Index: drools-compiler/src/test/java/org/drools/integrationtests/IntegrationCases.java
===================================================================
--- drools-compiler/src/test/java/org/drools/integrationtests/IntegrationCases.java	(revision 5521)
+++ drools-compiler/src/test/java/org/drools/integrationtests/IntegrationCases.java	(working copy)
@@ -58,12 +58,6 @@
 import org.drools.compiler.PackageBuilderConfiguration;
 import org.drools.compiler.ParserError;
 import org.drools.compiler.RuleError;
-import org.drools.event.ActivationCancelledEvent;
-import org.drools.event.ActivationCreatedEvent;
-import org.drools.event.AfterActivationFiredEvent;
-import org.drools.event.AgendaEventListener;
-import org.drools.event.BeforeActivationFiredEvent;
-import org.drools.event.DefaultAgendaEventListener;
 import org.drools.facttemplates.Fact;
 import org.drools.facttemplates.FactTemplate;
 import org.drools.integrationtests.helloworld.Message;
@@ -2715,4 +2709,39 @@
         assertEquals(1, list.size() );        
     }
 
+    public void testExists387() throws Exception {
+        final PackageBuilder builder = new PackageBuilder();
+        builder.addPackageFromDrl( new InputStreamReader(
+               getClass().getResourceAsStream( "test_Exists387.drl" ) ) );
+        final Package pkg = builder.getPackage();
+
+        final RuleBase ruleBase = getRuleBase();
+        ruleBase.addPackage( pkg );
+        final WorkingMemory workingMemory = ruleBase.newWorkingMemory();
+
+        Person p1 = new Person( "p1", "stilton", 20 );
+        p1.setStatus("europe");
+        workingMemory.assertObject( p1 );
+        Person p2 = new Person( "p2", "stilton", 30 );
+        p2.setStatus("europe");
+        FactHandle c2FactHandle = workingMemory.assertObject( p2 );
+        Person p3 = new Person( "p3", "stilton", 40 );
+        p3.setStatus("europe");
+        workingMemory.assertObject( p3 );
+        workingMemory.fireAllRules();
+
+        List cheeseList = workingMemory.getObjects( Cheese.class );
+        assertEquals( 2, cheeseList.size() );
+
+        p2.setStatus("america");
+        workingMemory.modifyObject( c2FactHandle, p2 );
+        workingMemory.fireAllRules();
+
+        cheeseList = workingMemory.getObjects( Cheese.class );
+        // cheeseList still contains a cheese for the person with a age of 30
+        // but that should have been logically retracted
+        assertEquals( 1, cheeseList.size() );
+
+    }
+
 }
Index: drools-compiler/src/test/resources/org/drools/integrationtests/test_Exists387.drl
===================================================================
--- drools-compiler/src/test/resources/org/drools/integrationtests/test_Exists387.drl	(revision 0)
+++ drools-compiler/src/test/resources/org/drools/integrationtests/test_Exists387.drl	(revision 0)
@@ -0,0 +1,12 @@
+package com.sample
+
+import org.drools.Cheese
+import org.drools.Person
+
+rule "Supply cheese for every 2 persons with the same status"
+	when
+		p : Person($status : status, $age : age)
+		exists Person(status == $status, age > $age);
+	then
+        assertLogical(new Cheese("Cheese for person with age " + $age, 10));
+end
\ No newline at end of file