diff --git a/README.md b/README.md
index 8978538..7107068 100644
--- a/README.md
+++ b/README.md
@@ -67,14 +67,14 @@ must add the appropriate directory to the `Additional SDKs` setting:
 
 You also need to add the following linker options to the `Other Linker Flags` setting:
 
-| Distribution  | Language    | Required                            | Ice Plugins                                                                                               | Optional Services                                                            |
-| ------------  | ----------- | ----------------------------------- | ----------------------------------------------------------------------------------------------------------| ---------------------------------------------------------------------------- |
-| Ice Touch 1.3 | Objective-C | `-ObjC`<br>`-lIceObjC-libc++`<br>`-lc++`  |                                                                                                           | `-lGlacier2ObjC-libc++`<br>`-lIceStormObjC-libc++`<br>`-lIceGridObjC-libc++` |
-| Ice Touch 1.3 | C++         | `-lIce-libc++`                      |                                                                                                           | `-lGlacier2-libc++`<br>`-lIceGrid-libc++`<br>`-lIceStorm-libc++`             |
-| Ice Touch 3.6 | Objective-C | `-ObjC`<br>`-lIceObjC`<br>`-lc++`         |                                                                                                           | `-lGlacier2ObjC`<br>`-lIceStormObjC`<br>`-lIceGridObjC`                      |
-| Ice Touch 3.6 | C++         | `-lIce`                             |                                                                                                           | `-lGlacier2`<br>`-lIceGrid`<br>`-lIceStorm`                                  |
-| Ice 3.7       | Objective-C | `-ObjC`<br>`-lIce`<br>`-lIceObjC`<br>`-lc++` | `-lIceDiscovery`<br> `-lIceIAP` `-lIceIAPObjC`<br>  `-lIceLocatorDiscovery`<br> `-lIceSSL` `-lIceSSLObjC` | `-lGlacier2ObjC`<br>`-lIceGridObjC`<br> `-lIceStormObjC`                     |
-| Ice 3.7       | C++         | `-lIce`                             | `-lIceDiscovery`<br> `-lIceIAP`<br> `-lIceLocatorDiscovery`<br> `-lIceSSL`                                | `-lGlacier2`<br>`-lIceGrid`<br> `-lIceStorm`                                 |
+| Distribution  | Language    | Required                                     | Ice Plugins                                                                                                | Optional Services                                                            |
+| ------------  | ----------- | -----------------------------------          | ---------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------- |
+| Ice Touch 1.3 | Objective-C | `-ObjC`<br>`-lIceObjC-libc++`<br>`-lc++`     |                                                                                                            | `-lGlacier2ObjC-libc++`<br>`-lIceStormObjC-libc++`<br>`-lIceGridObjC-libc++` |
+| Ice Touch 1.3 | C++         | `-lIce-libc++`                               |                                                                                                            | `-lGlacier2-libc++`<br>`-lIceGrid-libc++`<br>`-lIceStorm-libc++`             |
+| Ice Touch 3.6 | Objective-C | `-ObjC`<br>`-lIceObjC`<br>`-lc++`            |                                                                                                            | `-lGlacier2ObjC`<br>`-lIceStormObjC`<br>`-lIceGridObjC`                      |
+| Ice Touch 3.6 | C++         | `-lIce`                                      |                                                                                                            | `-lGlacier2`<br>`-lIceGrid`<br>`-lIceStorm`                                  |
+| Ice 3.7       | Objective-C | `-ObjC`<br>`-lIce`<br>`-lIceObjC`<br>`-lc++` | `-lIceDiscovery`<br> `-lIceIAP` `-lIceIAPObjC`<br>  `-lIceLocatorDiscovery`<br> `-lIceSSL` `-lIceSSLObjC`  | `-lGlacier2ObjC`<br>`-lIceGridObjC`<br> `-lIceStormObjC`                     |
+| Ice 3.7       | C++         | `-lIce`                                      | `-lIceDiscovery`<br> `-lIceIAP`<br> `-lIceLocatorDiscovery`<br> `-lIceSSL`                                 | `-lGlacier2`<br>`-lIceGrid`<br> `-lIceStorm`                                 |
 
 With Ice 3.7 (iOS and OS X) or Ice Touch (OS X only), you also need to add `-lbz2` and `-liconv`.
 
@@ -95,6 +95,9 @@ To force your Slice files to be re-compiled you need to clean (⇧⌘K) your pro
 The builder automatically includes the Ice Slice files directory included with the Ice or Ice Touch SDK as well as the
 directory of the Slice file being compiled.
 
+The output directory passed to the slice compiler is determined by comparing the paths of the given `Output files`.
+Exactly two files must be set and both files must share the same base directory path.
+
 [1]: https://github.com/zeroc-ice/ice-builder-xcode/tree/xcode7-plugin
 [2]: https://doc.zeroc.com/display/Ice/slice2cpp+Command-Line+Options
 [3]: https://doc.zeroc.com/display/Ice/slice2objc+Command-Line+Options
diff --git a/icebuilder b/icebuilder
index de814ba..99d1c6d 100755
--- a/icebuilder
+++ b/icebuilder
@@ -6,7 +6,7 @@
 # **********************************************************************
 set -eo pipefail
 
-readonly ICE_BUILDER_XCODE_VERSION=3.0.0
+readonly ICE_BUILDER_XCODE_VERSION=3.0.1
 
 calledFromXcode() {
     if [[ -z $XCODE_PRODUCT_BUILD_VERSION || -z $DERIVED_FILE_DIR || -z $INPUT_FILE_PATH ]]; then
@@ -18,22 +18,52 @@ calledFromXcode() {
 # Run slice sliceCompiler. We always include Ice slice file directory as well as the INPUT_FILE_DIR.
 compileSliceFile() {
     logDebug "Compiling slice file: $INPUT_FILE_NAME"
-    set -x
+    set -x # print the executed slice compiler command
     $sliceCompiler -I"$INPUT_FILE_DIR" \
                    -I"$sliceDir" \
-                   --output-dir "$DERIVED_FILE_DIR" \
+                   --output-dir "$outputDir" \
                    "${sliceCompilerArguments[@]}" \
                    "$INPUT_FILE_PATH"
 }
 
+# Output directory is detected by comparing the SCRIPT_OUTPUT_FILE_{0,1} variables.
+# These are expected to the be the destination of the slice compiler generated header
+# and source files. Both files must share the same base directory, as this is how we
+# determine the output directory to pass to the slice compiler.
+setOutputDir() {
+    if [ "$SCRIPT_OUTPUT_FILE_COUNT" -ne 2 ]; then
+        echo "Please specify a header and source output file."
+        return 1
+    fi
+
+    local -r outputFile0=${SCRIPT_OUTPUT_FILE_0}
+    logDebug "Output file 0: $outputFile0"
+    local -r outputFile1=${SCRIPT_OUTPUT_FILE_1}
+    logDebug "Output file 1: $outputFile1"
+
+    local -r outputFileDir0=$(dirname "$outputFile0")
+    local -r outputFileDir1=$(dirname "$outputFile1")
+
+    if [ "$outputFileDir0" != "$outputFileDir1" ]; then
+        echo "Output files must be in the same directory."
+        return 1
+    fi
+
+    outputDir="$outputFileDir0"
+}
+
 main() {
     if ! calledFromXcode; then
         logError "Ice Builder for Xcode must be executed from an Xcode environment."
         exit 0
     fi
 
+    if ! setOutputDir; then
+        exit 1
+    fi
+
     if ! findIceSDK; then
-        logError "Unable to find an Ice SDK. An Ice SDK must be added to the list of 'Additional SDKs'."
+        logError "Unable to find an Ice or Ice Touch SDK. An Ice or Ice Touch SDK must be added to the list of 'Additional SDKs'."
         exit 1
     fi
 
@@ -104,7 +134,7 @@ versionGt() {
 }
 
 #
-# Procress arguments and run slice compiler
+# Process arguments and run slice compiler
 #
 logDebug "Ice Builder for Xcode version: $ICE_BUILDER_XCODE_VERSION"