diff --git a/CHANGES b/CHANGES
index 0c1f667b17..36b9b45ea7 100644
--- a/CHANGES
+++ b/CHANGES
@@ -77,6 +77,7 @@
 	#497: OpenSSL RSA key generation hangs on x86_64
 	#509: Bump sqlite package to 3.6.16
 	#523: pciutils broken with external toolchain
+	#525: sed broken with external toolchain
 	#533: Update gamin to 0.1.10 to fix compilation
 
 2009.05, Released June 1st, 2009:
diff --git a/package/sed/sed.mk b/package/sed/sed.mk
index 9caefed493..07f4b32c62 100644
--- a/package/sed/sed.mk
+++ b/package/sed/sed.mk
@@ -135,7 +135,7 @@ $(SED_DIR2)/.configured: $(SED_DIR2)/.unpacked
 	touch $@
 
 $(SED_DIR2)/$(SED_BINARY): $(SED_DIR2)/.configured
-	$(MAKE) CC=$(TARGET_CC) -C $(SED_DIR2)
+	$(MAKE) -C $(SED_DIR2)
 
 # This stuff is needed to work around GNU make deficiencies
 sed-target_binary: $(SED_DIR2)/$(SED_BINARY)