diff --git a/admin/admin-post-types.php b/admin/admin-post-types.php
index ace5fac5b1e..ad2bf7212d9 100644
--- a/admin/admin-post-types.php
+++ b/admin/admin-post-types.php
@@ -307,6 +307,8 @@ function woocommerce_products_by_category() {
 		foreach($terms as $term) :
 			if ( isset( $wp_query->query['product_cat'] ) ) :
 				$output .="<option value='$term->slug' ".selected($term->slug, $wp_query->query['product_cat'], false).">$term->name ($term->count)</option>";
+			else :
+				$output .="<option value='$term->slug'>$term->name ($term->count)</option>";
 			endif;
 		endforeach;
 		$output .="</select>";
diff --git a/readme.txt b/readme.txt
index d6707e8c9f8..2570a452c54 100644
--- a/readme.txt
+++ b/readme.txt
@@ -62,6 +62,7 @@ For further documentation on using WooCommerce, please sign up for free at http:
 * Coupons can be applied to variations (by ID)
 * Fixed up/cross-sell removal
 * Fixed image (zoom) URL after variation selection
+* Fixed category filter in admin
 
 = 1.1.1 - 16/10/2011 =
 * Products need a base, regardless of category settings - added base to prevent pages breaking