diff --git a/icu4c/source/common/unicode/uchar.h b/icu4c/source/common/unicode/uchar.h
index 7f48181822c..d0c979b3e5a 100644
--- a/icu4c/source/common/unicode/uchar.h
+++ b/icu4c/source/common/unicode/uchar.h
@@ -1,6 +1,6 @@
 /*
 **********************************************************************
-*   Copyright (C) 1997-2003, International Business Machines
+*   Copyright (C) 1997-2004, International Business Machines
 *   Corporation and others.  All Rights Reserved.
 **********************************************************************
 *
@@ -286,6 +286,17 @@ typedef enum UProperty {
         mapping or _in_ the target of a case mapping. Not the same as
         the general category Cased_Letter. @draft ICU 2.6 */
     UCHAR_CASE_SENSITIVE,
+    /** Binary property STerm (new in Unicode 4.0.1).
+        Sentence Terminal. Used in UAX #29: Text Boundaries
+        (http://www.unicode.org/reports/tr29/)
+        @draft ICU 3.0 */
+    UCHAR_S_TERM,
+    /** Binary property Variation_Selector (new in Unicode 4.0.1).
+        Indicates all those characters that qualify as Variation Selectors.
+        For details on the behavior of these characters,
+        see StandardizedVariants.html and 15.6 Variation Selectors.
+        @draft ICU 3.0 */
+    UCHAR_VARIATION_SELECTOR,
     /** One more than the last constant for binary Unicode properties. @stable ICU 2.1 */
     UCHAR_BINARY_LIMIT,
 
@@ -956,6 +967,11 @@ enum UBlockCode {
 
     /** @stable ICU 2.2 */
     UBLOCK_CYRILLIC_SUPPLEMENTARY = 97, /*[0500]*/
+    /**
+     * Unicode 4.0.1 renames the "Cyrillic Supplementary" block to "Cyrillic Supplement".
+     * @draft ICU 3.0
+     */
+    UBLOCK_CYRILLIC_SUPPLEMENT = 97, /*[0500]*/
     /** @stable ICU 2.2 */
     UBLOCK_TAGALOG = 98, /*[1700]*/
     /** @stable ICU 2.2 */
@@ -1215,6 +1231,8 @@ typedef enum ULineBreak {
     U_LB_HYPHEN,            /*[HY]*/
     U_LB_IDEOGRAPHIC,       /*[ID]*/
     U_LB_INSEPERABLE,       /*[IN]*/
+    /** Renamed from the misspelled "inseperable" in Unicode 4.0.1/ICU 3.0 @draft ICU 3.0 */
+    U_LB_INSEPARABLE=U_LB_INSEPERABLE,/*[IN]*/
     U_LB_INFIX_NUMERIC,     /*[IS]*/
     U_LB_LINE_FEED,         /*[LF]*/
     U_LB_NONSTARTER,        /*[NS]*/
diff --git a/icu4c/source/common/unicode/uscript.h b/icu4c/source/common/unicode/uscript.h
index fea971b7cff..11f118fc6c2 100644
--- a/icu4c/source/common/unicode/uscript.h
+++ b/icu4c/source/common/unicode/uscript.h
@@ -1,6 +1,6 @@
 /*
 **********************************************************************
-*   Copyright (C) 1997-2003, International Business Machines
+*   Copyright (C) 1997-2004, International Business Machines
 *   Corporation and others.  All Rights Reserved.
 **********************************************************************
 *
@@ -83,6 +83,9 @@ typedef enum UScriptCode {
       USCRIPT_TAI_LE,             /* Tale */
       USCRIPT_UGARITIC,           /* Ugar */
 
+      /** New script code in Unicode 4.0.1 @draft ICU 3.0 */
+      USCRIPT_KATAKANA_OR_HIRAGANA,/*Hrkt */
+
       USCRIPT_CODE_LIMIT
 } UScriptCode;
 
diff --git a/icu4c/source/common/uprops.c b/icu4c/source/common/uprops.c
index 012c46cc8f2..ab3c1033235 100644
--- a/icu4c/source/common/uprops.c
+++ b/icu4c/source/common/uprops.c
@@ -1,7 +1,7 @@
 /*
 *******************************************************************************
 *
-*   Copyright (C) 2002-2003, International Business Machines
+*   Copyright (C) 2002-2004, International Business Machines
 *   Corporation and others.  All Rights Reserved.
 *
 *******************************************************************************
@@ -214,7 +214,9 @@ static const struct {
     {  1, U_MASK(UPROPS_WHITE_SPACE) },
     {  1, U_MASK(UPROPS_XID_CONTINUE) },
     {  1, U_MASK(UPROPS_XID_START) },
-    { -1, U_MASK(UPROPS_CASE_SENSITIVE_SHIFT) }
+    { -1, U_MASK(UPROPS_CASE_SENSITIVE_SHIFT) },
+    {  2, U_MASK(UPROPS_V2_S_TERM) },
+    {  2, U_MASK(UPROPS_V2_VARIATION_SELECTOR) }
 };
 
 U_CAPI UBool U_EXPORT2
diff --git a/icu4c/source/common/uprops.h b/icu4c/source/common/uprops.h
index ab6907ae6e0..588aad61db2 100644
--- a/icu4c/source/common/uprops.h
+++ b/icu4c/source/common/uprops.h
@@ -1,7 +1,7 @@
 /*
 *******************************************************************************
 *
-*   Copyright (C) 2002-2003, International Business Machines
+*   Copyright (C) 2002-2004, International Business Machines
 *   Corporation and others.  All Rights Reserved.
 *
 *******************************************************************************
@@ -164,6 +164,7 @@ enum {
 /*
  * Properties in vector word 2
  * Bits
+ * 31..24   More binary properties
  * 13..11   Joining Type
  * 10.. 5   Joining Group
  *  4.. 0   Decomposition Type
@@ -176,6 +177,12 @@ enum {
 
 #define UPROPS_DT_MASK          0x0000001f
 
+enum {
+    UPROPS_V2_S_TERM=24,                        /* new in ICU 3.0 and Unicode 4.0.1 */
+    UPROPS_V2_VARIATION_SELECTOR,
+    UPROPS_V2_TOP                               /* must be <=32 */
+};
+
 /**
  * Get a properties vector word for a code point.
  * Implemented in uchar.c for uprops.c.
diff --git a/icu4c/source/tools/gennorm/gennorm.c b/icu4c/source/tools/gennorm/gennorm.c
index fc706e230e5..f75537b7010 100644
--- a/icu4c/source/tools/gennorm/gennorm.c
+++ b/icu4c/source/tools/gennorm/gennorm.c
@@ -1,7 +1,7 @@
 /*
 *******************************************************************************
 *
-*   Copyright (C) 2001-2003, International Business Machines
+*   Copyright (C) 2001-2004, International Business Machines
 *   Corporation and others.  All Rights Reserved.
 *
 *******************************************************************************
@@ -246,8 +246,22 @@ derivedNormalizationPropertiesLineFn(void *context,
             qcFlags&=0xf;
         } else if(0==uprv_memcmp(s, "MAYBE", 5)) {
             qcFlags&=0x30;
+        } else if(0==uprv_memcmp(s, "QC", 2) && *(s=(char *)u_skipWhitespace(s+2))==';') {
+            /*
+             * Unicode 4.0.1:
+             * changes single field "NFD_NO" -> two fields "NFD_QC; N" etc.
+             */
+            /* start of the field */
+            s=(char *)u_skipWhitespace(s+1);
+            if(*s=='N') {
+                qcFlags&=0xf;
+            } else if(*s=='M') {
+                qcFlags&=0x30;
+            } else {
+                return; /* do nothing for "Yes" because it's the default value */
+            }
         } else {
-            return;
+            return; /* do nothing for "Yes" because it's the default value */
         }
 
         /* set this flag for all code points in this range */
@@ -259,7 +273,10 @@ derivedNormalizationPropertiesLineFn(void *context,
         while(start<=end) {
             setCompositionExclusion(start++);
         }
-    } else if(0==uprv_memcmp(s, "FNC", 3) && *(s=(char *)u_skipWhitespace(s+3))==';') {
+    } else if(
+        (0==uprv_memcmp(s, "FNC", 3) || 0==uprv_memcmp(s, "FC_NFKC", 7))
+        && *(s=(char *)u_skipWhitespace(s+3))==';'
+    ) {
         /* FC_NFKC_Closure, parse field 2 to get the string */
         char *t;
 
diff --git a/icu4c/source/tools/genprops/props2.c b/icu4c/source/tools/genprops/props2.c
index 0e98acea023..78ea4ca6ed1 100644
--- a/icu4c/source/tools/genprops/props2.c
+++ b/icu4c/source/tools/genprops/props2.c
@@ -1,7 +1,7 @@
 /*
 *******************************************************************************
 *
-*   Copyright (C) 2002-2003, International Business Machines
+*   Copyright (C) 2002-2004, International Business Machines
 *   Corporation and others.  All Rights Reserved.
 *
 *******************************************************************************
@@ -265,7 +265,11 @@ propListNames[]={
     { "Unified_Ideograph",                  1, UPROPS_UNIFIED_IDEOGRAPH },
     { "Deprecated",                         1, UPROPS_DEPRECATED },
     { "Soft_Dotted",                        1, UPROPS_SOFT_DOTTED },
-    { "Logical_Order_Exception",            1, UPROPS_LOGICAL_ORDER_EXCEPTION }
+    { "Logical_Order_Exception",            1, UPROPS_LOGICAL_ORDER_EXCEPTION },
+
+    /* new properties in Unicode 4.0.1 */
+    { "STerm",                              2, UPROPS_V2_S_TERM },
+    { "Variation_Selector",                 2, UPROPS_V2_VARIATION_SELECTOR }
 };
 
 static const Binaries
@@ -399,7 +403,7 @@ generateAdditionalProperties(char *filename, const char *suffix, UErrorCode *pEr
     /* process various UCD .txt files */
 
     /* add Han numeric types & values */
-    parseMultiFieldFile(filename, basename, "DerivedNumericValues", suffix, 3, numericLineFn, pErrorCode);
+    parseMultiFieldFile(filename, basename, "DerivedNumericValues", suffix, 2, numericLineFn, pErrorCode);
 
     /* set proper bidi class for unassigned code points (Cn) */
     parseTwoFieldFile(filename, basename, "DerivedBidiClass", suffix, bidiClassLineFn, pErrorCode);
@@ -537,7 +541,7 @@ numericLineFn(void *context,
     Props newProps;
     char *s, *end;
     uint32_t start, limit, value, oldProps32;
-    int32_t type, oldType;
+    int32_t oldType;
     char c;
     UBool isFraction;
 
@@ -586,26 +590,22 @@ numericLineFn(void *context,
         }
     }
 
-    /* parse numeric type */
-    s=trimTerminateField(fields[2][0], fields[2][1]);
-    type=u_getPropertyValueEnum(UCHAR_NUMERIC_TYPE, s);
-    if(type<=0) {
-        fprintf(stderr, "genprops error: unknown numeric type in DerivedNumericValues.txt field 1 at %s\n", s);
-        exit(U_PARSE_ERROR);
-    }
+    /*
+     * Unicode 4.0.1 removes the third column that used to list the numeric type.
+     * Assume that either the data is the same as in UnicodeData.txt,
+     * or else that the numeric type is "numeric".
+     * This should work because we only expect to add numeric values for
+     * Han characters; for those, UnicodeData.txt lists only ranges without
+     * specific properties for single characters.
+     */
 
     for(; start<limit; ++start) {
         oldProps32=getProps(start);
         oldType=(int32_t)GET_NUMERIC_TYPE(oldProps32);
-        if(oldType==type) {
+        if(oldType!=0) {
             /* this code point was already listed with its numeric value in UnicodeData.txt */
             continue;
         }
-        if(oldType!=0) {
-            /* the numeric type differs from what we got from UnicodeData.txt */
-            fprintf(stderr, "genprops error: new numeric value for an already numeric character in DerivedNumericValues.txt at %s\n", fields[0][0]);
-            exit(U_PARSE_ERROR);
-        }
 
         /*
          * Do not set a numeric value for code points that have other
@@ -630,7 +630,7 @@ numericLineFn(void *context,
         }
 
         if(beVerbose) {
-            printf("adding U+%04x numeric type %d value %u\n", start, type, value);
+            printf("adding U+%04x numeric type %d value %u\n", start, U_NT_NUMERIC, value);
         }
 
         /* reconstruct the properties and set the new numeric type and value */
@@ -639,8 +639,8 @@ numericLineFn(void *context,
         newProps.generalCategory=(uint8_t)GET_CATEGORY(oldProps32);
         newProps.bidi=(uint8_t)GET_BIDI_CLASS(oldProps32);
         newProps.isMirrored=(uint8_t)(oldProps32&(1UL<<UPROPS_MIRROR_SHIFT) ? TRUE : FALSE);
-        newProps.numericType=(uint8_t)type;     /* newly parsed numeric type */
-        newProps.numericValue=(int32_t)value;   /* newly parsed numeric value */
+        newProps.numericType=(uint8_t)U_NT_NUMERIC; /* assumed numeric type, see Unicode 4.0.1 comment */
+        newProps.numericValue=(int32_t)value;       /* newly parsed numeric value */
         addProps(start, makeProps(&newProps));
     }
 }