diff --git a/IPython/nbconvert/exporters/python.py b/IPython/nbconvert/exporters/python.py
new file mode 100644
index 000000000..b6bae643e
--- /dev/null
+++ b/IPython/nbconvert/exporters/python.py
@@ -0,0 +1,35 @@
+"""
+Python exporter which exports Notebook code into a PY file.
+"""
+#-----------------------------------------------------------------------------
+# Copyright (c) 2013, the IPython Development Team.
+#
+# Distributed under the terms of the Modified BSD License.
+#
+# The full license is in the file COPYING.txt, distributed with this software.
+#-----------------------------------------------------------------------------
+
+#-----------------------------------------------------------------------------
+# Imports
+#-----------------------------------------------------------------------------
+
+from IPython.utils.traitlets import Unicode
+
+from .exporter import Exporter
+
+#-----------------------------------------------------------------------------
+# Classes
+#-----------------------------------------------------------------------------
+
+class PythonExporter(Exporter):
+    """
+    Exports a Python code file.
+    """
+    
+    file_extension = Unicode(
+        'py', config=True, 
+        help="Extension of the file that should be written to disk")
+
+    template_file = Unicode(
+            'python', config=True,
+            help="Name of the template file to use")
diff --git a/IPython/testing/iptest.py b/IPython/testing/iptest.py
index 3a1429474..c2b7bee08 100644
--- a/IPython/testing/iptest.py
+++ b/IPython/testing/iptest.py
@@ -166,6 +166,8 @@ have['jinja2'] = test_for('jinja2')
 have['wx'] = test_for('wx')
 have['wx.aui'] = test_for('wx.aui')
 have['azure'] = test_for('azure')
+have['sphinx'] = test_for('sphinx')
+have['markdown'] = test_for('markdown')
 
 min_zmq = (2,1,11)
 
@@ -305,6 +307,9 @@ def make_exclude():
     if not have['azure']:
         exclusions.append(ipjoin('html', 'services', 'notebooks', 'azurenbmanager'))
 
+    if not all((have['pygments'], have['jinja2'], have['markdown'], have['sphinx'])):
+        exclusions.append(ipjoin('nbconvert'))
+
     # This is needed for the reg-exp to match on win32 in the ipdoctest plugin.
     if sys.platform == 'win32':
         exclusions = [s.replace('\\','\\\\') for s in exclusions]
@@ -440,7 +445,7 @@ def make_runners(inc_slow=False):
 
     # Packages to be tested via nose, that only depend on the stdlib
     nose_pkg_names = ['config', 'core', 'extensions', 'lib', 'terminal',
-                      'testing', 'utils', 'nbformat' ]
+                      'testing', 'utils', 'nbformat']
 
     if have['qt']:
         nose_pkg_names.append('qt')
@@ -454,6 +459,9 @@ def make_runners(inc_slow=False):
         if inc_slow:
             nose_pkg_names.append('parallel')
 
+    if all((have['pygments'], have['jinja2'], have['markdown'], have['sphinx'])):
+        nose_pkg_names.append('nbconvert')
+
     # For debugging this code, only load quick stuff
     #nose_pkg_names = ['core', 'extensions']  # dbg
 
diff --git a/setup.py b/setup.py
index 18c92ad37..8d59fa093 100755
--- a/setup.py
+++ b/setup.py
@@ -278,6 +278,7 @@ if 'setuptools' in sys.modules:
         doc = 'Sphinx>=0.3',
         test = 'nose>=0.10.1',
         notebook = ['tornado>=2.0', 'pyzmq>=2.1.11', 'jinja2'],
+        nbconvert = ['pygments', 'markdown', 'jinja2', 'Sphinx>=0.3']
     )
     requires = setup_args.setdefault('install_requires', [])
     setupext.display_status = False
diff --git a/setupbase.py b/setupbase.py
index fee8dc8ef..84f7c0642 100644
--- a/setupbase.py
+++ b/setupbase.py
@@ -151,6 +151,8 @@ def find_package_data():
         'IPython.testing.plugin' : ['*.txt'],
         'IPython.html' : ['templates/*'] + static_data,
         'IPython.qt.console' : ['resources/icon/*.svg'],
+        'IPython.nbconvert.templates' : ['*.tpl', 'latex/*.tpl',
+            'latex/skeleton/*.tplx', 'skeleton/*']
     }
     return package_data
 
@@ -320,7 +322,7 @@ def find_scripts(entry_points=False, suffix=''):
             'iplogger%s = IPython.parallel.apps.iploggerapp:launch_new_instance',
             'ipcluster%s = IPython.parallel.apps.ipclusterapp:launch_new_instance',
             'iptest%s = IPython.testing.iptest:main',
-            'irunner%s = IPython.lib.irunner:main'
+            'irunner%s = IPython.lib.irunner:main',
         ]]
         gui_scripts = []
         scripts = dict(console_scripts=console_scripts, gui_scripts=gui_scripts)
@@ -352,7 +354,8 @@ def check_for_dependencies():
         print_line, print_raw, print_status,
         check_for_sphinx, check_for_pygments,
         check_for_nose, check_for_pexpect,
-        check_for_pyzmq, check_for_readline
+        check_for_pyzmq, check_for_readline,
+        check_for_jinja2, check_for_markdown
     )
     print_line()
     print_raw("BUILDING IPYTHON")
@@ -370,6 +373,8 @@ def check_for_dependencies():
     check_for_pexpect()
     check_for_pyzmq()
     check_for_readline()
+    check_for_jinja2()
+    check_for_markdown()
 
 #---------------------------------------------------------------------------
 # VCS related