diff --git a/src/nvimage/FloatImage.cpp b/src/nvimage/FloatImage.cpp
index 1c51bbb..a5388b4 100644
--- a/src/nvimage/FloatImage.cpp
+++ b/src/nvimage/FloatImage.cpp
@@ -194,10 +194,16 @@ void FloatImage::scaleBias(uint base_component, uint num, float scale, float bia
 }
 
 /// Clamp the elements of the image.
-void FloatImage::clamp(float low, float high)
+void FloatImage::clamp(uint base_component, uint num, float low, float high)
 {
-	for(uint i = 0; i < m_count; i++) {
-		m_mem[i] = nv::clamp(m_mem[i], low, high);
+	const uint size = m_width * m_height;
+	
+	for(uint c = 0; c < num; c++) {
+		float * ptr = this->channel(base_component + c);
+		
+		for(uint i = 0; i < size; i++) {
+            ptr[i] = nv::clamp(ptr[i], low, high);
+		}
 	}
 }
 
@@ -945,6 +951,54 @@ void FloatImage::flip()
     }
 }
 
+
+float FloatImage::alphaTestCoverage(float alphaRef, int alphaChannel) const
+{
+    const uint w = m_width;
+    const uint h = m_height;
+
+    float coverage = 0.0f;
+
+    for (uint y = 0; y < h; y++) {
+        const float * alpha = scanline(y, alphaChannel);
+        for (uint x = 0; x < w; x++) {
+            if (alpha[x] > alphaRef) coverage += 1.0f; // @@ gt or lt?
+        }
+    }
+
+    return coverage / float(w * h);
+}
+
+void FloatImage::scaleAlphaToCoverage(float desiredCoverage, float alphaRef, int alphaChannel)
+{
+    float minAlphaRef = 0.0f;
+    float maxAlphaRef = 1.0f;
+    float midAlphaRef = 0.5f;
+
+    // Determine desired scale using a binary search. Hardcoded to 8 steps max.
+    for (int i = 0; i < 8; i++) {
+        float currentCoverage = alphaTestCoverage(midAlphaRef, alphaChannel);
+
+        if (currentCoverage > desiredCoverage) {
+            maxAlphaRef = midAlphaRef;
+        }
+        else if (currentCoverage < desiredCoverage) {
+            minAlphaRef = midAlphaRef;
+        }
+        else {
+            break;
+        }
+
+        midAlphaRef = (minAlphaRef + maxAlphaRef) * 0.5f;
+    }
+
+    float alphaScale = alphaRef / midAlphaRef;
+
+    // Scale alpha channel.
+    scaleBias(alphaChannel, 1, alphaScale, 0.0f);
+}
+
+
 FloatImage* FloatImage::clone() const
 {
 	FloatImage* copy = new FloatImage();
diff --git a/src/nvimage/FloatImage.h b/src/nvimage/FloatImage.h
index 5f6152c..a8388ee 100644
--- a/src/nvimage/FloatImage.h
+++ b/src/nvimage/FloatImage.h
@@ -59,10 +59,9 @@ public:
 	
 	NVIMAGE_API void packNormals(uint base_component);
 	NVIMAGE_API void expandNormals(uint base_component);
-	NVIMAGE_API void scaleBias(uint base_component, uint num, float scale, float add);
+	NVIMAGE_API void scaleBias(uint base_component, uint num, float scale, float bias);
 	
-	//NVIMAGE_API void clamp(uint base_component, uint num);
-	NVIMAGE_API void clamp(float low, float high);
+	NVIMAGE_API void clamp(uint base_component, uint num, float low, float high);
 	
 	NVIMAGE_API void toLinear(uint base_component, uint num, float gamma = 2.2f);
 	NVIMAGE_API void toGamma(uint base_component, uint num, float gamma = 2.2f);
@@ -87,6 +86,9 @@ public:
 	NVIMAGE_API void applyKernelHorizontal(const PolyphaseKernel & k, int y, uint c, uint a, WrapMode wm, float * output) const;
 
     NVIMAGE_API void flip();
+
+    NVIMAGE_API float alphaTestCoverage(float alphaRef, int alphaChannel) const;
+    NVIMAGE_API void scaleAlphaToCoverage(float coverage, float alphaRef, int alphaChannel);
 	//@}
 	
 	uint width() const { return m_width; }
diff --git a/src/nvtt/OutputOptions.cpp b/src/nvtt/OutputOptions.cpp
index 6bd09ec..05c18ef 100644
--- a/src/nvtt/OutputOptions.cpp
+++ b/src/nvtt/OutputOptions.cpp
@@ -112,7 +112,7 @@ void OutputOptions::Private::beginImage(int size, int width, int height, int dep
 
 bool OutputOptions::Private::writeData(const void * data, int size) const
 {
-	if (outputHandler != NULL) return outputHandler->writeData(data, size);
+	return outputHandler == NULL || outputHandler->writeData(data, size);
 }
 
 void OutputOptions::Private::error(Error e) const
diff --git a/src/nvtt/TexImage.cpp b/src/nvtt/TexImage.cpp
index 7d07546..2499301 100644
--- a/src/nvtt/TexImage.cpp
+++ b/src/nvtt/TexImage.cpp
@@ -244,6 +244,29 @@ int TexImage::countMipmaps() const
 	return ::countMipmaps(width(), height(), depth());
 }
 
+float TexImage::alphaTestCoverage(float alphaRef/*= 0.5*/) const
+{
+    int imageCount = 0.0f;
+    float coverage = 0.0f;
+
+	foreach (i, m->imageArray)
+	{
+        FloatImage * img = m->imageArray[i];
+
+		if (img == NULL) continue;
+
+        imageCount++;
+        coverage += img->alphaTestCoverage(alphaRef, 3);
+	}
+
+    if (imageCount > 0) {
+        return coverage / imageCount;
+    }
+    else {
+        return 0.0f;
+    }
+}
+
 
 bool TexImage::load(const char * fileName)
 {
@@ -937,6 +960,21 @@ void TexImage::fill(float red, float green, float blue, float alpha)
 	}
 }
 
+
+void TexImage::scaleAlphaToCoverage(float coverage, float alphaRef/*= 0.5f*/)
+{
+    detach();
+
+	foreach (i, m->imageArray)
+	{
+		FloatImage * img = m->imageArray[i];
+		if (img == NULL) continue;
+
+        img->scaleAlphaToCoverage(coverage, alphaRef, 3);
+    }
+}
+
+
 // Set normal map options.
 void TexImage::toNormalMap(float sm, float medium, float big, float large)
 {
diff --git a/src/nvtt/nvtt.h b/src/nvtt/nvtt.h
index 499cd55..911858f 100644
--- a/src/nvtt/nvtt.h
+++ b/src/nvtt/nvtt.h
@@ -412,6 +412,7 @@ namespace nvtt
 		NVTT_API AlphaMode alphaMode() const;
 		NVTT_API bool isNormalMap() const;
 		NVTT_API int countMipmaps() const;
+        NVTT_API float alphaTestCoverage(float alphaRef = 0.5) const;
 
 		// Texture data.
 		NVTT_API bool load(const char * fileName);
@@ -424,7 +425,7 @@ namespace nvtt
 		NVTT_API void resize(int w, int h, ResizeFilter filter);
 		NVTT_API void resize(int maxExtent, RoundMode mode, ResizeFilter filter);
 		NVTT_API bool buildNextMipmap(MipmapFilter filter);
-
+    
 		// Color transforms.
 		NVTT_API void toLinear(float gamma);
 		NVTT_API void toGamma(float gamma);
@@ -438,6 +439,7 @@ namespace nvtt
 		NVTT_API void toGreyScale(float redScale, float greenScale, float blueScale, float alphaScale);
 		NVTT_API void setBorder(float r, float g, float b, float a);
 		NVTT_API void fill(float r, float g, float b, float a);
+        NVTT_API void scaleAlphaToCoverage(float coverage, float alphaRef = 0.5f);
 
 		// Set normal map options.
 		NVTT_API void toNormalMap(float sm, float medium, float big, float large);
diff --git a/src/nvtt/tools/compress.cpp b/src/nvtt/tools/compress.cpp
index d57a285..9b5b8b3 100644
--- a/src/nvtt/tools/compress.cpp
+++ b/src/nvtt/tools/compress.cpp
@@ -386,7 +386,7 @@ int main(int argc, char *argv[])
 	}
 	else
 	{
-		if (nv::strCaseCmp(input.extension(), ".exr") == 0)
+		if (nv::strCaseCmp(input.extension(), ".exr") == 0 || nv::strCaseCmp(input.extension(), ".hdr") == 0)
 		{
 			loadAsFloat = true;
 		}