diff --git a/Makefile.am b/Makefile.am
index 0eccbf3..df1d854 100644
--- a/Makefile.am
+++ b/Makefile.am
@@ -1,26 +1,11 @@
+SUBDIRS = . util man
+
 pkgconfigdir = $(libdir)/pkgconfig
 pkgconfig_DATA = libtelnet.pc
 
-dist_man_MANS = man/libtelnet.3 man/telnet_init.3 man/telnet_free.3 \
-		man/telnet_send.3 man/telnet_recv.3 man/telnet_iac.3 \
-		man/telnet_negotiate.3 man/telnet_printf.3 man/telnet_raw_printf.3 \
-		man/telnet_begin_compress2.3 man/telnet_begin_sb.3 man/telnet_finish_sb.3 \
-		man/telnet-proxy.1 man/telnet-client.1 man/telnet-chatd.1
-
 libtelnet_includedir = $(includedir)
 libtelnet_include_HEADERS = libtelnet.h
 
 lib_LTLIBRARIES = libtelnet.la
 libtelnet_la_SOURCES = libtelnet.c libtelnet.h
 libtelnet_la_LDFLAGS = -version-info 1:0:0
-
-bin_PROGRAMS = telnet-client telnet-chatd telnet-proxy
-
-telnet_client_SOURCES = util/telnet-client.c libtelnet.h
-telnet_client_LDADD = libtelnet.la
-
-telnet_chatd_SOURCES = util/telnet-chatd.c libtelnet.h
-telnet_chatd_LDADD = libtelnet.la
-
-telnet_proxy_SOURCES = util/telnet-proxy.c libtelnet.h
-telnet_proxy_LDADD = libtelnet.la
diff --git a/configure.ac b/configure.ac
index a90df35..07ea265 100644
--- a/configure.ac
+++ b/configure.ac
@@ -12,5 +12,5 @@ if test "x$ZLIB" = "xyes" ; then
 	AC_DEFINE(HAVE_ZLIB, 1, [We have zlib])
 fi
 
-AC_CONFIG_FILES([Makefile libtelnet.pc])
+AC_CONFIG_FILES([Makefile util/Makefile man/Makefile libtelnet.pc])
 AC_OUTPUT
diff --git a/man/Makefile.am b/man/Makefile.am
new file mode 100644
index 0000000..c0b7694
--- /dev/null
+++ b/man/Makefile.am
@@ -0,0 +1,5 @@
+dist_man_MANS = libtelnet.3 telnet_init.3 telnet_free.3 \
+		telnet_send.3 telnet_recv.3 telnet_iac.3 \
+		telnet_negotiate.3 telnet_printf.3 telnet_raw_printf.3 \
+		telnet_begin_compress2.3 telnet_begin_sb.3 telnet_finish_sb.3 \
+		telnet-proxy.1 telnet-client.1 telnet-chatd.1
diff --git a/util/Makefile.am b/util/Makefile.am
new file mode 100644
index 0000000..4500cea
--- /dev/null
+++ b/util/Makefile.am
@@ -0,0 +1,13 @@
+AM_CFLAGS = -I..
+AM_LDFLAGS = -L..
+
+telnet_client_SOURCES = telnet-client.c ../libtelnet.h
+telnet_client_LDADD = ../libtelnet.la
+
+telnet_chatd_SOURCES = telnet-chatd.c ../libtelnet.h
+telnet_chatd_LDADD = ../libtelnet.la
+
+telnet_proxy_SOURCES = telnet-proxy.c ../libtelnet.h
+telnet_proxy_LDADD = ../libtelnet.la
+
+bin_PROGRAMS = telnet-client telnet-chatd telnet-proxy