diff --git a/hgext/highlight/__init__.py b/hgext/highlight/__init__.py
new file mode 100644
--- /dev/null
+++ b/hgext/highlight/__init__.py
@@ -0,0 +1,50 @@
+"""a mercurial extension for syntax highlighting in hgweb
+
+It depends on the pygments syntax highlighting library:
+http://pygments.org/
+
+To enable the extension add this to hgrc:
+
+[extensions]
+hgext.highlight =
+
+There is a single configuration option:
+
+[web]
+pygments_style = <style>
+
+The default is 'colorful'.
+
+-- Adam Hupp <adam@hupp.org>
+"""
+
+import highlight
+from mercurial.hgweb import webcommands, webutil, common
+
+web_filerevision = webcommands._filerevision
+web_annotate = webcommands.annotate
+
+def filerevision_highlight(web, tmpl, fctx):
+    style = web.config('web', 'pygments_style', 'colorful')
+    highlight.pygmentize('fileline', fctx, style, tmpl)
+    return web_filerevision(web, tmpl, fctx)
+
+def annotate_highlight(web, req, tmpl):
+    fctx = webutil.filectx(web.repo, req)
+    style = web.config('web', 'pygments_style', 'colorful')
+    highlight.pygmentize('annotateline', fctx, style, tmpl)
+    return web_annotate(web, req, tmpl)
+
+def generate_css(web, req, tmpl):
+    pg_style = web.config('web', 'pygments_style', 'colorful')
+    fmter = highlight.HtmlFormatter(style = pg_style)
+    req.respond(common.HTTP_OK, 'text/css')
+    return ['/* pygments_style = %s */\n\n' % pg_style, fmter.get_style_defs('')]
+
+
+# monkeypatch in the new version
+
+webcommands._filerevision = filerevision_highlight
+webcommands.annotate = annotate_highlight
+webcommands.highlightcss = generate_css
+webcommands.__all__.append('highlightcss')
diff --git a/hgext/highlight.py b/hgext/highlight/highlight.py
rename from hgext/highlight.py
rename to hgext/highlight/highlight.py
--- a/hgext/highlight.py
+++ b/hgext/highlight/highlight.py
@@ -1,27 +1,11 @@
-"""a mercurial extension for syntax highlighting in hgweb
-
-It depends on the pygments syntax highlighting library:
-http://pygments.org/
-
-To enable the extension add this to hgrc:
-
-[extensions]
-hgext.highlight =
-
-There is a single configuration option:
-
-[web]
-pygments_style = <style>
-
-The default is 'colorful'.
-
--- Adam Hupp <adam@hupp.org>
-"""
+# highlight extension implementation file
+#
+# The original module was split in an interface and an implementation
+# file to defer pygments loading and speedup extension setup.
 
 from mercurial import demandimport
 demandimport.ignore.extend(['pkgutil', 'pkg_resources', '__main__',])
 
-from mercurial.hgweb import webcommands, webutil, common
 from mercurial import util
 from mercurial.templatefilters import filters
 
@@ -68,31 +52,3 @@ def pygmentize(field, fctx, style, tmpl)
     oldl = tmpl.cache[field]
     newl = oldl.replace('line|escape', 'line|colorize')
     tmpl.cache[field] = newl
-
-web_filerevision = webcommands._filerevision
-web_annotate = webcommands.annotate
-
-def filerevision_highlight(web, tmpl, fctx):
-    style = web.config('web', 'pygments_style', 'colorful')
-    pygmentize('fileline', fctx, style, tmpl)
-    return web_filerevision(web, tmpl, fctx)
-
-def annotate_highlight(web, req, tmpl):
-    fctx = webutil.filectx(web.repo, req)
-    style = web.config('web', 'pygments_style', 'colorful')
-    pygmentize('annotateline', fctx, style, tmpl)
-    return web_annotate(web, req, tmpl)
-
-def generate_css(web, req, tmpl):
-    pg_style = web.config('web', 'pygments_style', 'colorful')
-    fmter = HtmlFormatter(style = pg_style)
-    req.respond(common.HTTP_OK, 'text/css')
-    return ['/* pygments_style = %s */\n\n' % pg_style, fmter.get_style_defs('')]
-
-
-# monkeypatch in the new version
-
-webcommands._filerevision = filerevision_highlight
-webcommands.annotate = annotate_highlight
-webcommands.highlightcss = generate_css
-webcommands.__all__.append('highlightcss')
diff --git a/setup.py b/setup.py
--- a/setup.py
+++ b/setup.py
@@ -98,7 +98,8 @@ ext_modules=[
     Extension('mercurial.parsers', ['mercurial/parsers.c']),
     ]
 
-packages = ['mercurial', 'mercurial.hgweb', 'hgext', 'hgext.convert']
+packages = ['mercurial', 'mercurial.hgweb', 'hgext', 'hgext.convert', 
+            'hgext.highlight']
 
 try:
     import posix