diff --git a/activities/Makefile.am b/activities/Makefile.am
index 03476780..84bfa853 100644
--- a/activities/Makefile.am
+++ b/activities/Makefile.am
@@ -1 +1 @@
-SUBDIRS = browser chat
+SUBDIRS = browser chat terminal
diff --git a/activities/terminal/Makefile.am b/activities/terminal/Makefile.am
new file mode 100644
index 00000000..a2a2397c
--- /dev/null
+++ b/activities/terminal/Makefile.am
@@ -0,0 +1,9 @@
+sugardir = $(pkgdatadir)/activities/browser
+sugar_PYTHON =			\
+	__init__.py		\
+	terminal.py
+
+activitydir = $(pkgdatadir)/activities/browser
+activity_DATA = terminal.activity
+
+EXTRA_DIST = $(activity_DATA)
diff --git a/activities/terminal/__init__.py b/activities/terminal/__init__.py
new file mode 100644
index 00000000..e69de29b
diff --git a/examples/terminal/terminal.activity b/activities/terminal/terminal.activity
similarity index 100%
rename from examples/terminal/terminal.activity
rename to activities/terminal/terminal.activity
diff --git a/examples/terminal/terminal.py b/activities/terminal/terminal.py
similarity index 95%
rename from examples/terminal/terminal.py
rename to activities/terminal/terminal.py
index eca10a72..c9ee5254 100644
--- a/examples/terminal/terminal.py
+++ b/activities/terminal/terminal.py
@@ -51,8 +51,8 @@ class Terminal(gtk.HBox):
 		pass
 
 class TerminalActivity(Activity):
-	def __init__(self, args):
-		Activity.__init__(self, _TERMINAL_ACTIVITY_TYPE)
+	def __init__(self, service, args):
+		Activity.__init__(self, service)
 	
 		self.set_title("Terminal")
 
diff --git a/configure.ac b/configure.ac
index f93ea484..d9be8cf6 100644
--- a/configure.ac
+++ b/configure.ac
@@ -26,6 +26,7 @@ Makefile
 activities/Makefile
 activities/browser/Makefile
 activities/chat/Makefile
+activities/terminal/Makefile
 shell/Makefile
 shell/data/Makefile
 shell/PresenceService/Makefile