diff --git a/bitcore.js b/bitcore.js
index 4e2b37052..aa0de4bc0 100644
--- a/bitcore.js
+++ b/bitcore.js
@@ -49,6 +49,7 @@ requireWhenAccessed('Wallet', './lib/Wallet');
 requireWhenAccessed('WalletKey', './lib/WalletKey');
 requireWhenAccessed('PeerManager', './lib/PeerManager');
 requireWhenAccessed('Message', './lib/Message');
+requireWhenAccessed('Electrum', './lib/Electrum');
 module.exports.Buffer = Buffer;
 
 if (typeof process.versions === 'undefined') {
diff --git a/browser/build.js b/browser/build.js
index 46801754f..a7c0805a3 100644
--- a/browser/build.js
+++ b/browser/build.js
@@ -30,6 +30,7 @@ var modules = [
   'lib/Bloom',
   'lib/Connection',
   'lib/Deserialize',
+  'lib/Electrum',
   'lib/Message',
   'lib/Opcode',
   'lib/Peer',
diff --git a/examples/ElectrumMPK.js b/examples/ElectrumMPK.js
new file mode 100644
index 000000000..c6bbb13a3
--- /dev/null
+++ b/examples/ElectrumMPK.js
@@ -0,0 +1,11 @@
+var Electrum = require('../lib/Electrum');
+var Address = require('../lib/Address');
+
+var mpk = '92eea4d2f5263651db9e3222caded1fd4c89772f79a7c03fb6afc00e9d2c9d2ed9b86c2c95fc1171e49163079dacb7f048b3c509a27a490e1df9e7128362d468';
+
+mpk = new Electrum(mpk);
+
+var key0 = mpk.generatePubKey(0);
+var addr0 = Address.fromPubKey(key0);
+
+console.log(addr0.as('base58'));
diff --git a/lib/Electrum.js b/lib/Electrum.js
new file mode 100644
index 000000000..1cf499e1a
--- /dev/null
+++ b/lib/Electrum.js
@@ -0,0 +1,54 @@
+var Key = require('./Key'),
+  Point = require('./Point'),
+  twoSha256 = require('../util').twoSha256,
+  buffertools = require('buffertools'),
+  bignum = require('bignum');
+
+/**
+ * Pre-BIP32 Electrum public key derivation (electrum <2.0)
+ *
+ * For now, this class can only understands master public keys.
+ * It doesn't support derivation from a private master key (TODO).
+ *
+ * @example examples/ElectrumMPK.js
+ */
+function Electrum (master_public_key) {
+  this.mpk = new Buffer(master_public_key, 'hex');
+}
+
+Electrum.prototype.getSequence = function (for_change, n) {
+  var mode = for_change ? 1 : 0;
+  var buf = Buffer.concat([ new Buffer(n + ':' + mode + ':', 'utf8'), this.mpk ]);
+  return bignum.fromBuffer(twoSha256(buf));
+};
+
+Electrum.prototype.generatePubKey = function (n, for_change) {
+  var x = bignum.fromBuffer(this.mpk.slice(0, 32), { size: 32 });
+  var y = bignum.fromBuffer(this.mpk.slice(32, 64), { size: 32 });
+  var mpk_pt = new Point(x, y);
+
+  var sequence = this.getSequence(for_change, n);
+  var sequence_key = new Key();
+  sequence_key.private = sequence.toBuffer();
+  sequence_key.regenerateSync();
+
+  var sequence_pt = Point.fromKey(sequence_key);
+
+  pt = Point.add(mpk_pt, sequence_pt);
+
+  var xbuf = pt.x.toBuffer({ size: 32 });
+  var ybuf = pt.y.toBuffer({ size: 32 });
+  var prefix = new Buffer([0x04]);
+
+  var key = new Key();
+  key.compressed = false;
+  key.public = Buffer.concat([prefix, xbuf, ybuf]);
+
+  return key.public;
+};
+
+Electrum.prototype.generateChangePubKey = function (sequence) {
+  return this.generatePubKey(sequence, true);
+};
+
+module.exports = Electrum;
diff --git a/src/eckey.cc b/src/eckey.cc
index 41993682e..8f279a61b 100644
--- a/src/eckey.cc
+++ b/src/eckey.cc
@@ -317,6 +317,7 @@ Key::SetPublic(Local<String> property, Local<Value> value, const AccessorInfo& i
 
   if (!ret) {
     // TODO: Error
+    VException("Invalid public key.");
     return;
   }
 
diff --git a/test/index.html b/test/index.html
index 3e823e41d..551c46d80 100644
--- a/test/index.html
+++ b/test/index.html
@@ -22,6 +22,7 @@
     <script src="test.Bloom.js"></script>
     <script src="test.Connection.js"></script>
     <script src="test.EncodedData.js"></script>
+    <script src="test.Electrum.js"></script>
     <script src="test.Key.js"></script>
     <script src="test.main.js"></script>
     <script src="test.Message.js"></script>
diff --git a/test/test.Electrum.js b/test/test.Electrum.js
new file mode 100644
index 000000000..8e82c18ad
--- /dev/null
+++ b/test/test.Electrum.js
@@ -0,0 +1,78 @@
+'use strict';
+
+var chai = chai || require('chai');
+var bitcore = bitcore || require('../bitcore');
+
+var should = chai.should();
+
+var Electrum = bitcore.Electrum;
+var Address = bitcore.Address;
+var mpk = '92eea4d2f5263651db9e3222caded1fd4c89772f79a7c03fb6afc00e9d2c9d2ed9b86c2c95fc1171e49163079dacb7f048b3c509a27a490e1df9e7128362d468';
+
+/**
+ * The hard coded values (expected public key / address hash) were retrieved
+ * by creating an Electrum wallet and looking which addresses were generated for
+ * master public key mpk. Not very rigorous but it will help catch regressions.
+ */
+describe('Electrum', function() {
+  it('should initialze the main object', function() {
+    should.exist(Electrum);
+  });
+  it('should be able to create instance', function() {
+    var elec = new Electrum(mpk);
+    should.exist(elec);
+  });
+  it('should be able to call generatePubKey', function() {
+    var elec = new Electrum(mpk);
+    (function () {
+      elec.generatePubKey(0);
+    }).should.not.throw(Error);
+  });
+  it('should be able to call generateChangePubKey', function() {
+    var elec = new Electrum(mpk);
+    (function () {
+      elec.generateChangePubKey(0);
+    }).should.not.throw(Error);
+  });
+  it('should generate correct public key at sequence 0', function() {
+    var elec = new Electrum(mpk);
+    var pubkey = elec.generatePubKey(0);
+    var addr = Address.fromPubKey(pubkey);
+    addr.as('base58').should.equal('15Ur7LV4hZFvFYQHkB12g1mdnKuHyHBDiW');
+  });
+  it('should generate correct (change) public keys at sequence 0,1,2', function() {
+    var expected_values = {
+      receiving: [
+        '15Ur7LV4hZFvFYQHkB12g1mdnKuHyHBDiW',
+        '19K48MhyXK4qChGCUJzAHxLFjbQRg9tb9F',
+        '1EfoxVmRVzYf1a1WELv2qMvEEpu2u5pXsy'
+      ],
+      change: [
+        '138EGyTTyXFuqWBr8Jd7qmPbnfJUFmmuQg',
+        '12H7HZhtn7aNpTySXysKXiyxULybMktukh',
+        '1KMEUhmmiSdjX9fsv8aCAiYnVZnTTjqx7W'
+      ]
+    };
+    var elec = new Electrum(mpk);
+
+    var pubkey, addr, addr_change;
+
+    for (var i = 0; i < expected_values.receiving.length; i++) {
+      //receiving
+      pubkey = elec.generatePubKey(i);
+      addr = Address.fromPubKey(pubkey);
+      addr.as('base58').should.equal(expected_values.receiving[i]);
+
+      //change
+      pubkey = elec.generateChangePubKey(i);
+      addr = Address.fromPubKey(pubkey);
+      console.log('change');
+      addr.as('base58').should.equal(expected_values.change[i]);
+    }
+  });
+});
+
+
+
+
+