diff --git a/src/checkmemoryleak.cpp b/src/checkmemoryleak.cpp
index 40e70ce51..3822e0020 100644
--- a/src/checkmemoryleak.cpp
+++ b/src/checkmemoryleak.cpp
@@ -809,13 +809,26 @@ void CheckMemoryLeakClass::simplifycode(Token *tok, bool &all)
             continue;
 
         // Found an "exit".. try to remove everything before it
-        const Token *tokEnd = tok2->next();
-        while (tok2->previous() && !Token::Match(tok2->previous(), "[{}]"))
-            tok2 = tok2->previous();
-        if (tok2->previous())
+        Token *tokEnd = tok2->next();
+        int indentlevel = 0;
+        while (tok2->previous())
+        {
             tok2 = tok2->previous();
+            if (tok2->str() == "}")
+            {
+                indentlevel--;
+            }
+            else if (tok2->str() == "{")
+            {
+                if (indentlevel == 0)
+                    break;
+
+                indentlevel++;
+            }
+        }
 
         Token::eraseTokens(tok2, tokEnd);
+        tok2 = tokEnd;
     }
 
     // reduce the code..
diff --git a/test/testmemleak.cpp b/test/testmemleak.cpp
index cb14b8ad3..2b3ac0f3f 100644
--- a/test/testmemleak.cpp
+++ b/test/testmemleak.cpp
@@ -2234,6 +2234,14 @@ private:
               "    exit(0);\n"
               "}\n");
         ASSERT_EQUALS("", errout.str());
+
+        check("void f()\n"
+              "{\n"
+              "    char *out = new char[100];\n"
+              "    if( out ) {}\n"
+              "    exit(0);\n"
+              "}\n");
+        ASSERT_EQUALS("", errout.str());
     }
 
     void stdstring()