diff --git a/buildtools/version.py b/buildtools/version.py
index 3d336564..4764e400 100644
--- a/buildtools/version.py
+++ b/buildtools/version.py
@@ -26,7 +26,7 @@ VER_MAJOR        = 4
 VER_MINOR        = 0
 VER_RELEASE      = 0
 
-VER_FLAGS        = "b2"     # wxPython release flags
+VER_FLAGS        = "rc1"     # wxPython release flags
 
 # The VER_FLAGS value is appended to the version number constructed from the
 # first 3 components and should be set according to the following patterns.
diff --git a/demo/version.py b/demo/version.py
index 4164c124..143a48f0 100644
--- a/demo/version.py
+++ b/demo/version.py
@@ -1,3 +1,3 @@
 # This file was generated by Phoenix's wscript.
 
-VERSION_STRING = '4.0.0b2'
+VERSION_STRING = '4.0.0rc1'