diff --git a/ChangeLog b/ChangeLog
index f278b1df..64a931c5 100644
--- a/ChangeLog
+++ b/ChangeLog
@@ -1,3 +1,6 @@
+21/8/14 started 7.40.7
+- fix matlab load
+
 12/8/14 started 7.40.6
 - more doc fixes
 - fix similarity rotate+scale, thanks Topochicho
diff --git a/configure.ac b/configure.ac
index 99f05c92..6e02fca9 100644
--- a/configure.ac
+++ b/configure.ac
@@ -2,7 +2,7 @@
 
 # also update the version number in the m4 macros below
 
-AC_INIT([vips], [7.40.6], [vipsip@jiscmail.ac.uk])
+AC_INIT([vips], [7.40.7], [vipsip@jiscmail.ac.uk])
 # required for gobject-introspection
 AC_PREREQ(2.62)
 
@@ -18,7 +18,7 @@ AC_CONFIG_MACRO_DIR([m4])
 # user-visible library versioning
 m4_define([vips_major_version], [7])
 m4_define([vips_minor_version], [40])
-m4_define([vips_micro_version], [6])
+m4_define([vips_micro_version], [7])
 m4_define([vips_version],
           [vips_major_version.vips_minor_version.vips_micro_version])
 
@@ -38,7 +38,7 @@ VIPS_VERSION_STRING=$VIPS_VERSION-`date`
 #   binary interface changes not backwards compatible?: reset age to 0
 
 LIBRARY_CURRENT=38
-LIBRARY_REVISION=4
+LIBRARY_REVISION=5
 LIBRARY_AGE=0
 
 # patched into include/vips/version.h
diff --git a/libvips/foreign/matlab.c b/libvips/foreign/matlab.c
index fce0b5ee..a0f06a82 100644
--- a/libvips/foreign/matlab.c
+++ b/libvips/foreign/matlab.c
@@ -4,6 +4,9 @@
  *	- transpose on load, assemble planes into bands (thanks Mikhail)
  * 20/12/11
  * 	- reworked as some fns ready for new-style classes
+ * 21/8/14
+ * 	- swap width/height
+ * 	- set interpretation to rgb16 etc. 
  */
 
 /*
@@ -150,6 +153,28 @@ static int mat2vips_formats[][2] = {
 	{ MAT_C_DOUBLE, VIPS_FORMAT_DOUBLE }
 };
 
+/* Pick an interpretation.
+ */
+static VipsInterpretation 
+mat2vips_pick_interpretation( int bands, VipsBandFormat format )
+{
+	if( bands == 3 &&
+		vips_band_format_is8bit( format ) )
+		return( VIPS_INTERPRETATION_sRGB );
+	if( bands == 3 &&
+		(format == VIPS_FORMAT_USHORT || 
+		 format == VIPS_FORMAT_SHORT) )
+		return( VIPS_INTERPRETATION_RGB16 );
+	if( bands == 1 &&
+		(format == VIPS_FORMAT_USHORT || 
+		 format == VIPS_FORMAT_SHORT) )
+		return( VIPS_INTERPRETATION_GREY16 );
+	if( bands > 1 )
+		return( VIPS_INTERPRETATION_MULTIBAND ); 
+
+	return( VIPS_INTERPRETATION_MULTIBAND );
+}
+
 static int
 mat2vips_get_header( matvar_t *var, VipsImage *im )
 {
@@ -165,10 +190,10 @@ mat2vips_get_header( matvar_t *var, VipsImage *im )
 		bands = var->dims[2];
 
 	case 2:
-		height = var->dims[1];
+		width = var->dims[1];
 
 	case 1:
-		width = var->dims[0];
+		height = var->dims[0];
 		break;
 
 	default:
@@ -177,11 +202,6 @@ mat2vips_get_header( matvar_t *var, VipsImage *im )
 		return( -1 );
 	}
 
-	if( bands > 1 )
-		interpretation = VIPS_INTERPRETATION_MULTIBAND;
-	else
-		interpretation = VIPS_INTERPRETATION_B_W;
-
 	for( i = 0; i < VIPS_NUMBER( mat2vips_formats ); i++ )
 		if( mat2vips_formats[i][0] == var->class_type )
 			break;
@@ -191,6 +211,7 @@ mat2vips_get_header( matvar_t *var, VipsImage *im )
 		return( -1 );
 	}
 	format = mat2vips_formats[i][1];
+	interpretation = mat2vips_pick_interpretation( bands, format );
 
 	vips_image_init_fields( im,
 		 width, height, bands,