diff --git a/app/mailers/notify.rb b/app/mailers/notify.rb
index cbc89546..02ea1101 100644
--- a/app/mailers/notify.rb
+++ b/app/mailers/notify.rb
@@ -53,4 +53,12 @@ class Notify < ActionMailer::Base
     @project = merge_request.project
     mail(:to => @user.email, :subject => "gitlab | #{@merge_request.title} ")
   end
+  
+  def changed_issue_email(user, issue)
+    @user = user
+    @assignee_was ||= User.find(issue.assignee_id_was)
+    @issue = issue
+    @project = issue.project
+    mail(:to => @user.email, :subject => "gitlab | #{@issue.title} ")
+  end
 end
diff --git a/app/models/mailer_observer.rb b/app/models/mailer_observer.rb
index 39081fda..19ecb4f3 100644
--- a/app/models/mailer_observer.rb
+++ b/app/models/mailer_observer.rb
@@ -11,6 +11,7 @@ class MailerObserver < ActiveRecord::Observer
 
   def after_update(model)
     changed_merge_request(model) if model.kind_of?(MergeRequest)
+    changed_issue(model) if model.kind_of?(Issue)
   end
 
   protected
@@ -61,4 +62,16 @@ class MailerObserver < ActiveRecord::Observer
       end
     end
 
+    def changed_issue(issue)
+      if issue.assignee_id_changed?
+        recipients_ids = [issue.assignee_id_was]
+        recipients_ids << issue.assignee_id
+        recipients_ids.delete current_user.id
+
+        User.find(recipients_ids).each do |user|
+          Notify.changed_issue_email(user, issue).deliver
+        end
+      end
+
+    end
 end
diff --git a/app/views/notify/changed_issue_email.html.haml b/app/views/notify/changed_issue_email.html.haml
new file mode 100644
index 00000000..fe046e40
--- /dev/null
+++ b/app/views/notify/changed_issue_email.html.haml
@@ -0,0 +1,16 @@
+%td.content{:align => "left", :style => "font-family: Helvetica, Arial, sans-serif; padding: 20px 0 0;", :valign => "top", :width => "600"}
+  %table{:border => "0", :cellpadding => "0", :cellspacing => "0", :style => "color: #717171; font: normal 11px Helvetica, Arial, sans-serif; margin: 0; padding: 0;", :width => "600"}
+    %tr
+      %td{:style => "font-size: 1px; line-height: 1px;", :width => "21"}
+      %td{:align => "left", :style => "padding: 20px 0 0;"}
+        %h2{:style => "color:#646464; font-weight: bold; margin: 0; padding: 0; line-height: 26px; font-size: 18px; font-family: Helvetica, Arial, sans-serif; "}
+          Reassigned Issue
+          = link_to truncate(@issue.title, :length => 16), project_issue_url(@project, @issue)
+      %td{:style => "font-size: 1px; line-height: 1px;", :width => "21"}
+    %tr
+      %td{:style => "font-size: 1px; line-height: 1px;", :width => "21"}
+      %td{:style => "padding: 15px 0 15px;", :valign => "top"}
+        %p{:style => "color:#767676; font-weight: normal; margin: 0; padding: 0; line-height: 20px; font-size: 12px;font-family: Helvetica, Arial, sans-serif; "}
+          Assignee changed from #{@assignee_was.name} to #{@issue.assignee.name}
+      %td
+
diff --git a/app/views/notify/new_issue_email.html.haml b/app/views/notify/new_issue_email.html.haml
index c411d9dc..64c5aa61 100644
--- a/app/views/notify/new_issue_email.html.haml
+++ b/app/views/notify/new_issue_email.html.haml
@@ -4,7 +4,7 @@
       %td{:style => "font-size: 1px; line-height: 1px;", :width => "21"}
       %td{:align => "left", :style => "padding: 20px 0 0;"}
         %h2{:style => "color:#646464; font-weight: bold; margin: 0; padding: 0; line-height: 26px; font-size: 18px; font-family: Helvetica, Arial, sans-serif; "}
-          Hi #{@user.name}! New Issue was created and assigned to you.
+          New Issue was created and assigned to you.
       %td{:style => "font-size: 1px; line-height: 1px;", :width => "21"}
     %tr
       %td{:style => "font-size: 1px; line-height: 1px;", :width => "21"}