--- squashfs-tools/mksquashfs.c.old	2011-03-20 19:53:16.000000000 +0000
+++ squashfs-tools/mksquashfs.c	2011-03-20 19:53:26.000000000 +0000
@@ -4964,7 +4964,7 @@
 	if(stat(argv[source + 1], &buf) == -1) {
 		if(errno == ENOENT) { /* Does not exist */
 			fd = open(argv[source + 1], O_CREAT | O_TRUNC | O_RDWR,
-				S_IRUSR | S_IWUSR | S_IRGRP | S_IROTH);
+				S_IRUSR | S_IWUSR | S_IRGRP | S_IWGRP | S_IROTH);
 			if(fd == -1) {
 				perror("Could not create destination file");
 				exit(1);