diff --git a/CMakeLists.txt b/CMakeLists.txt
index aabd239..bb2673f 100644
--- a/CMakeLists.txt
+++ b/CMakeLists.txt
@@ -5,7 +5,7 @@ set(CMAKE_OSX_DEPLOYMENT_TARGET "10.7" CACHE STRING "Minimum OS X deployment ver
 
 set(appName "Rhubarb Lip Sync")
 set(appVersionMajor 1)
-set(appVersionMinor 1)
+set(appVersionMinor 2)
 set(appVersionPatch 0)
 set(appVersionSuffix "")
 set(appVersion "${appVersionMajor}.${appVersionMinor}.${appVersionPatch}${appVersionSuffix}")
diff --git a/VERSION.md b/VERSION.md
index 147c185..63d7592 100644
--- a/VERSION.md
+++ b/VERSION.md
@@ -1,5 +1,13 @@
 # Version history
 
+## Version 1.2.0
+
+* **Dialog file needn't be exact**
+
+  Since version 1.0.0, Rhubarb Lip-Sync can handle situations where the dialog text is specified (using the `-dialogFile` option), but the actual recording omits some words. For instance, the specified dialog text can be "That's all gobbledygook to me," but the recording only says "That's gobbledygook to me," dropping the word "all."
+
+  Until now, however, Rhubarb Lip-Sync couldn't handle *changed* or *inserted* words, such as a recording saying "That's *just* gobbledygook to me." This restriction has been removed. As of version 1.2.0, the actual recording may freely deviate from the specified dialog text. Rhubarb Lip-Sync will ignore the dialog file where it audibly differs from the recording, and benefit from it where it matches. 
+
 ## Version 1.1.0
 
 * **More reliable speech recognition**