diff --git a/lib/unitmanagement/Unit.inc b/lib/unitmanagement/Unit.inc
index e33fbef..43a7d03 100644
--- a/lib/unitmanagement/Unit.inc
+++ b/lib/unitmanagement/Unit.inc
@@ -30,12 +30,14 @@ class Unit extends KTEntity {
     var $iId;
     /** unit's name */
     var $sName;
+	/** folder's id */
+	var $iFolderID;
 
-
-    function Unit($sNewName) {
+    function Unit($sNewName, $iNewFolderID=1) {
         //object has not been created in database yet
         $this->iId = -1;
         $this->sName = $sNewName;
+		$this->iFolderID = $iNewFolderID;
     }
 
     /**
@@ -93,7 +95,7 @@ class Unit extends KTEntity {
 
         // create a new unit root folder
         // FIXME: lookup the organisation for this unit and use the appropriate folder id for the org root folder
-        $oFolder = new Folder($this->sName, $this->sName . " Unit Root Folder", 1, $_SESSION["userID"], $this->iId);
+        $oFolder = new Folder($this->sName, $this->sName . " Unit Root Folder", $this->iFolderID, $_SESSION["userID"], $this->iId);
         if (!$oFolder->exists()) {
             if ($oFolder->create()) {
                 if (PhysicalFolderManagement::createFolder(Folder::getFolderPath($oFolder->getID()))) {
diff --git a/presentation/lookAndFeel/knowledgeTree/administration/unitmanagement/addUnitBL.php b/presentation/lookAndFeel/knowledgeTree/administration/unitmanagement/addUnitBL.php
index 6df534d..847db5d 100644
--- a/presentation/lookAndFeel/knowledgeTree/administration/unitmanagement/addUnitBL.php
+++ b/presentation/lookAndFeel/knowledgeTree/administration/unitmanagement/addUnitBL.php
@@ -46,15 +46,17 @@ if (checkSession()) {
 	require_once("$default->fileSystemRoot/presentation/webpageTemplate.inc");
     $oPatternCustom = & new PatternCustom();
 
-    if (isset($fForStore)) {
-        if($fUnitName != "" and $fOrgID != "") {
+	if (isset($fFolderID)) {
+
+		if (isset($fForStore)) {
+			if($fUnitName != "" and $fOrgID != "" and $fFolderID != "") {
         	// #2944 a folder will be created for this unit, so check if there is already a folder with the name
         	// of the unit before creating the unit
-        	$oFolder = new Folder($fUnitName, $fUnitName . " " . _("Unit Root Folder"), 1, $_SESSION["userID"], 0);
+        	$oFolder = new Folder($fUnitName, $fUnitName . " " . _("Unit Root Folder"), $fFolderID, $_SESSION["userID"], 0);
 			if (!$oFolder->exists()) {
                     	
-	            $oUnit = new Unit($fUnitName);
-	
+				$oUnit = new Unit($fUnitName, $fFolderID);
+
 	            // if creation is successfull..get the unit id
 	            if ($oUnit->create()) {
 	                $unitID = $oUnit->getID();
@@ -82,11 +84,13 @@ if (checkSession()) {
     } else {
 		// display add unit page
         $oPatternCustom->setHtml(getAddPage());
+        $oPatternCustom->addHtml(renderBrowsePage($fFolderID));
         $main->setHasRequiredFields(true);
-        $main->setFormAction($_SERVER["PHP_SELF"]. "?fForStore=1");
+        $main->setFormAction($_SERVER["PHP_SELF"]. "?fForStore=1&fFolderID=$fFolderID");
 
     }
     $main->setCentralPayload($oPatternCustom);
     $main->render();
+	}
 }
 ?>
diff --git a/presentation/lookAndFeel/knowledgeTree/administration/unitmanagement/addUnitUI.inc b/presentation/lookAndFeel/knowledgeTree/administration/unitmanagement/addUnitUI.inc
index 6ba2902..7890af7 100644
--- a/presentation/lookAndFeel/knowledgeTree/administration/unitmanagement/addUnitUI.inc
+++ b/presentation/lookAndFeel/knowledgeTree/administration/unitmanagement/addUnitUI.inc
@@ -86,7 +86,7 @@ function getAddPageFail($sMessage) {
 	$sToRender .= "<tr></tr>\n";
 	$sToRender .= "<tr></tr>\n";
 	$sToRender .= "<tr>\n";
-	$sToRender .= "<td></td><td align = right><a href=\"$default->rootUrl/control.php?action=addUnit\"><img src =\"" . KTHtml::getBackButton() . "\" border = \"0\" /></a></td>\n";
+	$sToRender .= "<td></td><td align = right><a href=\"$default->rootUrl/control.php?action=addUnit&fFolderID=1\"><img src =\"" . KTHtml::getBackButton() . "\" border = \"0\" /></a></td>\n";
 	$sToRender .= "</tr>\n";
 	$sToRender .= "</table>\n";
 	
@@ -144,4 +144,23 @@ function getOrgDisplay() {
 //	$oPatternListBox = & new PatternListBox($default->organisations_table, "name", "id", "fOrgID");
 //	return $oPatternListBox->render();
 }
+
+
+function renderBrowsePage($fFolderID) {
+    global $default;
+    $sToRender = "<table border=\"0\">\n";
+    $sToRender .= "<tr>\n";
+    $sToRender .= "\t<td>" . renderFolderPath($fFolderID, generateControllerUrl("addUnit", "", false)) . "</td>\n";
+    $sToRender .= "</tr>\n";
+    $sToRender .= "</table>\n";
+    $sToRender .= "<table border=\"0\">\n";
+    $sToRender .= "<tr>\n";
+    $sToRender .= "\t<td>" . renderFolderList($fFolderID, generateControllerUrl("addUnit", "", false)) . "<td>\n";
+
+    $sToRender .= "</tr>\n";
+    $sToRender .= "</table><br>\n";
+
+    return $sToRender;
+}
+
 ?>
diff --git a/presentation/lookAndFeel/knowledgeTree/administration/unitmanagement/listUnitsUI.inc b/presentation/lookAndFeel/knowledgeTree/administration/unitmanagement/listUnitsUI.inc
index 7e92c52..5c36097 100644
--- a/presentation/lookAndFeel/knowledgeTree/administration/unitmanagement/listUnitsUI.inc
+++ b/presentation/lookAndFeel/knowledgeTree/administration/unitmanagement/listUnitsUI.inc
@@ -69,7 +69,8 @@ function getPage($iOrganisationID) {
 	global $default;
 	$sToRender .= renderHeading(_("Unit Management"));
 
-	$sToRender .= getAddLink("addUnit", _("Add A Unit"));
+	$sToRender .= getAddLink("addUnit&fFolderID=1", _("Add A Unit"));
+
 	//$sToRender .= getOrganisationDisplay($iOrganisationID);
 	$sToRender .= getUnits($iOrganisationID);
 	return $sToRender;