diff --git a/docs/conf.py b/docs/conf.py
index 54a0eb67f111bcba96c0fac798911f5af47939df..ac49123c80a9da1b45df42675bbcc20482547511 100644
--- a/docs/conf.py
+++ b/docs/conf.py
@@ -49,9 +49,9 @@ copyright = u'2013, Branko Majic'
 # built documents.
 #
 # The short X.Y version.
-version = '0.2'
+version = '0.3'
 # The full version, including alpha/beta/rc tags.
-release = '0.2'
+release = '0.3'
 
 # The language for content autogenerated by Sphinx. Refer to documentation
 # for a list of supported languages.
diff --git a/docs/releasenotes.rst b/docs/releasenotes.rst
index ffbe84fe94325fb2113af5c85a3c4f37f2929713..15b5b45498a54e0047695b535bf9e68beceeb012 100644
--- a/docs/releasenotes.rst
+++ b/docs/releasenotes.rst
@@ -1,6 +1,26 @@
 Release Notes
 =============
 
+0.3
+---
+
+Update introducing support for more output formats and ability to use
+transparency for PNG identicons.
+
+New features:
+
+* `PYD-6: Add support for having transparent backgrounds in identicons
+  <https://projects.majic.rs/pydenticon/issues/PYD-6>`_
+
+  Ability to use alpha-channel specification in PNG identicons to obtain
+  complete or partial transparency. Works for both background and foreground
+  colour.
+
+* `PYD-7: Ability to specify image format
+  <https://projects.majic.rs/pydenticon/issues/PYD-7>`_
+
+  Ability to specify any output format supported by the Pillow library.
+
 0.2
 ---
 
diff --git a/setup.py b/setup.py
index 8feaac06f03c0bc190cfa97f1831c54445d43ac1..c572f759815f887d22271afd68b5158e60cebccf 100644
--- a/setup.py
+++ b/setup.py
@@ -10,7 +10,7 @@ os.chdir(os.path.normpath(os.path.join(os.path.abspath(__file__), os.pardir)))
 
 setup(
     name='pydenticon',
-    version='0.2',
+    version='0.3',
     packages=['pydenticon'],
     include_package_data=True,
     license='BSD',  # example license