diff --git a/CHANGELOG b/CHANGELOG
index e85ab3f9..53d83381 100644
--- a/CHANGELOG
+++ b/CHANGELOG
@@ -25,6 +25,9 @@ HISTORY
 
   ++ Bugfixes:
 
+  2009-08-23 Simon Goldschmidt
+  * ppp.c: bug #27078: Possible memory leak in pppInit()
+
   2009-08-23 Simon Goldschmidt
   * netdb.c, dns.c: bug #26657: DNS, if host name is "localhost", result
     is error.
diff --git a/src/netif/ppp/ppp.c b/src/netif/ppp/ppp.c
index 5b2aa783..b3d6eb2a 100644
--- a/src/netif/ppp/ppp.c
+++ b/src/netif/ppp/ppp.c
@@ -395,13 +395,17 @@ pppInit(void)
 
   magicInit();
 
+  subnetMask = htonl(0xffffff00);
+
   for (i = 0; i < NUM_PPP; i++) {
     pppControl[i].openFlag = 0;
 
-    subnetMask = htonl(0xffffff00);
-
     outpacket_buf[i] = (u_char *)mem_malloc(PPP_MRU+PPP_HDRLEN);
-    if(!outpacket_buf[i]) {
+    if (!outpacket_buf[i]) {
+      for (j = 0; j < i; j++) {
+        /* deallocate all preceding buffers */
+        mem_free(outpacket_buf[j]);
+      }
       return ERR_MEM;
     }