diff --git a/compiler/backend/src/org/jetbrains/jet/codegen/BothSignatureWriter.java b/compiler/backend/src/org/jetbrains/jet/codegen/BothSignatureWriter.java
index ab2d5de350d..df828641deb 100644
--- a/compiler/backend/src/org/jetbrains/jet/codegen/BothSignatureWriter.java
+++ b/compiler/backend/src/org/jetbrains/jet/codegen/BothSignatureWriter.java
@@ -5,6 +5,7 @@ import org.jetbrains.annotations.Nullable;
 import org.jetbrains.jet.lang.resolve.java.signature.JetSignatureAdapter;
 import org.jetbrains.jet.lang.resolve.java.signature.JetSignatureReader;
 import org.jetbrains.jet.lang.resolve.java.signature.JetSignatureWriter;
+import org.jetbrains.jet.lang.types.Variance;
 import org.objectweb.asm.Type;
 import org.objectweb.asm.signature.SignatureVisitor;
 import org.objectweb.asm.signature.SignatureWriter;
@@ -182,11 +183,11 @@ public class BothSignatureWriter {
         jetSignatureWriter.visitTypeVariable(name, nullable);
     }
     
-    public void writeFormalTypeParameter(final String name) {
+    public void writeFormalTypeParameter(final String name, Variance variance) {
         checkTopLevel();
 
         signatureVisitor().visitFormalTypeParameter(name);
-        jetSignatureWriter.visitFormalTypeParameter(name);
+        jetSignatureWriter.visitFormalTypeParameter(name, variance);
     }
 
     public void writerFormalTypeParametersStart() {
diff --git a/compiler/backend/src/org/jetbrains/jet/codegen/JetTypeMapper.java b/compiler/backend/src/org/jetbrains/jet/codegen/JetTypeMapper.java
index 58a60e131b6..45344286ed0 100644
--- a/compiler/backend/src/org/jetbrains/jet/codegen/JetTypeMapper.java
+++ b/compiler/backend/src/org/jetbrains/jet/codegen/JetTypeMapper.java
@@ -540,7 +540,7 @@ public class JetTypeMapper {
     }
 
     private void writeFormalTypeParameter(TypeParameterDescriptor typeParameterDescriptor, BothSignatureWriter signatureVisitor) {
-        signatureVisitor.writeFormalTypeParameter(typeParameterDescriptor.getName());
+        signatureVisitor.writeFormalTypeParameter(typeParameterDescriptor.getName(), typeParameterDescriptor.getVariance());
 
         classBound:
         {
diff --git a/compiler/backend/src/org/jetbrains/jet/codegen/SignatureUtil.java b/compiler/backend/src/org/jetbrains/jet/codegen/SignatureUtil.java
index 2903242169c..392037c636e 100644
--- a/compiler/backend/src/org/jetbrains/jet/codegen/SignatureUtil.java
+++ b/compiler/backend/src/org/jetbrains/jet/codegen/SignatureUtil.java
@@ -73,7 +73,6 @@ public class SignatureUtil {
         }
         sb.append('<');
         for(JetTypeParameter param : parameters) {
-            sb.append("T");
             Variance variance = param.getVariance();
             if(variance == Variance.IN_VARIANCE)
                 sb.append("in ");
diff --git a/compiler/frontend.java/src/org/jetbrains/jet/lang/resolve/java/JetTypeJetSignatureReader.java b/compiler/frontend.java/src/org/jetbrains/jet/lang/resolve/java/JetTypeJetSignatureReader.java
index 0e0819d8f7a..69f5e4b1444 100644
--- a/compiler/frontend.java/src/org/jetbrains/jet/lang/resolve/java/JetTypeJetSignatureReader.java
+++ b/compiler/frontend.java/src/org/jetbrains/jet/lang/resolve/java/JetTypeJetSignatureReader.java
@@ -34,7 +34,7 @@ public abstract class JetTypeJetSignatureReader implements JetSignatureVisitor {
     
 
     @Override
-    public void visitFormalTypeParameter(String name) {
+    public void visitFormalTypeParameter(String name, Variance variance) {
         throw new IllegalStateException();
     }
 
diff --git a/compiler/frontend.java/src/org/jetbrains/jet/lang/resolve/java/signature/JetSignatureAdapter.java b/compiler/frontend.java/src/org/jetbrains/jet/lang/resolve/java/signature/JetSignatureAdapter.java
index 5f9d10245b0..a1c62a009ff 100644
--- a/compiler/frontend.java/src/org/jetbrains/jet/lang/resolve/java/signature/JetSignatureAdapter.java
+++ b/compiler/frontend.java/src/org/jetbrains/jet/lang/resolve/java/signature/JetSignatureAdapter.java
@@ -1,11 +1,13 @@
 package org.jetbrains.jet.lang.resolve.java.signature;
 
+import org.jetbrains.jet.lang.types.Variance;
+
 /**
  * @author Stepan Koltsov
  */
 public class JetSignatureAdapter implements JetSignatureVisitor {
     @Override
-    public void visitFormalTypeParameter(String name) {
+    public void visitFormalTypeParameter(String name, Variance variance) {
     }
 
     @Override
diff --git a/compiler/frontend.java/src/org/jetbrains/jet/lang/resolve/java/signature/JetSignatureReader.java b/compiler/frontend.java/src/org/jetbrains/jet/lang/resolve/java/signature/JetSignatureReader.java
index cbdebb01b3a..f4c78b26a44 100644
--- a/compiler/frontend.java/src/org/jetbrains/jet/lang/resolve/java/signature/JetSignatureReader.java
+++ b/compiler/frontend.java/src/org/jetbrains/jet/lang/resolve/java/signature/JetSignatureReader.java
@@ -1,5 +1,6 @@
 package org.jetbrains.jet.lang.resolve.java.signature;
 
+import org.jetbrains.jet.lang.types.Variance;
 import org.objectweb.asm.signature.SignatureReader;
 import org.objectweb.asm.signature.SignatureVisitor;
 
@@ -26,8 +27,19 @@ public class JetSignatureReader {
         if (signature.charAt(0) == '<') {
             pos = 2;
             do {
+                Variance variance;
+                if (signature.substring(pos).startsWith("in ")) {
+                    variance = Variance.IN_VARIANCE;
+                    pos += "in ".length();
+                } else if (signature.substring(pos).startsWith("out ")) {
+                    variance = Variance.OUT_VARIANCE;
+                    pos += "out ".length();
+                } else {
+                    variance = Variance.INVARIANT;
+                    pos += "".length();
+                }
                 int end = signature.indexOf(':', pos);
-                v.visitFormalTypeParameter(signature.substring(pos - 1, end));
+                v.visitFormalTypeParameter(signature.substring(pos - 1, end), variance);
                 pos = end + 1;
 
                 c = signature.charAt(pos);
diff --git a/compiler/frontend.java/src/org/jetbrains/jet/lang/resolve/java/signature/JetSignatureVisitor.java b/compiler/frontend.java/src/org/jetbrains/jet/lang/resolve/java/signature/JetSignatureVisitor.java
index e353dd6dbb3..6995d8b7e86 100644
--- a/compiler/frontend.java/src/org/jetbrains/jet/lang/resolve/java/signature/JetSignatureVisitor.java
+++ b/compiler/frontend.java/src/org/jetbrains/jet/lang/resolve/java/signature/JetSignatureVisitor.java
@@ -1,5 +1,6 @@
 package org.jetbrains.jet.lang.resolve.java.signature;
 
+import org.jetbrains.jet.lang.types.Variance;
 import org.objectweb.asm.signature.SignatureVisitor;
 
 /**
@@ -30,7 +31,7 @@ public interface JetSignatureVisitor {
      *
      * @param name the name of the formal parameter.
      */
-    void visitFormalTypeParameter(String name);
+    void visitFormalTypeParameter(String name, Variance variance);
 
     /**
      * Visits the class bound of the last visited formal type parameter.
diff --git a/compiler/frontend.java/src/org/jetbrains/jet/lang/resolve/java/signature/JetSignatureWriter.java b/compiler/frontend.java/src/org/jetbrains/jet/lang/resolve/java/signature/JetSignatureWriter.java
index 7e1a7837a08..4755613ff2f 100644
--- a/compiler/frontend.java/src/org/jetbrains/jet/lang/resolve/java/signature/JetSignatureWriter.java
+++ b/compiler/frontend.java/src/org/jetbrains/jet/lang/resolve/java/signature/JetSignatureWriter.java
@@ -1,5 +1,6 @@
 package org.jetbrains.jet.lang.resolve.java.signature;
 
+import org.jetbrains.jet.lang.types.Variance;
 import org.objectweb.asm.signature.SignatureWriter;
 
 /**
@@ -43,11 +44,23 @@ public class JetSignatureWriter implements JetSignatureVisitor {
     // ------------------------------------------------------------------------
 
     @Override
-    public void visitFormalTypeParameter(final String name) {
+    public void visitFormalTypeParameter(final String name, Variance variance) {
         if (!hasFormals) {
             hasFormals = true;
             buf.append('<');
         }
+        switch (variance) {
+            case OUT_VARIANCE:
+                buf.append("out ");
+                break;
+            case IN_VARIANCE:
+                buf.append("in ");
+                break;
+            case INVARIANT:
+                break;
+            default:
+                throw new IllegalStateException();
+        }
         buf.append(name);
         buf.append(':');
     }
diff --git a/stdlib/src/jet/typeinfo/TypeInfo.java b/stdlib/src/jet/typeinfo/TypeInfo.java
index dfdda4e367e..925cb84d745 100644
--- a/stdlib/src/jet/typeinfo/TypeInfo.java
+++ b/stdlib/src/jet/typeinfo/TypeInfo.java
@@ -543,10 +543,6 @@ public abstract class TypeInfo<T> implements JetObject {
                         signature.variables  = new LinkedList<TypeInfoProjection>();
                         signature.varNames = new HashMap<String, Integer>();
                     }
-                    if (string[cur] != 'T') {
-                        throw new IllegalStateException(new String(string));
-                    }
-                    cur++;
                     signature.variables.add(parseVar(signature));
                 }
                 cur++;