diff --git a/test/val/bug1108.c b/test/val/bug1108.c
new file mode 100644
index 000000000..17ef022c3
--- /dev/null
+++ b/test/val/bug1108.c
@@ -0,0 +1,40 @@
+
+/* bug #1108 - Problem with static locals? */
+
+#include <stdio.h>
+
+#pragma static-locals (on)
+
+unsigned char x = 0;
+
+unsigned char PrintVar1(void)
+{
+    unsigned char cx = x + 1;
+    printf("cx:%d x:%d\n", cx, x);
+    return cx == 0;
+}
+
+unsigned char PrintVar2(void)
+{
+    unsigned char cx = x + 1;
+    unsigned char cy;
+    cy = x + 1;
+    printf("cx:%d cy:%d x:%d\n", cx, cy, x);
+    return cx != cy;
+}
+
+#pragma static-locals (off)
+
+unsigned char n;
+unsigned char ret = 0;
+
+int main(void)
+{
+    for (n = 0; n < 10; n++) {
+        ++x;
+        ret |= PrintVar1();
+        ret |= PrintVar2();
+    }
+    return ret;
+}
+