diff --git a/Smarty.class.php b/Smarty.class.php
index c88b203b..ef5e3540 100644
--- a/Smarty.class.php
+++ b/Smarty.class.php
@@ -710,9 +710,14 @@ class Smarty
 					$expr = "($is_arg % 2)";
 				break;
 
-			case 'mod':
-				$expr_arg = $tokens[$expr_end++];
-				$expr = "!($is_arg % $expr_arg)";
+			case 'div':
+				if ($tokens[$expr_end] == 'by') {
+					$expr_end++;
+					$expr_arg = $tokens[$expr_end++];
+					$expr = "!($is_arg % $expr_arg)";
+				} else {
+					/* TODO syntax error: expecting 'by' */
+				}
 				break;
 
 			default:
diff --git a/demo/templates/index.tpl b/demo/templates/index.tpl
index 0ed2e099..6bfbbc71 100644
--- a/demo/templates/index.tpl
+++ b/demo/templates/index.tpl
@@ -11,9 +11,9 @@ hello, my name is {$Name|upper}
 My interests are:
 {section name=outer loop=$FirstName}
 	{if %outer.index% is odd by 2}
-		. {$outer/FirstName} {$outer/LastName}
+		{%outer.rownum%} . {$outer/FirstName} {$outer/LastName}
 	{else}
-		* {$outer/FirstName} {$outer/LastName}
+		{%outer.rownum%} * {$outer/FirstName} {$outer/LastName}
 	{/if}
 {sectionelse}
 	none
diff --git a/libs/Smarty.class.php b/libs/Smarty.class.php
index c88b203b..ef5e3540 100644
--- a/libs/Smarty.class.php
+++ b/libs/Smarty.class.php
@@ -710,9 +710,14 @@ class Smarty
 					$expr = "($is_arg % 2)";
 				break;
 
-			case 'mod':
-				$expr_arg = $tokens[$expr_end++];
-				$expr = "!($is_arg % $expr_arg)";
+			case 'div':
+				if ($tokens[$expr_end] == 'by') {
+					$expr_end++;
+					$expr_arg = $tokens[$expr_end++];
+					$expr = "!($is_arg % $expr_arg)";
+				} else {
+					/* TODO syntax error: expecting 'by' */
+				}
 				break;
 
 			default:
diff --git a/templates/index.tpl b/templates/index.tpl
index 0ed2e099..6bfbbc71 100644
--- a/templates/index.tpl
+++ b/templates/index.tpl
@@ -11,9 +11,9 @@ hello, my name is {$Name|upper}
 My interests are:
 {section name=outer loop=$FirstName}
 	{if %outer.index% is odd by 2}
-		. {$outer/FirstName} {$outer/LastName}
+		{%outer.rownum%} . {$outer/FirstName} {$outer/LastName}
 	{else}
-		* {$outer/FirstName} {$outer/LastName}
+		{%outer.rownum%} * {$outer/FirstName} {$outer/LastName}
 	{/if}
 {sectionelse}
 	none