:
+
+        with closing(<module>.open(<arguments>)) as f:
+            <block>
+
+    is equivalent to this:
+
+        f = <module>.open(<arguments>)
+        try:
+            <block>
+        finally:
+            f.close()
+
+    """
+    try:
+        yield thing
+    finally:
+        thing.close()
diff --git a/Lib/decimal.py b/Lib/decimal.py
index 677d26b..49f8115 100644
--- a/Lib/decimal.py
+++ b/Lib/decimal.py
@@ -2173,6 +2173,32 @@
 
 del name, val, globalname, rounding_functions
 
+class ContextManager(object):
+    """Helper class to simplify Context management.
+
+    Sample usage:
+
+    with decimal.ExtendedContext:
+        s = ...
+    return +s # Convert result to normal precision
+
+    with decimal.getcontext() as ctx:
+        ctx.prec += 2
+        s = ...
+    return +s
+
+    """
+    def __init__(self, new_context):
+        self.new_context = new_context
+    def __enter__(self):
+        self.saved_context = getcontext()
+        setcontext(self.new_context)
+        return self.new_context
+    def __exit__(self, t, v, tb):
+        setcontext(self.saved_context)
+        if t is not None:
+            raise t, v, tb
+
 class Context(object):
     """Contains the context for a Decimal instance.
 
@@ -2224,6 +2250,9 @@
         s.append('traps=[' + ', '.join([t.__name__ for t, v in self.traps.items() if v]) + ']')
         return ', '.join(s) + ')'
 
+    def __context__(self):
+        return ContextManager(self.copy())
+
     def clear_flags(self):
         """Reset all flags to zero"""
         for flag in self.flags:
diff --git a/Lib/test/contextmanager.py b/Lib/test/contextmanager.py
deleted file mode 100644
index 07fe61c..0000000
--- a/Lib/test/contextmanager.py
+++ /dev/null
@@ -1,33 +0,0 @@
-class GeneratorContextManager(object):
-    def __init__(self, gen):
-        self.gen = gen
-
-    def __context__(self):
-        return self
-
-    def __enter__(self):
-        try:
-            return self.gen.next()
-        except StopIteration:
-            raise RuntimeError("generator didn't yield")
-
-    def __exit__(self, type, value, traceback):
-        if type is None:
-            try:
-                self.gen.next()
-            except StopIteration:
-                return
-            else:
-                raise RuntimeError("generator didn't stop")
-        else:
-            try:
-                self.gen.throw(type, value, traceback)
-            except (type, StopIteration):
-                return
-            else:
-                raise RuntimeError("generator caught exception")
-
-def contextmanager(func):
-    def helper(*args, **kwds):
-        return GeneratorContextManager(func(*args, **kwds))
-    return helper
diff --git a/Lib/test/nested.py b/Lib/test/nested.py
deleted file mode 100644
index b5030e0..0000000
--- a/Lib/test/nested.py
+++ /dev/null
@@ -1,40 +0,0 @@
-import sys
-from collections import deque
-
-
-class nested(object):
-    def __init__(self, *contexts):
-        self.contexts = contexts
-        self.entered = None
-
-    def __context__(self):
-        return self
-
-    def __enter__(self):
-        if self.entered is not None:
-            raise RuntimeError("Context is not reentrant")
-        self.entered = deque()
-        vars = []
-        try:
-            for context in self.contexts:
-                mgr = context.__context__()
-                vars.append(mgr.__enter__())
-                self.entered.appendleft(mgr)
-        except:
-            self.__exit__(*sys.exc_info())
-            raise
-        return vars
-
-    def __exit__(self, *exc_info):
-        # Behave like nested with statements
-        # first in, last out
-        # New exceptions override old ones
-        ex = exc_info
-        for mgr in self.entered:
-            try:
-                mgr.__exit__(*ex)
-            except:
-                ex = sys.exc_info()
-        self.entered = None
-        if ex is not exc_info:
-            raise ex[0], ex[1], ex[2]
diff --git a/Lib/test/test_contextlib.py b/Lib/test/test_contextlib.py
new file mode 100644
index 0000000..8c8d887
--- /dev/null
+++ b/Lib/test/test_contextlib.py
@@ -0,0 +1,240 @@
+"""Unit tests for contextlib.py, and other context managers."""
+
+from __future__ import with_statement
+
+import os
+import decimal
+import tempfile
+import unittest
+import threading
+from contextlib import *  # Tests __all__
+
+class ContextManagerTestCase(unittest.TestCase):
+
+    def test_contextmanager_plain(self):
+        state = []
+        @contextmanager
+        def woohoo():
+            state.append(1)
+            yield 42
+            state.append(999)
+        with woohoo() as x:
+            self.assertEqual(state, [1])
+            self.assertEqual(x, 42)
+            state.append(x)
+        self.assertEqual(state, [1, 42, 999])
+
+    def test_contextmanager_finally(self):
+        state = []
+        @contextmanager
+        def woohoo():
+            state.append(1)
+            try:
+                yield 42
+            finally:
+                state.append(999)
+        try:
+            with woohoo() as x:
+                self.assertEqual(state, [1])
+                self.assertEqual(x, 42)
+                state.append(x)
+                raise ZeroDivisionError()
+        except ZeroDivisionError:
+            pass
+        else:
+            self.fail("Expected ZeroDivisionError")
+        self.assertEqual(state, [1, 42, 999])
+
+    def test_contextmanager_except(self):
+        state = []
+        @contextmanager
+        def woohoo():
+            state.append(1)
+            try:
+                yield 42
+            except ZeroDivisionError, e:
+                state.append(e.args[0])
+                self.assertEqual(state, [1, 42, 999])
+        with woohoo() as x:
+            self.assertEqual(state, [1])
+            self.assertEqual(x, 42)
+            state.append(x)
+            raise ZeroDivisionError(999)
+        self.assertEqual(state, [1, 42, 999])
+
+class NestedTestCase(unittest.TestCase):
+
+    # XXX This needs more work
+
+    def test_nested(self):
+        @contextmanager
+        def a():
+            yield 1
+        @contextmanager
+        def b():
+            yield 2
+        @contextmanager
+        def c():
+            yield 3
+        with nested(a(), b(), c()) as (x, y, z):
+            self.assertEqual(x, 1)
+            self.assertEqual(y, 2)
+            self.assertEqual(z, 3)
+
+    def test_nested_cleanup(self):
+        state = []
+        @contextmanager
+        def a():
+            state.append(1)
+            try:
+                yield 2
+            finally:
+                state.append(3)
+        @contextmanager
+        def b():
+            state.append(4)
+            try:
+                yield 5
+            finally:
+                state.append(6)
+        try:
+            with nested(a(), b()) as (x, y):
+                state.append(x)
+                state.append(y)
+                1/0
+        except ZeroDivisionError:
+            self.assertEqual(state, [1, 4, 2, 5, 6, 3])
+        else:
+            self.fail("Didn't raise ZeroDivisionError")
+
+class ClosingTestCase(unittest.TestCase):
+
+    # XXX This needs more work
+
+    def test_closing(self):
+        state = []
+        class C:
+            def close(self):
+                state.append(1)
+        x = C()
+        self.assertEqual(state, [])
+        with closing(x) as y:
+            self.assertEqual(x, y)
+        self.assertEqual(state, [1])
+
+    def test_closing_error(self):
+        state = []
+        class C:
+            def close(self):
+                state.append(1)
+        x = C()
+        self.assertEqual(state, [])
+        try:
+            with closing(x) as y:
+                self.assertEqual(x, y)
+                1/0
+        except ZeroDivisionError:
+            self.assertEqual(state, [1])
+        else:
+            self.fail("Didn't raise ZeroDivisionError")
+
+class FileContextTestCase(unittest.TestCase):
+
+    def testWithOpen(self):
+        tfn = tempfile.mktemp()
+        try:
+            f = None
+            with open(tfn, "w") as f:
+                self.failIf(f.closed)
+                f.write("Booh\n")
+            self.failUnless(f.closed)
+            f = None
+            try:
+                with open(tfn, "r") as f:
+                    self.failIf(f.closed)
+                    self.assertEqual(f.read(), "Booh\n")
+                    1/0
+            except ZeroDivisionError:
+                self.failUnless(f.closed)
+            else:
+                self.fail("Didn't raise ZeroDivisionError")
+        finally:
+            try:
+                os.remove(tfn)
+            except os.error:
+                pass
+
+class LockContextTestCase(unittest.TestCase):
+
+    def boilerPlate(self, lock, locked):
+        self.failIf(locked())
+        with lock:
+            self.failUnless(locked())
+        self.failIf(locked())
+        try:
+            with lock:
+                self.failUnless(locked())
+                1/0
+        except ZeroDivisionError:
+            self.failIf(locked())
+        else:
+            self.fail("Didn't raise ZeroDivisionError")
+
+    def testWithLock(self):
+        lock = threading.Lock()
+        self.boilerPlate(lock, lock.locked)
+
+    def testWithRLock(self):
+        lock = threading.RLock()
+        self.boilerPlate(lock, lock._is_owned)
+
+    def testWithCondition(self):
+        lock = threading.Condition()
+        def locked():
+            return lock._is_owned()
+        self.boilerPlate(lock, locked)
+
+    def testWithSemaphore(self):
+        lock = threading.Semaphore()
+        def locked():
+            if lock.acquire(False):
+                lock.release()
+                return False
+            else:
+                return True
+        self.boilerPlate(lock, locked)
+
+    def testWithBoundedSemaphore(self):
+        lock = threading.BoundedSemaphore()
+        def locked():
+            if lock.acquire(False):
+                lock.release()
+                return False
+            else:
+                return True
+        self.boilerPlate(lock, locked)
+
+class DecimalContextTestCase(unittest.TestCase):
+
+    # XXX Somebody should write more thorough tests for this
+
+    def testBasic(self):
+        ctx = decimal.getcontext()
+        ctx.prec = save_prec = decimal.ExtendedContext.prec + 5
+        with decimal.ExtendedContext:
+            self.assertEqual(decimal.getcontext().prec,
+                             decimal.ExtendedContext.prec)
+        self.assertEqual(decimal.getcontext().prec, save_prec)
+        try:
+            with decimal.ExtendedContext:
+                self.assertEqual(decimal.getcontext().prec,
+                                 decimal.ExtendedContext.prec)
+                1/0
+        except ZeroDivisionError:
+            self.assertEqual(decimal.getcontext().prec, save_prec)
+        else:
+            self.fail("Didn't raise ZeroDivisionError")
+
+
+if __name__ == "__main__":
+    unittest.main()
diff --git a/Lib/test/test_with.py b/Lib/test/test_with.py
index ed072c9..36035e3 100644
--- a/Lib/test/test_with.py
+++ b/Lib/test/test_with.py
@@ -7,9 +7,10 @@
 __author__ = "Mike Bland"
 __email__ = "mbland at acm dot org"
 
+import sys
 import unittest
-from test.contextmanager import GeneratorContextManager
-from test.nested import nested
+from collections import deque
+from contextlib import GeneratorContextManager, contextmanager
 from test.test_support import run_unittest
 
 
@@ -57,9 +58,48 @@
         mock.stopped = True
 
 
-class MockNested(nested):
+class Nested(object):
+
     def __init__(self, *contexts):
-        nested.__init__(self, *contexts)
+        self.contexts = contexts
+        self.entered = None
+
+    def __context__(self):
+        return self
+
+    def __enter__(self):
+        if self.entered is not None:
+            raise RuntimeError("Context is not reentrant")
+        self.entered = deque()
+        vars = []
+        try:
+            for context in self.contexts:
+                mgr = context.__context__()
+                vars.append(mgr.__enter__())
+                self.entered.appendleft(mgr)
+        except:
+            self.__exit__(*sys.exc_info())
+            raise
+        return vars
+
+    def __exit__(self, *exc_info):
+        # Behave like nested with statements
+        # first in, last out
+        # New exceptions override old ones
+        ex = exc_info
+        for mgr in self.entered:
+            try:
+                mgr.__exit__(*ex)
+            except:
+                ex = sys.exc_info()
+        self.entered = None
+        if ex is not exc_info:
+            raise ex[0], ex[1], ex[2]
+
+
+class MockNested(Nested):
+    def __init__(self, *contexts):
+        Nested.__init__(self, *contexts)
         self.context_called = False
         self.enter_called = False
         self.exit_called = False
@@ -67,16 +107,16 @@
 
     def __context__(self):
         self.context_called = True
-        return nested.__context__(self)
+        return Nested.__context__(self)
 
     def __enter__(self):
         self.enter_called = True
-        return nested.__enter__(self)
+        return Nested.__enter__(self)
 
     def __exit__(self, *exc_info):
         self.exit_called = True
         self.exit_args = exc_info
-        return nested.__exit__(self, *exc_info)
+        return Nested.__exit__(self, *exc_info)
 
 
 class FailureTestCase(unittest.TestCase):
@@ -294,7 +334,7 @@
 class NestedNonexceptionalTestCase(unittest.TestCase,
     ContextmanagerAssertionMixin):
     def testSingleArgInlineGeneratorSyntax(self):
-        with nested(mock_contextmanager_generator()):
+        with Nested(mock_contextmanager_generator()):
             pass
 
     def testSingleArgUnbound(self):
@@ -310,7 +350,7 @@
         m = mock_contextmanager_generator()
         # This will bind all the arguments to nested() into a single list
         # assigned to foo.
-        with nested(m) as foo:
+        with Nested(m) as foo:
             self.assertInWithManagerInvariants(m)
         self.assertAfterWithManagerInvariantsNoError(m)
 
@@ -318,14 +358,13 @@
         m = mock_contextmanager_generator()
         # This will bind all the arguments to nested() into a single list
         # assigned to foo.
-        # FIXME: what should this do:  with nested(m) as (foo,):
-        with nested(m) as (foo):
+        with Nested(m) as (foo):
             self.assertInWithManagerInvariants(m)
         self.assertAfterWithManagerInvariantsNoError(m)
 
     def testSingleArgBoundToMultipleElementTupleError(self):
         def shouldThrowValueError():
-            with nested(mock_contextmanager_generator()) as (foo, bar):
+            with Nested(mock_contextmanager_generator()) as (foo, bar):
                 pass
         self.assertRaises(ValueError, shouldThrowValueError)
 
@@ -535,7 +574,9 @@
         class C:
             def __context__(self): return self
             def __enter__(self): return 1, 2, 3
-            def __exit__(self, *a): pass
+            def __exit__(self, t, v, tb):
+                if t is not None:
+                    raise t, v, tb
         targets = {1: [0, 1, 2]}
         with C() as (targets[1][0], targets[1][1], targets[1][2]):
             self.assertEqual(targets, {1: [1, 2, 3]})
@@ -551,11 +592,26 @@
             self.assertEqual(blah.three, 3)
 
 
+class ExitSwallowsExceptionTestCase(unittest.TestCase):
+
+    def testExitSwallowsException(self):
+        class AfricanOrEuropean:
+            def __context__(self): return self
+            def __enter__(self): pass
+            def __exit__(self, t, v, tb): pass
+        try:
+            with AfricanOrEuropean():
+                1/0
+        except ZeroDivisionError:
+            self.fail("ZeroDivisionError should have been swallowed")
+
+
 def test_main():
     run_unittest(FailureTestCase, NonexceptionalTestCase,
                  NestedNonexceptionalTestCase, ExceptionalTestCase,
                  NonLocalFlowControlTestCase,
-                 AssignmentTargetTestCase)
+                 AssignmentTargetTestCase,
+                 ExitSwallowsExceptionTestCase)
 
 
 if __name__ == '__main__':
diff --git a/Lib/threading.py b/Lib/threading.py
index 9cc108e..5b485d5 100644
--- a/Lib/threading.py
+++ b/Lib/threading.py
@@ -90,6 +90,9 @@
                 self.__owner and self.__owner.getName(),
                 self.__count)
 
+    def __context__(self):
+        return self
+
     def acquire(self, blocking=1):
         me = currentThread()
         if self.__owner is me:
@@ -108,6 +111,8 @@
                 self._note("%s.acquire(%s): failure", self, blocking)
         return rc
 
+    __enter__ = acquire
+
     def release(self):
         me = currentThread()
         assert self.__owner is me, "release() of un-acquire()d lock"
@@ -121,6 +126,11 @@
             if __debug__:
                 self._note("%s.release(): non-final release", self)
 
+    def __exit__(self, t, v, tb):
+        self.release()
+        if t is not None:
+            raise t, v, tb
+
     # Internal methods used by condition variables
 
     def _acquire_restore(self, (count, owner)):
@@ -156,6 +166,7 @@
         self.__lock = lock
         # Export the lock's acquire() and release() methods
         self.acquire = lock.acquire
+        self.__enter__ = self.acquire
         self.release = lock.release
         # If the lock defines _release_save() and/or _acquire_restore(),
         # these override the default implementations (which just call
@@ -174,6 +185,14 @@
             pass
         self.__waiters = []
 
+    def __context__(self):
+        return self
+
+    def __exit__(self, t, v, tb):
+        self.release()
+        if t is not None:
+            raise t, v, tb
+
     def __repr__(self):
         return "<Condition(%s, %d)>" % (self.__lock, len(self.__waiters))
 
@@ -267,6 +286,9 @@
         self.__cond = Condition(Lock())
         self.__value = value
 
+    def __context__(self):
+        return self
+
     def acquire(self, blocking=1):
         rc = False
         self.__cond.acquire()
@@ -286,6 +308,8 @@
         self.__cond.release()
         return rc
 
+    __enter__ = acquire
+
     def release(self):
         self.__cond.acquire()
         self.__value = self.__value + 1
@@ -295,6 +319,11 @@
         self.__cond.notify()
         self.__cond.release()
 
+    def __exit__(self, t, v, tb):
+        self.release()
+        if t is not None:
+            raise t, v, tb
+
 
 def BoundedSemaphore(*args, **kwargs):
     return _BoundedSemaphore(*args, **kwargs)