diff -ur on17/usr/src/cmd/sh/bltin.c bc-on17/usr/src/cmd/sh/bltin.c
--- on17/usr/src/cmd/sh/bltin.c	Tue Jun 14 02:44:42 2005
+++ bc-on17/usr/src/cmd/sh/bltin.c	Sat Jul  9 22:44:00 2005
@@ -314,11 +314,20 @@
 			{
 				while (*++argv)
 				{
-					n = lookup(*argv);
-					if (n->namflg & N_FUNCTN)
-						error(badexport);
-					else
-						attrib(n, N_EXPORT);
+					register unsigned char *s = mactrim(*argv);
+
+					/* 
+					 * Try an export syntax of 'export FOO=1' first. If that
+					 *  fails, assume they've already set the variable and
+					 *  parse the argument as a variable for possible export.
+					 */
+					if (setname(s, N_EXPORT) == FALSE) {
+						n = lookup(*argv);
+						if (n->namflg & N_FUNCTN)
+							error(badexport);
+						else
+							attrib(n, N_EXPORT);
+					}
 				}
 			}
 			else
diff -ur on17/usr/src/cmd/sh/name.c bc-on17/usr/src/cmd/sh/name.c
--- on17/usr/src/cmd/sh/name.c	Tue Jun 14 02:44:42 2005
+++ bc-on17/usr/src/cmd/sh/name.c	Sat Jul  9 22:50:28 2005
@@ -165,6 +165,7 @@
 }
 
 
+int
 setname(argi, xp)	/* does parameter assignments */
 unsigned char	*argi;
 int	xp;
@@ -194,9 +195,10 @@
 				assign(n, argscan);
 
 			dolocale(n->namid);
-			return;
+			return TRUE;
 		}
 	}
+	return FALSE;
 }
 
 replace(a, v)