diff --git a/lib/middleman/features.rb b/lib/middleman/features.rb
index 5cafd0d8..f57bffbc 100644
--- a/lib/middleman/features.rb
+++ b/lib/middleman/features.rb
@@ -64,10 +64,6 @@ module Middleman::Features
   # will attempt to generate a `sitemap.html` file from your project.
   autoload :Slickmap,            "middleman/features/slickmap"
 
-  # SmushPngs uses Yahoo's Smush.it API to compresses PNGs and JPGs. Often times
-  # the service can decrease the size of Photoshop-exported images by 30-50%
-  autoload :SmushPngs,           "middleman/features/smush_pngs"
-
   # CodeRay is a syntax highlighter.
   autoload :CodeRay,             "middleman/features/code_ray"
 
diff --git a/lib/middleman/features/smush_pngs.rb b/lib/middleman/features/smush_pngs.rb
deleted file mode 100644
index ab0e2855..00000000
--- a/lib/middleman/features/smush_pngs.rb
+++ /dev/null
@@ -1,48 +0,0 @@
-module Middleman::Features::SmushPngs
-  module ThorActions
-    def smush_pngs
-      # Read cache
-      cache_file = File.join(Middleman::Server.root, ".smush-cache")
-      cache_data = if File.exists?(cache_file)
-        Marshal.restore(File.read(cache_file))
-      else
-        {}
-      end
-    
-      smush_dir = File.join(Middleman::Server.build_dir, Middleman::Server.images_dir)
-      
-      files = ::Smusher.class_eval do
-        images_in_folder(smush_dir)
-      end
-      
-      files.each do |file|
-        ::Smusher.class_eval do
-          original_file_size = size(file)
-          return if original_file_size.zero?
-          return if cache_data[file] && cache_data[file] == original_file_size
-          
-          with_logging(file, true) do
-            write_optimized_data(file)
-            cache_data[file] = size(file) # Add or update cache
-            File.open(cache_file, "w") { |f| f.write Marshal.dump(cache_data) } # Write cache
-          end
-        end
-          
-        say_status :smushed, file.gsub(Middleman::Server.build_dir+"/", "")
-      end
-    end
-  end
-  
-  class << self
-    def registered(app)
-      require "middleman/builder"   
-      require "smusher"
-      require "json/pure"
-
-      Middleman::Builder.send :include, ThorActions
-      Middleman::Builder.after_run "smush_pngs" do
-        smush_pngs
-      end
-    end
-  end
-end
\ No newline at end of file
diff --git a/lib/middleman/templates/default/config.tt b/lib/middleman/templates/default/config.tt
index 0f43c0b6..cfef2135 100755
--- a/lib/middleman/templates/default/config.tt
+++ b/lib/middleman/templates/default/config.tt
@@ -49,9 +49,6 @@ configure :build do
   # Minify Javascript on build
   # activate :minify_javascript
   
-  # Shrink/smush PNG/JPEGs on build
-  # activate :smush_pngs
-  
   # Enable cache buster
   # activate :cache_buster
 
diff --git a/lib/middleman/templates/html5/config.tt b/lib/middleman/templates/html5/config.tt
index 67e092bb..7a916ea9 100755
--- a/lib/middleman/templates/html5/config.tt
+++ b/lib/middleman/templates/html5/config.tt
@@ -37,9 +37,6 @@ configure :build do
   # Minify Javascript on build
   # activate :minify_javascript
   
-  # Shrink/smush PNG/JPEGs on build
-  # activate :smush_pngs
-  
   # Enable cache buster
   # activate :cache_buster
 
diff --git a/lib/middleman/version.rb b/lib/middleman/version.rb
index c3da7aa1..ee556552 100644
--- a/lib/middleman/version.rb
+++ b/lib/middleman/version.rb
@@ -1,3 +1,3 @@
 module Middleman
-  VERSION = "1.1.1.a"
+  VERSION = "1.1.2"
 end
diff --git a/middleman.gemspec b/middleman.gemspec
index c19c8622..210dea35 100644
--- a/middleman.gemspec
+++ b/middleman.gemspec
@@ -34,8 +34,6 @@ Gem::Specification.new do |s|
   s.add_runtime_dependency("compass", ["0.11.beta.6"])
   s.add_runtime_dependency("chunky_png", ["~> 1.1.0"])
   s.add_runtime_dependency("oily_png", ["~> 1.0"]) unless defined?(JRUBY_VERSION)
-  s.add_runtime_dependency("json", [">= 0"])
-  s.add_runtime_dependency("smusher", ["~> 0.4.5"])
   s.add_runtime_dependency("compass-slickmap", ["~> 0.4.0"])
   s.add_runtime_dependency("coffee-script", ["~> 2.1.0"])
   s.add_runtime_dependency("less", ["~> 1.2.0"])