diff --git a/CHANGES b/CHANGES
--- a/CHANGES
+++ b/CHANGES
@@ -115,3 +115,6 @@
 
 0.2.3:
 		* add sampleData action to a plot
+
+0.2.3.1:
+		* fix bugs (-y) in rendering annotations. Issue #7
diff --git a/examples/Test.hs b/examples/Test.hs
--- a/examples/Test.hs
+++ b/examples/Test.hs
@@ -112,14 +112,17 @@
                          setRangeFromData YAxis Lower Linear
                          withAnnotations $ do
                            arrow True (pi/2,0.5) (0,0) (return ())
-                           --oval True (0.5,1) (1,3) $ setBarColour blue
-                           rect True (0.5,0.5) (2,0.75) $ (return ())
+                           oval True (1.5,0) (pi,0.5) $ setBarColour blue
+                           rect True (0.5,0.5) (2,0.6) $ (return ())
                            glyph (4,0.2) (return ())
                            text (3,0.0) (setText "from the α to the Ω")
                            cairo (\_ _ _ _ -> do
+                                    C.newPath
                                     C.moveTo 3 0.75
                                     C.lineTo 4 (-0.5)
                                     C.stroke
+                                    C.rectangle (pi/2) (-1) (pi/2) 1
+                                    C.fill
                                  )
 --                         setRange YAxis Lower Log (-1.25) 1.25
 --                         setLegend True NorthEast Inside
diff --git a/lib/Graphics/Rendering/Plot/Render/Plot/Annotation.hs b/lib/Graphics/Rendering/Plot/Render/Plot/Annotation.hs
--- a/lib/Graphics/Rendering/Plot/Render/Plot/Annotation.hs
+++ b/lib/Graphics/Rendering/Plot/Render/Plot/Annotation.hs
@@ -99,8 +99,8 @@
   cairo $ do
     C.save
     setColour c
-    C.translate  (x + width / 2) (y + height / 2)
-    C.scale (1 / (height / 2)) (1 / (width / 2))
+    C.translate x y
+    C.scale (yscale/2) (xscale/2)
     C.arc 0 0 1 0 (2 * pi)
     C.restore
     C.strokePreserve
@@ -110,12 +110,13 @@
     C.newPath
 renderAnnotation xscale yscale (AnnRect f b (x1',y1') (x2',y2')) = do
   (_,bc,c) <- formatBarSeries b
-  let (x1,y1) = (x1'*xscale,y1'*yscale)
-  let (x2,y2) = (x2'*xscale,y2'*yscale)
+  let (x1,y1) = (x1'*xscale,-y1'*yscale)
+  let (x2,y2) = (x2'*xscale,-y2'*yscale)
   cairo $ do
     C.save
     setColour c
-    C.rectangle x1 y1 x2 y2
+    flipVertical
+    C.rectangle x1 y1 (x2-x1) (y2-y1)
     C.restore
     C.strokePreserve
     when f (do
@@ -130,19 +131,22 @@
     renderGlyph pw g
 renderAnnotation xscale yscale (AnnText te (x1',y1')) = do
 --  (x,y) <- cairo $ C.userToDevice x1 y1
-  let (x1,y1) = (x1'*xscale,y1'*yscale)
+  let (x1,y1) = (x1'*xscale,-y1'*yscale)
   cairo $ do
     C.save
-    --C.scale (recip xscale) (recip (-yscale))
     flipVertical
---  _ <- renderText te TRight TTop (x1') (y1')
   _ <- renderText te TRight TTop (x1) (y1)
   cairo $ C.restore
   return ()
-renderAnnotation _   _   (AnnCairo r) = do
+renderAnnotation xscale yscale (AnnCairo r) = do
   (BoundingBox x y w h) <- get
   cairo $ do
     C.save
+    --let (x,y) = (x'*xscale,y'*yscale)
+    --let (w,h) = (w'*xscale,h'*yscale)
+    --flipVertical
+    --C.translate x y
+    --C.scale (xscale) (yscale)
     r x y w h
     C.restore
 
diff --git a/plot.cabal b/plot.cabal
--- a/plot.cabal
+++ b/plot.cabal
@@ -1,5 +1,5 @@
 Name:                plot
-Version:             0.2.3
+Version:             0.2.3.1
 License:             BSD3
 License-file:        LICENSE
 Copyright:           (c) A.V.H. McPhail 2010, 2012, 2013, 2014
@@ -91,6 +91,7 @@
                      Control.Monad.Supply
 
   ghc-options:       -Wall -fno-warn-unused-binds
+                     -O2
 
   ghc-prof-options:  -auto