diff -U4 -r exim-4.67/src/smtp_in.c exim-4.67+fix-localhost-helo/src/smtp_in.c
--- exim-4.67/src/smtp_in.c	2007-04-17 14:06:40.000000000 +0100
+++ exim-4.67+fix-localhost-helo/src/smtp_in.c	2007-06-02 17:29:42.000000000 +0100
@@ -3052,8 +3052,15 @@
       debug_printf("SMTP>> %s", s);
       }
     helo_seen = TRUE;
 
+    if (!Ustrcmp(sender_helo_name, US"[127.0.0.1]"))
+      {
+      DEBUG(D_any) debug_printf("overwriting bogus helo [127.0.0.1] with [%s]\n", sender_host_address);
+      sender_helo_name = string_copy_malloc(string_sprintf("[%s]", sender_host_address));
+      host_build_sender_fullhost();  /* Rebuild */
+      }
+
     /* Reset the protocol and the state, abandoning any previous message. */
 
     received_protocol = (esmtp?
       protocols[pextend +