diff --git a/IPython/frontend/html/notebook/static/js/codecell.js b/IPython/frontend/html/notebook/static/js/codecell.js
index 81e1fc5..ed305aa 100644
--- a/IPython/frontend/html/notebook/static/js/codecell.js
+++ b/IPython/frontend/html/notebook/static/js/codecell.js
@@ -13,6 +13,7 @@ var IPython = (function (IPython) {
         this.is_completing = false;
         this.completion_cursor = null;
         this.outputs = [];
+        this.collapsed = false;
         IPython.Cell.apply(this, arguments);
     };
 
@@ -317,12 +318,18 @@ var IPython = (function (IPython) {
 
 
     CodeCell.prototype.collapse = function () {
-        this.element.find('div.output').hide();
+        if (!this.collapsed) {
+            this.element.find('div.output').hide();
+            this.collapsed = true;
+        };
     };
 
 
     CodeCell.prototype.expand = function () {
-        this.element.find('div.output').show();
+        if (this.collapsed) {
+            this.element.find('div.output').show();
+            this.collapsed = false;
+        };
     };
 
 
@@ -378,6 +385,11 @@ var IPython = (function (IPython) {
             for (var i=0; i<len; i++) {
                 this.append_output(data.outputs[i]);
             };
+            if (data.collapsed !== undefined) {
+                if (data.collapsed) {
+                    this.collapse();
+                };
+            };
         };
     };
 
@@ -396,6 +408,7 @@ var IPython = (function (IPython) {
         };
         data.outputs = outputs;
         data.language = 'python';
+        data.collapsed = this.collapsed;
         // console.log('Export to JSON:',data);
         return data;
     };
diff --git a/IPython/nbformat/v2/nbbase.py b/IPython/nbformat/v2/nbbase.py
index 042c487..08a014e 100644
--- a/IPython/nbformat/v2/nbbase.py
+++ b/IPython/nbformat/v2/nbbase.py
@@ -50,7 +50,8 @@ def new_output(output_type=None, output_text=None, output_png=None,
     return output
 
 
-def new_code_cell(input=None, prompt_number=None, outputs=None, language=u'python'):
+def new_code_cell(input=None, prompt_number=None, outputs=None,
+    language=u'python', collapsed=False):
     """Create a new code cell with input and output"""
     cell = NotebookNode()
     cell.cell_type = u'code'
@@ -64,6 +65,8 @@ def new_code_cell(input=None, prompt_number=None, outputs=None, language=u'pytho
         cell.outputs = []
     else:
         cell.outputs = outputs
+    if collapsed is not None:
+        cell.collapsed = collapsed
 
     return cell
 
diff --git a/IPython/nbformat/v2/nbxml.py b/IPython/nbformat/v2/nbxml.py
index 4680dce..29b2db3 100644
--- a/IPython/nbformat/v2/nbxml.py
+++ b/IPython/nbformat/v2/nbxml.py
@@ -52,6 +52,23 @@ def _set_int(nbnode, attr, parent, tag):
         e.text = unicode(nbnode[attr])
 
 
+def _get_bool(e, tag):
+    sub_e = e.find(tag)
+    if sub_e is None:
+        return None
+    else:
+        return bool(int(sub_e.text))
+
+
+def _set_bool(nbnode, attr, parent, tag):
+    if attr in nbnode:
+        e = ET.SubElement(parent, tag)
+        if nbnode[attr]:
+            e.text = u'1'
+        else:
+            e.text = u'0'
+
+
 def _get_binary(e, tag):
     sub_e = e.find(tag)
     if sub_e is None:
@@ -84,6 +101,7 @@ class XMLReader(NotebookReader):
                 if cell_e.tag == 'codecell':
                     input = _get_text(cell_e,'input')
                     prompt_number = _get_int(cell_e,'prompt_number')
+                    collapsed = _get_bool(cell_e,'collapsed')
                     language = _get_text(cell_e,'language')
                     outputs = []
                     for output_e in cell_e.find('outputs').getiterator('output'):
@@ -105,7 +123,7 @@ class XMLReader(NotebookReader):
                         )
                         outputs.append(output)
                     cc = new_code_cell(input=input,prompt_number=prompt_number,
-                                       language=language,outputs=outputs)
+                                       language=language,outputs=outputs,collapsed=collapsed)
                     cells.append(cc)
                 if cell_e.tag == 'htmlcell':
                     source = _get_text(cell_e,'source')
@@ -141,6 +159,7 @@ class XMLWriter(NotebookWriter):
                     _set_text(cell,'input',cell_e,'input')
                     _set_text(cell,'language',cell_e,'language')
                     _set_int(cell,'prompt_number',cell_e,'prompt_number')
+                    _set_bool(cell,'collapsed',cell_e,'collapsed')
                     outputs_e = ET.SubElement(cell_e, 'outputs')
                     for output in cell.outputs:
                         output_e = ET.SubElement(outputs_e, 'output')
diff --git a/IPython/nbformat/v2/tests/nbexamples.py b/IPython/nbformat/v2/tests/nbexamples.py
index 4c331b0..29d78e4 100644
--- a/IPython/nbformat/v2/tests/nbexamples.py
+++ b/IPython/nbformat/v2/tests/nbexamples.py
@@ -16,7 +16,8 @@ ws.cells.append(new_text_cell(
 
 ws.cells.append(new_code_cell(
     input='import numpy',
-    prompt_number=1
+    prompt_number=1,
+    collapsed=False
 ))
 
 ws.cells.append(new_text_cell(
@@ -27,12 +28,14 @@ ws.cells.append(new_text_cell(
 
 ws.cells.append(new_code_cell(
     input='a = numpy.random.rand(100)',
-    prompt_number=2
+    prompt_number=2,
+    collapsed=True
 ))
 
 ws.cells.append(new_code_cell(
     input='print a',
     prompt_number=3,
+    collapsed=False,
     outputs=[new_output(
         output_type=u'pyout',
         output_text=u'<array a>',
diff --git a/IPython/nbformat/v2/tests/test_json.py b/IPython/nbformat/v2/tests/test_json.py
index d9a582a..1d05fa0 100644
--- a/IPython/nbformat/v2/tests/test_json.py
+++ b/IPython/nbformat/v2/tests/test_json.py
@@ -1,4 +1,4 @@
-
+import pprint
 from unittest import TestCase
 
 from ..nbjson import reads, writes
@@ -9,6 +9,12 @@ class TestJSON(TestCase):
 
     def test_roundtrip(self):
         s = writes(nb0)
+#        print
+#        print pprint.pformat(nb0,indent=2)
+#        print
+#        print pprint.pformat(reads(s),indent=2)
+#        print
+#        print s
         self.assertEquals(reads(s),nb0)
 
 
diff --git a/IPython/nbformat/v2/tests/test_nbbase.py b/IPython/nbformat/v2/tests/test_nbbase.py
index 4eb42a2..f054165 100644
--- a/IPython/nbformat/v2/tests/test_nbbase.py
+++ b/IPython/nbformat/v2/tests/test_nbbase.py
@@ -13,9 +13,10 @@ class TestCell(TestCase):
         self.assertEquals('input' not in cc, True)
         self.assertEquals('prompt_number' not in cc, True)
         self.assertEquals(cc.outputs, [])
+        self.assertEquals(cc.collapsed, False)
 
     def test_code_cell(self):
-        cc = new_code_cell(input='a=10', prompt_number=0)
+        cc = new_code_cell(input='a=10', prompt_number=0, collapsed=True)
         cc.outputs = [new_output(output_type='pyout',
             output_svg='foo',output_text='10',prompt_number=0)]
         self.assertEquals(cc.input, u'a=10')
@@ -24,6 +25,8 @@ class TestCell(TestCase):
         self.assertEquals(cc.outputs[0].svg, u'foo')
         self.assertEquals(cc.outputs[0].text, u'10')
         self.assertEquals(cc.outputs[0].prompt_number, 0)
+        self.assertEquals(cc.collapsed, True)
+
 
     def test_empty_html_cell(self):
         tc = new_text_cell(u'html')