diff --git a/compatMakefile b/compatMakefile
index 67ed8a51..43c25d5e 100644
--- a/compatMakefile
+++ b/compatMakefile
@@ -19,8 +19,9 @@
 #	Makefile for GNU Make
 #
 
-srcdir = @srcdir@
-VPATH = $(srcdir)
+# Ultrix 2.2 make doesn't expand the value of VPATH.
+VPATH = @srcdir@
+srcdir = $(VPATH)
 
 CC = @CC@