diff --git a/src/checkmemoryleak.cpp b/src/checkmemoryleak.cpp
index abcde6f5c..e71c6541f 100644
--- a/src/checkmemoryleak.cpp
+++ b/src/checkmemoryleak.cpp
@@ -662,6 +662,10 @@ Token *CheckMemoryLeakClass::getcode(const Token *tok, std::list<const Token *>
         if (Token::Match(tok, "try|throw|catch"))
             addtoken(tok->strAt(0));
 
+        // exit..
+        if (Token::Match(tok->previous(), "[{};] exit ( %any% ) ;"))
+            addtoken("exit");
+
         // Assignment..
         if (Token::Match(tok, std::string("[)=] " + varnameStr + " [+;)]").c_str()) ||
             Token::Match(tok, std::string(varnameStr + " +=|-=").c_str()) ||
@@ -771,6 +775,23 @@ void CheckMemoryLeakClass::simplifycode(Token *tok, bool &all)
             tok2->str("return");
     }
 
+
+    // simplify "exit".. remove everything in its execution path
+    for (Token *tok2 = tok; tok2; tok2 = tok2->next())
+    {
+        if (tok2->str() != "exit")
+            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())
+            tok2 = tok2->previous();
+
+        Token::eraseTokens(tok2, tokEnd);
+    }
+
     // reduce the code..
     bool done = false;
     while (! done)
diff --git a/test/testmemleak.cpp b/test/testmemleak.cpp
index cd6eeaa00..dd8e8d6fa 100644
--- a/test/testmemleak.cpp
+++ b/test/testmemleak.cpp
@@ -208,6 +208,11 @@ private:
         TEST_CASE(free_member_in_sub_func);
         TEST_CASE(if_with_and);
         TEST_CASE(assign_pclose);
+
+        // Using the function "exit"
+        TEST_CASE(exit1);
+        TEST_CASE(exit2);
+
     }
 
 
@@ -2121,6 +2126,32 @@ private:
               "}\n");
         ASSERT_EQUALS(std::string(""), errout.str());
     }
+
+    void exit1()
+    {
+        // Ticket #297
+        check("void f()\n"
+              "{\n"
+              "    char *out = new char[100];\n"
+              "    if (c())\n"
+              "    {\n"
+              "        delete [] out;\n"
+              "        exit(0);\n"
+              "    }\n"
+              "    delete [] out;\n"
+              "}\n");
+        ASSERT_EQUALS(std::string(""), errout.str());
+    }
+
+    void exit2()
+    {
+        check("void f()\n"
+              "{\n"
+              "    char *out = new char[100];\n"
+              "    exit(0);\n"
+              "}\n");
+        ASSERT_EQUALS(std::string(""), errout.str());
+    }
 };
 
 REGISTER_TEST(TestMemleak)