diff --git a/package.json b/package.json
index 257c89822..a57b9861b 100644
--- a/package.json
+++ b/package.json
@@ -71,6 +71,7 @@
   "devDependencies": {
     "apidoc": "*",
     "bootstrap-sass": "^3.3.3",
+    "deep-extend": "^0.4.1",
     "del": "^1.1.1",
     "expect.js": "*",
     "gulp": "^3.8.11",
diff --git a/src/test/updatechecker-test.js b/src/test/updatechecker-test.js
index 37299f578..d6b212841 100644
--- a/src/test/updatechecker-test.js
+++ b/src/test/updatechecker-test.js
@@ -10,6 +10,7 @@ var appdb = require('../appdb.js'),
     async = require('async'),
     config = require('../config.js'),
     database = require('../database.js'),
+    deepExtend = require('deep-extend'),
     expect = require('expect.js'),
     fs = require('fs'),
     nock = require('nock'),
@@ -17,23 +18,47 @@ var appdb = require('../appdb.js'),
     updatechecker = require('../updatechecker.js'),
     _ = require('underscore');
 
-var RELEASE = {
-    "0.7.0": {
-        "sourceTarballUrl": "https://dev-cloudron-releases.s3.amazonaws.com/box-3314658ce81f328462508e14b6d388acf36ca81c.tar.gz",
-        "imageId": 15436849,
-        "imageName": "box-dev-2c7a52b-2016-01-22-150657",
-        "changelog": [
-        ],
-        "upgrade": true,
-        "date": "2016-01-23T23:53:01.566Z",
-        "author": "Girish Ramakrishnan <girish@cloudron.io>",
-        "next": null
-    }
+var RELEASE_1 = {
+    "sourceTarballUrl": "https://dev-cloudron-releases.s3.amazonaws.com/box-3314658ce81f328462508e14b6d388acf36ca81c.tar.gz",
+    "imageId": 100,
+    "imageName": "box-dev-2c7a52b-2016-01-22-150657",
+    "changelog": [ ],
+    "date": "2016-01-23T23:53:01.566Z",
+    "author": "Girish Ramakrishnan <girish@cloudron.io>",
+    "next": "2.0.0-1"
 };
 
-describe('updatechecker', function () {
+var RELEASE_2_PRERELEASE = {
+    "sourceTarballUrl": "https://dev-cloudron-releases.s3.amazonaws.com/box-3314658ce81f328462508e14b6d388acf36ca81c.tar.gz",
+    "imageId": 2001,
+    "imageName": "box-dev-2c7a52b-2016-01-22-150657",
+    "changelog": [ ],
+    "upgrade": false,
+    "date": "2016-01-23T23:53:01.566Z",
+    "author": "Girish Ramakrishnan <girish@cloudron.io>",
+    "next": "2.0.0"
+};
+
+var RELEASE_2 = {
+    "sourceTarballUrl": "https://dev-cloudron-releases.s3.amazonaws.com/box-3314658ce81f328462508e14b6d388acf36ca81c.tar.gz",
+    "imageId": 200,
+    "imageName": "box-dev-2c7a52b-2016-01-22-150657",
+    "changelog": [ ],
+    "upgrade": false,
+    "date": "2016-01-23T23:53:01.566Z",
+    "author": "Girish Ramakrishnan <girish@cloudron.io>",
+    "next": null
+};
+
+var RELEASES = {
+    "1.0.0": RELEASE_1,
+    "2.0.0-1": RELEASE_2_PRERELEASE,
+    "2.0.0": RELEASE_2
+};
+
+describe('updatechecker - checkBoxUpdates', function () {
     before(function (done) {
-        config.set('version', '0.5.0');
+        config.set('version', '1.0.0');
         config.set('boxVersionsUrl', 'http://localhost:4444/release.json')
         async.series([
             database.initialize,
@@ -45,19 +70,107 @@ describe('updatechecker', function () {
         database._clear(done);
     });
 
-    it('checkBoxUpdates - no updates', function (done) {
+    it('no updates', function (done) {
         nock.cleanAll();
 
+        var releaseCopy = deepExtend({}, RELEASES);
+        releaseCopy['1.0.0'].next = null;
+
         var scope = nock('http://localhost:4444')
             .get('/release.json')
-            .reply(200, RELEASE);
+            .reply(200, releaseCopy);
 
         updatechecker.checkBoxUpdates(function (error) {
             expect(!error).to.be.ok();
+            expect(updatechecker.getUpdateInfo().box).to.be(null);
+            done();
+        });
+    });
 
-            expect(updatechecker.getUpdateInfo().box.version).to.be('0.7.0');
+    it('new version', function (done) {
+        nock.cleanAll();
+
+        var releaseCopy = deepExtend({}, RELEASES);
+        delete releaseCopy['2.0.0-1'];
+        releaseCopy['1.0.0'].next = '2.0.0';
+
+        var scope = nock('http://localhost:4444')
+            .get('/release.json')
+            .reply(200, releaseCopy);
+
+        updatechecker.checkBoxUpdates(function (error) {
+            expect(!error).to.be.ok();
+            expect(updatechecker.getUpdateInfo().box.version).to.be('2.0.0');
+            done();
+        });
+    });
+
+    it('existing version missing offers latest version', function (done) {
+        nock.cleanAll();
+
+        var releaseCopy = deepExtend({}, RELEASES);
+        delete releaseCopy['1.0.0'];
+
+        var scope = nock('http://localhost:4444')
+            .get('/release.json')
+            .reply(200, releaseCopy);
+
+        updatechecker.checkBoxUpdates(function (error) {
+            expect(!error).to.be.ok();
+            expect(updatechecker.getUpdateInfo().box.version).to.be('2.0.0');
+            done();
+        });
+    });
+
+    it('does not offer prerelease', function (done) {
+        nock.cleanAll();
+
+        var releaseCopy = deepExtend({}, RELEASES);
+
+        var scope = nock('http://localhost:4444')
+            .get('/release.json')
+            .reply(200, releaseCopy);
+
+        updatechecker.checkBoxUpdates(function (error) {
+            expect(!error).to.be.ok();
+            expect(updatechecker.getUpdateInfo().box).to.be(null);
+            done();
+        });
+    });
+
+    it('offers prerelease', function (done) {
+        nock.cleanAll();
+
+        settings.setUpdateConfig({ prerelease: true }, function (error) {
+            if (error) return done(error);
+
+            var releaseCopy = deepExtend({}, RELEASES);
+
+            var scope = nock('http://localhost:4444')
+                .get('/release.json')
+                .reply(200, releaseCopy);
+
+            updatechecker.checkBoxUpdates(function (error) {
+                expect(!error).to.be.ok();
+                expect(updatechecker.getUpdateInfo().box.version).to.be('2.0.0-1');
+                done();
+            });
+        });
+    });
+
+    it('bad response offers nothing', function (done) {
+        nock.cleanAll();
+
+        var releaseCopy = _.extend({}, RELEASES);
+
+        var scope = nock('http://localhost:4444')
+            .get('/release.json')
+            .reply(404, releaseCopy);
+
+        updatechecker.checkBoxUpdates(function (error) {
+            expect(error).to.be.ok();
+            expect(updatechecker.getUpdateInfo().box).to.be(null);
             done();
         });
     });
 });
-