diff --git a/core/src/main/groovy/com/muwire/core/connection/ConnectionEstablisher.groovy b/core/src/main/groovy/com/muwire/core/connection/ConnectionEstablisher.groovy
index d48cf891..648a5fa7 100644
--- a/core/src/main/groovy/com/muwire/core/connection/ConnectionEstablisher.groovy
+++ b/core/src/main/groovy/com/muwire/core/connection/ConnectionEstablisher.groovy
@@ -3,14 +3,19 @@ package com.muwire.core.connection
 import java.util.concurrent.ExecutorService
 import java.util.concurrent.Executors
 import java.util.concurrent.ThreadFactory
+import java.util.zip.DeflaterInputStream
+import java.util.zip.DeflaterOutputStream
+import java.util.zip.InflaterInputStream
 
 import com.muwire.core.EventBus
 import com.muwire.core.MuWireSettings
 import com.muwire.core.hostcache.HostCache
 
+import groovy.util.logging.Log
 import net.i2p.data.Destination
 import net.i2p.util.ConcurrentHashSet
 
+@Log
 class ConnectionEstablisher {
 	
 	private static final int CONCURRENT = 4
@@ -74,6 +79,71 @@ class ConnectionEstablisher {
 	}
 	
 	private void connect(Destination toTry) {
-		// TODO: implement
+		log.info("starting connect to ${toTry.toBase32()}")
+		try {
+			def endpoint = i2pConnector.connect(toTry)
+			log.info("successful transport connect to ${toTry.toBase32()}")
+			
+			// outgoing handshake
+			endpoint.outputStream.write("MuWire ".bytes)
+			def type = settings.isLeaf() ? "leaf" : "peer"
+			endpoint.outputStream.write(type.bytes)
+			endpoint.outputStream.flush()
+			
+			InputStream is = endpoint.inputStream
+			int read = is.read()
+			if (read == -1) {
+				fail endpoint
+				return
+			}
+			switch(read) {
+				case 'O': readK(endpoint); break
+				case 'R': readEJECT(endpoint); break
+				default :
+					log.warning("unknown response $read")
+					fail endpoint
+			}
+		} catch (Exception e) {
+			log.warning("Couldn't connect to ${toTry.toBase32()}", e)
+			def endpoint = new Endpoint(toTry, null, null)
+			fail(endpoint)
+		} finally {
+			inProgress.remove(toTry)
+		}
+	}
+	
+	private void fail(Endpoint endpoint) {
+		endpoint.close()
+		eventBus.publish(new ConnectionEvent(endpoint: endpoint, incoming: false, status: ConnectionAttemptStatus.FAILED))
+	}
+	
+	private void readK(Endpoint e) {
+		int read = e.inputStream.read()
+		if (read != 'K') {
+			log.warning("unknown response after O: $read")
+			fail e
+			return
+		}
+		
+		// wrap into deflater / inflater streams and publish
+		def wrapped = new Endpoint(e.destination, new InflaterInputStream(e.inputStream), new DeflaterOutputStream(e.outputStream))
+		eventBus.publish(new ConnectionEvent(endpoint: wrapped, incoming: false, status: ConnectionAttemptStatus.SUCCESSFUL))
+	}
+	
+	private void readEJECT(Endpoint e) {
+		byte[] eject = "EJECT".bytes
+		for (int i = 0; i < eject.length; i++) {
+			int read = e.inputStream.read()
+			if (read != eject[i]) {
+				log.warning("Unknown response after R at position $i")
+				fail e
+				return
+			}
+		}
+		
+		// can publish the rejected event now
+		eventBus.publish(new ConnectionEvent(endpoint: e, incoming: false, status: ConnectionAttemptStatus.REJECTED))
+		
+		// TODO: read the json for suggested peers if present
 	}
 }
diff --git a/core/src/main/groovy/com/muwire/core/connection/Endpoint.groovy b/core/src/main/groovy/com/muwire/core/connection/Endpoint.groovy
index 24eaa8c5..9b841b1b 100644
--- a/core/src/main/groovy/com/muwire/core/connection/Endpoint.groovy
+++ b/core/src/main/groovy/com/muwire/core/connection/Endpoint.groovy
@@ -1,15 +1,35 @@
 package com.muwire.core.connection
 
+import java.util.concurrent.atomic.AtomicBoolean
+
+import groovy.util.logging.Log
 import net.i2p.data.Destination
 
-class Endpoint {
+@Log
+class Endpoint implements Closeable {
 	final Destination destination
 	final InputStream inputStream
 	final OutputStream outputStream
 	
+	private final AtomicBoolean closed = new AtomicBoolean()
+	
 	Endpoint(Destination destination, InputStream inputStream, OutputStream outputStream) {
 		this.destination = destination
 		this.inputStream = inputStream
 		this.outputStream = outputStream
 	}
+	
+	@Override
+	public void close() {
+		if (!closed.compareAndSet(false, true)) {
+			log.warning("Close loop detected for ${destination.toBase32()}", new Exception())
+			return
+		}
+		if (inputStream != null) {
+			try {inputStream.close()} catch (Exception ignore) {}
+		}
+		if (outputStream != null) {
+			try {outputStream.close()} catch (Exception ignore) {}
+		}
+	}
 }